Marine Products Corporation (NYSE:MPX) Q1 2023 Earnings Conference Call April 26, 2023 8:00 AM ET

Company Participants

Jim Landers - VP, Corporate Services

Ben Palmer - President & CEO

Mike Schmit - CFO

Conference Call Participants

Craig Kennison - Baird

Fred Wightman - Wolfe

Operator

Good morning and thank you for joining us for Marine Products Corporation's First 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.

At this time, all participants are in 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 call is being recorded.

Jim will get us started by reading the forward-looking disclaimer.

Jim Landers

Thank you, Audra, 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, 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've not received our press release, please visit our website.

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're also required to use EBITDA to report a compliance with financial covenants under our 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.

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

Ben Palmer

Thanks, Jim, and thank you all for joining our call this morning.

I will begin with a few highlights regarding our first quarter 2023 earnings press release that was issued this morning. Marine Products Corporation once again generated record net sales during the first quarter as we experienced improvement in our supply chain issues and transportation availability relative to the prior year period. We were able to complete and ship a larger number of substantially completed boats in our inventory and deliver them to our dealers. Average selling prices increased primarily due to a favorable model mix at both Chaparral and Robalo.