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Financial Data and Key Metrics Changes - Third quarter revenue decreased to $657 million, with same store sales down by 9% [7][13] - Adjusted net income for the quarter was $11 million, or $0.49 per diluted share, compared to $34.8 million, or $1.51 per diluted share last year [15] - Third quarter adjusted EBITDA was $35.5 million, down from $70.4 million last year [16] - Gross profit margin decreased from the prior year, but consolidated gross margin remained above 30% due to strong performance in higher margin businesses [7][14] Business Line Data and Key Metrics Changes - New boat margins are near historic lows, contributing to pressure on overall margins [7][13] - Higher margin businesses, including finance and insurance, superyacht services, storage, and marina operations, helped maintain gross margins [7][14] - Adjusted selling, general, and administrative expenses decreased by about $11 million year-to-date [8][14] Market Data and Key Metrics Changes - Consumer caution increased since April, leading to a noticeable decline in retail demand across the recreational industry [6][9] - Inventory levels increased year-over-year by approximately $26 million due to softer than expected sales [16] - Customer deposits decreased due to timing of large orders and a softer retail environment [16] Company Strategy and Development Direction - The company is focused on disciplined execution and investing in higher margin businesses to enhance profitability when the market stabilizes [10][19] - Continued investment in digital tools and customer experience enhancements is a priority for long-term success [6][10] - The company is optimistic about early signs of stabilization in the market, with manufacturers adjusting production to align inventory with retail demand [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to ongoing economic uncertainty but remains confident in the long-term strategy [19][58] - The company anticipates challenges in September similar to those faced in June, but is working hard to make same store sales positive [35][36] - There is a belief that pent-up demand exists, with consumers delaying purchases due to economic uncertainties [71][72] Other Important Information - The company has repurchased approximately 6% of its outstanding stock during the fiscal year [17] - A non-cash goodwill impairment charge of over $69 million was recorded, reflecting macroeconomic uncertainty [15] Q&A Session Summary Question: Why is there no improvement in consumer confidence despite a rebound in the stock market? - Management noted that consumer confidence dropped significantly after April due to various uncertainties, but there are signs of improvement in July [26][28] Question: How should same store sales be expected for the fourth quarter? - Management indicated that while they are working hard to make same store sales positive, it is prudent to expect a decline [35][36] Question: What factors need to change for the promotional environment to improve? - Management highlighted that excess inventories and ongoing uncertainties are driving the current promotional environment [47] Question: Are manufacturers making adjustments to drive inventories lower? - Management confirmed that manufacturers are working to align production with retail activity to avoid excess inventory [52] Question: How is the Florida market recovering post-hurricanes? - Management indicated that certain areas in Florida are still not fully recovered from the hurricanes, impacting sales [54] Question: Has the view on broader recovery in boat retail shifted? - Management stated that their long-term view remains unchanged despite the current tough period [58][59]

CORPORATE OVERVIEW April 2025 MARINE PRODUCTS CORPORATION FORWARD LOOKING STATEMENTS NON-GAAP DISCLOSURE Certain statements and information included in this press release constitute "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations, hopes or strategies. In particular, such statements include, without limitation: our plans to begin ...

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased by 1% to $484 million in 2025 from $488 million in 2024 [14] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased by 14% to $90 million [14] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024, driven by lower gross margins [15] - Net loss for the fiscal second quarter totaled $375,000 or $0.02 per diluted share, compared to a net loss of $5 million or $0.27 per diluted share in the prior year [16] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [17] Business Line Data and Key Metrics Changes - Same store sales declined by 2%, primarily due to a decrease in new boat sales [4] - Revenue from service parts and other sales increased by 2% to $69 million, driven by growth in the dealership segment [14] - Financing and insurance revenue increased by 10 basis points as a percentage of sales [15] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [12] Market Data and Key Metrics Changes - Total unit sales for the industry were down in excess of 10% for the quarter, while the company continued to outperform the industry [4] - The average unit price of new boats increased, driven by strength in larger boats [11] - The company expects total sales to be in the range of $1.7 billion to $1.8 billion, with same store sales flat to down low single digits [20] Company Strategy and Development Direction - The company is focused on inventory and brand rationalization strategies, reducing inventory by 12% year over year [5] - The company plans to exit 15 brands to consolidate its offerings and strengthen its market position [41][45] - The company is monitoring the tariff landscape and does not expect an impact on pricing for current inventory [8] Management Comments on Operating Environment and Future Outlook - Management noted considerable macroeconomic uncertainty and a challenging environment but expressed optimism about improving performance over time [4] - The company is taking a cautious view on the demand environment and updating its outlook accordingly [8] - Management emphasized the importance of controlling factors within their operations to weather current challenges [9] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [18] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [18] - The company aims to reduce leverage in the latter half of 2025 as part of its capital allocation strategy [19] Q&A Session Summary Question: What are the demand trends seen in April post-tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs for May [22] Question: What drove the margin down on used boats? - Management noted that the model mix and aggressive pricing strategies to move inventory contributed to the margin decline [24][26] Question: Where is the company gaining market share? - The company is primarily gaining share in the premium segment, outperforming the industry which is down 10% [32] Question: Is the company discounting heavily to move volume? - Management confirmed that while some discounting is occurring, it is strategic and focused on clearing outdated inventory [34][36] Question: How does the company see the industry evolving post-slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [41][43]

