Marine Products Corp (MPX) 2023 Q3 法說會逐字稿

Good morning, and thank you for joining us for Marine Products Corporation's Third Quarter 2023 Financial Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO; and Mike Schmit, Chief Financial Officer. Also hosting is Jim Landers, Vice President of Corporate Services.

早安，感謝您參加我們的 Marine Products Corporation 2023 年第三季財務收益電話會議。今天的電話會議將由總裁兼執行長 Ben Palmer 主持；和財務長邁克·施密特。主持會議的還有企業服務副總裁吉姆‧蘭德斯 (Jim Landers)。

(Operator Instructions) I would like to advise everyone that this conference call is being recorded.

（操作員說明）我想提醒大家，本次電話會議正在錄音。

Mike will get us started by reading the forward-looking disclaimer. Please go ahead.

麥克將幫助我們閱讀前瞻性免責聲明。請繼續。

Thank you, and good morning. Before we get started today, I'd like to remind everyone that some of the statements that we will make on this call may be forward-looking in nature and reflect a number of known and unknown risks. I'd like to refer you to our press release issued today, our 2022 Form 10-K and other SEC filings that outline those risks, all of which are available on our website, at marineproductscorp.com. If you have not received our press release, please visit our website.

謝謝你，早安。在今天開始之前，我想提醒大家，我們將在本次電話會議上發表的一些聲明本質上可能具有前瞻性，並反映了一些已知和未知的風險。我想向您推薦我們今天發布的新聞稿、2022 年 10-K 表格以及概述這些風險的其他 SEC 文件，所有這些文件都可以在我們的網站 Marineproductscorp.com 上取得。如果您尚未收到我們的新聞稿，請造訪我們的網站。

In today's earnings release and conference call, we refer to EBITDA, which is a non-GAAP measure of operating performance. We use this non-GAAP measure because it allows us to compare performance consistently over various periods without regard to changes in our capital structure. We are also required to use EBITDA to report compliance with our financial covenants under our revolving credit facility. Our press release issued this morning and our website contain a reconciliation of this non-GAAP financial measure to net income, which is the nearest GAAP financial measure. Please review this disclosure if you're interested in seeing how it's calculated. We'll make a few comments about this quarter and then be available for your questions.

在今天的收益發布和電話會議中，我們提到 EBITDA，它是衡量經營績效的非公認會計準則指標。我們使用這種非公認會計準則衡量標準是因為它使我們能夠在不考慮資本結構變化的情況下一致地比較不同時期的績效。我們也需要使用 EBITDA 來報告我們對循環信貸安排下的財務契約的遵守情況。我們今天早上發布的新聞稿和我們的網站包含了這個非公認會計原則財務指標與淨利潤的調節表，這是最接近的公認會計原則財務指標。如果您有興趣了解其計算方式，請查看此揭露。我們將對本季度發表一些評論，然後回答您的問題。

I'll now turn the call over to our President and CEO, Ben Palmer.

現在我將把電話轉給我們的總裁兼執行長本·帕爾默。

Thank you, Mike, and thank you all for joining our call this morning. I'll begin with a few highlights regarding our third quarter 2023 earnings press release that was issued this morning.

謝謝麥克，也謝謝大家今天早上加入我們的電話會議。首先，我將重點介紹今天上午發布的 2023 年第三季財報新聞稿的一些要點。

Marine Products Corporation's third quarter results reflect a reduction in boat deliveries to dealers compared to the prior year that approximate our new production rates. The decreased production corresponds to the normalization of retail boat demand that has occurred during 2023 following the significant post-COVID demand. Our dealers expressed continued optimism at our recent annual dealer conference, bolstered by the launch of our new 2024 models. They did, however, note some concerns about potential economic slowdown and the impact of higher interest rates.

