#USA #Atlanta #Marine Products #MPX #fiberglass boats

Marine Products Corporation's Financial Overview for 2024

Marine Products Corporation (NYSE: MPX), a prominent manufacturer of fiberglass boats, has disclosed its financial performance for the fourth quarter and the entirety of the fiscal year 2024. This report reflects substantial challenges faced by the company within the boating industry, particularly marked by a significant drop in sales.

Fourth Quarter Highlights

In the fourth quarter of 2024, Marine Products reported net sales of $47.8 million, a stark decline of 33% compared to the same period in the previous year. This decrease was attributed to a 39% reduction in the number of boats sold, though a positive price/mix of 6% offered some mitigation. Despite this downturn, net income fell only 21% year-over-year, amounting to $4.3 million, translating to diluted earnings per share (EPS) of $0.12. The net income margin saw a slight improvement, rising by 120 basis points to 8.9%, primarily due to favorable tax considerations.

Operationally, earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $4.4 million for the quarter, maintaining an EBITDA margin of 9.2%. The ongoing efforts to control costs amidst a softer order environment have been acknowledged as a strategic response by management, as the severity of sales declines appeared to lessen towards the year's end.

Using cost-control measures, the company managed to adjust its production schedules and labor costs in alignment with reduced demand. These careful strategies appear to have succeeded in achieving a marginal gross margin improvement compared to the prior year’s fourth quarter—a notable feat under challenging conditions.

Full Year Performance

Looking at the full year, Marine Products noted a 38% decrease in net sales, totaling $236.6 million. While the overall net income was reported at $17.9 million, this marked a significant decline, with a diluted EPS falling to $0.50. Despite these figures, the company has reported significant cash flow, highlighting their strong liquidity position with $52.4 million in cash and no outstanding debt.

In addition to managing costs, Marine Products distributed a total of $43.7 million in dividends for the year, including a notable special dividend of $0.70 per share. Looking ahead, the board declared a regular quarterly dividend of $0.14 per share, expected to be paid on March 10, 2025, to stockholders of record by February 10, 2025.

Ben M. Palmer, President and CEO, expressed cautious optimism during his commentary on the results. He noted that while the fourth quarter saw the weakest sales figures of 2024, it also represented the smallest decline of the year. Palmer indicated that the company is strategically positioned to optimize their product launches and actively address market demands while maintaining sound financial health.

Future Outlook

Management remains cautious regarding the industry's recovery trajectory, considering mixed signals from macroeconomic indicators like interest rate fluctuations. Positive feedback from recent boat shows has been encouraging, with hopeful signs of recovery for dealer confidence and consumer interest. While the immediate future suggests a stabilization in sales, the company anticipates potential growth to emerge closer to the end of 2025 as the market recalibrates.

In conclusion, Marine Products Corporation is committed to navigating the tribulations of an unpredictable market landscape by remaining prudent in its operational strategies and prioritizing shareholder value through regular dividends and potential growth opportunities.

For more information about Marine Products and their latest financial results, visit Marine Products Corporation.