Marine Products Corporation

Good morning and thank you for joining us for Marine Products Corporation's second quarter 2023 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 a forward-looking disclaimer. Please go ahead.

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 issue today, our 2022 Form 10-K, and other SEC filings that outline those risks, all of which are available on our website at MarineProductsCorp.com. If you've not received our press release, please visit our website. In today's earnings release and conference call, we'll 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. We're also required to use EBITDA to report compliance with financial covenants under our revolving credit facility. Our press release issued this morning 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. We'll make a few comments about this quarter, and then we'll be available for your questions. I'll turn the call over to our President and CEO, Ben Palmer.

Thank you, Ben, and thank you for joining our call this morning. I will begin with a few highlights regarding our second quarter 2023 earnings press release that was issued this morning. Marine Products Corporation generated strong net sales during the second quarter as we were able to ship a larger number of substantially completed boats in our inventory and deliver them to our dealers. We continue to see improvements in our supply chain compared to prior periods, although timely delivery of certain critical components remains challenging. Average selling prices increased compared to the prior year, primarily due to a favorable model mix at both Chaparral and Ravallo, and price increases to cover increased costs, including primarily materials and components. In addition, the increased unit shipments during the quarter allowed our dealers to begin building their inventory to return to a more typical ordering process. Dealer inventories are trending toward more normalized levels. However, inventory remains below pre-pandemic levels. We expect our unit production to begin trending towards sell-through demand over the coming quarters as dealers can routinely satisfy more demand out of inventory. We also announced this morning that our board of directors declared a regular quarterly cash dividend of 14 cents per share. With that overview, I'll now turn the call over to Mike Smith, our CFO.