[Part I - Business and Risk Factors](index=3&type=section&id=Part%20I) This section provides an overview of the company's business operations, products, market position, and key risk factors [Business Overview](index=5&type=section&id=Item%201.%20Business) Marine Products Corporation is a leading manufacturer of fiberglass motorized recreational powerboats, operating through its Chaparral and Robalo brands. The company sells its products through a global network of independent dealers. In 2022, the company experienced strong demand, with international sales growing significantly. Despite supply chain challenges that began to ease in late 2022, the company managed to increase production and sales, shifting its model mix towards larger, higher-priced boats. Key strategies include product innovation, leveraging purchasing power through the American Boatbuilders Association (ABA), and strengthening its dealer network with nationally advertised fixed pricing [Products and Market Position](index=5&type=section&id=1.1%20Products%20and%20Market%20Position) The company manufactures recreational fiberglass powerboats under Chaparral and Robalo brands, holding significant market shares in outboard and sterndrive categories - The company manufactures and sells recreational fiberglass powerboats under two main brands: Chaparral (sterndrive and outboard pleasure boats) and Robalo (outboard sport fishing boats)[13](index=13&type=chunk) Product Line Overview | Product Line | Models | Length | Approx. Retail Price Range | Description | | :--- | :--- | :--- | :--- | :--- | | **Chaparral – SSi Sport Boats** | 6 | 21′-23′ | $55,000 - $91,000 | Fiberglass sterndrive and outboard sport boats. | | **Chaparral – SSX Sport Boats** | 5 | 24′-34′ | $126,000 - $546,000 | Fiberglass sterndrive and outboard luxury bowriders. | | **Chaparral – Surf Series** | 5 | 21′-30′ | $75,000 - $312,000 | Multipurpose bowriders designed for wake surfing. | | **Chaparral – OSX Sport Boats** | 4 | 25′-30′ | $136,000 - $433,000 | Multipurpose sport boats with outboard power. | | **Robalo – Center Consoles** | 11 | 18′-36′ | $47,000 - $627,000 | Fiberglass outboard sport fishing boats. | | **Robalo – Cayman Bay Boats** | 6 | 20′-26′ | $53,000 - $198,000 | Fiberglass outboard boats for inshore/offshore fishing. | | **Robalo – Dual Consoles** | 2 | 20′-31′ | $59,000 - $343,000 | Multi-purpose fiberglass outboard fishing/cruising boats. | - As of September 30, 2022, Robalo was the third-largest manufacturer of outboard boats (18-36 feet) with a **4.2% market share**. The combined Robalo and Chaparral outboard brands held the second-highest position with a **5.4% market share**[20](index=20&type=chunk) [Manufacturing, Supply Chain, and Sales](index=10&type=section&id=1.2%20Manufacturing,%20Supply%20Chain,%20and%20Sales) Manufacturing is based in Nashville, Georgia, with easing supply chain issues enabling increased production and sales through a global dealer network - Manufacturing facilities are located in Nashville, Georgia. The three most significant cost components are engines, resins, and fiberglass. Supply chain shortages experienced since 2020 began to ease in the latter half of 2022, allowing for increased production[24](index=24&type=chunk)[27](index=27&type=chunk) - The company sells through a network of **210 domestic** and **88 international** independent dealers. International net sales grew by **61.2% in 2022**, representing **6.7% of total net sales**[15](index=15&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - The sales order backlog decreased from **2,457 boats ($166.0M)** at the end of 2021 to **1,544 boats ($115.0M)** at the end of 2022, reflecting improved production and shipment capabilities[36](index=36&type=chunk) - Approximately **58% of domestic shipments** are made via third-party floor plan financing. The company has repurchase agreements with these lenders, with an aggregate maximum obligation of approximately **$12.3 million** as of December 31, 2022[33](index=33&type=chunk)[34](index=34&type=chunk) [Industry and Competition](index=14&type=section&id=1.3%20Industry%20and%20Competition) The recreational marine market saw varied sales in 2022, with the company maintaining strong market positions against key competitors Recreational Marine Market Sales by Category (2021-2022) | Category | 2022 Units | 2022 Sales ($B) | 2021 Units | 2021 Sales ($B) | | :--- | :--- | :--- | :--- | :--- | | Sterndrive Boats | 6,552 | $0.9 | 7,165 | $0.8 | | Outboard Boats | 47,099 | $3.7 | 53,471 | $3.8 | | Inboard Boats | 12,465 | $2.0 | 12,871 | $1.8 | | **TOTAL** | **66,116** | **$6.6** | **73,507** | **$6.4** | - Chaparral's market share in the sterndrive boat market (21-34 feet) was approximately **19.8%** for the 12 months ended September 30, 2022, making it the second-largest manufacturer in this category[56](index=56&type=chunk) - The company is listed as the third-largest outboard boat manufacturer in the U.S. based on retail