Marine Products Corp (NYSE:MPX) Q4 2019 Earnings Conference Call - Final Transcript

Jan 29, 2020 • 08:00 am ET

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Marine Products Corp (NYSE:MPX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and thank you for joining us for the Marine Products Corporation's Fourth Quarter 2019 Financial Earnings Conference Call. Today's call will be hosted by Rick Hubbell, President and CEO and, Ben Palmer, Chief Financial Officer, and also present is Jim Landers, Vice President of Corporate Finance.

At this time, all participants are in a listen-only mode. Following the presentation we will conduct a question-and-answer session, instructions will be provided at that time for you to queue up for questions. I would like to advise everyone that this conference is being recorded. Jim will get us started by reading the forward-looking disclaimer.

Executive
Jim Landers

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 2018 10-K and our other SEC filings that outline those risks. All of these are available on our website at marineproductscorp.com. If you've not received our press release, please visit our website again at marineproductscorp.com for a copy. We will make a few comments about the quarter and then we'll be available for your questions.

Now I will turn the call over to our President and CEO, Rick Hubbell.

Executive
Richard Hubbell

Jim, thank you. We issued our earnings press release for the fourth quarter of 2019 this morning. Ben Palmer, our CFO will discuss the financial results in more detail in a moment. At this time, I will briefly discuss our operational highlights. As previously announced, we reduced our head count and lowered our production during the fourth quarter. As a result, our net sales during the fourth quarter decreased 22.4% over the fourth quarter of the prior year.

Net sales decreased due to a 21% decrease in the number of units sold during the quarter. Average selling prices decreased slightly due to model mix. We maintain high market share in all of our major categories. Our Chaparral sterndrive products is -- is the second highest market share in their category approximately 16.2% for the 12-months ending September 30, 2019. Robalo maintained its position as the second largest brands in its category with a market share of 5.3%. And the combination of Robalo and Chaparral outboards continues to hold the highest position in the overall outboard market with a market share of 6.5%.

We announced this morning that our Board of Directors declared a regular quarterly cash dividend of $0.12 per share. Also during the fourth quarter, we repurchased 88,983 shares of common stock on the open market.

With that overview, I will turn it over to our CFO, Ben Palmer.

Executive
Ben Palmer

Thanks, Rick. Net sales for the fourth quarter of 2019 were $48.2 million, a 22.4% decrease compared to the fourth quarter last year. As Rick said unit sales declined by 21% during the quarter and average selling prices declined slight a mix. Gross profit in the