Marine Products(US:MPX)2023-01-25 14:45Financial Data and Key Metrics Changes - Net sales for the fourth quarter reached a record $108.5 million, a 42% increase compared to the same quarter last year [46] - Unit sales increased by 29%, while average selling prices of boats rose by 12% [46] - EBITDA for the fourth quarter was $15.3 million, reflecting a 38% increase year-over-year [48] - Full year net sales totaled $381 million, with net income of $40.3 million and diluted earnings per share of $1.18 [49] - Cash balance at year-end was $43.2 million, a $29.1 million increase from the previous year [66] Business Line Data and Key Metrics Changes - Gross profit for the fourth quarter was $27.3 million, a 43% increase compared to the same quarter in 2021, with a consistent gross margin of 25% [63] - Selling, general and administrative expenses rose to $12.5 million, a 47% increase from $8.5 million in the previous year [47] Market Data and Key Metrics Changes - International sales, which account for approximately 8% of total sales, increased by 71% compared to the fourth quarter last year [49] - Dealer inventories remain lower than normalized levels but have increased compared to the third quarter of 2022 [50] Company Strategy and Development Direction - The company has fully allocated its scheduled production for the first quarter of 2023 to dealers to meet strong demand [50] - The focus remains on taking care of the existing dealer network rather than expanding it at this time [26] - The company emphasizes loyalty to its dealers and aims to maintain fair production allocation among them [24][25] Management's Comments on Operating Environment and Future Outlook - Management indicated that supply chain issues are improving, allowing for more efficient production and delivery of boats [59] - There is a positive outlook based on early winter boat shows and dealer feedback, with no current plans to modify production levels [51] - Management remains cautious about potential impacts from higher interest rates and economic uncertainty on retail demand [51] Other Important Information - A quarterly cash dividend of $0.14 per share was declared by the Board of Directors [45] - A defined benefit pension plan charge of $1.2 million was recorded during the quarter, with an expected settlement charge of approximately $2.6 million in Q1 2023 [64] Q&A Session Summary Question: How does current inventory compare to 2019 levels? - Management noted that dealer inventory is still below 2019 levels but has begun to increase [3][50] Question: What is the trend in input costs? - Input costs have increased significantly but are starting to moderate, particularly for materials, while labor costs remain high [4][9] Question: Are there any supply chain surprises? - Management mentioned ongoing supply chain challenges, particularly with components like windshields and toilets, but noted that some issues have been resolved [12][14][16] Question: Is there any backlog with consumers? - There are still unfulfilled orders, but demand remains strong, and dealer inventories are building [79][82]