Q1 2024 Marine Products Corp Earnings Call
Operator: Good morning, and thank you for joining us for Marine Products Corporation's first quarter 2024 Financial Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO, and Mike Schmit, 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 will now turn the call over to Mr. Schmit.
Good morning, and thank you for joining us for Marine products Corporation's first quarter 'twenty 'twenty four financial earnings Conference call today's call will be hosted by Dan Palmer, President and CEO and Mike Smith, Chief Financial Officer. At this time, all participants are in listen only mode. Following the presentation we will.
Mike Smith: Conduct a question and answer session and 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 will now turn the call over to Mr. Schmidt.
Michael L. Schmit: 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 the number of known and unknown risks. Please refer to our press release issued today, along with our 2023 10-K and other public filings, 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.
Mike Smith: Thank you.
Mike Smith: Before we begin I want to remind you that some statements.
Schmidt: This call.
Schmidt: Forward looking in nature and reflect a number.
Schmidt: Great.
Schmidt: Please refer to our press release issued today, along with our 2020.
Schmidt: And other public filings outline.
Schmidt: Outline those risks.
Schmidt: All of which can be found at www dot marine products.
Yes.
Schmidt: In today's earnings release.
Schmidt: And conference call, we'll be referring to several non-GAAP measures.
Schmidt: Operating performance and liquidity.
Michael L. Schmit: We believe these non-gap measures allow us to compare performance consistently over various periods. Our press release issued today, and our website, contain reconciliations of these non-GAAP measures, the most directly comparable GAAP measures. I will now turn the call over to our President and CEO, Ben Palmer. Thanks, Mike, and thank you all for joining our call.
We believe non-GAAP measures allow us.
Schmidt: Over various periods.
Schmidt: Our press release issued today and our website.
Schmidt: A reconciliation.
Schmidt: GAAP measures.
Schmidt: Directly comparable.
Schmidt: I will now turn the call over to our President and CEO Ben Palmer.
Ben M. Palmer: Thanks, Mike.
Ben M. Palmer: Thank you all for joining our call.
Ben M. Palmer: Before we get started I want to take a moment to share some unfortunate.
Ben M. Palmer: Thanks, Mike, and thank you all for joining our call. Before we get started, I'd like to take a moment to share some unfortunate and sad news. Our longtime head of investor relations and vice president of corporate services, Jim Landers, passed away a few weeks ago after a long and courageous battle with cancer. I've worked closely with Jim here at Marine Products for more than 20 years. He was a tremendous contributor to the company in so many ways. I'm sure those of you listening today were lucky enough to work with him over the years, though he was also a great friend and colleague. You will truly be missed by all of us.
Ben M. Palmer: That news.
Ben M. Palmer: Our long time head of Investor Relations, Vice President of corporate services, Jim Landers passed away a few weeks ago.
Ben M. Palmer: Courageous battle with cancer.
Ben M. Palmer: I worked closely with Jeff here at Marine products more than 20 years.
Ben M. Palmer: It was a tremendous contributor to the company in so many ways.
I'm sure those of you listening today, we're lucky enough to work with him over the years.
Ben M. Palmer: He was also a great friends and colleagues.
Ben M. Palmer: He will truly be missed.
Ben M. Palmer: Shifting to our results, first quarter results showed signs of stability on the top line and some improvement in profitability sequentially compared to the fourth quarter of last year. However, year-over-year comparisons were very challenging, consistent with the near-term expectations we signaled on our last call. The quarter played out generally as we anticipated, and our discussion today might feel quite similar to our last call. The key themes remain very much the same.
Ben M. Palmer: Shifting to our results our first quarter results.
Ben M. Palmer: Stability on the top line and some improvement in profitability sequentially.
Ben M. Palmer: Fourth quarter of last year.
Ben M. Palmer: However year over year comparisons were very challenging consistent with the near term expectations.
Speaker Change: The last call.
Speaker Change: Well the quarter played out generally as we anticipated in our discussion today might feel quite similar to our last call.
Speaker Change: To keep things remain very much the same.
