Financial Performance - Net sales for the second quarter of 2020 were $40.8 million, a decrease of 54.0% compared to $88.7 million in the second quarter of 2019, primarily due to a 57.9% decrease in the number of units sold [76]. - Operating income for the second quarter of 2020 was $2.1 million, down 81.8% from $11.4 million in the second quarter of 2019 [77]. - For the six months ended June 30, 2020, net sales decreased by $71.8 million or 41.8% compared to the same period in 2019, totaling $99.9 million [93]. - The total number of boats sold in the first half of 2020 was 1,596, a decrease of 43.8% compared to 2,839 units sold in the first half of 2019 [93]. - Cost of goods sold for the second quarter of 2020 was $33.0 million, a decrease of 51.7% from $68.3 million in the second quarter of 2019 [88]. - The gross profit margin for the second quarter of 2020 was 19.2%, down from 23.0% in the second quarter of 2019 [85]. - International sales accounted for 4.9% of net sales in the second quarter of 2020, down from 6.2% in the same period of 2019 [87]. Expenses and Cash Flow - Selling, general and administrative expenses decreased by 36.4% to $5.8 million in the second quarter of 2020, compared to $9.0 million in the same period of 2019 [89]. - Net cash provided by operating activities for the six months ended June 30, 2020, was $11.7 million, a decrease of $0.7 million compared to $12.4 million in the same period of 2019 [102]. - Cash used for investing activities was approximately $1.0 million for the six months ended June 30, 2020, compared to $6.0 million provided in the same period of 2019 [104]. - Cash used for financing activities decreased by approximately $6.2 million to $7.9 million for the six months ended June 30, 2020, compared to $14.1 million in the prior year [105]. - The Company has a maximum repurchase obligation of approximately $13.9 million as of June 30, 2020, related to dealer inventory financing [114]. - RPC charged the Company approximately $433 thousand for administrative costs for the six months ended June 30, 2020, compared to $427 thousand in the same period of 2019 [115]. Shareholder Returns and Capital Expenditures - The Company's cash and cash equivalents increased to $22.6 million as of June 30, 2020, from $19.8 million at December 31, 2019 [101]. - The Company expects capital expenditures in 2020 to be approximately $1.7 million, with $1.0 million already spent through June 30, 2020 [109]. - A quarterly cash dividend of $0.08 per share was declared, payable on September 10, 2020, to common stockholders of record [111]. - The Company has repurchased a total of 6,581,632 shares under its stock repurchase program, with 1,668,368 shares remaining available for repurchase as of June 30, 2020 [110]. Future Outlook - The Company plans to continue developing new products, including larger Robalo center console models and two larger Chaparral SSX and Surf Series models for the 2021 model year [83]. - The Company anticipates that retail demand for new recreational boating in 2020 will be lower than in 2019, while continuing to emphasize the Surf Series line of Chaparral boats and larger models [124].

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 March 31, 2020 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, Geo ...

