Marine Products Corporation (NYSE:MPX) Q4 2022 Earnings Call Transcript

Craig Kennison: Great. And I keep promising to stop, but I have one more question.

Ben Palmer: Great. We appreciate it.

Jim Landers: That’s fine, Craig.

Craig Kennison: Thank you. In terms of dealer — I’m sorry, in terms of your consumer demand, is there any backlog with consumers? Any pre-orders that have yet to be satisfied? Or has any of that demand — has all of that demand been fulfilled at this point?

Ben Palmer: No, I would say — there still are — we still have unfulfilled orders, but certainly that’s moderated, obviously. And an indication of that is dealer inventories building, right? And that varies some by region or by dealer. But no, there still are orders to be fulfilled. And like I indicated, almost virtually every dealer is saying, send me as many as you can.

Jim Landers: Yes. A lot of our production is still retail sold, which you know the industry pre-COVID that was usually not the case.

Craig Kennison: And have you seen any changes in that pre-sold demand? Any cancellations of previous orders? Or just any slowdown there?

Ben Palmer: To this point, not a significant amount of cancellation. Certainly, the orders — retail orders on hand certainly are less than they were six to 12 months ago. But it’s still — the demand is still quite strong. We’ve not yet seen — we’ve not yet ourselves seen any softness there. Now, we are certainly mindful. As we indicated in our comments, we’re always watching and monitoring and are prepared to adjust production as necessary if demand were to weaken. But dealer field inventory continues to remain low by historical standards. So, even if things softened a bit, I don’t expect there’s going to be any hard stop or significant decline in demand. But if demand were to weaken, we’ll step back and reassess and decide if and when we need to adjust production and we’re prepared to do that. We’ve always done that to try to obviously align our production to what reasonable demand and reasonable and appropriate dealer inventory levels would be.

Craig Kennison: Great. Hey, thanks for taking all my questions.

Ben Palmer: Great. Thank you, Craig.

Mike Schmit: Thanks, Craig.

Ben Palmer: Good to hear from you.

Operator: And there are no further questions at this time. Mr. Jim Landers, I’ll turn the call back over to you for some closing remarks.

Jim Landers: Okay, Rob, thank you. Thanks for everybody who called in to listen, and we appreciate it, and hope everybody has a good day. We’ll talk to you soon. Thank you.

Operator: This concludes today’s conference call. Today’s conference call will be replayed on marineproductscorp.com within two hours following the completion of the call. You may now disconnect.