Ben M. Palmer: Overall, our industry is still contending with a dealer channel that is flush with inventory and HESTA to order aggressively in the face of uncertain demand and higher floor plan carrying costs. We are being proactive in managing costs and production schedules during this soft period. As we said last quarter, we have reduced our production levels to be more in line with current demand as our dealers work through show remendatory. This production scale back was by an order of magnitude of around the mid 30% range below our peak production rates in the first half of 2023.
Speaker Change: Overall, our industry is still contending with the dealer channel that is flush with inventory.
Speaker Change: The order progression in the face of uncertain demand higher floorplan carrying costs.
Speaker Change: We are being proactive in managing costs and production schedules during the soft period.
Speaker Change: As we said last quarter, we have reduced our production levels to be more in line with current demand as our dealers work through sharper Amendment.
Speaker Change: This production scale back was in order of magnitude of around mid 30% range below our peak production rates in the first half of 'twenty three.
Ben M. Palmer: Although we would certainly want our plant to be busier with more production until orders, we are taking advantage of this slowdown to execute operational projects we were unable to undertake during our periods of surging demand, from the pandemic through mid-2023. Examples include projects to maintain and repair tooling, improve the consistency of lamination and other assembly processes, and evaluate alternative production schedules.
Speaker Change: Although we would certainly want our plants be this year with more production still orders. We are taking advantage of this slowdown to execute operational projects. We were unable to undertake during our periods a surge in demand from the pandemic through mid 2023.
Speaker Change: Examples include projects to maintain and repair tooling improved consistency lamination and other assembly processes and evaluate alternative production schedules.
Ben M. Palmer: With regard to dealer inventory, I'll echo my comments from last quarter that we remain pretty comfortable with the level of our products in the field. However, we continue to hear that high inventories are still an issue for many dealers, often in categories where we do not compete. We would note that our field inventory in the NSS is solidly below pre-pandemic levels.
With regard to dealer inventory I'll Echo my comments from last quarter, but we remain pretty comfortable with the level of our hour.
Speaker Change: <unk> in the field.
Speaker Change: But we continue to hear that high inventories are still an issue for many dealers often in categories, where we do not compete.
Speaker Change: We would note that our field inventories E&S is solidly blood pre pandemic levels. However, we may not return to those levels, regardless of demand given that April is higher higher carrying costs.
Ben M. Palmer: However, we may not return to those levels regardless of... given the new normal of higher carrying costs. We continue to have attractive retail incentives in the marketplace and are encouraged to see monthly sales trends for our dealers reflecting the typical ramp-up throughout the first quarter. It received positive reception at most of the early 2024 boat shows, with customers excited about our product line. Consistent with recent trends, since the rise in interest rates, our larger-priced boats, which are often purchased by cash buyers, sold better than smaller, lower-priced boats, which are often financed and purchased by cash buyers.
Speaker Change: We continue to have attractive retail incentives in the marketplace and are encouraged to see monthly sales trends for our dealers, reflecting the typical ramp up throughout the first quarter.
Speaker Change: There was positive reception that most of the early 2020.
Speaker Change: Those with customers excited about our product lineup.
Speaker Change: Consistent with recent trends since the rise in interest rates larger price boats, which are often purchased by cash buyers. So better smaller lower priced boats, which are often finance purchases.
Ben M. Palmer: Speaking of borrowing costs, it is worth noting that there remains a great deal of uncertainty regarding the timing and magnitude of a potential decline in interest rates. Though there had been broad consensus for multiple rate cuts by the Fed during 2024, expectations have clearly moderated with mixed economic data clouding the interest rate output. While this is a macro factor out of our hands, we will focus on things within our control. We are navigating the current environment with a focus on cost and efficiency, making the best of this law by executing multiple projects to improve our operation, continuing to support our dealers and maximize our partnership. Now, Mike will provide an overview of the financial results.
Speaker Change: Speaking of borrowing costs. It is worth noting that there were there remains a great deal of uncertainty regarding the timing and magnitude of a potential decline in interest rates.
Speaker Change: There had been a broad consensus for multiple rate cuts by the fed during 2024 expectations that clearly moderated with mixed economic data clouding the interest rate outlook.
Speaker Change: While this is a macro factor out of our hands, we will focus on things within our control.
We are navigating the current environment with focus on cost and efficiencies.
Speaker Change: Best of this law by executing multiple projects to improve our operations.
To support our dealers and maximize our partnerships now.
