Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 19, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Entity File Number | 1-16263 | |
Entity Registrant Name | MARINE PRODUCTS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 58-2572419 | |
Entity Address, Address Line One | 2801 Buford Highway | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30329 | |
City Area Code | 404 | |
Local Phone Number | 321-7910 | |
Title of 12(b) Security | Common stock, par value $0.10 | |
Trading Symbol | MPX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,682,949 | |
Entity Central Index Key | 0001129155 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 81,225 | $ 71,952 |
Accounts receivable, net of allowance for credit losses of $11 in 2024 and $11 in 2023 | 7,749 | 2,475 |
Inventories | 55,210 | 61,611 |
Income taxes receivable | 4 | 361 |
Prepaid expenses and other current assets | 3,768 | 2,847 |
Total current assets | 147,956 | 139,246 |
Property, plant and equipment, net of accumulated depreciation of $XX in 2024 and $32,789 in 2023 | 22,657 | 22,456 |
Goodwill | 3,308 | 3,308 |
Other intangibles, net | 465 | 465 |
Deferred income taxes | 8,404 | 8,590 |
Retirement plan assets | 16,782 | 15,379 |
Other assets | 4,466 | 4,358 |
Total assets | 204,038 | 193,802 |
Liabilities | ||
Accounts payable | 13,064 | 6,071 |
Accrued expenses and other liabilities | 18,442 | 16,496 |
Total current liabilities | 31,506 | 22,567 |
Retirement plan liabilities | 19,426 | 17,998 |
Other long-term liabilities | 1,724 | 1,649 |
Total liabilities | 52,656 | 42,214 |
Commitments and contingencies (Note 15) | ||
Stockholders' Equity | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $0.10 par value, 74,000,000 shares authorized, issued and outstanding - 34,682,949 shares in 2024 and 34,466,726 shares in 2023 | 3,469 | 3,447 |
Retained earnings | 147,913 | 148,141 |
Total stockholders' equity | 151,382 | 151,588 |
Total liabilities and stockholders' equity | $ 204,038 | $ 193,802 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for credit losses | $ 11 | $ 11 |
Accumulated depreciation, property plant and equipment | $ 33,471 | $ 32,789 |
Preferred stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, shares issued | 34,682,949 | 34,466,726 |
Common stock, shares outstanding | 34,682,949 | 34,466,726 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $ 69,340 | $ 118,914 |
Cost of goods sold | 55,356 | 89,892 |
Gross profit | 13,984 | 29,022 |
Selling, general and administrative expenses | 8,742 | 14,533 |
Operating income | 5,242 | 14,489 |
Interest income, net | 851 | 483 |
Income before income taxes | 6,093 | 14,972 |
Income tax provision | 1,496 | 3,423 |
Net income | $ 4,597 | $ 11,549 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.13 | $ 0.34 |
Diluted (in dollars per share) | 0.13 | 0.34 |
Dividends paid per share (in dollars per share) | $ 0.14 | $ 0.14 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 4,597 | $ 11,549 |
Other comprehensive income, net of taxes: | ||
Pension adjustment | 1,886 | |
Comprehensive income | $ 4,597 | $ 13,435 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2022 | $ 3,422 | $ 122,954 | $ (1,995) | $ 124,381 | |
Balance (in shares) at Dec. 31, 2022 | 34,218 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 29 | $ 748 | 777 | ||
Stock issued for stock incentive plans, net (in shares) | 289 | ||||
Stock purchased and retired | $ (7) | (748) | (155) | (910) | |
Stock purchased and retired (in shares) | (69) | ||||
Net income | 11,549 | 11,549 | |||
Pension adjustment, net of taxes | 1,886 | 1,886 | |||
Dividends paid | (4,817) | (4,817) | |||
Balance at Mar. 31, 2023 | $ 3,444 | 129,531 | $ (109) | 132,866 | |
Balance (in shares) at Mar. 31, 2023 | 34,438 | ||||
Balance at Dec. 31, 2023 | $ 3,447 | 148,141 | 151,588 | ||
Balance (in shares) at Dec. 31, 2023 | 34,467 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 30 | 926 | 956 | ||
Stock issued for stock incentive plans, net (in shares) | 301 | ||||
Stock purchased and retired | $ (8) | $ (926) | 27 | (907) | |
Stock purchased and retired (in shares) | (85) | ||||
Net income | 4,597 | 4,597 | |||
Dividends paid | (4,852) | (4,852) | |||
Balance at Mar. 31, 2024 | $ 3,469 | $ 147,913 | $ 151,382 | ||
Balance (in shares) at Mar. 31, 2024 | 34,683 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES | ||
Net income | $ 4,597 | $ 11,549 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 682 | 523 |
Stock-based compensation expense | 956 | 777 |
Deferred income tax provision/ (benefit) | 186 | (1,133) |
Pension settlement loss | 2,089 | |
(Increase) decrease in assets: | ||
Accounts receivable | (5,274) | (5,580) |
Income taxes receivable | 357 | (146) |
Inventories | 6,401 | 6,176 |
Prepaid expenses and other current assets | (921) | 1,035 |
Other non-current assets | (1,511) | (321) |
Increase in liabilities: | ||
Accounts payable | 6,993 | 4,280 |
Accrued expenses and other liabilities | 1,946 | 6,357 |
Other long-term liabilities | 1,503 | 1,340 |
Net cash provided by operating activities | 15,915 | 26,946 |
INVESTING ACTIVITIES | ||
Capital expenditures | (883) | (1,789) |
