NYSE$MPX

Marine Products Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a decrease in net sales due to a reduction in units sold, but gross profit increased due to a favorable model mix.

Marine Products Corporation reported a decrease in net sales by 4.8% due to a reduction in unit sales, but this was partially offset by a 7.8% increase in the average selling price per boat. Gross profit increased by 3.1%, driven by a favorable model mix. However, operating profit and net income decreased due to higher selling, general, and administrative expenses.

  • Net sales decreased by 4.8% compared to the same period last year, totaling $68,778,000.
  • Gross profit increased by 3.1% due to a favorable model mix of larger boats.
  • Operating profit decreased by 14.0% due to increased selling, general, and administrative expenses.
  • Net income decreased by 16.8% compared to the third quarter of 2019, resulting in diluted earnings per share of $0.19.

Headline financials

Total Revenue

$68.8M

Previous: $72.2M-4.8%
EPS (adj)

$0.19

Previous: $0.23-17.4%
Gross Margin

23.6%

Previous: 21.8%+8.3%
Effective Tax Rate

21.8%

Previous: 19.8%+10.1%
Capital Expenditures

-$1.46M

Previous: -$2.01M+27.6%
Free Cash Flow

$5.08M

Previous: $5.84M-13.1%
Net Income

$6.54M

Previous: $7.86M-16.8%
Operating Income

$8.35M

Previous: $9.71M-14.0%
Gross Profit

$16.2M

Previous: $15.7M+3.1%
Cash & Equivalents

$29M

Previous: $23M+26.0%
Total Assets

$117M

Previous: $119M-1.3%
Stock-Based Comp

$1.5M

Previous: $544K+175.7%

Revenue & EPS history

Marine Products · Revenue · Quarterly

$68.8M

Q3 2020-4.8%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The company is evaluating an increase in production levels, subject to supply chain constraints and labor availability, to meet dealer demand. They are also planning alternative marketing strategies for the 2021 models due to uncertainty surrounding in-person boat shows.

Tailwinds

  • Continuing to operate at the highest feasible operational cadence to fulfill the largest order backlog in many years.
  • Dealer inventories remain at historically low levels.
  • Benefiting from the highest consumer demand in many years due to the effects of the COVID-19 pandemic.
  • Reported growing market share in sterndrive and outboard markets.
  • Evaluating an increase in production levels to satisfy dealer demand.

Headwinds

  • Supply chain constraints and labor availability may impact production levels.
  • Uncertainty surrounding the feasibility of in-person winter boat shows.
  • Lower research and development tax credit compared to the prior year.
  • Increase in deferred compensation expense.
  • COVID-19 crisis and its potential impact on the U.S. and global economy.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.7%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-1.5%

Avg return

30 days after

35%

23 / 66 earnings

Positive

+14.9%

Q4 2015

Best reaction

-19.2%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%+0.7%
Q4 2025-17.0%-19.5%-28.8%
Q3 2025-0.2%-2.0%-0.6%
Q2 2025+2.2%+0.1%+0.7%
Q1 2025-0.5%-1.4%-2.8%
Q4 2024+4.8%+2.3%-4.0%
Q3 2024-0.4%+1.2%+5.7%
Q2 2024+7.9%+7.5%-3.8%
Q1 2024+3.6%-3.2%-7.0%
Q4 2023-5.4%-6.0%-6.6%
Q3 2023-13.5%-23.8%-25.6%
Q2 2023-0.3%-4.7%-6.2%
Q1 2023+3.4%+11.6%+16.9%
Q4 2022-1.8%-4.8%-1.1%
Q3 2022+8.1%+12.2%+26.8%
Q2 2022+9.8%+10.3%+5.6%
Q1 2022-1.7%-10.4%-15.3%
Q4 2021+7.2%+9.3%+8.6%
Q3 2021-2.9%-1.2%-4.9%
Q2 2021-0.8%-2.3%-16.0%
Q1 2021-4.5%-1.9%-9.5%
Q4 2020-0.8%+2.2%+1.6%
Q3 2020-9.0%-5.5%-5.0%
Q2 2020-19.2%-16.5%-17.0%
Q1 2020-1.1%-3.2%+14.4%
Q4 2019-5.1%-4.0%-16.1%
Q3 2019-2.1%-5.1%+9.1%
Q2 2019+6.7%+17.1%+13.5%
Q1 2019+7.0%+10.2%+2.7%
Q4 2018-15.0%-17.5%-13.9%
Q3 2018-6.4%-10.8%-6.9%
Q2 2018-3.8%-6.9%-4.6%
Q1 2018-1.7%-2.2%+4.4%
Q4 2017+12.4%+10.9%+4.9%
Q3 2017-6.2%-8.8%-0.3%
Q2 2017-3.5%-3.6%+2.1%
Q1 2017+1.9%+4.3%+12.5%
Q4 2016-16.3%-17.6%-18.7%
Q3 2016+5.5%+5.4%+28.2%
Q2 2016+0.0%+0.4%-0.8%
Q1 2016-3.2%
Q4 2015+14.9%
Q3 2015+0.0%
Q2 2015+6.6%
Q1 2015-11.3%
Q4 2014+4.2%
Q3 2014+0.1%
Q2 2014+6.0%
Q1 2014-3.1%
Q4 2013+0.8%
Q3 2013-2.2%
Q2 2013+1.7%
Q1 2013+1.6%
Q4 2012-0.2%
Q3 2012+8.1%
Q2 2012-2.4%
Q1 2011-1.0%
Q1 2012+0.0%
Q4 2011-2.2%
Q4 2009-2.2%
Q3 2010-1.0%
Q3 2011-1.0%
Q4 2010-1.5%
Q2 2010-1.5%
Q2 2011-1.5%
Q1 2010+5.1%

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