unit sales for the 12 months ended September 30, 2022. Key competitors include Brunswick Corporation, Sea Hunt Boats, and others[55](index=55&type=chunk)[57](index=57&type=chunk) [Human Capital and Other Matters](index=19&type=section&id=1.4%20Human%20Capital%20and%20Other%20Matters) Employee count increased in 2022, with sales seasonality disrupted by high demand and price increases successfully offsetting rising costs - The company's employee count increased from **880** at the end of 2021 to **935** at the end of 2022[60](index=60&type=chunk) - Traditional sales seasonality was disrupted in 2021 and 2022 due to high consumer demand and supply chain issues, with the highest quarterly sales volume in 2022 occurring in the fourth quarter[69](index=69&type=chunk) - In response to inflation and rising costs for materials and components, the company implemented price increases which successfully maintained profit margins without a discernible negative impact on sales due to strong demand[70](index=70&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces various risks, including economic downturns affecting discretionary spending, reliance on third-party dealer financing, and fluctuations in interest rates and fuel prices. Operational risks stem from its dependence on a network of independent dealers, a single manufacturing location, intense competition, and potential disruptions from key suppliers. The company is also subject to regulatory, environmental, and legal risks. A significant portion of its stock is controlled by executive officers and directors, which limits public stockholder influence and creates a "Controlled Corporation" status - **Business and Economic Risks:** Sales are sensitive to economic conditions, consumer confidence, credit availability, interest rates, and fuel prices, as boat purchases are discretionary[73](index=73&type=chunk)[75](index=75&type=chunk) - **Operational Risks:** The company relies on a single manufacturing location in Nashville, Georgia, and is dependent on a few key suppliers for engines and other critical components, creating vulnerability to disruptions[80](index=80&type=chunk)[83](index=83&type=chunk) - **Dealer Network Risks:** The business depends on a network of independent dealers. A deterioration in this network, dealer defaults, or a decline in the availability of dealer floor plan financing could adversely affect sales[74](index=74&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) - **Ownership and Control Risks:** Executive officers, directors, and their affiliates hold approximately **76%** of the company's common stock, effectively controlling operations. The company is a "Controlled Corporation" under NYSE rules, exempting it from certain governance requirements[97](index=97&type=chunk)[98](index=98&type=chunk) - **Cybersecurity Risks:** Operations are dependent on digital technologies, which are subject to cyber-attacks that could disrupt business and lead to financial loss or reputational harm[102](index=102&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties) The company's corporate offices are leased in Atlanta, Georgia. Its primary manufacturing, R&D, and warehouse facilities, totaling approximately 1,245,000 square feet, are owned and located in Nashville and Valdosta, Georgia - The company owns approximately **1,162,000 square feet** of space in Nashville, Georgia, and **83,000 square feet** in Valdosta, Georgia, for its manufacturing and operational needs[107](index=107&type=chunk) [Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in litigation from time to time in the ordinary course of business but does not believe the outcome of any current litigation will have a material adverse effect on its financial condition or results of operations - Management does not expect current litigation to materially impact the company's liquidity, financial condition, or operations[108](index=108&type=chunk) [Part II - Financial Information](index=32&type=section&id=Part%20II) This section details the company's financial performance, liquidity, capital resources, and critical accounting policies, along with audited financial statements [Market for Common Equity and Related Matters](index=32&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Marine Products' common stock trades on the NYSE under the symbol "MPX". As of February 17, 2023, there were 34,437,678 shares outstanding. The company has a stock buyback program with 1,570,428 shares remaining available for repurchase as of year-end 2022, though no shares were repurchased in 2022 or 2021 - The company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol MPX[114](index=114&type=chunk) - No shares were repurchased under the company's stock buyback program in 2022 or 2021. As of December 31, 2022, **1,570,428 shares** remain authorized for repurchase[115](index=115&type=chunk) [Management's Discussion and Analysis (MD&A)](index=33&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, net