Now Mike will provide an overview of our financial results.
Michael L. Schmit: for the first quarter of 2024 compared to the first quarter of 2023, sales were down 42% to $69.3 million, driven by a 40% decrease in the number of those sold. Prior to this, netted to a negative 2%. Of note, last year's first quarter, sales of 119 million were the highest in the company's history, as we were still experiencing unprecedented post-pandemic demand at that time.
Mike Smith: Thanks, Dan.
Mike Smith: For the first quarter of 2024 compared to the first quarter of 2023.
Mike Smith: Sales were down 42% to $69 3 million.
Mike Smith: Driven by a 40% decrease number of those full.
Mike Smith: Price and mix netted to negative 2%.
Mike Smith: Of note last year's first quarter sales of $119 million were the highest in company history. As we were still experiencing unprecedented post pandemic demand at that time last year.
Michael L. Schmit: Gross profit decreased 52% to $14 million, with gross margin of 20.2% and down 420 basis points versus last year. However, as you recall, we had an outsized impact on gross margin in the fourth quarter from the reinitiation of our traditional retail incentive program. So we were encouraged to see the sequential increase in gross margin from 19% in the fourth quarter of 2020 back to over the 20% mark in the first quarter of 2014.
Mike Smith: Gross profit decreased 52% to $14 million.
Mike Smith: With gross margin of 22% down 420 basis points versus last year, although recall.
Mike Smith: As an outsized impact on gross margin in the fourth quarter.
Initiation of our traditional retail incentive programs.
Mike Smith: We're encouraged to see the sequential increase in gross margin from 19% in the fourth quarter of 'twenty three factor over the 20% Mark in the first quarter of 'twenty four.
Michael L. Schmit: SG&A expenses were $8.7 million in the quarter, down 40%, or $5.8 million, compared to last year. These expenses are due to costs that vary with sales and profitability, such as incentive compensation, sales commissions, and warranty. In addition, last year's first quarter results included a non-cash pension settlement charge of $2.1 billion. The limited ETF was $0.13 in the first quarter, down from $0.34 last quarter. EBITDA was $5.9 million, down from $15 million, and the margin decreased 410 basis points to 8.5%. Year-over-year comparisons were obviously difficult for the first quarter, and they remain soft in the near term. It should become less pronounced later this year.
Mike Smith: SG&A expenses were $8 $7 million in the quarter down 40% from $5 $8 million compared to last year's first quarter.
Mike Smith: These expenses decreased due to costs that vary with sales and profitability.
Mike Smith: Incentive compensation sales commissions and warranty expenses.
Mike Smith: In addition, last year's first quarter results included a noncash pension settlement charge of $2 1 billion.
Mike Smith: Yes.
Mike Smith: Diluted EPS was <unk> 13 in the first quarter.
Mike Smith: <unk> 34 last year.
Mike Smith: EBITDA was $5 9 million down from $15 million and EBITDA margin decreased 410 basis points to eight 5%.
Year over year comparisons, where obviously difficult for the first quarter and.
Mike Smith: We remain soft in the near term.
Mike Smith: But should become less pronounced later this year.
Ben M. Palmer: While we don't give explicit financial guidance, directionally, we believe sequential sales will be relatively stable and that our cost reductions and normalized incentives will result in stable margins as well. I'll now turn it back over to Ben for a few closing remarks on capital allocation, including the special dividend we announced this morning. Thanks Mike.
Mike Smith: While we don't give explicit financial guidance Directionally, we believe sequential sales will be relatively stable and that our cost reductions and normalize incentives should result in stable margins as well.
I'll now turn it back over to Dan for a few closing remarks on capital allocation, including the special dividend, we announced this morning.
Dan: Thanks, Mike.
Dan: As headlines in our release this morning, our board of directors approved a <unk> 14 per share regular quarterly dividend.
And <unk> 70 per share special dividend.
Dan: In aggregate these two upcoming dividends represent a $29 billion tangible return on capital to our shareholders.
Ben M. Palmer: Thanks Mike. As headlined in our release this morning, our Board of Directors approved a 14 cents per share regular quarterly dividend and a $0.70 per share special. In aggregate, these two upcoming dividends represent a $29 million tangible return of capital to our shareholders, while we have limited our stock repurchases in recent years due to our relatively small flow. We're extremely proud of our track record for distributing cash back to our investors.
