Marine Products Corporation Reports Fourth Quarter And Full Year 2024 Financial Results And Declares Regular Quarterly Dividend

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].