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Sep 30, 2021
Marine Products Q3 2021 Earnings Report
Announced third quarter results, reflecting increased net sales and unit shipments despite supply chain challenges.
Key Takeaways
Marine Products Corporation reported a 10.3% increase in net sales for the third quarter of 2021, driven by a 5.3% increase in unit shipments. Despite supply chain difficulties, the company maintained profitability, with net income slightly increasing compared to the prior year.
Net sales increased by 10.3% to $75,843,000 compared to the same period last year.
Unit sales increased across most product categories despite supply chain challenges.
Gross margin decreased to 21.2% due to higher raw materials, component, and freight costs.
Diluted earnings per share increased to $0.20 compared to $0.19 in the prior year.
Forward Guidance
Marine Products Corporation expects to continue supporting its dealer network and will be shipping higher-priced 2022 model year boats during the fourth quarter of 2021, which will enhance efficiency, increase average selling prices and profitability.
Positive Outlook
- Continued support for dealer network with virtual marketing efforts.
- Equitable production allocation to dealers.
- Support for dealers at winter boat shows.
- Shipping higher-priced 2022 model year boats almost exclusively during the fourth quarter.
- Enhanced efficiency from shipping 2022 model year boats.
Challenges Ahead
- Uncertainty regarding resolution of delivery delays for some raw materials.
- Supply chain disruptions affecting ability to obtain certain raw materials and components.
- Economic conditions may adversely affect sales.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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