Dan: While we have limited our stock repurchased in recent years due to our relatively small float for.
Dan: We're extremely proud of our track record for distributing cash back to our investors.
Dan: For the five year period from 2019 to 2023, we paid $85 million to our investors and dividends.
Dan: Our ability to return capital to investors as a function of our financial discipline and strong cash generation and a debt free balance sheet that allows all cash flow benefit of our equity holders.
Dan: We ended the first quarter with over $80 million in cash and believe that even following the special dividend payment, we will have ample liquidity to pursue organic investments into the business.
Ben M. Palmer: For the five-year period from 2019 to 2023, we paid $85 million to our investors in dividends. Our ability to return capital to investors is a function of our financial discipline, strong cash generation, and a debt-free balance sheet that allows all cash flow to benefit our equity holders. We ended the first quarter with over $80 million in cash and believe that even following this special dividend payment, we will have ample liquidity to make organic investments in the business, as well as maintain the flexibility to pursue strategic acquisitions and continue actively assessing the marketplace for the right opportunity and the right valuation.
Dan: As well as maintaining the flexibility to pursue strategic acquisitions.
Dan: We continue to actively assessing the marketplace for the right opportunity the right valuation.
Dan: Of course over time, if we do not execute on transactions. We will look at further actions to return capital to our investors.
Special dividends are naturally less consistent but we have a track record for periodically returning excess cash to our investors.
Dan: These boost the total return virus central return of our stock, which already has an attractive dividend yield of around 5%.
Speaker Change: So before we turn the call over for questions I'd like to thank our employees for their contributions everyday.
Speaker Change: Our dealers continue to partner with us for mutual success.
Speaker Change: Cited about entering the prime selling season and look forward to sharing results with you next quarter.
Ben M. Palmer: Of course, over time, if we do not execute on transactions, we will look at further actions to return capital to our investors. Special dividends are naturally less consistent, but we have a track record of periodically returning excess cash to our investors. These boost the total return of our stock, which already has an attractive dividend yield of around 5%. So before we turn the call over to questions, I'd like to thank our employees for their contributions every day and our dealers who continue to partner with us for mutual success. We're excited about entering the prime Selling Season and look forward to sharing results with you next quarter. With that, Operator, please open up the line for questions.
Speaker Change: With that operator, please open up the lines for questions.
Speaker Change: We will now begin the question and answer session, if you'd like to ask a question simply press star followed by the number one on your telephone keypad to withdraw your question Press Star One again, our first question will come from the line of Griffin, Brian with D. A Davidson. Please go ahead.
Griffin, Brian: Yeah. Thanks, So I guess first off can you just give us some color on how youre thinking about your production schedule for the rest of the year and are there any signs of retail sales inflections, you're specifically looking forward to kind of turn that spigot back on.
Okay.
Ben M. Palmer: This is Ben.
Operator: We will now begin the question and answer session. If you would like to ask a question, simply press star followed by the number one on your telephone keypad. To withdraw your question, press star one again. Our first question will come from the line of Griffin Bryan with DA Davidson. Please go ahead.
Ben M. Palmer: Appropriate question.
Ben M. Palmer: We indicated.
Ben M. Palmer: We worked diligently to set our current production level of what we believe is the correct level for us.
Ben M. Palmer: We are hopeful and are looking forward to the new model year, which will start soon.
Some of our new products that will be out there we're really excited about.
We're just going to have to wait and see what we always do is set our production levels, where we believe it's appropriate we don't try to anticipate demand.
Griffin Bryan: Yeah, thanks. So I guess first off, can you just give us some color on, you know, how you're thinking about your production schedule for the rest of the year? And, you know, are there any signs of retail sales inflections you're specifically looking for to kind of turn that spigot back on?
No.
We we.
Ben M. Palmer: We plan based on firm orders, we have enhanced so we're going to have to work with our dealers.
Ben M. Palmer: They are monitoring their field inventory.
Ben M. Palmer: We're watching that as well.
Ben M. Palmer: We're hopeful that once we get through this selling season, and hopefully dealer inventories began to settle out.