Marine Products Corporation 第三季的業績反映出向經銷商交付的船舶數量與上一年相比有所減少，這與我們的新生產率相近。產量下降與 2023 年疫情後需求大幅成長後零售船舶需求的正常化相對應。在我們最近推出的 2024 年新車型的推動下，我們的經銷商在最近的年度經銷商會議上表達了持續的樂觀態度。然而，他們確實注意到了對潛在經濟放緩和利率上升影響的一些擔憂。

On a positive note, supply chains continued to improve from earlier this year, but certain components remain challenging. During the quarter, our dealers continued to rebuild their inventories, trending to more normalized levels, and we have asked them to return to a more typical ordering process to assist us in scheduling our production. Dealer inventory of Chaparral and Robalo models remains healthy and below pre-pandemic levels. We expect to manage our production to approximate retail demand over the coming quarters, so dealers are able to service demand out of planned inventory.

從積極的方面來看，供應鏈比今年早些時候繼續改善，但某些零件仍然面臨挑戰。本季度，我們的經銷商繼續重建庫存，趨向於更正常化的水平，我們已要求他們恢復更典型的訂購流程，以協助我們安排生產。 Chaparral 和 Robalo 型號的經銷商庫存保持健康並低於疫情前的水平。我們希望在未來幾季管理我們的生產以接近零售需求，以便經銷商能夠在計劃庫存之外滿足需求。

We also announced this morning that our Board of Directors declared a regular quarterly cash dividend of $0.14 per share.

今天早上我們也宣布，董事會宣布定期派發每股 0.14 美元的季度現金股利。

And with that overview, I'll now turn it back over to Mike Schmit, our CFO.

有了這個概述，我現在將其轉回給我們的財務長 Mike Schmit。

Thanks, Ben. I'll begin with an overview of the company's third quarter 2023 financial results. Net sales for the third quarter were $77.8 million, a 22% decrease compared to the third quarter of last year. Unit sales decreased by about 24%. Average selling price per boat increased by approximately 5% versus the prior year, primarily due to favorable model mix and to a lesser extent, price increases to cover higher costs of materials and components.

謝謝，本。我首先概述該公司 2023 年第三季的財務表現。第三季淨銷售額為 7,780 萬美元，比去年第三季下降 22%。銷量下降約 24%。每艘船的平均售價與前一年相比增長了約 5%，這主要是由於有利的型號組合，其次是由於材料和組件成本上漲而導致價格上漲。

Production and sales were negatively impacted by about 3 days during the third quarter due to Hurricane Idalia. Gross profit in the third quarter was $19.2 million, a 23% decrease compared to the third quarter of 2022. The gross margin for the third quarter was 24.7%, a slight decrease over the 25% for the third quarter of last year.

由於颶風伊達利亞，第三季生產和銷售受到約三天的負面影響。第三季毛利為1,920萬美元，較2022年第三季下降23%。第三季毛利率為24.7%，比去年第三季的25%略有下降。

Selling, general and administrative expenses were $8.8 million in the third quarter of 2023 compared to $10.3 million in the third quarter of last year. These expenses decreased due to costs that vary with sales and profitability, such as incentive compensation, sales commissions and warranty expense.

2023 年第三季的銷售、一般和管理費用為 880 萬美元，而去年第三季為 1,030 萬美元。這些費用的減少是由於成本隨銷售額和盈利能力而變化，例如激勵補償、銷售佣金和保固費用。

We also recorded a net gain on disposition of assets of $2 million during the quarter, which included $1.8 million related to a real estate transaction.

本季我們也記錄了資產處置淨收益 200 萬美元，其中包括與房地產交易相關的 180 萬美元。

EBITDA in the third quarter was $13 million, a 14% decrease compared to $15.2 million in the third quarter of 2022. EBITDA, as a percentage of net sales was 16.7% in the third quarter of 2023 compared to 15.1% in the prior year.

第三季的 EBITDA 為 1,300 萬美元，比 2022 年第三季的 1,520 萬美元下降 14%。2023 年第三季的 EBITDA 佔淨銷售額的百分比為 16.7%，而前一年為 15.1%。

We generated net income of $10.4 million in the third quarter, a 9% decrease compared to $11.5 million in the third quarter of 2022. Diluted earnings per share were $0.30 in the third quarter compared to $0.34 in the third quarter of last year. Our international sales, which accounted for approximately 6% of our total sales during the third quarter decreased by 12% compared to the third quarter of last year.