sales increased **27.8%** to **$381.0 million**, driven by a **4.0%** rise in units sold and a **23.7%** increase in average selling price due to price hikes and a favorable model mix. Gross margin improved to **24.6%** from **22.9%**. Operating income grew **42.3%** to **$51.8 million**. The company expects strong retail demand to continue in 2023, though potentially moderating. Liquidity improved significantly, with cash from operations reaching **$49.3 million**, primarily due to better working capital management as supply chain issues eased [Outlook](index=34&type=section&id=7.1%20Outlook) Management anticipates continued strong retail demand for recreational boats in 2023, though growth may moderate, with supply chain issues gradually easing - Management believes the strong retail demand for recreational boats that began during the COVID-19 pandemic will continue through 2023, although growth may moderate due to economic concerns and higher interest rates[126](index=126&type=chunk) - Supply chain disruptions and transportation shortages began to moderate in the second half of 2022, but still impact the company's ability to fully meet dealer and retail demand[129](index=129&type=chunk) [Results of Operations](index=36&type=section&id=7.2%20Results%20of%20Operations) Net sales increased significantly in 2022 due to higher units and average selling prices, leading to improved gross margin and operating income Financial Performance Summary (2020-2022) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total boats sold | 4,331 | 4,165 | 3,689 | | Avg. gross selling price per boat | $76,800 | $62,100 | $56,100 | | Net sales (in thousands) | $380,995 | $298,014 | $239,825 | | Gross profit margin | 24.6% | 22.9% | 22.4% | | Operating income (in thousands) | $51,796 | $36,392 | $24,361 | - Net sales increased by **27.8%** in 2022 compared to 2021, driven by a **4.0%** increase in units sold and a **23.7%** increase in average gross selling price per boat[132](index=132&type=chunk) - Gross margin as a percentage of net sales improved to **24.6%** in 2022 from **22.9%** in 2021, primarily due to price increases and a favorable model mix[131](index=131&type=chunk)[133](index=133&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **31.5%** in 2022, mainly due to higher costs that vary with sales and profitability, such as incentive compensation and warranty expense, as well as a **$1.2 million** pension settlement charge[134](index=134&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=7.3%20Liquidity%20and%20Capital%20Resources) Cash and cash equivalents significantly increased in 2022 due to improved operating cash flow from favorable working capital changes and easing supply chain issues Cash Flow Summary (in thousands) | Activity | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $49,348 | $457 | $29,874 | | Net cash used for investing activities | ($2,500) | ($1,248) | ($2,065) | | Net cash used for financing activities | ($17,779) | ($16,680) | ($16,040) | - Cash and cash equivalents increased to **$43.2 million** at year-end 2022 from **$14.1 million** at year-end 2021. The significant increase in cash from operations was primarily due to favorable changes in working capital, including inventory, as supply chain issues improved[137](index=137&type=chunk) - The company has a **$20 million** revolving credit facility maturing in November 2026, with no outstanding borrowings as of December 31, 2022[145](index=145&type=chunk) - The company has off-balance sheet arrangements related to repurchase agreements with third-party floor plan lenders, with a maximum aggregate repurchase obligation of approximately **$12.3 million** at year-end 2022[148](index=148&type=chunk)[151](index=151&type=chunk) [Critical Accounting Policies and Estimates](index=40&type=section&id=7.4%20Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies involve estimates for sales incentives and warranty costs, which are critical to financial reporting - **Sales Incentives:** The cost of sales incentives, recorded as a reduction to net sales, was **5.6%** of gross sales in 2022, down from **5.8%** in 2021[155](index=155&type=chunk) - **Warranty Costs:** Estimated warranty costs, recorded in SG&A, were **1.5%** of net sales in 2022, up from **1.2%** in 2021[156](index=156&type=chunk) [Financial Statements and Supplementary Data](index=42&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for the year ended December 31, 2022, were audited by Grant Thornton LLP, which issued an unqualified opinion. Key figures from the statements include total assets of **$163.7 million**, net income of **$40.3 million**, and diluted EPS of **$1.18**. The auditor identified the warranty liability as a critical audit matter due to the estimation uncertainty involved. The notes to the financial statements provide further detail on accounting policies, revenue disaggregation, commitments, and employee benefit plans, including the ongoing