Marine Products(US:MPX)2022-04-29 15:24Financial 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].