我們第三季的淨利潤為 1,040 萬美元，比 2022 年第三季的 1,150 萬美元下降了 9%。第三季的稀釋每股收益為 0.30 美元，而去年第三季為 0.34 美元。我們第三季的國際銷售額約佔總銷售額的6%，與去年第三季相比下降了12%。

As Ben mentioned, our dealer inventories are increasing toward more normalized levels and continue to be lower than pre-pandemic levels. These moderately higher inventories have allowed our dealers to meet current demand as well as purchase our 2024 models.

正如本所提到的，我們的經銷商庫存正在向更正常化的水平增加，並繼續低於大流行前的水平。庫存的適度增加使我們的經銷商能夠滿足當前的需求並購買我們的 2024 年車型。

I'll now turn it back over to Ben for a few closing remarks. Thanks.

現在我將把它轉回本，讓他做一些結束語。謝謝。

Our market share remains strong. I'm very pleased to report that the most recently reported data indicates that Chaparral sterndrive market share was #2 in its size category. In addition, the combination of Chaparral and Robalo outboards hold the third highest market share in their size category.

我們的市佔率仍然強勁。我很高興地報告，最近報告的數據表明 Chaparral 蟬驅動市場份額在其尺寸類別中排名第二。此外，Chaparral 和 Robalo 舷外機的組合在其尺寸類別中佔有第三高的市場份額。

We received very positive feedback on our new 2024 models from our dealers. They are designed to appeal to the retail customer while allowing us to efficiently produce high-quality boats. Our new Chaparral 267 SSX will be featured on the upcoming cover of [Boating] Magazine. We, like our dealers, see additional uncertainty in the market over the coming quarters, but our field inventory remains healthy and backlog support our current production schedule into 2024.

我們從經銷商那裡收到了關於 2024 年新車型的非常積極的回饋。它們旨在吸引零售客戶，同時使我們能夠高效生產高品質的船隻。我們的新款 Chaparral 267 SSX 將出現在即將出版的 [Boating] 雜誌封面上。與我們的經銷商一樣，我們看到未來幾季市場存在更多不確定性，但我們的現場庫存保持健康，積壓訂單支持我們目前到 2024 年的生產計劃。

I'd like to thank you for joining us this morning. We'll be happy to take any questions you have.

我要感謝您今天早上加入我們。我們很樂意回答您的任何問題。

(Operator Instructions) Your first question comes from the line of Brandon Rolle with D.A. Davidson.

（操作員說明）您的第一個問題來自 Brandon Rolle 和 D.A. 的線路。戴維森。

I guess to start, from a retail perspective, what have you seen over the last 30 days as we head into the winter months and I guess, how are you thinking about retail in 2024 at this point?

我想先從零售業的角度來看，在我們進入冬季的過去 30 天裡，您看到了什麼，我想您現在對 2024 年的零售業有何看法？

Brandon, this is Jim. Maybe I can kick off with an answer there. The past 30 days have not been very different from the past few months probably. People are a little bit concerned about interest rates. The economic slowdown issue is always a discussion, but it's just a seasonally slow time of the year. Our dealers, as everybody has mentioned, have been cautious. They haven't canceled any orders, but they're asking us to slow down a little bit.

布蘭登，這是吉姆。也許我可以從那裡開始回答。過去 30 天可能與過去幾個月沒有太大不同。人們有點擔心利率。經濟放緩問題始終是一個討論話題，但這只是一年中的季節性放緩時期。正如大家所提到的，我們的經銷商一直很謹慎。他們沒有取消任何訂單，但他們要求我們放慢速度。

Part of that is interest rates on their part. They're carrying costs for inventory are higher than they were. So that is a -- that order and delivery period has just extended a little bit. I don't know anyone else has anything to add.