Ben M. Palmer: This is Ben. Appropriate question. As we indicated, we worked diligently to set our current production level at what we believe is the correct level for us. We are hopeful, you know, looking forward to the new model year, which will start soon, and some of our new products that will be out there, we're really excited about. We're just going to have to wait and see.
Ben M. Palmer: We hope at that point, we'll be able to increase production, but at this point in time, we expect that the next change in production will be up.
Ben M. Palmer: But we'll just have to wait and so at the end of an appropriate question, but.
Ben M. Palmer: But where we're monitoring.
Ben M. Palmer: Stirring that and will.
Ben M. Palmer: Just.
Ben M. Palmer: Perfect.
Speaker Change: Yes fair enough and then you mentioned field inventory overall right now it is still too high. So can you just give us an idea maybe any progress that's been made since the beginning of the year and how long it may take to get back to a more normalized level.
Ben M. Palmer: What we always do is set our production levels where we believe they're appropriate. We don't try to anticipate demand. We plan based on firm orders we have in hand. So we're going to have to work with our dealers. They're monitoring their field inventory and are watching that as well. We're hopeful that, you know, once we get through this selling season and, hopefully, dealer inventories begin to settle out, we'll be able to increase production. At this point in time, we expect that the next change in production will be up. But we'll just have to wait and see. Again, an inappropriate question, but we're monitoring that, and we'll just, as
Speaker Change: It is still a thing.
Speaker Change: Just kind of at the current retail run rates that we're seeing.
Speaker Change: Well, what I would comment on is is again when we look at our <unk>.
Speaker Change: Production rates and ship rate relative to the retail sales relative to our field inventory, we're comfortable where we are.
Speaker Change: Again indication being or that again ties back to the fact that we think the next move and our.
Production schedule will be up.
Speaker Change: But we'll have to wait and see wait for the order flow, but we are we are.
Speaker Change: Encouraged by the fact that there is some acceleration or some improvement in sales as normally happens this time of the quarter heading into the <unk>.
Ben M. Palmer: Yeah, fair enough. And then you mentioned that field inventory overall right now is still too high. So can you just give us an idea of, you know, maybe any progress that's been made since the beginning of the year and, you know, how long it may take to get back to a more normalized level, you know, if that even is still a thing? I'm just kind of at the current retail run rate that we're seeing.
Speaker Change: Spring and summer.
Speaker Change: I wouldn't say, it's extraordinary but it's more normal.
Speaker Change: So again, we are comfortable with our current <unk>.
Speaker Change: <unk> schedule.
Speaker Change: And are looking for looking forward to the opportunity.
Speaker Change: Yeah.
Speaker Change: Increased production hopefully.
Speaker Change: Sometime in the next quarter.
Ben M. Palmer: Well, what I would comment on is, again, when we look at our production rate and ship rate relative to retail sales and relative to our field inventory, we're comfortable where we are. Again, indications are, or that again ties back to the fact that we think the next move in our production schedule will be up, but we'll have to wait and see, you know, wait for the order flood. But we are encouraged by the fact that there is some acceleration or some, you know, improvement in sales, as normally happens this time of the quarter, heading into the spring and summer. I wouldn't say it's extraordinary, but it's more normal, and so, again, we are comfortable with our current production schedule and are looking forward to the opportunity for increased production, hopefully sometime in the next quarter.
Speaker Change: Got it and then what the promotions needed.
Speaker Change: Incentivize the consumers do you see these promotions continuing throughout the selling season and do you think youll be able to get this pricing back. Some time, maybe this year, maybe next year, just any color on that would be great.
Speaker Change: All right.
Yes.
Speaker Change: Very meticulously.
Speaker Change: Evaluate and design and manage our retail programs.
Speaker Change: Very particular about that we do expect that the programs, we will stay in place throughout the selling season.
Speaker Change: That's that's not abnormal.
Speaker Change: I would say the level of our incentives are attractive, but not outsized compared to.
Speaker Change: As in prior years, when we've had retail incentives in place so.
Speaker Change: I would say for us things.
Speaker Change: Normalized <unk> normalized that this particular.
Speaker Change: And that level of production relative to field inventory will step to see how the.
Speaker Change: The season plays out we're comfortable with.
