Marine Products Corporation (NYSE:MPX) Q2 2024 Earnings Conference Call July 25, 2024 8:00 AM ET

Company Participants

Ben Palmer - President and CEO
Mike Schmit - Chief Financial Officer

Conference Call Participants

Griffin Bryan - D.A. Davidson

Operator

Good morning. And thank you for joining us for Marine Products Corporation’s Second Quarter 2024 Financial Earnings Conference Call. Today’s call will be hosted by Ben Palmer, President and CEO; and Mike Schmit, Chief Financial Officer.

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 the time for you to queue up for your questions. I would like to advise everyone that this conference call is being recorded.

I will now turn the call over to Mr. Schmit.

Mike Schmit

Thank you and good morning. Before we begin, I want to remind you that some of the statements that will be made on this call could be forward-looking in nature and reflect a number of known and unknown risks. Please refer to our press release issued today along with our 2023 10-K and other public filings that outline those risks, all of which can be found at marineproductscorp.com.

In today’s earnings release and conference call, we’ll be referring to several non-GAAP measures of operating performance and liquidity. We believe these non-GAAP measures allow us to compare performance consistently over various periods. Our press release issued today and our website contain reconciliations to these non-GAAP measures to the most directly comparable GAAP measures.

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

Ben Palmer

Thank you, Mike, and thank you all for joining our call. Second quarter results were again stable from a sequential standpoint compared to first quarter, however remained negative compared to prior year as we had anticipated.

The key themes and headwinds for the boat manufacturing industry remain the same and Marine Products is no exception. We and our competitors are still grappling with dealer hesitation to aggressively order boats as they attempt to clear inventory from their showroom floors.

Compounding the excess inventory issue are interest rates that remain relatively high, keeping up with pressure on dealer carrying costs. We are being proactive in managing costs and production schedules during this soft period, but simply put, we believe these challenges will continue to hamper our financial results in the near term.