Marine Products(US:MPX)2021-01-27 17:45Financial Data and Key Metrics Changes - Net sales for Q4 2020 were $71.1 million, a 47.6% increase compared to Q4 2019 [12] - Gross profit in Q4 was $17.4 million, up 65.7% year-over-year, with a gross margin of 24.5% compared to 21.8% in the previous year [13] - Net income for Q4 was $7 million, a 97.5% increase from $3.5 million in Q4 2019 [15] - Diluted earnings per share were $0.21, compared to $0.10 in the prior year [16] - Cash balance at the end of Q4 was $31.6 million, an increase of $11.8 million from $19.8 million at the end of Q4 2019 [18] Business Line Data and Key Metrics Changes - Unit sales increased by 27.8% during the quarter, with average selling prices rising by 14.1% due to the popularity of larger models [12] - Robalo outboard sport fishing boats achieved the 1 market share in their category, up from 2 in the previous quarter [9] Market Data and Key Metrics Changes - International sales accounted for 4.8% of total sales during the quarter, an increase of 82% compared to the same period last year [17] - The company is experiencing historically low dealer inventory levels and high order backlogs [18] Company Strategy and Development Direction - The company is prioritizing product quality while considering production increases [22] - There is a focus on virtual marketing due to the cancellation of 2021 boat shows, adapting to consumer comfort with making purchases online [21][46] Management's Comments on Operating Environment and Future Outlook - The company expects a strong retail selling season for 2021, with the industry likely to grow compared to 2020 [39] - Management is monitoring employee well-being, labor constraints, and potential supply chain issues as they serve dealers and customers [22] Other Important Information - A quarterly cash dividend of $0.10 per share was declared, representing a 25% increase compared to the prior quarter [10] Q&A Session Summary Question: How much of your production is geared towards already purchased boats versus stock inventory? - The company prioritizes production based on sold boats, indicating a significant focus on fulfilling dealer orders [25] Question: What purchasing behavior have you seen from dealers regarding inventory? - Consumers are eager to get into boating and are flexible with color choices, but they remain choosy about quality [26] Question: What are the main supply chain issues currently faced? - The company is monitoring engine supplies and components with limited manufacturers, such as windshields [35] Question: Do you expect the industry to grow in 2021? - Management is optimistic about industry growth in 2021, especially considering the shutdowns in 2020 [39] Question: How will the promotional environment affect margins moving forward? - A lower than normal incentive environment is expected to continue due to strong demand, but some stabilization in incentives is anticipated [42]