Financial Data and Key Metrics Changes - Net sales for Q1 2020 were $59.1 million, a 28.8% decrease compared to Q1 2019 [9] - Unit sales declined by 28.9% during the quarter [9] - Gross profit for Q1 2020 was $12.1 million, a decrease of 35.3% compared to Q1 2019 [9] - Gross margin decreased to 20.5% from 22.5% in Q1 2019 due to manufacturing cost inefficiencies [9] - Net income for Q1 2020 was $4.2 million, a decrease of 43.7% compared to $7.5 million in Q1 2019 [10] - Diluted earnings per share were $0.12, down from $0.22 in Q1 2019 [11] - Cash balance at the end of Q1 2020 was $20.1 million, an increase of $1.7 million compared to $18.3 million at the end of Q1 2019 [11] Business Line Data and Key Metrics Changes - Dealer inventories declined by almost 10% by the end of Q1 2020 compared to the prior year [4][11] - The company temporarily suspended manufacturing operations at the end of March due to COVID-19 [5] Market Data and Key Metrics Changes - International sales decreased by 44.6%, accounting for 5.7% of total sales [11] - Sales to Canadian dealers decreased moderately, while sales to other international markets decreased significantly [11] Company Strategy and Development Direction - The company plans to resume production in early May 2020 after a temporary shutdown [5][13] - The company is focused on managing dealer inventories and backlog as production resumes [11] - The management believes in the long-term appeal of recreational boating, noting increased web traffic and social media engagement [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unprecedented business challenges due to COVID-19 but noted strong sales reported by some dealers in March and April [13] - The company is optimistic about demand for recreational boating as families seek outdoor activities [13] - Management is working on communication with employees and assisting them with unemployment filings during the shutdown [22][23] Other Important Information - The board declared a regular quarterly dividend of $0.08 per share, a reduction of $0.04 compared to the previous quarter [6] Q&A Session Summary Question: Impact of plant shutdown on Q2 production levels - Management indicated it is difficult to predict the exact impact but plans to ramp up production as quickly as possible [20] Question: Process of bringing employees back and ramping in H2 - Management is in communication with employees and assisting them with unemployment filings, but the process of bringing them back will be complex [22][23] Question: Dealer reactions to the current demand environment - Management noted that dealers are generally holding firm on pricing and not experiencing significant discounting, with inventories in good shape [24][26]

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, 2019 Commission File No. 1-16263 MARINE PRODUCTS CORPORATION Delaware 58-2572419 (State of Incorporation) (I.R.S. Employer Identification No.) 2801 BUFORD HIGHWAY NE, SUITE 300 ATLANTA, GEORGIA 30329 (4 ...

Financial Data and Key Metrics Changes - Net sales for Q4 2019 were $48.2 million, a decrease of 22.4% compared to Q4 2018, primarily due to a 21% decline in units sold [9][12] - Gross profit in Q4 was $10.5 million, down 19.2% year-over-year, with a gross margin slightly higher at 21.8% compared to 21% in Q4 2018 [13] - Net income for Q4 2019 was $3.5 million, a decrease of 25.1% from $4.7 million in Q4 2018, with diluted earnings per share at $0.10 compared to $0.14 in the prior year [15] - For the full year 2019, net sales were $292.1 million, a decrease of 2.2% compared to the previous year, with net income remaining essentially the same at $28.2 million [18] Business Line Data and Key Metrics Changes - The company reduced headcount and production in Q4 2019, leading to decreased net sales [9] - Average selling prices decreased slightly due to model mix, but the company maintained high market share in major categories [10] Market Data and Key Metrics Changes - Domestic sales decreased in Q4 2019, while international sales increased by 17.4%, accounting for 4.8% of total sales, driven by higher sales to Canadian dealers [17] Company Strategy and Development Direction - The company plans to increase production in early Q1 2020 in response to positive indicators from early winter boat shows and increased sales of larger boats [22][23] - The strategy includes aligning production with field inventories to prepare for the 2020 retail selling season [19][21] Management Comments on Operating Environment and Future Outlook - Management expressed an increasingly positive outlook for 2020, citing well-attended boat shows and strong dealer and customer reception [21][22] - There is no global assumption about retail demand for 2020; the company is responding tactically to current market conditions [29] Other Important Information - The Board of Directors declared a regular quarterly cash dividend of $0.12 per share and repurchased 88,983 shares of common stock during Q4 [11] Q&A Session Summary Question: What level of discounting was necessary to move inventory down to flat with the year-ago period? - Management indicated that there was no particular strong discounting; inventory clearance was primarily due to fewer boats shipped during Q4 [27][28] Question: What are the retail growth expectations for 2020? - Management stated they do not have a good handle on retail growth expectations but are planning production increases based on positive indicators from the winter boat show season [29]

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, 2019 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, ...