termination of the defined benefit pension plan [Auditor's Report and Management's Report](index=42&type=section&id=8.1%20Auditor's%20Report%20and%20Management's%20Report) Management affirmed effective internal controls, and the independent auditor issued an unqualified opinion, highlighting warranty liability as a critical audit matter - Management concluded that the company maintained effective internal control over financial reporting as of December 31, 2022[162](index=162&type=chunk) - The independent auditor, Grant Thornton LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[164](index=164&type=chunk)[165](index=165&type=chunk) - The auditor identified the warranty liability as a critical audit matter due to the high degree of estimation uncertainty related to future claims[176](index=176&type=chunk)[177](index=177&type=chunk) [Consolidated Financial Statements](index=46&type=section&id=8.2%20Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial position, operational results, and cash flows for the reported periods Consolidated Balance Sheet (in thousands) | As of December 31, | 2022 | 2021 | | :--- | :--- | :--- | | **Total Current Assets** | **$124,998** | **$93,109** | | **Total Assets** | **$163,715** | **$132,841** | | **Total Current Liabilities** | **$23,590** | **$18,069** | | **Total Liabilities** | **$39,334** | **$34,316** | | **Total Stockholders' Equity** | **$124,381** | **$98,525** | Consolidated Statement of Operations (in thousands) | For the year ended Dec 31, | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Net Sales** | **$380,995** | **$298,014** | **$239,825** | | Gross Profit | $93,717 | $68,272 | $53,605 | | Operating Income | $51,796 | $36,392 | $24,361 | | **Net Income** | **$40,347** | **$29,026** | **$19,444** | | **Diluted EPS** | **$1.18** | **$0.85** | **$0.57** | [Notes to Financial Statements](index=51&type=section&id=8.3%20Notes%20to%20Financial%20Statements) Notes provide detailed information on accounting policies, international sales, pension plan termination, stock incentive plans, and related-party transactions - Net sales to international dealers were **$25.6 million** in 2022, a significant increase from **$15.9 million** in 2021 and **$11.8 million** in 2020[195](index=195&type=chunk) - The company initiated actions to terminate its defined benefit pension plan in 2021. As part of the process, a **$1.2 million** settlement loss was recognized in 2022. The termination is expected to be completed in early 2023[214](index=214&type=chunk)[256](index=256&type=chunk) - The company has a stock incentive plan with **1,095,547 shares** available for grant as of Dec 31, 2022. Total unrecognized compensation cost for non-vested shares was approximately **$7.2 million**, to be recognized over a weighted-average period of **3.3 years**[272](index=272&type=chunk)[280](index=280&type=chunk) - The company has a related-party relationship with RPC, Inc., from which it was spun off. RPC provides administrative services, and the companies co-own a corporate aircraft through a joint LLC[283](index=283&type=chunk)[284](index=284&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%209A.%20Controls%20and%20Procedures) Based on an evaluation as of December 31, 2022, the CEO and CFO concluded that the company's disclosure controls and procedures were effective. Management also reported that internal control over financial reporting was effective, and no material changes to these controls occurred during the most recent fiscal quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[295](index=295&type=chunk) [Part III - Corporate Governance and Executive Compensation](index=74&type=section&id=Part%20III) This section incorporates information on the company's directors, executive officers, corporate governance, executive compensation, and security ownership by reference - Items 10 through 14 of Part III, covering directors, executive compensation, security ownership, and related party transactions, are incorporated by reference from the Company's 2023 Proxy Statement[7](index=7&type=chunk)[301](index=301&type=chunk)[305](index=305&type=chunk)[310](index=310&type=chunk) [Part IV - Exhibits and Financial Statement Schedules](index=76&type=section&id=Part%20IV) This section lists all exhibits filed with the report and includes required financial statement schedules - This part contains the list of all exhibits filed with the report, including management contracts and compensatory plans, and the financial statement schedule[314](index=314&type=chunk)

Table of Contents Commission File No. 1-16263 MARINE PRODUCTS CORPORATION (exact name of registrant as specified in its charter) Delaware 58-2572419 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 2801 Buford Highway, Suite 300, Atlanta, Georgia 30329 (Address of principal executive offices) (zip code) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly report pursuant to Section 13 or 15(d) of the Securities Exch ...

