Marine Products(MPX) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net sales for Q2 2023 were $116.2 million, a 21% increase compared to Q2 2022, driven by an 11% increase in unit sales and a 10% increase in average selling prices [7][8] - Gross profit in Q2 2023 was $28.7 million, a 25% increase from the same quarter last year, with a gross margin of 24.7%, up from 24% in Q2 2022 [7][8] - EBITDA for Q2 2023 was $17.1 million, a 26% increase compared to Q2 2022, while net income rose to $14.3 million, a 44% increase from $10 million in the same quarter last year [8] - Diluted earnings per share were $0.42 in Q2 2023, compared to $0.29 in Q2 2022 [8] Business Line Data and Key Metrics Changes - The company reported a favorable mix of boats shipped, contributing to the increase in sales and profitability [5][7] - Selling, general and administrative expenses for Q2 2023 were $12.2 million, a 23% increase compared to $9.9 million in Q2 2022, representing 10.5% of net sales [20] Market Data and Key Metrics Changes - International sales accounted for approximately 7% of total sales in Q2 2023, increasing by 4% compared to the same quarter last year [21] - Dealer inventories are trending towards normalized levels but remain below pre-pandemic levels, allowing dealers to meet current demand [18][21] Company Strategy and Development Direction - The company aims to balance production with dealer and retail demand, adjusting production as necessary [10] - The introduction of 2024 models is designed to appeal to retail customers while ensuring efficient production [10] - The company maintains a strong market share, with Chaparral sterndrive achieving the number one position in its size category [10] Management's Comments on Operating Environment and Future Outlook - Management noted that retail boat sales are adjusting to normalized levels and expressed optimism about dealer inventories and backlogs [10] - Concerns were raised regarding potential headwinds from consumer confidence due to higher interest rates and possible economic slowdown [21] Other Important Information - The Board of Directors declared a regular quarterly cash dividend of $0.14 per share [18] Q&A Session Summary - There were no questions during the Q&A session [24]