Marine Products(US:MPX)2020-07-31 19:38Financial 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].