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Dec 31, 2019
Marine Products Q4 2019 Earnings Report
Marine Products Corporation's financial performance decreased due to lower sales across all model lines and adjustments to production levels.
Key Takeaways
Marine Products Corporation reported a decrease in net sales, gross profit, operating profit, and net income for the quarter ended December 31, 2019, compared to the same period of the prior year, primarily due to lower unit sales and adjustments to production levels.
Net sales decreased by 22.4% to $48.175 million compared to the same quarter last year.
Unit sales declined by 21.0% across all model lines.
Net income decreased by 25.1% to $3.542 million compared to the prior year.
Diluted earnings per share decreased to $0.10, a $0.04 decrease compared to last year.
Forward Guidance
The early 2020 winter boat shows are better attended than last year, and more sales are being closed at the shows than in prior years, both of which indicate that the 2020 retail selling season is likely to be strong. The company will monitor orders from the boat shows during the next month and are considering appropriate production increases during the first quarter.
Positive Outlook
- Dealer inventory aging shows a high percentage of newer 2020 models.
- Early 2020 winter boat shows are better attended than last year.
- More sales are being closed at the boat shows than in prior years.
- The 2020 retail selling season is likely to be strong.
- Considering appropriate production increases during the first quarter.
Challenges Ahead
- Dealer inventories had increased to levels that prompted production adjustments.
- Fourth quarter sales reflect the decision to align production with field inventory.
- Monitoring dealer inventories and orders very closely.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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