Marine Products Corp Releases Q2 2024 10-Q Report

Marine Products Corporation, a leading manufacturer of recreational fiberglass powerboats, has released its Form 10-Q report for the second quarter of 2024. The report highlights significant changes in both financial performance and operational activities, reflecting the company's adaptation to shifting market conditions post-pandemic.

Financial Highlights

• Net sales: $69.5 million, a decrease of 40.1% compared to the same period in 2023, primarily due to a 41% decline in unit sales volumes and lower consumer demand.
• Gross profit: $13.2 million, down from $28.7 million in the same period of the prior year, attributed to lower sales volumes and manufacturing cost inefficiencies.
• Operating income: $5.8 million, a significant drop from $16.5 million in the same period of the prior year, reflecting lower sales volumes and increased costs.
• Net income: $5.6 million, down from $14.3 million in the same period of the prior year, impacted by reduced sales and higher costs.
• Diluted earnings per share: $0.14, a decrease from $0.42 in the same period of the prior year, reflecting decreased profitability.

Business Highlights

• Revenue Segments: Net sales were primarily derived from boats and accessories ($68.2 million) and parts ($1.4 million) for the three months ended June 30, 2024.
• Geographical Performance: International sales accounted for 6.1% of total net sales, a slight decrease from 7.0% in the same period of the previous year, indicating a stronger focus on domestic markets.
• Sales Units: The total number of boats sold in Q2 2024 was 737 units, a significant decrease from 1,243 units sold in the same period of 2023, reflecting a 41% decline in unit sales volumes.
• Production Adjustments: In response to lower consumer demand and higher dealer inventory levels, Marine Products Corporation has adjusted production schedules and labor costs to align more closely with current demand.
• Future Outlook: The company anticipates that the strong retail demand for new recreational boats, which began during the COVID-19 pandemic, has now normalized. They expect continued softening in year-over-year comparisons as the industry adjusts to post-pandemic demand levels and dealers reduce channel inventory.

SEC Filing: Marine Products Corp Releases Q2 2024 [ NYSE:MPX ] - 10-Q - Jul. 25, 2024