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased by 1% to $484 million in 2025 from $488 million in 2024 [14] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased by 14% to $90 million [14] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024, driven by lower gross margins [15] - Net loss for the fiscal second quarter totaled $375,000 or $0.02 per diluted share, compared to a net loss of $5 million or $0.27 per diluted share in the prior year [16] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [17] Business Line Data and Key Metrics Changes - Same store sales declined by 2%, primarily due to a decrease in new boat sales [4] - Revenue from service parts and other sales increased by 2% to $69 million, driven by growth in the dealership segment [14] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [12] Market Data and Key Metrics Changes - Total unit sales for the industry were down in excess of 10% for the quarter, while the company continued to outperform the industry and gain market share [4] - The average unit price of new boats increased, driven by continued strength in larger boats [11] - Financing and insurance revenue increased slightly as a percentage of total sales, indicating strong performance in in-store financing programs [12] Company Strategy and Development Direction - The company is focused on inventory and brand rationalization strategies, reducing inventory by 12% year over year [5] - The company plans to exit 15 brands to streamline operations and focus on higher-performing brands [46][48] - The company is monitoring the tariff landscape closely and does not expect an immediate impact on pricing for current inventory [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand in April, indicating that results were in line with the prior year [22] - The macroeconomic environment remains uncertain, leading to an updated fiscal 2025 guidance with total sales expected to be in the range of $1.7 billion to $1.8 billion [20] - Management emphasized the importance of controlling factors within their operations to navigate current challenges [9] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [18] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [18] - The company aims to reduce leverage in the latter half of 2025 as part of its capital allocation strategy [19] Q&A Session Summary Question: What is the demand outlook post-tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs for May [22][23] Question: What drove the margin down on used boats? - Management noted that the model mix and aggressive pricing strategies to move inventory contributed to the softer margins [25][26] Question: Where is the company gaining market share? - The majority of market share gains are in the premium segment, with the company performing better than the industry average [32][33] Question: Is the company discounting heavily to gain share? - Management confirmed that while some discounting is occurring, it is strategic and focused on moving dated inventory [36][37] Question: How does the company see the industry evolving post-slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [41][45]

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased 1% to $484 million in 2025 from $488 million in 2024 [13] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased 14% to $90 million [13] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024 [14] - Net loss for the fiscal second quarter totaled $375,000 or $0.02 per diluted share compared to a net loss of $5 million or $0.27 per diluted share in the prior year [14][15] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [15] Business Line Data and Key Metrics Changes - Same store sales declined 2%, primarily due to a decrease in new boat sales [4][13] - Revenue from service parts and other sales increased 2% to $69 million, driven by growth in the dealership segment [13] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [11] Market Data and Key Metrics Changes - Total unit sales for the industry were down in excess of 10% for the quarter, while the company continued to outperform the industry and gain market share [4] - The average unit price of new boats increased, driven by continued strength in larger boats [10] Company Strategy and Development Direction - The company is focused on inventory and brand rationalization strategies, reducing inventory by 12% year over year [5] - The company plans to exit 15 brands to streamline operations and focus on higher-performing brands [40][41] - The company is monitoring the tariff landscape and does not expect an impact on pricing for current inventory [7] Management Comments on Operating Environment and Future Outlook - Management noted considerable macroeconomic uncertainty and a challenging environment but expressed optimism about improving performance over time [4] - The company updated its fiscal 2025 guidance, anticipating total sales in the range of $1.7 billion to $1.8 billion, with same store sales expected to be flat to down low single digits [18] - Management emphasized a focus on factors within their control, including rationalizing the brand portfolio and streamlining operations [8] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [16] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [16] Q&A Session Summary Question: What are you seeing in April from a demand standpoint post the tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs of demand continuing into May [20][21] Question: Can you discuss the margins on used boats? - Management noted that margins were affected by model mix and aggressive pricing strategies to move inventory [22][23] Question: Where are you taking market share? - The company is primarily gaining share in the premium segment, outperforming the industry despite a decline in same store sales [29][30] Question: Are you having to discount heavily to move volume? - Management confirmed that while some discounting is necessary, they are strategically managing margins on current year models [31][32] Question: How do you see the industry shaking out after the slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [36][40]