其中一部分是他們的利率。他們的庫存持有成本比以前高。所以，訂單和交貨期只是延長了一點。我不知道其他人有什麼要補充的。

No, I think that's right, Brandon. This time of year, obviously, the third quarter is a normal seasonally slow period. So it's a little bit difficult to gauge the future just based on the last 30 days.

不，我認為是對的，布蘭登。顯然，每年的這個時候，第三季是正常的季節性淡季。因此，僅根據過去 30 天來判斷未來有點困難。

As it relates to 2024, we feel like we're being prudent about where we're setting our production rates. We feel really good about the level of field inventory of our models, of course. Many of our dealers carry inventory of other models as well. So there's only a certain amount of capacity the dealer have to take additional models. But again, our inventory is very healthy in terms of numbers and certainly the -- almost virtually in the entire field inventory is very fresh model. So there's no concern about trying to move older models.

就 2024 年而言，我們認為我們對設定生產力持謹慎態度。當然，我們對我們模型的現場庫存水準感到非常滿意。我們的許多經銷商也有其他型號的庫存。因此，經銷商只需要一定的能力來購買額外的型號。但同樣，我們的庫存在數量上非常健康，當然，幾乎在整個現場庫存中都是非常新鮮的模型。因此，無需擔心嘗試遷移舊型號。

So what we're looking forward the next point for us to really get a good idea about assessing demand is going to come with the winter boat shows that will start later this calendar year and into early next year. So at that point in time, we'll all reassess demand, reassess -- look at where dealer inventories stand and then we'll reassess what appropriate production rates are, but we feel okay about it. We feel like we are as well positioned as possible at this point in time.

因此，我們期待下一個真正了解需求評估的點是冬季船展，該展會將於今年稍後開始，並持續到明年初。因此，到那時，我們都會重新評估需求，重新評估——看看經銷商的庫存狀況，然後我們將重新評估適當的生產率，但我們對此感覺還不錯。我們覺得目前我們已經處於盡可能有利的位置。

Okay. Great. And just back on the inventories. Would you be able to quantify maybe the average weeks on hand for your dealers right now? And I know you had said current inventory levels are below 2019 levels. But from a dollar perspective and taking into account, obviously, higher carrying costs for these dealers, do you feel like from a dollar perspective, dealers are carrying more inventory than they did pandemic?

好的。偉大的。回到庫存。您能否量化您的經銷商目前的平均可用週數？我知道您曾說過目前庫存水準低於 2019 年的水準。但從美元的角度來看，顯然，考慮到這些經銷商的持有成本更高，您是否認為從美元的角度來看，經銷商的庫存比疫情期間更多？

We don't have complete visibility into our dealers' total inventory, right? They don't readily share that with us. And certainly, the floor plan providers don't either. I would say that the average cost of boats is certainly up from pre-pandemic. For us, that's a combination of we're building and dealers are taking and ordering larger boats. So that tends to increase, obviously, the average selling price. And also just do with the cost of components and so forth that's increased in the last 2 or 3 years.

我們無法完全了解經銷商的總庫存，對吧？他們不願意與我們分享這一點。當然，平面圖提供者也不知道。我想說，船隻的平均成本肯定比疫情前有所上升。對我們來說，這是我們正在建造和經銷商正在接收和訂購更大船隻的結合。顯然，這往往會增加平均售價。也要考慮過去兩三年增加的組件成本等。

So I would -- it's up to the floor plan providers to determine the level of financing they're going to provide the dealers. So I don't really -- I'm not aware of exactly what their dollar inventory levels are, but that certainly at some level, maybe produces a little bit of headwind from the financing companies perspective. They want to -- they're thinking more about dollars, of course, than they are numbers of units to your point.