Net cash used for investing activities | (883) | (1,789) |
FINANCING ACTIVITIES | ||
Payment of dividends | (4,852) | (4,817) |
Cash paid for common stock purchased and retired | (907) | (910) |
Net cash used for financing activities | (5,759) | (5,727) |
Net increase (decrease) in cash and cash equivalents | 9,273 | 19,430 |
Cash and cash equivalents at beginning of period | 71,952 | 43,171 |
Cash and cash equivalents at end of period | $ 81,225 | 62,601 |
Supplemental information: | ||
Income tax payments, net | $ 355 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2024 | |
GENERAL | |
GENERAL | 1. GENERAL The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (all of which consisted of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Consolidated Balance Sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the annual report of Marine Products Corporation (“Marine Products,” the “Company” or “MPC”) on Form 10-K for the year ended December 31, 2023. A group that includes Gary W. Rollins, Pamela R. Rollins, Amy Rollins Kreisler and Timothy C. Rollins, each of whom is a director of the Company, and certain companies under their control, controls in excess of fifty percent of the Company’s voting power. |
RECENT ACCOUNTING STANDARDS
RECENT ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2024 | |
RECENT ACCOUNTING STANDARDS | |
RECENT ACCOUNTING STANDARDS | 2. RECENT ACCOUNTING STANDARDS The FASB issued the following Accounting Standards Updates (ASUs): Recently Issued Accounting Standards Not Yet Adopted: ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require an entity to disclose the title and position of the Chief Operating Decision Maker (CODM) and the significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. These amendments are effective for annual disclosures beginning in 2024 and interim disclosures beginning in the first quarter of 2025, with early adoption permitted. These amendments are effective retrospectively to all prior periods presented in the financial statements. The Company has one reportable segment and is currently evaluating the impact of adopting these provisions on its consolidated financial statements. ASU No. 2023-09 Income Taxes (Topic 740) Improvements to Income Tax Disclosures. |
NET SALES
NET SALES | 3 Months Ended |
Mar. 31, 2024 | |
NET SALES | |
NET SALES | 3. NET SALES Accounting Policy: MPC’s contract revenues are generated principally from selling: (1) fiberglass motorized boats and accessories and (2) parts to independent dealers. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied. Satisfaction of contract terms occurs with the transfer of title of our boats and accessories and parts to our dealers. Net sales are measured as the amount of consideration we expect to receive in exchange for transferring the goods to the dealer. The amount of consideration we expect to receive consists of the sales price adjusted for dealer incentives. The expected costs associated with our base warranties continue to be recognized as expense when the products are sold as they are deemed to be assurance-type warranties (See Note titled Warranty Costs). Incidental promotional items that are immaterial in the context of the contract are recognized as expense. Fees charged to customers for shipping and handling are included in Net sales in the accompanying Consolidated Statements of Operations and the related costs incurred by the Company are included in Cost of goods sold. Nature of goods: MPC’s performance obligations within its contracts consist of: (1) boats and accessories and (2) parts. The Company transfers control and recognizes revenue on the satisfaction of its performance obligations (point in time) as follows: ● Boats and accessories (domestic sales) – upon delivery and acceptance by the dealer ● Boats and accessories (international sales) – upon delivery to shipping port ● Parts – upon shipment/delivery to carrier Payment terms: For most domestic customers, MPC manufactures and delivers boats and accessories and parts ahead of payment - i.e., MPC has fulfilled its performance obligations prior to submitting an invoice to the dealer. MPC invoices the customer when the products are delivered and typically receives the payment within seven ten When the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the goods have been delivered to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to the Company’s arrangements with its customers. Significant judgments: Determining the transaction price The transaction price for MPC’s boats and accessories is the invoice price adjusted for dealer incentives. Key inputs and assumptions in determining variable consideration related to dealer incentives include: ● Inputs: Current model year boat sales, total potential program incentive percentage, prior model year results of dealer incentive activity (i.e., incentive earned as a percentage of total incentive potential). ● Assumption: Current model year incentive activity will closely reflect prior model year actual results, adjusted as necessary for dealer purchasing trends or economic factors. Other: Our contracts with dealers do not provide them with a right of return. Accordingly, we do not have any