Marine Products Corporation Q1 FY2025 earnings call

• First quarter results were down compared to prior year, but sales were up 23% sequentially from fourth quarter of 2024; trends beginning to stabilize. - Channel inventories in first quarter were down 18% versus year - ago quarter, showing progress. - Focused on managing costs and production levels, maximizing cash flow. - Filed S - 3 registration statement with SEC regarding Rollins Family Control Group shares. - Welcomed Steve Lewis to the board of directors, and Gary Rollins and Pam Rollins retired from the board. - Actively seeking acquisitions to expand business.

In the first quarter of 2025, sales were down 15% year over year to $59 million, driven by a 19% decrease in the number of boats sold, with price and mix netting to a positive 4%. Gross profit decreased to $11 million with a gross profit margin of 18.6%, down 60 basis points. SG&A expenses were $8.3 million in the quarter, down 5% or $400,000 compared to last year's first quarter. SG&A as a percentage of sales was 14.1%, up 150 basis points compared to the prior year's first quarter. Diluted EPS was $0.06 in the first quarter, down from $0.13 last year. EBITDA was $3.4 million, down from $5.9 million. The company generated strong operating cash flow of $10.8 million and free cash flow of $10.7 million in the quarter. It finished the quarter with cash of $57 million and no debt.

• Believes there is potential for year - over - year sales growth in the second half of 2025. - Expect s lower CapEx this year compared to last, but CapEx will likely pick up in coming quarters and track toward $3 million for the full year. - Still actively seeking acquisitions to expand the business in various boat categories where they don't have existing products.

• Marine industry faces elevated levels of channel inventory. - Unclear interest rate environment. - Uncertainty with respect to tariff impacts on input costs such as engines, navigation, stainless steel, aluminum, and fiberglass.

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