Marine Products Corp (MPX) Reports Q3 2023 Earnings: Net Sales Down 22% YoY, Net Income Decreases 9%
Marine Products Corp (NYSE:MPX) reports Q3 2023 net sales of $77.8 million, a 22% decrease compared to Q3 2022.
Net income for Q3 2023 was $10.4 million, a decrease of 9% compared to Q3 2022.
Despite the decrease in Q3, net sales for the nine months ended September 30, 2023, were $312.9 million, a 15% increase compared to the same period in 2022.
Diluted earnings per share in Q3 2023 were $0.30, a decrease of 12% compared to Q3 2022.
Marine Products Corp (NYSE:MPX), a leading manufacturer of fiberglass boats, released its Q3 2023 earnings report on October 25, 2023. The company reported a decrease in net sales and net income compared to the same period in the previous year. However, the company's nine-month net sales showed a 15% increase compared to 2022, indicating a positive overall performance for the year.
Financial Performance
For Q3 2023, Marine Products Corp (NYSE:MPX) reported net sales of $77.8 million, a 22% decrease compared to $100.1 million in Q3 2022. The decrease in net sales was primarily due to a 24% decrease in the number of boats sold during the quarter, partially offset by a 5% increase in average selling price. The company's net income for Q3 2023 was $10.4 million, a decrease of 9% compared to net income of $11.5 million in Q3 2022.
Income Statement Highlights
Gross profit for Q3 2023 was $19.2 million compared to $25.0 million in Q3 2022. Operating income for Q3 2023 was $12.4 million, a decrease of 15% compared to Q3 2022. Selling, general, and administrative expenses were $8.8 million in Q3 2023 compared to $10.3 million in Q3 2022.
Balance Sheet and Cash Flow Statement Highlights
As of September 30, 2023, the company had cash and cash equivalents of $60.7 million. The company's total current assets were $145.2 million, and total liabilities were $46.6 million. The company's total stockholders' equity was $150.1 million.
Company's Outlook
Despite the decrease in Q3, the company's net sales for the nine months ended September 30, 2023, were $312.9 million, a 15% increase compared to the same period in 2022. The company's net income for the nine-month period was $36.3 million or $1.05 diluted earnings per share, compared to net income of $28.5 million or $0.83 diluted earnings per share in the comparable prior year period.
Marine Products Corp's President and CEO, Ben M. Palmer, stated, "Our third quarter results reflect the reduction in production and delivery rates due to normalization of retail boat demand that has occurred during 2023, following significant post-COVID demand. Dealer inventories are reasonable by historical standards and remain below pre-pandemic levels, and we have firm production scheduled into 2024."
This article first appeared on GuruFocus.