Marine Products Corporation (NYSE:MPX) Q3 2019 Earnings Conference Call October 23, 2019 8:00 AM ET Company Participants Jim Landers ??? Vice President-Corporate Finance Rick Hubbell ??? President and Chief Executive Officer Ben Palmer ??? Chief Financial Officer Conference Call Participants Eric Wold ??? B. Riley Shawn Boyd ??? Next Mark Capital Operator Good morning, and thank you for joining us for Marine Products Corporation???s Third Quarter 2019 Financial Earnings Conference Call. Today???s call will ...

Financial Performance - Net sales for the second quarter of 2019 increased by $1.7 million or 1.9% compared to the same period in 2018, driven by a 10.0% increase in average selling price per boat, despite a 7.6% decrease in unit sales [81]. - Operating income for the second quarter of 2019 rose by $0.2 million or 2.0% compared to the same period in 2018, primarily due to higher gross profit, partially offset by increased selling, general and administrative expenses [86]. - The average selling price per boat for the second quarter of 2019 was $52.9 thousand, up from $48.1 thousand in the same period of 2018, reflecting a favorable model mix [81]. - Domestic net sales increased by 7.0% to $83.2 million in the second quarter of 2019, while international sales decreased by 40.5% to $5.5 million due to tariffs and a strong U.S. dollar [81]. - For the six months ended June 30, 2019, net sales increased by $7.2 million or 4.4% compared to the same period in 2018, with domestic sales up 7.3% to $160.1 million [88]. Expenses and Costs - Selling, general and administrative expenses for the second quarter of 2019 were $9.0 million, an increase of 8.7% from $8.3 million in the same period of 2018, primarily due to higher sales-related expenses and research and development costs [85]. - The cost of goods sold for the second quarter of 2019 was $68.3 million, representing 77.0% of net sales, down from 77.6% in the same period of 2018 [84]. Tax and Cash Flow - The effective tax rate for the second quarter of 2019 was 18.3%, down from 20.0% in the same period of 2018, primarily due to higher tax-exempt investment gains [87]. - Marine Products expects to continue benefiting from the Tax Cuts and Jobs Act, estimating an annual effective tax rate in the low 20% range for 2019 [78]. - Cash and cash equivalents increased to $13.0 million as of June 30, 2019, compared to $8.7 million at December 31, 2018, due to a change in investment strategy [95]. - Cash provided by investing activities for the six months ended June 30, 2019, was approximately $6.0 million, a slight decrease from $6.2 million used in the same period in 2018 [98]. - Cash used for financing activities increased by approximately $4.0 million for the six months ended June 30, 2019, primarily due to a 20% increase in quarterly common stock cash dividends and increased share repurchases [99]. Share Repurchase and Capital Expenditures - The company expects capital expenditures in 2019 to be approximately $3.0 million, with $1.7 million already spent by June 30, 2019 [101]. - As of June 30, 2019, the company has repurchased a total of 6,407,295 shares under its stock repurchase program, with 1,842,705 shares remaining available for repurchase [103]. - The company has a maximum repurchase obligation of approximately $22.1 million as of June 30, 2019, under various financing institutions [106]. Future Outlook and Market Conditions - The company anticipates stable recreational boating retail demand in 2019 and plans to continue emphasizing its Surf Series and larger boat models to expand its customer base [113]. - The company believes that the liquidity from existing cash, cash equivalents, and marketable securities will be sufficient to meet its requirements for at least the next twelve months [113]. - The company has noted that higher inflation and interest rates could lead to increased costs of boat ownership, potentially affecting consumer purchasing decisions [112]. - The company has not experienced material repurchases of inventory under contractual agreements during the six months ended June 30, 2019 [104].

Marine Products Corporation (NYSE:MPX) Q2 2019 Results Conference Call July 24, 2019 8:00 AM ET Company Participants Jim Landers - Vice President of Corporate Finance Rick Hubbell - President and Chief Executive Officer Ben Palmer - Chief Financial Officer Conference Call Participants Eric Wold - B. Riley FBR Ronald Bookbinder - IFS Securities Operator Good morning, and thank you for joining us for Marine Products Corporation's second-quarter 2019 financial earnings conference call. Today's call will be hos ...

Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Marine Products Corporation as of March 31, 2019, and for the three-month period then ended, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with accompanying notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The company's total assets increased to **$110.8 million** as of March 31, 2019, from **$100.9 million** at December 31, 2018, driven by a significant increase in cash and cash equivalents and accounts receivable, while total liabilities also rose, primarily due to higher accounts payable and accrued expenses Consolidated Balance Sheets (in thousands) | | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total current assets** | $77,644 | $64,600 | | **Total assets** | **$110,794** | **$100,880** | | **Total current liabilities** | $27,913 | $18,167 | | **Total liabilities** | $36,564 | $25,668 | | **Total stockholders' equity** | $74,230 | $75,212 | - Cash and cash equivalents nearly doubled to **$18.3 million** from **$8.7 million** at year-end 2018, while marketable securities were reduced to zero from **$7.7 million** (current and non-current combined)[8](index=8&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the first quarter of 2019, net sales increased by **7.1%** year-over-year to **$83.1 million**, but due to higher cost of goods sold and SG&A expenses, operating income slightly decreased by **1.8%** to **$8.9 million**, with net income and earnings per share remaining relatively flat compared to the prior year period Consolidated Statements of Operations (in thousands, except per share data) | | Three months ended March 31, 2019 | Three months ended March 31, 2018 | | :--- | :--- | :--- | | **Net sales** | $83,053 | $77,536 | | **Gross profit** | $18,699 | $17,651 | | **Operating income** | $8,868 | $9,033 | | **Net income** | **$7,469** | **$7,609** | | **Diluted EPS** | $0.22 | $0.22 | | **Dividends paid per share** | $0.12 | $0.10 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased significantly to **$12.0 million** in Q1 2019 from **$7.5 million** in Q1 2018, while investing activities provided **$6.6 million** mainly from marketable securities sales, and financing activities used **$9.0 million** due to higher dividend payments and stock repurchases Consolidated Statements of Cash Flows (in thousands) | | Three months ended March 31, 2019 | Three months ended March 31, 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $12,044 | $7,510 | | **Net cash provided by investing activities** | $6,571 | $1,135 | | **Net cash used for financing activities** | ($9,013) | ($6,400) | | **Net increase in cash and cash equivalents** | $9,602 | $2,245 | | **Cash and cash equivalents at end of period** | $18,347 | $9,929 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies and financial statement line items, including the adoption of the new lease accounting standard (ASC 842), revenue recognition, stock-based compensation, warranty costs, repurchase obligations, and fair value measurements - The company adopted the new lease standard ASC 842 on January 1, 2019, recognizing a right-of-use asset and lease liabilities of approximately **$200 thousand**, with no material impact on operations or cash flows[23](index=23&type=chunk) - Revenue is primarily generated from selling fiberglass motorized boats and accessories, recognized when control transfers to the dealer; for Q1 2019, **$82.1 million** came from boats and accessories, and **$1.0 million** from parts[30](index=30&type=chunk)[31](index=31&type=chunk)[38](index=38&type=chunk) - The company has contractual repurchase agreements with floor plan lenders with an aggregate maximum repurchase obligation of approximately **$19.5 million** as of March 31, 2019[62](index=62&type=chunk) - During Q1 2019, the company changed its investment strategy and no longer held investments in marketable securities as of March 31, 2019[50](index=50&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for the first quarter of 2019, highlighting a **7.1%** increase in net sales driven by higher average selling prices, which offset a decrease in unit sales, with the outlook for 2019 remaining stable, supported by strong consumer confidence but tempered by potential economic weaknesses, also covering liquidity, capital resources, and off-balance sheet arrangements [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Net sales for Q1 2019 rose **7.1%** to **$83.1 million** compared to Q1 2018, driven by a **14.8%** increase in the average selling price per boat due to a favorable model mix, partially offset by a **6.8%** decrease in the number of boats sold, resulting in a slight **1.8%** decrease in operating income due to a **14.1%** increase in SG&A expenses Key Operating Statistics (Q1 2019 vs Q1 2018) | | Three months ended March 31, 2019 | Three months ended March 31, 2018 | | :--- | :--- | :--- | | **Total number