Investor Relations
Third Quarter Update
November 18, 2021
FORWARD LOOKING STATEMENTS AND NON‐GAAP DISCLOSURE
Certain statements and information included in this discussion constitute "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward‐looking statements include statements that look forward in time or express management's beliefs, expectations or hopes. In particular, such statements include, without limitation, the statements that we do not know when delivery delays for some of our raw materials will be resolved, the expectation that our working capital requirements will decline and our cash balance will increase, that during the fourth quarter we will continue to support our dealer network with virtual marketing efforts, equitable production allocation and winter boat show support, and the we will almost exclusively ship higher‐priced 2022 model year boats during the fourth quarter of 2021 which will enhance efficiency, increase average selling prices and profitability. These risks include risks related to the supply chain disruptions that have affected our ability to obtain certain raw materials and components which have adversely affected our sales and profit margins, and risks that economic conditions, availability of credit and consumer confidence levels may adversely affect our sales.
Additional discussion of factors that could cause the actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in Marine Products' Annual Report on Form 10‐K, filed with the U.S. Securities and Exchange Commission (the "SEC") for the year ended December 31, 2020 and the Quarterly Report on Form 10‐ Q filed with the SEC for the quarter ended June 30, 2021.
Marine Products Corporation has used the non‐GAAP financial measure of earnings before interest, taxes, depreciation and amortization (EBITDA) in today's earnings release, and anticipates using EBITDA in today's earnings conference call. EBITDA should not be considered in isolation or as a substitute for operating income, net income or other performance measures prepared in accordance with GAAP.
Marine Products Corporation uses EBITDA as a measure of operating performance because it allows us to compare performance consistently over various periods without regard to changes in our capital structure.
A non‐GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Set forth below is a reconciliation of EBITDA with Net Income, the most comparable GAAP measure. This reconciliation also appears on Marine Products Corporation's investor website, which can be found on the Internet at marineproductscorp.com. It can also be found in Appendix A at the end of this discussion.
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CORPORATE PROFILE
- Headquartered in Atlanta
- Manufacturing Facility in Nashville, GA
- Publicly traded since 2001
- NYSE: MPX
- Recent Stock Price: $12.82
- Market Capitalization: $436 million
- Current Dividend Yield: 3.7%
- Average Daily Volume (last 3 months): 69,686
- Long‐Term Focus
- No debt, liquid balance sheet
- Dividends in all but 2 years as a public company
Marine Products Corporation has been building high‐quality fiberglass powerboats for more than 55 years.
Pictured Above:
Chaparral's first outboard‐powered fiberglass
runabout, manufactured in 1965
2
MPX AT A GLANCE
MPX is a leading manufacturer of recreational powerboats, with leading market shares across key brands, poised to continue to grow and expand its franchise
KEY STATS
- One of the largest manufacturers of fiberglass powerboats in the U.S., with leading market positions across its Chaparral and Robalo brands
- Brands are oriented toward fast‐growing recreational and coastal fishing categories
- Highly regarded for innovation with products known for performance, features, function and value
- Products are sold across an established and broad dealer network
- Disciplined focus on long‐term shareholder returns and capital stewardship
FINANCIAL SNAPSHOT
#1 | 41 | 300+ |
Outboard Boat | Boat | Global Dealer |
Market Share (1) | Models | Network |
~18% | ~23% | ~12% |
ROIC Since | LTM | LTM Adj. |
2006 | Gross Margin | EBITDA Margin |
($ in millions) | Sales | EBITDA | ||||||||||||||
$267 | $299 | $292 | $293 | Chaparral | ||||||||||||
$241 | $240 | Sterndrive | Outboard | ~50% | ||||||||||||
$37 | $36 | $37 | ||||||||||||||
$31 | $26 | ~35% | ~65% | |||||||||||||
$24 | 2020 | 2020 | ||||||||||||||
SALES BY | ||||||||||||||||
SALES BY | ||||||||||||||||
PROPULSION (2) | ||||||||||||||||
BRAND | ||||||||||||||||
Robalo | ||||||||||||||||
~50% | ||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | LTM | 2016 | 2017 | 2018 | 2019 | 2020 | LTM | |||||
_____________________ | 9/30/2021 | 9/30/2021 |
- Chaparral and Robalo combined hold the #1 market position for outboard boats in their size range.
- Excludes jet propulsion sales that are being discontinued, which comprises approximately 1% of sales.
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MPX'S EVOLUTION
MPX has evolved by utilizing its design and manufacturing expertise and dealer network to capture attractive market opportunities
Chaparral founded in Ft. Lauderdale, FL
Chaparral moved to Nashville, Georgia, obtaining additional manufacturing space and access to a trained workforce
Sunesta deck boat introduced
MPX acquires
Robalo
SSX luxury sport boat introduced
Chaparral Surf
Series introduced
H2O sport boat introduced
1965 | 1969 | 1976 | 1986 | 1993 | 2000 | 2001 |
2007 | 2012 | 2015 | 2018 | 2019 |
Chaparral introduced | ||||||
SunCoast outboard sport | the OSX luxury | |||||
Robalo founded | MPX acquires | Premium SSi sport | outboard sportboat | |||
Chaparral | decks introduced | |||||
boat line introduced | ||||||
DEMONSTRATED ABILITY TO EVOLVE WITH CONSUMER PREFERENCES | ||||||
Sterndrive | Outboard | Sterndrive | Outboard | |||
~95% | ~5% | ~35% | ~65% | |||
2010 | 2020 | |||||
SALES BY | SALES BY | |||||
PROPULSION | PROPULSION (1) |
MPX has evolved with the market into faster growing, premium outboard categories
_____________________
- Excludes jet propulsion sales that are being discontinued, which comprises approximately 1% of sales.
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Disclaimer
Marine Products Corporation published this content on 18 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2021 08:42:07 UTC.