Marine Products(US:MPX)2022-01-26 13:59Financial Data and Key Metrics Changes - Marine Products Corporation reported net sales of $76.5 million for Q4 2021, a 7.6% increase compared to Q4 2020 [11] - Average selling prices increased by 21.1% due to model year price increases and a shift towards larger boats [11] - Unit sales decreased by 11.1% due to supply chain problems and workforce issues impacting production [12] - Gross profit for Q4 was $19.2 million, a 9.9% increase from the previous year, with gross margin rising to 25% from 24.5% [12] - Net income for Q4 was $8.4 million, a 20.8% increase compared to $7 million in Q4 2020, with diluted earnings per share rising to $0.25 from $0.21 [14] - For the full year 2021, net sales increased by 24.3%, and net income reached $29 million, a 49.3% increase from $19.4 million in 2020 [16] Business Line Data and Key Metrics Changes - The combination of Robalo and Chaparral outboard had a market share of 6.3% in the 18 to 36 foot outboard category, with Robalo being the second highest in this category [9] - Chaparral held a market share of 19.4% in the 20 to 34 foot sterndrive category, which is the second highest in this category [9] Market Data and Key Metrics Changes - International sales accounted for 6.6% of total sales, representing a 20% increase compared to the previous year [15] - Sales to Canadian dealers increased significantly, while sales in other international markets remained flat year-over-year [15] Company Strategy and Development Direction - The company is allocating production slots for the 2023 model year to meet dealer and consumer demand, indicating a focus on future production planning [20] - Management believes current production bottlenecks are transitory and will be resolved within the year [21] - The company is focused on maintaining quality while trying to meet high consumer demand [32] Management's Comments on Operating Environment and Future Outlook - Management noted that dealer and consumer demand has extended beyond the traditional selling season for recreational boats, despite supply chain issues [8] - There are no signs of customer pushback regarding delivery timelines, indicating strong demand remains [32] - Management expressed optimism that supply chain issues will be resolved, allowing for increased production [30][34] Other Important Information - The company declared a quarterly cash dividend of $0.12 per share [9] - The cash balance at the end of Q4 was $14.1 million, a decrease from $31.6 million at the end of Q4 2020, attributed to higher inventories due to delayed deliveries [17] Q&A Session Summary Question: Comments on supply chain and labor disruption - Management indicated that labor issues were more indirect, with many vendors facing labor force problems due to COVID [26] - Component supply issues vary weekly, with past problems on engines now resolved but ongoing issues with windshields and raw materials [27][28] Question: Production impact into Q1 and expectations for improvement - Management expects some lingering problems but is hopeful for improvement throughout the year [30] Question: Concerns about consumer backlog and delivery timelines - Management reported no signs of customer pushback or concern regarding delivery delays, with strong demand and deposits being placed [32]