of boats sold** | 1,382 | 1,483 | | **Average gross selling price per boat** | $52,600 | $45,800 | | **Net sales (in thousands)** | $83,053 | $77,536 | | **Gross profit margin** | 22.5% | 22.8% | | **Operating income (in thousands)** | $8,868 | $9,033 | - The increase in average selling price was attributed to a model mix that included larger boats, such as the new 300 OSX Bowrider and larger Robalo models[110](index=110&type=chunk) - SG&A expenses increased by **14.1%** primarily due to expenses that scale with higher sales and increased research and development costs for new product development[114](index=114&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position strengthened, with cash and cash equivalents rising to **$18.3 million** at March 31, 2019, from **$8.7 million** at year-end 2018, largely due to liquidating its marketable securities portfolio, while cash from operations increased to **$12.0 million**, and the company used cash for a **20%** increase in its quarterly dividend and for share repurchases, with management believing existing liquidity is sufficient for at least the next twelve months - The company's cash and cash equivalents increased to **$18.3 million**, primarily due to a change in investment strategy to no longer hold marketable securities[117](index=117&type=chunk) - During Q1 2019, the company repurchased **263,805 shares**; as of March 31, 2019, **1,908,112 shares** remain available for repurchase under the current authorization[126](index=126&type=chunk) - Expected capital expenditures for the full year 2019 are approximately **$2.7 million**, with **$1.1 million** spent in the first quarter[125](index=125&type=chunk) [Off Balance Sheet Arrangements](index=27&type=section&id=Off%20Balance%20Sheet%20Arrangements) The company has agreements with various lenders to guarantee dealer floor plan financing, obligating Marine Products to repurchase repossessed boats in case of dealer default, with an aggregate maximum repurchase obligation of approximately **$19.5 million** as of March 31, 2019, and no material repurchases reported during the quarter - The company guarantees dealer debt on boats in inventory, with an aggregate maximum repurchase obligation of approximately **$19.5 million** as of March 31, 2019[131](index=131&type=chunk) - There were no material repurchases of inventory under these contractual agreements during the three months ended March 31, 2019 and 2018[127](index=127&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that it does not hold any derivative financial instruments that would expose it to significant market risk - Marine Products does not hold derivative financial instruments that could expose the Company to significant market risk[144](index=144&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2019, with no material changes to internal control over financial reporting identified during the quarter - Based on an evaluation as of March 31, 2019, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[148](index=148&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[149](index=149&type=chunk) Part II. Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%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 position or results of operations - The company does not expect ongoing litigation to have a material adverse effect on its financial position or operational results[152](index=152&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) A key risk factor highlighted is the potential adverse effect of trade restrictions on international sales, where retaliatory tariffs imposed by countries like Canada, Mexico, and the European Union in response to U.S. tariffs could weaken international sales and impact material costs - Retaliatory tariffs from Canada, Mexico, and the European Union on U.S. manufactured products pose a risk to the company's international sales and could increase material costs[154](index=154&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchase of its own equity securities during the first quarter of 2019, with a total of **343,913 shares** purchased at an average price of **$14.24 per share** Issuer Purchases of Equity Securities (Q1 2019) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Publicly Announced Program | | :--- | :--- | :--- | :--- | | Jan 2019 | 116,076 | $14.76 | 35,968 | | Feb 2019 | 159,074 | $13.99 | 159,074 | | Mar 2019 | 68,763 | $13.91 | 68,763 | | **Total** | **343,913** | **$14.24** | **263,805** | - As of March 31, 2019, **1,908,112 shares** remain available for repurchase under the company's stock buyback program[155](index=155&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, CEO and CFO certifications (Sections 302 and 906), and XBRL data files - Exhibits filed include governance documents and required certifications by the CEO and CFO under the Sarbanes-Oxley Act (Sections 302 and 906)[159](index=159&type=chunk)