Financial Data and Key Metrics Changes - First quarter sales decreased by 15% year-over-year to $59 million, driven by a 19% decrease in the number of boats sold, although price and mix contributed positively by 4% [15][6] - Gross profit fell to $11 million, with a gross profit margin of 18.6%, down 60 basis points due to lower volumes and reduced fixed cost absorption [16] - EBITDA decreased to $3.4 million from $5.9 million, while diluted EPS was $0.06, down from $0.13 in the previous year [18][19] - Strong operating cash flow of $10.8 million and free cash flow of $10.7 million were generated, with cash at the end of the quarter amounting to $57 million and no debt [19][20] Business Line Data and Key Metrics Changes - The company reported a 15% decline in sales, with a notable 19% decrease in the number of boats sold, indicating challenges in the marine products sector [15][6] - The company is focused on managing costs and production levels tightly to maximize cash flow and prepare for improved demand in the future [8][9] Market Data and Key Metrics Changes - Channel inventories were reported down 18% compared to the same quarter last year, indicating progress in managing inventory levels [9] - The marine industry is facing challenges with elevated levels of channel inventory and an unclear interest rate environment, impacting overall market conditions [7][10] Company Strategy and Development Direction - The company remains cautiously optimistic about reaching a sales growth trajectory in the second half of 2025, despite ongoing challenges [6][7] - There is a focus on innovation and new designs across the Chaparral and Revolo brands, with plans for model year 2026 rollout [13][14] - The company is actively seeking acquisitions to expand its business and has sufficient liquidity to pursue opportunities [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging and uncertain environment, including tariff impacts and interest rate fluctuations, which could affect future performance [7][12] - The company is maintaining an open dialogue with government representatives regarding potential tariff impacts on input costs [11][12] Other Important Information - The company filed an S-3 registration statement with the SEC for the Rollins Family Control Group shares, which is viewed as good corporate housekeeping [20] - Recent board changes include the election of Steve Lewis and the retirement of Gary Rollins and Pam Rollins, reflecting ongoing governance adjustments [24] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a formal Q&A session [25][28]

Marine Products (MPX) Q1 2025 Earnings Call April 24, 2025 08:00 AM ET Company Participants Michael Schmit - CFO, VP & Corporate SecretaryBen Palmer - President & CEO Operator Good morning, and thank you for joining us for the Marine Products Corporation's First Quarter twenty twenty five Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO and Mike Schmidt, Chief Financial Officer. At this time, all participants are in a listen only mode. Following the presentation, we wil ...

Page 1 First Quarter 2025 Earnings Press Release Exhibit 99.1 Marine Products Corporation Reports First Quarter Financial Results And Declares Regular Quarterly Dividend ATLANTA, April 24, 2025 – Marine Products Corporation (NYSE: MPX) (the "Company"), a leading manufacturer of fiberglass boats, announced its unaudited results for the first quarter ended March 31, 2025. * Non-GAAP measures, including EBITDA, EBITDA margin, and free cash flow are reconciled to the most comparable GAAP measures in the appendi ...

Core Viewpoint - Marine Products Corporation reported a challenging first quarter in 2025, with a 15% decline in net sales year-over-year, primarily due to lower boat sales and cautious dealer ordering behavior [3][4][7]. Financial Results - Net sales for 1Q:25 were $59.0 million, down 15% from $69.3 million in 1Q:24, attributed to a 19% decrease in the number of boats sold, partially offset by a 4% price/mix increase [4][7]. - Gross profit decreased to $11.0 million, down 22%, with a gross margin of 18.6%, reflecting a decline of 160 basis points year-over-year [5][7]. - Net income was $2.2 million, a 52% decrease from $4.6 million in 1Q:24, resulting in a diluted EPS of $0.06, down from $0.13 [7][8]. Operational Insights - The company experienced a significant reduction in sales decline compared to over 30% in 2024, indicating a potential easing of market pressures [4]. - Field inventories were approximately 18% lower than in 1Q:24, suggesting improved inventory management [4]. Management Commentary - The CEO highlighted ongoing challenges in the marine industry, including economic uncertainty and potential cost increases due to tariffs, which may affect consumer spending and pricing strategies [3][7]. - The company plans to adopt a conservative approach to inventory management and product rollouts while continuing to innovate [3][7]. Cash Flow and Capital Allocation - Cash and cash equivalents at the end of 1Q:25 were $57.1 million, with no debt, and the company generated strong operating cash flow of $10.8 million [10][20]. - The company declared a quarterly dividend of $0.14 per share, totaling $4.9 million in dividend payments for the quarter [11][20]. Industry Context - The marine industry continues to face demand softness, with macroeconomic uncertainties impacting visibility and consumer confidence [7][8].