所以我認為，由平面圖提供者決定他們將為經銷商提供的融資水準。所以我真的不知道他們的美元庫存水準到底是多少，但從金融公司的角度來看，這在某種程度上肯定會產生一些阻力。他們想要——當然，他們更多地考慮的是美元，而不是你所說的單位數量。

And from a unit perspective, just directionally, Brandon, we are still below where we were pre-pandemic. During kind of the last few years, dealers were probably a little less than 1/3 of what they were pre-pandemic kind of total units. Now we're probably a little bit about 2/3 plus of pre-pandemic levels. So we probably double where we were this time last year, but we're not sure that dealers are going to get back to pre-pandemic levels because their carrying costs has been mentioned are so much higher because of higher interest rates.

從單位角度來看，布蘭登，就方向而言，我們仍然低於疫情前的水平。在過去幾年中，經銷商的數量可能略低於疫情前的總數的 1/3。現在我們的水平可能是大流行前水平的 2/3 以上。因此，我們可能會比去年這個時候翻倍，但我們不確定經銷商是否會回到大流行前的水平，因為已經提到，由於利率上升，他們的持有成本要高得多。

So also, there's been better developments on our website and other boat manufacturers' websites. So they may not carry multiple colors of the same model because they can kind of pull it up on screen and show them different features and things like that. So we think some things may have fundamentally changed. We're not sure, but we think that we're hearing that they're pretty comfortable where they're at now. But like I said, it's probably just a little over 2/3 where we were pre-pandemic, if that helps.

同樣，我們的網站和其他船舶製造商的網站也有了更好的發展。因此，他們可能不會攜帶同一型號的多種顏色，因為他們可以將其拉到螢幕上並向他們展示不同的功能和類似的東西。所以我們認為有些事情可能已經發生了根本性的改變。我們不確定，但我們認為我們聽說他們現在的處境相當舒服。但就像我說的，如果這有幫助的話，這可能只是大流行前的 2/3 多一點。

No, it does. And I know you said for this quarter, results kind of reflected the reduction in production and delivery rates. Looking ahead to the fourth quarter, are you expecting a further reduction in production given where inventories are at right now exiting the third quarter? Or I guess, how should we think about production over the fourth quarter?

不，確實如此。我知道你說過本季的業績反映了產量和交貨率的下降。展望第四季度，鑑於目前第三季的庫存情況，您是否預期產量會進一步減少？或者我猜，我們應該如何看待第四季的生產？

No, we are not. We've got it scheduled out based on dealer demand -- the seasonality in holidays, but we don't look to reduce production during the next -- now and 2.5 months.

不，我們不是。我們已經根據經銷商的需求（假期的季節性）安排了生產，但我們不希望在接下來的時間內（現在和 2.5 個月）減少產量。

Okay. Great. And then just finally, on the annual dealer conference. Can you talk about where you were seeing the strongest orders for which products and maybe the mix of products that dealers -- where you were seeing the strongest orders?

好的。偉大的。最後，在年度經銷商大會上。您能否談談您在哪裡看到了最強的訂單，哪些產品以及經銷商的產品組合——您在哪裡看到了最強的訂單？

We didn't really see, again, what they do at the dealer meeting is check out some of our existing models, but many of the newer models. Obviously, there's usually -- and again, this year, a lot of buzz around some of our new models like the 267 SSX. We haven't seen a shift in the size of the boats at this point in time. So I think that's a positive. We still have a good momentum and trend on dealers, looking at and expecting to sell strongly with the larger boats. So we're pleased about that. No real major shifts at this point, sterndrive versus outboard or Robalo versus Chaparral, I think it's sort of -- it's continuing on. And so no particular dramatic shift.

我們並沒有真正看到他們在經銷商會議上所做的就是檢查我們的一些現有型號，而是檢查許多較新的型號。顯然，今年，我們的一些新車型（例如 267 SSX）通常會引發許多熱門話題。目前我們還沒有看到船隻尺寸有變化。所以我認為這是積極的。我們對經銷商來說仍然有良好的勢頭和趨勢，他們正在關注並期望以更大的船隻強勁銷售。所以我們對此感到高興。目前還沒有真正的重大轉變，尾機驅動與舷外機或 Robalo 與 Chaparral，我認為這有點 - 它正在繼續。所以沒有特別戲劇性的轉變。

Okay. And just lastly, if I can squeeze one last one in. Just on the promotional support that you're providing to dealers at this point. Can you talk about how that trended throughout the third quarter? And any maybe step up in the fourth quarter, incremental promotional support, do you think is needed to the customer or to the dealer?