Marine Products Corporation (NYSE:MPX) Q3 2022 Earnings Conference Call October 26, 2022 8:00 AM ET Company Participants Jim Landers - Vice President of Corporate Services Ben Palmer - President and Chief Executive Officer Mike Schmit - Chief Financial Officer Conference Call Participants Operator Good morning, and thank you for joining us for Marine Product Corporation's Third Quarter 2022 Financial Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO; and Mike Schmit, Ch ...

Financial Performance - Net sales for the second quarter of 2022 were $95.8 million, a 42.5% increase compared to the second quarter of 2021, driven by a 15.0% increase in units sold and a 22.2% increase in average selling price per boat [74][88]. - Operating income for the second quarter of 2022 increased by 78.1% to $13.1 million from $7.4 million in the same period of 2021 [76][92]. - For the six months ended June 30, 2022, net sales increased by $26.8 million or 18.4% compared to the same period in 2021 [97]. - Operating income for the six months ended June 30, 2022 was $22.3 million, an increase of 28.16% compared to $17.4 million in the same period in 2021 [100]. - Net cash provided by operating activities increased by $11.1 million to $17.2 million for the six months ended June 30, 2022, compared to $6.1 million in the same period in 2021 [103]. - Cash and cash equivalents at June 30, 2022 were $21.6 million, compared to $14.1 million at December 31, 2021 [103]. Sales and Pricing - The average selling price per boat during the second quarter of 2022 was $74.9 thousand, up from $61.3 thousand in the same period of 2021 [87]. - Average selling price per boat for the six months ended June 30, 2022 increased by 25.5% compared to the same period in 2021 [97]. - Domestic net sales increased by 38.0% to $88.0 million, while international net sales surged by 124.5% to $7.8 million in the second quarter of 2022 [89]. Costs and Expenses - Cost of goods sold as a percentage of net sales improved to 76.0% for the second quarter of 2022, down from 78.3% in the same period of 2021 [75][90]. - Selling, general and administrative expenses for the second quarter of 2022 were $9.9 million, a 36.4% increase from $7.2 million in the same period of 2021 [91]. Future Outlook and Strategy - The company plans to continue producing a smaller number of models in the 2023 model year to increase production efficiency [81]. - The company anticipates that inflation and rising interest rates may impact retail demand for recreational boats, but does not expect this to affect production and sales in the near term due to strong dealer order backlogs [126]. - The company expects to continue paying cash dividends to common stockholders, subject to industry conditions and financial performance [112]. Capital and Investments - Capital expenditures for 2022 are expected to be approximately $3.6 million, with $0.8 million spent through June 30, 2022 [109]. - The company declared a quarterly cash dividend of $0.12 per share payable on September 9, 2022, to common stockholders [112]. - The company has repurchased a total of 6,679,572 shares under its stock repurchase program, with 1,570,428 shares remaining available for repurchase as of June 30, 2022 [111]. - The company believes its liquidity, strong capitalization, and cash generated from operations will be sufficient to meet its requirements for at least the next twelve months [108]. Risks and Challenges - Supply chain disruptions have impacted production and sales, with ongoing challenges expected to continue throughout 2022 [83][85]. - The company faces risks from the COVID-19 pandemic, economic conditions, and supply chain disruptions [130]. - Rising commodity prices, including hydrocarbons, copper, and steel, could negatively impact profit margins [130]. - Higher inflation may lead to increased interest rates, affecting consumer demand for boats [130]. - The company is subject to competition from other boat manufacturers and dealers [130]. - Potential liabilities for personal injury or property damage claims could arise from product use [130]. - The company may encounter challenges in identifying suitable acquisition candidates or strategic partners [130]. - Anti-takeover provisions in governance documents could complicate tender offers or takeover attempts [130]. Market and Financial Instruments - Marine Products does not hold any derivative financial instruments, minimizing exposure to significant market risk [131]. - The company maintains investments primarily in money market funds, which are not subject to interest rate risk exposure [131]. - There are no expected material changes in market risk exposures or management strategies [131].