Financial Results Announcement - Marine Products Corporation will release its financial results for the first quarter ended March 31, 2025 on April 24, 2025 before the market opens [1] - A conference call to review the financial and operating results will be held on April 24, 2025 at 8:00 a.m. Eastern Time [1] Conference Call Participation - Individuals can participate in the conference call by dialing toll-free (888) 660-6357 or (929) 201-6127 for international callers, using conference ID number 9979064 [2] - The call will also be broadcast and archived for 90 days on the Company's investor website for those unable to join by telephone [2] Company Overview - Marine Products Corporation is a leading manufacturer of high-quality fiberglass boats under the brands Chaparral and Robalo [3] - The product offerings include various models such as SSi Sportboats, SSX Luxury Sportboats, and Robalo's outboard sport fishing models [3] - The Company aims to diversify its product lines through innovation and has a solid capital structure and strong dealer network to enhance market share and financial performance [3]

Sales and Market Performance - Marine Products operates a dealer network of approximately 202 domestic dealers and 88 international dealers, with international sales representing 5.6% of total net sales in 2024[29]. - The sales order backlog as of December 31, 2024, was 655 boats with estimated net sales of approximately $53.4 million, down from 1,243 boats and $92.3 million in 2023[34]. - The company has experienced a slowdown in boat demand due to rising interest rates and economic uncertainty, leading to excess dealer inventory impacting sales in 2024[33]. - The recreational marine market in the U.S. is mature, with sales of new and used boats correlated with economic cycles, showing significant demand fluctuations post-COVID-19[43][44]. - Beginning in mid-2023, industry demand began to moderate, leading to excess inventory levels and reduced dealer order flow, impacting production and gross profit margins[45][48]. - The strong retail demand for new recreational boats that began in 2020 has subsided and normalized, with higher selling prices and rising interest rates curbing consumer demand[129]. - International dealer net sales were approximately $13.3 million in 2024, a decline of 40.0% from $22.5 million in 2023[210]. Financial Performance - Consolidated net sales decreased 38.4% to $236.6 million in 2024, primarily due to a 40% decrease in unit sales to dealers, partially offset by a positive price/mix of 2%[128]. - Gross profit decreased to $45.5 million in 2024, down from $90.4 million in 2023[128]. - Operating income decreased to $18.3 million in 2024, compared to $49.2 million in the prior year[128]. - Net income decreased to $17.9 million in 2024, down from $41.7 million in the prior year[128]. - Diluted earnings per share was $0.50 for 2024, down from $1.21 for 2023[128]. - EBITDA was $21.1 million in 2024 compared to $51.6 million in 2023, with an EBITDA margin of 8.9% in 2024 compared to 13.5% in 2023[143]. - Free cash flow decreased to $24.9 million in 2024 from $46.7 million in 2023, primarily due to lower net income[143]. - Cash and cash equivalents were $52.4 million at December 31, 2024, down from $72.0 million at December 31, 2023[149]. - The effective tax rate decreased to 15.6% in 2024 from 19.9% in 2023, primarily due to favorable adjustments and increased tax credits[141]. - Total assets decreased to $171,247,000 in 2024 from $193,802,000 in 2023, reflecting a reduction of 11.6%[197]. - Total stockholders' equity fell to $129,003,000 in 2024, down 15.0% from $151,588,000 in 2023[197]. - The company reported a basic earnings per share of $0.50 for 2024, down from $1.21 in 2023, representing a decrease of 58.7%[200]. - Cash and cash equivalents decreased to $52,379,000 in 2024 from $71,952,000 in 2023, a decline of 27.2%[197]. Cost and Expenses - Cost of goods sold decreased by 34.9% in 2024 compared to 2023, but as a percentage of net sales, it increased to 80.8% in 2024 from 76.4% in 2023 due to lower sales volumes[137]. - Selling, general and administrative expenses decreased by $15.8 million, or 36.6%, in 2024 compared to 2023, representing 11.6% of net sales in 2024[138]. - Capital expenditures for 2024 were $4.596 million, significantly lower than $10.174 million in 2023, indicating a reduction of 54.7%[207]. - Stock-based compensation expense rose to $4.228 million in 2024, compared to $3.711 million in 2023, an increase of 13.9%[207]. Production and Operations - Approximately 69% of domestic shipments are made through floor plan financing programs, with a total aggregate repurchase obligation of approximately $25.0 million as of December 31, 2024[35][36]. - The company has entered into a three-year floor plan financing agreement with a single third-party lender, set to begin in Q1 2025, to replace existing agreements[39]. - The manufacturing process is labor-intensive and largely manual, with a focus on craftsmanship and a skilled workforce[24]. - The company monitors dealer inventory levels to inform production scheduling, adjusting as necessary to manage dealer inventory levels[33]. - The company has adjusted production levels to align with expected demand, resulting in reduced fixed cost absorption and negatively impacting profit margins[129]. Market Conditions and Competition - The top five sterndrive model manufacturers, including Marine Products' Chaparral brand, hold a combined market share of approximately 85%, with Chaparral being the second largest at about 23%[52]. - Robalo, part of Marine Products, ranks fourth in the outboard market with a market share of 4.3%, and when combined with Chaparral outboards, the company holds approximately 6% in this category[52]. - Marine Products faces intense competition in the recreational boat industry, affecting its sales and profitability[81]. - Higher interest rates and fuel prices adversely affect consumers' decisions regarding recreational boating purchases[76]. - Economic conditions and consumer confidence levels significantly affect Marine Products' sales, particularly during recessions[74]. Strategic Initiatives - The company plans to execute strategic investments, including potential M&A, to enhance product offerings and improve profitability and cash flow[54]. - Marine Products aims to maintain a flexible cost structure to quickly respond to changing demand, supporting dealers with competitive promotional programs[58]. - The company intends to pursue acquisitions to expand its customer base and capabilities, but integration risks exist[84]. Inventory and Financing - The company relies on third-party dealer floor plan lenders for financing, which is critical for sales to independent dealers[75]. - The financial health of independent dealers is crucial, as defaults may require Marine Products to repurchase inventory[78]. - The Company had no material repurchases of dealer inventory in 2024 and 2023, indicating stable inventory management[158]. - As of December 31, 2024, the Company had an aggregate maximum repurchase obligation of approximately $25.0 million with various lenders[166]. Warranty and Compliance - Marine Products offers a lifetime limited structural hull warranty and a one-year limited warranty to the original owner for its Chaparral and Robalo products[25]. - Warranty expense as a percentage of net sales remained consistent at 1.5% for 2024, 2023, and 2022, reflecting stable warranty management[171]. - Compliance with EPA regulations has increased manufacturing costs, potentially affecting net sales as consumers may opt for smaller or less expensive boats[61]. Corporate Governance and Stock Information - Approximately 70% of Marine Products' outstanding shares are held by executive officers, directors, and their affiliates, which may limit stock availability to the investing public[99]. - The company has a stock buyback program that authorized the repurchase of 8,250,000 shares, with 1,570,428 shares remaining available for repurchase as of December 31, 2024[121]. - Marine Products' common stock is listed on the NYSE under the symbol "MPX," with 34,961,460 shares outstanding as of February 14, 2025[120]. - The Company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's assessment[181].

