Marine Products Corporation

Good morning, and thank you for joining us for Marine Products Corporation's second quarter 2022 financial earnings conference call. Today's call will be hosted by Ben Palmer, President and CEO, and Mike Schmidt, Chief Financial Officer. Also hosting is Jim Landers, Vice President of Corporate Services. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. I would like to advise everyone that this conference call is being recorded. Jim will get us started by reading the forward-looking disclaimer.

Thank you and good morning. Before we get started today, I'd like to remind everyone that some of the statements that we will make on this call may be forward-looking in nature and reflect a number of known and unknown risks. I'd like to refer you to our press release issued today our 2021 10K, and other SEC filings that outline those risks, all of which are available on our website at MarineProductsCorp.com. Also in today's earnings release and conference call, we refer to EBITDA, which is a non-GAAP measure of operating performance. We use this non-GAAP measure because it allows us to compare performance consistently over various periods without regard to changes in our capital structure. Our press release issue today and our website contain a reconciliation of this non-GAAP financial measure to net income, which is the nearest GAAP financial measure. Please review this disclosure if you're interested in seeing how it's calculated. If you've not received our press release, please visit our website, again, at marineproductscorp.com for a copy. We'll make a few comments about this quarter, and then we'll be available for your questions. I will turn the call over to our new president and CEO, Ben Palmer.

Hey, Jim, thanks, and thank you all for joining our call this morning. As Jim mentioned, I'm pleased to take on the new role as president and CEO of Marine Products Corporation. During the second quarter, Rick Hubbell was named executive chairman of the board of directors and will remain active with the company. We also welcome Mike Smith, our new CFO, to our corporate management team. Together, we will work with our outstanding operational team at Chaparral and Ravallo and continue the tradition of managing Marine Products Corporation in a conservative, shareholder-friendly manner. Let me begin with just a few highlights regarding our second quarter 2022 earnings press release that was issued this morning. Marine Products Corporation's sales unit volume increased by 15% during the second quarter of 2022 compared to the prior year. We operated throughout the second quarter in contrast to the second quarter of 2021 when our manufacturing facility was briefly shut down because of raw material shortages. Some of our supply chain issues have recently improved, but our production and timing of boat shipments continues to be impacted by sporadic and unpredictable shortages of critical components. Average selling prices increased by 22%. due to price increases implemented to cover higher materials and components costs, as well as model mix that has migrated toward larger boats in response to changes in demand. Backlog of actual orders plus order indications from dealers remain at historic highs and dealer inventories remain extremely low. The updated market share statistics for the 12 months ended March 31, 2022 indicate that the combination of Reballo and Chaparral outboards in the 18 to 36-foot category had a market share of 6.1%, with the Reballo brand holding the third highest market share in this category. Chaparral held a market share of 19.7% in the 21 to 34-foot stern drive category, which was the second highest in this category. We also announced this morning that our board of directors declared a regular quarterly cash dividend of 12 cents per share. And with that overview, I'd like to introduce our new CFO, Mike Smith.