Thu, Apr 24, 7:30 PM (29 days ago)
**Marine Products Corporation (MPX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $59.0 million, down 14.9% YoY due to a 19% decrease in unit sales, partially offset by a 4% price/mix increase. - **Gross Profit:** $11.0 million, down from $14.0 million YoY. - **Operating Income:** $2.6 million, down from $5.2 million YoY. - **Net Income:** $2.2 million, down from $4.6 million YoY. - **Earnings per Share (EPS):** $0.06, down from $0.13 YoY. - **Cash Flow from Operations:** $10.8 million, down from $15.9 million YoY. **Profit Margins:** - **Net Income Margin:** 3.7%, down from 6.6% YoY. - **EBITDA Margin:** 5.8%, down from 8.5% YoY. **Cash Flow & Liquidity:** - **Cash and Cash Equivalents:** $57.1 million, up from $52.4 million at year-end 2024. - **Free Cash Flow:** $10.7 million, down from $15.0 million YoY. **Trends & Uncertainties:** - **Industry Weakness:** Continued weakness in the marine industry due to high dealer inventory and soft consumer demand. - **Economic Factors:** Weak consumer sentiment due to economic uncertainty and elevated interest rates. - **Production Adjustments:** Adjusted production levels to align with expected demand, impacting fixed cost absorption and profit margins. - **Future Outlook:** Dependent on economic trends, demand for discretionary products, interest rates, and the effectiveness of incentive programs. **Future Operations Impact:** - **Interest Rates:** Further interest rate relief may be needed to drive increased consumer appetite for new boat purchases. - **Inflation & Tariffs:** Ongoing tariff developments could contribute to inflation and limit further interest rate reductions. - **Production Schedules:** Monitoring dealer inventories and order patterns for an uptick in demand to potentially increase production schedules. **Management's Discussion:** - **Strategies:** Focus on monitoring dealer orders, inventories, and demand indicators. - **Financial Measures:** Use of EBITDA, EBITDA margin, and free cash flow to evaluate operating performance and liquidity. - **Liquidity:** Strong capitalization, cash generated by operations, and revolving credit facility to meet capital requirements for at least the next twelve months. **Ticker:** MPX