Marine Products (MPX) Q1 2025 Earnings Call

Financial Performance - Q1 2025 sales were $59 million, a 15% decline year-over-year, but an improvement from the 30%-40% declines experienced throughout CY2024 [4][11] - Gross profit decreased to $11 million, with a margin of 18.6%, down 60 basis points due to lower volumes and reduced fixed cost absorption [11] - Diluted EPS was $0.06, down from $0.13 in Q1 2024 [11] - EBITDA for Q1 2025 was $3.4 million, down from $5.9 million in Q1 2024 [11] - Operating cash flow was strong at $10.8 million, with free cash flow of $10.7 million [11] Sales and Market Trends - The number of boats sold decreased by 19% year-over-year in Q1 2025 [11] - Channel inventory was down 18% compared to Q1 2024, indicating a reduction in unsold stock [4][9] - Management anticipates potential year-over-year sales growth in the second half of 2025 despite ongoing challenges [4][9] Cost Management and Expenditures - SG&A expenses were $8.3 million, down 5% year-over-year, primarily due to costs that vary with sales and profitability [11] - Capital expenditures for Q1 2025 were under $100,000, with expectations of approximately $3 million for the full year [4][11] Strategic Initiatives - The company is actively seeking acquisitions to expand its business and has ample liquidity to pursue opportunities [5][12] - An S-3 registration statement has been filed, which includes the registering of Rollins Family Control Group shares [5][11] Leadership Changes - Steve Lewis has been elected to the board of directors, while Gary Rollins and Pam Rollins have retired from the board [5][12]