The following is a summary of the Marine Products Corporation (MPX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Marine Products Corporation reported a significant decrease in Q1 2024 sales, down by 42% to $69.3 million due to a 40% decrease in the number of boats sold.
A significant drop in gross profit, down by 52% to $14 million with a gross margin of 20.2% was experienced.
There was a 40% decrease in SG&A expenses compared to the first quarter of the previous year, and a Diluted EPS of $0.13, down from $0.34 last year.
EBITDA was $5.9 million, down from $15 million in the previous year, with a decrease of 410 basis points to a margin of 8.5%.
Business Progress:
In response to current demand, the company scaled production levels back by mid-30% range below peak production rates in 2023.
Several operational projects aimed at tooling maintenance and production improvement were initiated during the slowdown.
The larger, pricier boats received a positive reception at the 2024 boat shows compared to smaller, lower-priced boats.
A regular quarterly dividend of $0.14 per share and a special dividend of $0.70 per share were approved, providing a tangible return of capital of $29 million to shareholders.
By the end of the first quarter, the company had more than $80 million in cash demonstrating strong cash generation and good financial discipline.
More details: Marine Products IR
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