Marine Products Corporation (NYSE:MPX) Q2 2022 Earnings Conference Call July 27, 2022 8:00 AM ET Company Participants Ben Palmer - President and CEO Mike Schmit - CFO Jim Landers - VP of Corporate Services Conference Call Participants Fred Wightman - Wolfe Research Operator [Call Started Abruptly] Ben Palmer, President and CEO; and Mike Schmit, Chief Financial Officer. Also hosting is Jim Landers, Vice President of Corporate Services. [Operator Instructions] I would like to advise everyone that this confere ...

Financial Performance - Net sales for the first quarter of 2022 were $76.6 million, a decrease of 2.2% compared to $78.4 million in the first quarter of 2021, primarily due to a 20.9% decrease in the number of units sold [73][86]. - Operating income decreased by 8.7% to $9.2 million in the first quarter of 2022 from $10.0 million in the same period in 2021, primarily due to a 9.5% increase in selling, general and administrative expenses [75][89]. - Domestic net sales decreased by 2.5% to $72.5 million, while international sales increased by 2.5% to $4.1 million in the first quarter of 2022 [86]. - Net cash provided by operating activities for the first quarter of 2022 was $4.5 million, down from $8.1 million in the same period in 2021 [93]. - The effective tax rate for the first quarter of 2022 was 22.7%, compared to 19.3% for the same period in 2021 [91]. Sales and Pricing - The average selling price per boat increased by 23.3% to $73.5 thousand in the first quarter of 2022, compared to $59.6 thousand in the same period of 2021 [73][85]. - Cost of goods sold as a percentage of net sales improved slightly to 76.0% in the first quarter of 2022 from 76.4% in the same period in 2021 [74][87]. Cash and Dividends - Cash and cash equivalents at March 31, 2022, were $13.6 million, down from $14.1 million at December 31, 2021 [93]. - A quarterly cash dividend of $0.12 per share was declared, payable on June 10, 2022, to stockholders of record as of May 10, 2022 [100]. - The Company expects to continue paying cash dividends, subject to industry conditions and financial performance [100]. Capital Expenditures - The company expects capital expenditures in 2022 to be approximately $3.0 million, with $0.2 million spent through March 31, 2022 [96]. - The Company anticipates capital expenditures of approximately $3.0 million in 2022 [113]. Share Repurchase - The Company has repurchased a total of 6,679,572 shares under its stock repurchase program, with 1,570,428 shares remaining available for repurchase as of March 31, 2022 [98]. - The Company has a maximum repurchase obligation of approximately $10.4 million as of March 31, 2022, based on agreements with various floor plan lenders [103]. Market Conditions - Supply chain disruptions have significantly impacted production and sales, with ongoing challenges expected throughout 2022 [81][82]. - Inflation has reached its highest level in over 40 years, impacting the costs of raw materials and components, leading the Company to increase product prices starting in Q3 2021 [111]. - The Company believes that strong retail demand for new recreational boats will continue throughout 2022, despite inflation and rising interest rates [112]. - The Company is closely monitoring dealer orders and inventories to adapt to market conditions and consumer demand [113]. Administrative Costs - The Company recorded administrative costs of approximately $253 thousand for services rendered by RPC for Q1 2022 [104]. - The Company has not experienced material repurchases of dealer inventory during the three months ended March 31, 2022, and March 31, 2021 [101].