obligations recorded for returns or refunds. Disaggregation of revenues: The following table disaggregates our sales by major source: Three months ended (in thousands) March 31, 2024 March 31, 2023 Boats and accessories $ 68,463 $ 117,719 Parts 877 1,195 Net sales $ 69,340 $ 118,914 The following table disaggregates our revenues between domestic and international: Three months ended (in thousands) March 31, 2024 March 31, 2023 Domestic $ 64,402 $ 110,995 International 4,938 7,919 Net sales $ 69,340 $ 118,914 Contract balances: Amounts received from international and certain domestic dealers toward the purchase of boats are classified as deferred revenue and are included in Accrued expenses and other liabilities in the accompanying Consolidated Balance Sheets. March 31, December 31, (in thousands) 2024 2023 Deferred revenue $ 1,751 $ 654 Substantially all of the amounts of deferred revenue disclosed above were or will be recognized as sales during the immediately following quarters, respectively, when control is transferred. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 4. EARNINGS PER SHARE Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: Three months ended March 31, (in thousands) 2024 2023 Net income available for stockholders: $ 4,597 $ 11,549 Less: Adjustments for earnings attributable to participating securities (114) (274) Net income used in calculating earnings per share $ 4,483 $ 11,275 Weighted average shares outstanding (including participating securities) 34,632 34,379 Adjustment for participating securities (880) (821) Shares used in calculating basic and diluted earnings per share 33,752 33,558 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 5. STOCK-BASED COMPENSATION The Company has issued various forms of stock incentives, including, incentive and non-qualified stock options, time-lapse restricted shares and performance stock unit awards under its Stock Incentive Plans to officers, selected employees and non-employee directors. In the first quarter of 2024, the Company issued time-lapse restricted shares to certain employees that will vest ratably over a period of three years . In addition, the Company granted performance share unit awards to its executive officers that vest based on the achievement of pre-established financial performance targets together with a modifier for stock performance based on total shareholder return. The awards will be issued at different levels based on the financial and stock performance achieved with a three-year cliff vesting. The grant date fair value of the awards was determined with the assistance of a third-party specialist based on a range of potential outcomes relative to the market condition. The Company periodically evaluates the portion of awards that are probable to vest and updates the compensation expense accrual accordingly. As of March 31, 2024, there were 475,532 shares available under the Company’s 2014 Stock Incentive Plan that are reserved for issuance of shares that vest pursuant to the satisfaction of the terms of the performance share unit awards. The Company’s 2014 Stock Incentive Plan expired in April 2024. At the April 23, 2024, annual meeting of stockholders, the 2024 Stock Incentive Plan reserving Stock-based compensation was as follows: Three months ended March 31, (in thousands) 2024 2023 Pre – tax cost $ 956 $ 777 After tax cost 746 606 The following is a summary of the changes in non-vested restricted shares for the three months ended March 31, 2024: Weighted Average Grant-Date Shares Fair Value Non-vested shares at December 31, 2023 839,050 $ 13.81 Granted 301,667 11.33 Vested (254,869) 14.03 Non-vested shares at March 31, 2024 885,848 $ 12.90 The total fair value of shares vested was $2.7 million during the three months ended March 31, 2024 and $2.8 million during the three months ended March 31, 2023. Excess tax benefits (beneficial) or deficits (detrimental) realized from tax compensation deductions in excess of, or lower than, compensation expense are recorded as discrete income tax adjustments. For the three months ended March 31, 2024, $164 thousand related to stock-based compensation awards was recorded as a detrimental discrete tax adjustment and classified within Net cash provided by operating activities in the accompanying Consolidated Statements of Cash Flows compared to $24 thousand of detrimental discrete tax adjustment for the three months ended March 31, 2023. The above table does not include any of the activity related to performance share unit awards since they are not currently issued or vested. |
WARRANTY COSTS
WARRANTY COSTS | 3 Months Ended |
Mar. 31, 2024 | |
WARRANTY COSTS | |
