Marine Products Corporation (NYSE:MPX) Q2 2022 Earnings Conference Call July 27, 2022 8:00 AM ET

Company Participants

Ben Palmer - President and CEO

Mike Schmit - CFO

Jim Landers - VP of Corporate Services

Conference Call Participants

Fred Wightman - Wolfe Research

Operator

[Call Started Abruptly] Ben Palmer, President and CEO; and Mike Schmit, Chief Financial Officer. Also hosting is Jim Landers, Vice President of Corporate Services. [Operator Instructions]

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, 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 2021 10-K and other SEC filings that outline those risks, all of which are available on our website at marineproductscorp.com.

Also 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.

Our press release issued today 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. If you've not received our press release, please visit our website, again at marineproductscorp.com for a copy. We'll make a few comments about this quarter, and then we'll be available for your questions.

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

Ben Palmer

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

As Jim mentioned, I'm pleased to take on the new role as President and CEO of Marine Products Corporation. During the second quarter, Rick Hubbell was named Executive Chairman of the Board of Directors and will remain active with the company. We also welcome Mike Schmit, our new CFO, to our corporate management team. Together, we will work with our outstanding operational team at Chaparral and Robalo and continue the tradition of managing Marine Products Corporation in a conservative shareholder-friendly manner.

Let me begin with just a few highlights regarding our second quarter 2022 earnings press release that was issued this morning. Marine Products Corporation's sales unit volume increased by 15% during the second quarter of 2022 compared to the prior year. We operated throughout the second quarter, in contrast to the second quarter of 2021 when our manufacturing facility was briefly shut down because of raw material shortages. Some of our supply chain issues have recently improved, but our production and timing of boat shipments continues to be impacted by sporadic and unpredictable shortages of critical components.