Speaker Change: Sign and size of the incentives at this point in time, but but we always have the opportunity to make adjustments to those.
Ben M. Palmer: Got it. And then, you know, what promotions are needed to incentivize the consumers. Do you see these promotions continuing throughout the selling season? And, you know, do you think that you'll be able to get this pricing back sometime, maybe this year, maybe that's next year? Just any color on that would be great.
Speaker Change: As needed, but I do expect there will be some incentive programs in place for.
Speaker Change: For the next couple of quarters.
Speaker Change: Got it and then lastly, just with some recent news surrounding problems that kind of larger dealers can you speak to your current health of your dealer partners and maybe what their appetite is to take on new model years once those start rolling out.
Ben M. Palmer: I don't know what... Yeah, we do.
Speaker Change: Yes.
Ben M. Palmer: You know, we very meticulously evaluate, design, and manage our retail programs. We're very particular about that. We do expect that the programs will stay in place throughout the selling season. That's not abnormal.
Speaker Change: While there has been a lot in the news.
Speaker Change: <unk>.
Speaker Change: Some dealers.
Speaker Change: We are glad to report that our relationships with our dealers are great. Our dealers are doing.
Speaker Change: Fine.
Speaker Change: They everybody's struggling with the level of field inventory, but we're very comfortable we're very diversified.
Ben M. Palmer: I would say the level of our incentives is attractive but not outsized compared to prior years when we've had retail incentives in place. So, again, I would say for us, things have normalized, and they've normalized at this particular level of production relative to field inventory. We'll just have to see how the season plays out. We're comfortable with the design and size of the incentives at this point in time. But we always have the opportunity to make adjustments to those as needed. But I do expect there will be some incentive programs in place for the next couple of quarters.
Both geographically and across our dealer network.
Speaker Change: We don't have currently not aware of any concerns with any particular dealer.
Speaker Change: Partnering with them with these retail programs and with our dealer incentive programs.
Speaker Change: And we're quite proud of them and very happy about.
Speaker Change: Dealer network in the long long standing relationships, we have with <unk>.
Speaker Change: There are certainly we recognize that they are key to our success.
Speaker Change: A great job managing their businesses in this in this environment and.
Ben M. Palmer: Got it. And then lastly, just, you know, with some recent news surrounding problems with larger dealers, can you speak to the current health of your dealer partners and maybe, you know, what their appetite is to take on new model years once those start rolling out?
Speaker Change: We're happy and pleased and proud to be associated with each and everyone of them.
Speaker Change: I appreciate it best of luck next quarter.
Speaker Change: Thank you very much.
Speaker Change: There are no further questions at this time I will hand, the call back over to Mr. Ben Palmer for closing remarks.
Ben M. Palmer: Well, there has been a lot in the news about some dealers. We're glad to report that our relationships with our dealers are great. Our dealers were doing fine that day. Everybody was struggling with the level of field inventory, but we're very comfortable. We're very diversified, both geographically and across our dealer network. We don't have, or are currently not aware of any concerns with any particular dealer, but we are partnering with them through these retail programs and with our dealer incentive programs.
Ben M. Palmer: Well. Thank you everybody for listening in this morning, we appreciate it and look forward to catching up with you later.
Speaker Change: You bet.
Ben M. Palmer: Today's call will be available for replay on our website at marine products for Dot com within two hours following the completion of the call.
Speaker Change: This does conclude today's conference call. Thank you all for joining you may now disconnect.
Ben M. Palmer: And we're quite proud of them and very happy about our dealer network and the longstanding relationships we have with them. They are certainly, we recognize that they are key to our success, doing a great job managing their businesses in this environment, and we are. We're happy and pleased and proud to be associated with each and every one of them.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Griffin Bryan: I appreciate it. Best of luck in the next quarter.
Operator: There are no further questions at this time. I will hand the call back over to Mr. Ben Palmer for closing remarks.
Ben M. Palmer: Thank you everybody for listening in this morning. We appreciate it and look forward to catching up with you later.
Operator: Today's call will be available for replay on our website at MarineProductsCorp.com within two hours following the completion of the call. This does conclude today's conference call. Thank you all for joining. You may now disconnect.
Speaker Change: Okay.
Music/No Speaker: ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Yes.
Speaker Change: [music].