好的。最後，如果我能擠出最後一點的話。就您目前向經銷商提供的促銷支援而言。您能談談整個第三季的趨勢嗎？您認為客戶或經銷商是否需要在第四季加強增量促銷支援？

From the dealer's perspective, a little more support with respect to the building inventory, but not real significant from a retail perspective. We did have some small programs that we offered during the third quarter, but not really significant. We'll look at that issue and that question. It's a good question, but it's one we'll look at, again, as we're moving into the winter boat shows, right? We'll assess inventories. We'll assess our competition, we'll assess demand and make a decision about what level and type of support and we'll design an appropriate incentive program that we think will help our dealers and incur some retail sales.

從經銷商的角度來看，對建立庫存有更多的支持，但從零售的角度來看並不真正重要。我們確實在第三季提供了一些小計劃，但並不重要。我們將研究這個問題。這是一個很好的問題，但當我們進入冬季船展時，我們會再次考慮這個問題，對吧？我們將評估庫存。我們將評估我們的競爭，我們將評估需求並決定支援的水平和類型，我們將設計一個適當的激勵計劃，我們認為這將有助於我們的經銷商並產生一些零售額。

So we don't have that determined yet. Certainly, again, that's another example of we and the industry returning -- we expect returning to normal. There's not -- we have not needed to provide a lot of retail incentive support in the last couple of years, but we do expect they'll -- that [we'll] have some type of program in the winter.

所以我們還沒確定。當然，這又是我們和產業回歸的另一個例子——我們期望恢復正常。在過去的幾年裡，我們不需要提供大量的零售激勵支持，但我們確實希望他們會在冬天制定某種類型的計劃。

Okay. Great. And just on the boat shows, outside of the Fort Lauderdale show, what other winter boat shows are you looking towards as kind of indicators of demand and allowing you to better understand what demand may look like in the upcoming year?

好的。偉大的。就船展而言，除了勞德代爾堡船展之外，您還希望將哪些其他冬季船展作為需求指標，並讓您更了解來年的需求情況？

Well, I would say really all of them, we attend our -- we have our salesmen are in all of the boat shows and certainly all the major boat shows and our management team attends many of the major boat shows. So -- and we regularly review how those sales are going and retail attitudes. So it will be each and every one. We'll -- that's very key to us and the industry to have a good pulse on what's happening and where we feel demand is. And certainly, that influences how we design our incentive programs and how we set our production rates. So it's a great question and we're interested in all of them.

好吧，我想說的是，我們真的參加了所有的遊艇展，我們的銷售人員參加了所有的遊艇展，當然還有所有主要的遊艇展，我們的管理團隊也參加了許多主要的遊艇展。因此，我們定期審查這些銷售情況和零售態度。所以這將是每一個人。我們將會－這對我們和整個產業來說非常關鍵，要了解正在發生的事情以及我們認為的需求在哪裡。當然，這會影響我們如何設計激勵計劃以及如何設定生產力。所以這是一個很好的問題，我們對所有這些都感興趣。

(Operator Instructions) It appears there are no further questions. I will turn the call back over to Mike Schmit for closing remarks.

（操作員說明）看來沒有其他問題了。我會將電話轉回給麥克‧施密特 (Mike Schmit)，讓他發表結束語。

All right. Well, I just want to thank everyone for joining our call today, and we'll now end the call. Thank you very much.

好的。好吧，我只想感謝大家今天加入我們的電話會議，我們現在結束電話會議。非常感謝。

This conference call will be replayed on marineproductscorp.com within 2 hours following the completion of the call. We thank you for joining. You may now disconnect your lines.

本次電話會議將在電話會議結束後 2 小時內在 Marineproductscorp.com 上重播。我們感謝您的加入。現在您可以斷開線路。