WARRANTY COSTS | 6. WARRANTY COSTS For its Chaparral and Robalo products, Marine Products provides a lifetime limited structural hull warranty and a transferable one-year limited warranty to the original owner. Chaparral also includes a five-year limited structural deck warranty. Warranties for additional items are provided for periods of one The manufacturers of the engines, generators, and navigation electronics included on our boats provide and administer their own warranties for various lengths of time. An analysis of the warranty accruals for the three months ended March 31, 2024 and 2023 is as follows: (in thousands) 2024 2023 Balance at January 1 $ 7,078 $ 5,699 Less: Payments made during the period (965) (1,063) Add: Warranty provision for the period 1,073 1,739 Changes to warranty provision for prior periods 28 112 Balance at March 31 $ 7,214 $ 6,487 The warranty accruals are reflected in Accrued expenses and other liabilities in the accompanying Consolidated Balance Sheets. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | 7. BUSINESS SEGMENT INFORMATION The Company has one reportable segment, its powerboat manufacturing business; therefore, the majority of segment-related disclosures are not relevant to the Company. In addition, the Company’s results of operations and its financial condition are not significantly reliant upon any single customer or product model. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
INVENTORIES | 8. INVENTORIES Inventories consist of the following: March 31, December 31, 2024 2023 (in thousands) Raw materials and supplies $ 33,006 $ 40,340 Work in process 11,209 10,601 Finished goods 10,995 10,670 Total inventories $ 55,210 $ 61,611 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | 9. INCOME TAXES The Company determines its periodic income tax provision based upon the current period income and the annual estimated tax rate for the Company adjusted for discrete items including tax credits and changes to prior year estimates. The estimated tax rate is adjusted, if necessary, as of the end of each successive interim period during the fiscal year to the Company’s current annual estimated tax rate. Income tax provision for the first quarter of 2024 reflects an effective tax rate of 24.6% compared to 22.9% for the comparable period in the prior year. The increase in the effective tax rate is primarily due to a decrease in pretax income which resulted in a more significant impact on the detrimental discrete adjustments. |
PENSION AND RETIREMENT PLANS
PENSION AND RETIREMENT PLANS | 3 Months Ended |
Mar. 31, 2024 | |
PENSION AND RETIREMENT PLANS | |
PENSION AND RETIREMENT PLANS | 10. PENSION AND RETIREMENT PLANS The multiemployer Retirement Income Plan (“Plan”), a trusteed defined benefit pension plan, sponsored by RPC, Inc. (“RPC”), that the Company participated in was fully terminated in 2023. Amounts related to prior year are disclosed below: Three months ended (in thousands) March 31, 2023 Interest cost $ 4 Expected return on plan assets — Amortization of net losses 22 Settlement loss 2,089 Net periodic cost (1) $ 2,115 (1) The Company permits selected highly compensated employees to defer a portion of their compensation into a non-qualified Supplemental Executive Retirement Plan (“SERP”). The Company maintains certain securities primarily in mutual funds and company-owned life insurance (“COLI”) policies as a funding source to satisfy the obligation of the SERP that have been classified as trading and are stated at fair value totaling $16.8 million as of March 31, 2024 and $15.4 million as of December 31, 2023. Trading gains related to the SERP assets totaled $1.4 million during the three months ended March 31, 2024, compared to trading gains of $337 thousand during the three months ended March 31, 2023. The SERP assets are reported in Retirement plan assets in the accompanying Consolidated Balance Sheets and changes to the fair value of the assets are reported in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. The SERP liabilities include participant deferrals net of distributions and are stated at fair value of $19.4 million as of March 31, 2024 and $18.0 million as of December 31, 2023. The SERP liabilities are reported in the accompanying Consolidated Balance Sheets in Retirement plan liabilities and any change in the fair value is recorded as compensation cost within Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. Changes in the fair value of the SERP liabilities was the result of an increase of $1.5 million due to unrealized gains on participant balances during the three months ended March 31, 2024, compared to an increase of $297 thousand due to unrealized gains on participant balances during the three months ended March 31, 2023. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 11. FAIR VALUE MEASUREMENTS The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 – Quoted market prices in active markets for identical assets or liabilities. 2. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 3. Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. Trading securities are comprised of SERP assets, as described in the note titled Pension and Retirement Plans, and are recorded primarily at their net cash surrender values calculated using their net asset values, which approximate fair value, as provided by the issuing insurance company or investment company. Significant observable inputs, in addition to quoted market prices, are used to value the trading securities. