Marine Products(US:MPX) Prnewswire·2025-04-24 10:45Core Viewpoint - Marine Products Corporation reported a challenging first quarter in 2025, with a 15% decline in net sales year-over-year, primarily due to lower boat sales and cautious dealer ordering behavior [3][4][7]. Financial Results - Net sales for 1Q:25 were $59.0 million, down 15% from $69.3 million in 1Q:24, attributed to a 19% decrease in the number of boats sold, partially offset by a 4% price/mix increase [4][7]. - Gross profit decreased to $11.0 million, down 22%, with a gross margin of 18.6%, reflecting a decline of 160 basis points year-over-year [5][7]. - Net income was $2.2 million, a 52% decrease from $4.6 million in 1Q:24, resulting in a diluted EPS of $0.06, down from $0.13 [7][8]. Operational Insights - The company experienced a significant reduction in sales decline compared to over 30% in 2024, indicating a potential easing of market pressures [4]. - Field inventories were approximately 18% lower than in 1Q:24, suggesting improved inventory management [4]. Management Commentary - The CEO highlighted ongoing challenges in the marine industry, including economic uncertainty and potential cost increases due to tariffs, which may affect consumer spending and pricing strategies [3][7]. - The company plans to adopt a conservative approach to inventory management and product rollouts while continuing to innovate [3][7]. Cash Flow and Capital Allocation - Cash and cash equivalents at the end of 1Q:25 were $57.1 million, with no debt, and the company generated strong operating cash flow of $10.8 million [10][20]. - The company declared a quarterly dividend of $0.14 per share, totaling $4.9 million in dividend payments for the quarter [11][20]. Industry Context - The marine industry continues to face demand softness, with macroeconomic uncertainties impacting visibility and consumer confidence [7][8].