Marine Products Corporation (NYSE:MPX) Q1 2022 Results Conference Call April 27, 2022 8:00 AM ET Company Participants Rick Hubbell - President and CEO Ben Palmer - CFO Jim Landers - VP, Corporate Services Conference Call Participants Fred Wightman - Wolfe Research Craig Kennison - Baird Operator Good morning, and thank you for joining us for Marine Products Corporation's First Quarter 2022 Financial Earnings Conference Call. Today's call will be hosted by Rick Hubbell, President and CEO; and Ben Palmer, Ch ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 Commission File No. 1-16263 MARINE PRODUCTS CORPORATION (Exact name of registrant as specified in its charter) Delaware (State of Incorporation) 58-2572419 (I.R.S. Employer Identification No.) 2801 ...

Financial Data and Key Metrics Changes - Marine Products Corporation reported net sales of $76.5 million for Q4 2021, a 7.6% increase compared to Q4 2020 [11] - Average selling prices increased by 21.1% due to model year price increases and a shift towards larger boats [11] - Unit sales decreased by 11.1% due to supply chain problems and workforce issues impacting production [12] - Gross profit for Q4 was $19.2 million, a 9.9% increase from the previous year, with gross margin rising to 25% from 24.5% [12] - Net income for Q4 was $8.4 million, a 20.8% increase compared to $7 million in Q4 2020, with diluted earnings per share rising to $0.25 from $0.21 [14] - For the full year 2021, net sales increased by 24.3%, and net income reached $29 million, a 49.3% increase from $19.4 million in 2020 [16] Business Line Data and Key Metrics Changes - The combination of Robalo and Chaparral outboard had a market share of 6.3% in the 18 to 36 foot outboard category, with Robalo being the second highest in this category [9] - Chaparral held a market share of 19.4% in the 20 to 34 foot sterndrive category, which is the second highest in this category [9] Market Data and Key Metrics Changes - International sales accounted for 6.6% of total sales, representing a 20% increase compared to the previous year [15] - Sales to Canadian dealers increased significantly, while sales in other international markets remained flat year-over-year [15] Company Strategy and Development Direction - The company is allocating production slots for the 2023 model year to meet dealer and consumer demand, indicating a focus on future production planning [20] - Management believes current production bottlenecks are transitory and will be resolved within the year [21] - The company is focused on maintaining quality while trying to meet high consumer demand [32] Management's Comments on Operating Environment and Future Outlook - Management noted that dealer and consumer demand has extended beyond the traditional selling season for recreational boats, despite supply chain issues [8] - There are no signs of customer pushback regarding delivery timelines, indicating strong demand remains [32] - Management expressed optimism that supply chain issues will be resolved, allowing for increased production [30][34] Other Important Information - The company declared a quarterly cash dividend of $0.12 per share [9] - The cash balance at the end of Q4 was $14.1 million, a decrease from $31.6 million at the end of Q4 2020, attributed to higher inventories due to delayed deliveries [17] Q&A Session Summary Question: Comments on supply chain and labor disruption - Management indicated that labor issues were more indirect, with many vendors facing labor force problems due to COVID [26] - Component supply issues vary weekly, with past problems on engines now resolved but ongoing issues with windshields and raw materials [27][28] Question: Production impact into Q1 and expectations for improvement - Management expects some lingering problems but is hopeful for improvement throughout the year [30] Question: Concerns about consumer backlog and delivery timelines - Management reported no signs of customer pushback or concern regarding delivery delays, with strong demand and deposits being placed [32]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021 Commission File No. 1-16263 MARINE PRODUCTS CORPORATION (exact name of registrant as specified in its charter) Delaware 58-2572419 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 2801 Buford Highway, Suite 300, Atlanta, ...