Marine Products Corporation

Good morning, and thank you for joining us for Marine Products Corporation's third quarter 2025 earnings conference call. Today's call will be hosted by Ben Palmer, President and CEO, and Mike Schmidt, Chief Financial Officer. 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. I'll now turn the call over to Mr. Schmidt.

Thank you and good morning. Before we begin, I want to remind you that some of the statements that will be made on this call could be forward-looking in nature and reflect a number of known and unknown risks. Please refer to our press release issued today along with our 2024 10K and other public filings that outline those risks, all of which can be found at www.marineproductscorp.com. In today's earnings release and conference call, we'll be referring to several non-GAAP measures of operating performance and liquidity. We believe these non-GAAP measures allow us to compare performance consistently over various periods. Our press release and our website contain reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. I'll now turn the call over to our President and CEO, Ben Palmer.

Thanks, Mike, and thank you all for joining our call. Third quarter sales were up 7% compared to the prior year, as the largest part of our destocking of channel inventory appears to be behind us, and production is off the lows we experienced in the second quarter of 2024. This is the first quarter of year-over-year growth in over two years. Macro and geopolitical risks remain and have added uncertainty to the market. However, industry seems to be cautiously optimistic. Further interest rate cuts could provide a tailwind, especially to the reluctant finance buyers who have seen both higher selling prices and higher financing costs. Our annual dealer meeting was well attended with positive feedback from new and upgraded Chaparral and Revalo models. Recent announcements, like our new financing partnership and marketing efforts, resonated with our dealers. We've made strong efforts to manage channel inventory and have reduced our filled inventory by 6% year-over-year, while generating year-over-year net sales growth. Our absolute inventory levels remain low, ignoring the impacts from COVID, and are consistent across both brands. Because field inventory levels were reasonable, our retail promotional activity is ongoing, but declined slightly during the quarter. We continue to evaluate various programs to support our dealers that are taking a more targeted approach. Supply chain costs and availability of materials and key components remain a key focus area. Store parts do persist, but are much less significant than the last few years. Model year price increases were modest despite the tariff uncertainties. Tariffs remain fluid with what seems like new developments every week, which could require us to revisit pricing. But currently, we do not expect any additional increases. We're actively engaged with government and trade associations to address industry concerns resulting from tariffs, but visibility here is limited. It will take some time to see whether current interest rate cuts are sufficient to positively impact the industry. Given the time of year, it may take months before we fully appreciate the impact, but with additional rate cuts expected in the market, we're hopeful this supports retail demand. We're optimistic for the year ahead as our trends appear to be normalizing with lower field inventories. Our new product introductions and rollouts are being well received, which feature new models, model upgrades, changes, and alternative features. At Chaparral, we upgraded and rebranded both our SURF and SSX lines. We will continue to thoughtfully invest in our brands to best position ourselves in the categories in which we compete and look for strategic investments to accelerate growth when appropriate. Now, Mike will provide an overview of the financial results.