Marine Products Corp. reported net sales of $70.9 million in its fiscal fourth quarter, a decrease of 35% compared with the year-ago quarter. Net income was $5.4 million, down 54% year-over-year, and diluted earnings per share was $0.16. Net income margin decreased 320 basis points year over year. EBITDA was $6.5 million, down 58% compared to the same quarter in 2022.
For the full year, net sales increased 1% to $383.7 million, and net income was $41.7 million, an increase of 3% year-over-year. EBITDA of $51.6 million was down 4% year-over-year, and net cash flow provided by operating activities was $56.8 million, with free cash flow at $46.7 million.
“Our fourth quarter results reflect soft retail boat demand for the second consecutive quarter as the industry has normalized from elevated post-Covid demand,” president and CEO Ben M. Palmer said in a statement. “While the boating market has added new retail customers since 2020, the industry has recently been grappling with economic uncertainty, rising interest rates and generally higher levels of dealer inventory.”
Beginning with the third quarter of 2023, Marine Products — the builder of Chaparral and Robalo boats — adjusted its production schedules, variable cost structure and retail incentive programs to align with reset volume. The company also said it is “prepared for near-term industry softness and overall channel de-stocking.”
Gross profit for fiscal year 2023 was $13.5 million, down 51%, and gross margin was 19%, or down 620 basis points. The margin reflected lower sales volumes and associated manufacturing cost inefficiencies, coupled with the impact of higher retail incentives.
Selling, general and administrative expenses were $7.7 million, which was down 38% and represented 10.9% of net sales.