Financial Performance - Net sales for Q4 2024 decreased by 33% year-over-year to $47.8 million, with a 39% decrease in the number of boats sold, partially offset by a positive price/mix of 6%[6][8] - Net income for Q4 2024 was $4.3 million, down 21% year-over-year, with diluted EPS at $0.12; net income margin increased by 120 basis points to 8.9% due to favorable tax items[6][11] - EBITDA for Q4 2024 was $4.4 million, down 32% year-over-year, maintaining an EBITDA margin of 9.2%[6][12] - Full year 2024 net sales decreased by 38% year-over-year to $236.6 million, with net income at $17.9 million and diluted EPS at $0.50[6][8] - Net income for the year ended December 31, 2024, was $17,853,000, down 57.2% from $41,695,000 in 2023[24] - Net sales for the year ended December 31, 2024, were $236,555,000, a decrease of 38.4% compared to $383,729,000 in 2023[28] - EBITDA for the year ended December 31, 2024, was $21,052,000, down 59.3% from $51,618,000 in 2023[28] Cash and Assets - The company ended 2024 with approximately $52.4 million in cash and no debt, supporting regular quarterly dividends and a significant mid-year special dividend[6][13] - Cash and cash equivalents at the end of the period were $52,379,000, down from $71,952,000 at the beginning of the period, a decrease of 27.2%[24] - Total assets decreased to $171,247,000 in Q4 2024 from $193,802,000 in Q4 2023, a decline of approximately 11.6%[23] - Total stockholders' equity decreased to $129,003,000 in Q4 2024 from $151,588,000 in Q4 2023, a decline of approximately 15.0%[23] - Net cash provided by operating activities decreased to $29,526,000 in 2024 from $56,846,000 in 2023, a decline of 48.0%[24] - Free cash flow for the year ended December 31, 2024, was $24,930,000, down 46.5% from $46,672,000 in 2023[31] Expenses and Dividends - Selling, general and administrative expenses for Q4 2024 were $5.6 million, down 28% year-over-year, representing 11.6% of net sales[6][10] - A regular quarterly dividend of $0.14 per share has been declared, payable on March 10, 2025[6][15] Future Outlook - The company expects year-over-year sales comparisons to be generally flat in the near-term, with potential for growth in the second half of 2025[7][18] - Management remains cautious with hiring and production increases until there are definitive signals for improved demand[7][18] Margins - The net income margin for Q4 2024 was 8.9%, compared to 7.7% in Q4 2023[28] - The EBITDA margin for Q4 2024 remained stable at 9.2%, consistent with Q4 2023[28] Sustainability Initiatives - The company completed its solar panel installation at the Nashville production site, which is expected to yield cost savings and environmental benefits[6][14]

