Marine Products(MPX) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net sales for Q3 2020 were $68.8 million, a decrease of 4.8% compared to Q3 2019 [12] - Unit sales declined by 10.4% year-over-year, partially offset by an improved model mix resulting in a 7.8% increase in average selling prices [12] - Gross profit increased by 3.1% to $16.2 million, with gross margin rising to 23.6% from 21.8% in Q3 2019 [12][13] - Net income for Q3 2020 was $6.5 million, a decrease of 16.8% from $7.9 million in Q3 2019, with diluted earnings per share at $0.19 compared to $0.23 in the prior year [15] Business Line Data and Key Metrics Changes - Recreational boating sales benefited from COVID-19, leading to high dealer and consumer demand [8] - Chaparral and Robalo maintained market share leadership in their respective categories [8][9] Market Data and Key Metrics Changes - International sales decreased by 29.9%, accounting for only 3.1% of total sales in Q3 2020, down from 4.3% in Q3 2019 [16] - Dealer inventory levels were significantly lower compared to previous years, with a high order backlog in units [17] Company Strategy and Development Direction - The company is optimistic about the 2021 model year and is evaluating opportunities to increase production to meet demand [19] - There are concerns regarding manufacturing capacity constraints, labor availability, and supply chain issues [19] Management Comments on Operating Environment and Future Outlook - Management expressed satisfaction with operating in a high-demand market despite uncertainties regarding in-person boat shows and marketing strategies for 2021 products [19][20] Other Important Information - A regular quarterly cash dividend of $0.08 per share and a special year-end cash dividend of $0.04 per share were declared [9][10] - The cash balance at the end of Q3 was $29 million, an increase of $6 million from the previous year [16] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [22][23]