Q2 2024 Marine Products Corp Earnings Call Transcript
Key Points
- Field inventory declined over 15% in the second quarter, indicating effective inventory management.
- Marine Products Corp (MPX) remains debt-free and has accumulated significant cash reserves, ensuring ample liquidity.
- The company has returned substantial cash to investors through regular and special dividends.
- Marine Products Corp (MPX) is proactive in managing costs and production schedules during the soft period.
- The company is launching new models and incremental improvements for the 2025 model year, reflecting ongoing R&D and innovation.
- Sales were down 40% compared to the second quarter of 2023, driven by a 41% decrease in boats sold.
- Gross profit decreased 54%, with a gross profit margin down 580 basis points versus last year's results.
- Diluted EPS dropped to $0.14 from $0.42 last year, indicating a significant decline in profitability.
- The company is impacted by under-absorption of certain fixed costs despite cost reduction efforts.
- High dealer inventories and elevated financing costs continue to hamper financial results and demand.
(Operator Instructions). I would like to advise everyone that this conference call is being recorded. I will now turn the call over to Mr. Schmit.
Thank you, and good morning. Before we begin, I want to remind you that some of the statements that will be made on this call could be forward-looking in nature and reflect a number of known and unknown risks. Please refer to our press release issued today along with our 2023 10-K and other public filings that outline those risks, all of which can be found at marineproductscorp.com.
In today's earnings release and conference call, we'll be referring to several non-GAAP measures of operating performance and liquidity. We believe these non-GAAP measures allow us to compare performance consistently over various periods. Our press release issued today and our website contain reconciliations to these non-GAAP measures to the most directly comparable GAAP measures.
I will now turn the call over to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