Core Viewpoint - Marine Products Corporation reported a challenging year in 2024, with a significant decline in sales and net income, but expressed optimism for future growth as they navigate through high inventory levels and cautious dealer sentiment [4][5][6]. Fourth Quarter 2024 Results - Net sales for Q4 2024 were $47.8 million, a decrease of 33% year-over-year, primarily due to a 39% drop in the number of boats sold, partially offset by a 6% positive price/mix [5][6]. - Net income for Q4 was $4.3 million, down 21% year-over-year, with diluted EPS at $0.12 [6][9]. - EBITDA for Q4 was $4.4 million, down 32% year-over-year, maintaining an EBITDA margin of 9.2% [6][10]. Full Year 2024 Results - Total net sales for 2024 were $236.6 million, a decline of 38% compared to 2023 [6][18]. - Net income for the full year was $17.9 million, with diluted EPS at $0.50 [6][18]. - EBITDA for the year was $21.1 million, with an EBITDA margin of 8.9% [6][18]. Management Commentary - The management highlighted that the fourth quarter represented the smallest sales decline of the year and noted improvements in gross margin stability [4]. - They acknowledged the impact of high inventories across competitors and expressed cautious optimism regarding future demand, particularly in the second half of 2025 [4][5]. - The company emphasized its strong financial position, with the ability to fund growth projects and dividends, while also seeking M&A opportunities [4]. Financial Metrics - Gross profit for Q4 was $9.2 million, down 32%, with a gross margin of 19.2%, reflecting effective cost controls [6][7]. - Selling, general and administrative expenses decreased by 28% to $5.6 million, representing 11.6% of net sales [6][8]. - Cash and cash equivalents at the end of 2024 were $52.4 million, with no debt [11][12]. Cash Flow and Capital Allocation - Net cash provided by operating activities for 2024 was $29.5 million, with free cash flow at $24.9 million [12][29]. - The company paid total dividends of $43.7 million in 2024, including a special dividend of $0.70 per share [13].

Core Viewpoint - Marine Products Corporation is set to release its financial results for Q4 2024 on January 30, 2025, and will host a conference call to discuss these results [1][2]. Company Overview - Marine Products Corporation is a leading manufacturer of high-quality fiberglass boats, operating under the brands Chaparral and Robalo [3]. - The product lineup includes Chaparral's sterndrive models such as SSi Sportboats and SSX Luxury Sportboats, as well as outboard offerings like OSX Luxury Sportboats and SSi Outboard Bowriders [3]. - Robalo specializes in outboard sport fishing models, including Center Consoles, Dual Consoles, and Cayman Bay Boats [3]. - The company is focused on diversifying its product lines through innovation and aims to increase market share and generate superior financial performance to enhance long-term shareholder value [3].

Core Viewpoint - iAnthus Capital Holdings has reached a settlement agreement with Ninth Square Capital Corporation regarding ongoing legal proceedings, involving the issuance of 5 million common shares at a deemed price of C$0.01 per share [2][3]. Group 1: Legal Proceedings - Ninth Square filed a statement of claim against iAnthus and its subsidiaries in August 2019, alleging oppressive conduct related to an arrangement with MPX Bioceutical Corporation [1]. - The settlement agreement does not include any admission of wrongdoing or liability by iAnthus or its subsidiaries, and the company continues to contest the allegations [3]. Group 2: Settlement Details - The settlement involves the issuance of 5,000,000 common shares to Ninth Square, valued at C$0.01 per share [2]. - The shares will be issued under a prospectus exemption in Canada and will not be registered under the U.S. Securities Act, making them "restricted securities" [4]. Group 3: Company Overview - iAnthus operates licensed cannabis cultivation, processing, and dispensary facilities across the United States [5].