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Jun 30, 2022
Marine Products Q2 2022 Earnings Report
Net sales and net income increased compared to the same period of the prior year.
Key Takeaways
Marine Products Corporation reported a strong second quarter with net sales increasing by 42% and net income increasing by 72% compared to the same period last year. The increase in net sales was primarily due to a 22 percent increase in the average selling price per boat and a 15 percent increase in the number of boats sold.
Net sales increased by 42% to $95.8 million compared to the same period of the prior year.
Gross profit increased to $23.0 million compared to $14.6 million in the second quarter of the prior year.
Net income increased by 72% to $10.0 million compared to $5.8 million in the second quarter of 2021.
Diluted earnings per share increased by 71% to $0.29 compared to $0.17 in the second quarter of the prior year.
Forward Guidance
The company is closely monitoring retail demand indications as consumers assess rising interest rates and the near-term prospect of a recession. They believe any slowdown in consumer demand will not impact their near-term results and are focusing on maximizing unit production and quality.
Positive Outlook
- The company continues to work toward more timely receipts of short components from our suppliers and overcome boat delivery transportation challenges.
- Dealer inventories remain at historic lows.
- Consumer demand continues to exceed the industry’s capacity to meet that demand.
- The company believes any slowdown in consumer demand will not impact their near-term results.
- The company continues to focus on maximizing unit production and quality.
Challenges Ahead
- The company is still being impacted by sporadic and unexpected shortages of critical components.
- These delays continue to impact the company's ability to meet demand.
- Delays lead to higher-than-normal inventory levels of substantially completed boats that could not be shipped to dealers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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