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. The carrying amount of other financial instruments reported in the accompanying Consolidated Balance Sheets for current assets and current liabilities approximate their fair values because of the short-term maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss in the prior year quarter consists of pension adjustments as follows: Three months ended March 31, (in thousands) 2023 Balance at beginning of the period $ (1,995) Change during the period: Before-tax amount 308 Tax provision (68) Pension settlement loss, net of taxes (1) 1,629 Reclassification adjustment, net of taxes Amortization of net loss (1) 17 Total activity for the period 1,886 Balance at end of the period $ (109) (1) Reported as part of Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. There was no accumulated other comprehensive loss recorded in the current quarter of 2024, because the pension plan was terminated during 2023. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 13. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: March 31, December 31, March 31, 2024 2023 (in thousands) Accrued payroll and related expenses $ 2,721 $ 2,591 Accrued sales incentives and discounts 4,254 4,517 Accrued warranty costs 7,214 7,078 Deferred revenue 1,751 654 Income taxes payable 868 — Other 1,634 1,656 Total accrued expenses and other liabilities $ 18,442 $ 16,496 |
NOTES PAYABLE TO BANKS
NOTES PAYABLE TO BANKS | 3 Months Ended |
Mar. 31, 2024 | |
NOTES PAYABLE TO BANKS | |
NOTES PAYABLE TO BANKS | 14. NOTES PAYABLE TO BANKS The Company has a revolving credit agreement with Truist Bank which provides a credit facility of $20.0 million. The facility includes: (i) a $5.0 million sublimit for swingline loans, (ii) a $2.5 million aggregate sublimit for all letters of credit, and (iii) a committed accordion which can increase the aggregate commitments by the greater of $35.0 million and adjusted EBITDA (as calculated under the Credit Agreement) over the most recently completed twelve-month period. The revolving credit facility includes a full and unconditional guarantee by the Company and its consolidated domestic subsidiaries. The facility is secured by a first priority security interest in and lien on substantially all personal property of MPC and the guarantors including, without limitation, certain assets owned by the Company. The facility is scheduled to mature on November 12, 2026. Effective July 1, 2023, revolving borrowings under the facility accrue interest at a rate equal to Term Secured Overnight Financing Rate (SOFR) plus the applicable percentage, as defined. During the second quarter of 2023, the Company was notified by Truist Bank that SOFR replaced LIBOR for all borrowings under the facility. The new applicable percentage is between 150 and 250 basis points for all loans based on MPC’s net leverage ratio plus a SOFR adjustment of 11.45 basis points. In addition, the Company pays facility fees under the agreement ranging from 25 to 45 basis points, based on MPC’s net leverage ratio, on the unused revolving commitment. The credit agreement contains certain financial covenants including: (i) a maximum consolidated leverage ratio of 2.50:1.00 and (ii) a minimum consolidated fixed charge coverage ratio of 1.25:1.00 both determined as of the end of each fiscal quarter. Additionally, the agreement contains customary covenants including affirmative and negative covenants and events of default (each with customary exceptions, thresholds and exclusions). As of March 31, 2024, the Company was in compliance with all covenants. The Company has incurred total loan origination fees and other debt related costs associated with this revolving credit facility in the aggregate of $195 thousand. These costs are being amortized to interest expense over the remaining term of the loan, and the remaining net balance is classified as part of Other assets in the accompanying Consolidated Balance Sheets. MPC had no outstanding borrowings under the revolving credit facility as of March 31, 2024 and December 31, 2023. Interest expense incurred, which includes facility fees on the unused portion of the revolving credit facility and the amortization of loan costs, on the credit facility was $22 thousand for the three months ended March 31, 2024 and $22 thousand for the three months ended March 31, 2023. There was no interest expense on the credit facility paid for the three months ended March 31, 2024 and $38 thousand was paid for the three months ended March 31, 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Repurchase Obligations: The Company is a party to various agreements with third party lenders that provide floor plan financing to qualifying dealers whereby the Company guarantees varying amounts of debt on boats in dealer inventory. The Company’s obligation under these guarantees becomes effective in the case of a default under the financing arrangement between the dealer and the third-party lender. The agreements provide for the return of repossessed boats to the Company in new and unused condition subject to normal wear and tear as defined, in exchange for the Company’s assumption of specified percentages of the debt obligation on those boats, up to certain contractually determined dollar limits by the lenders. The Company had no material financial impact associated with repurchases under these contractual agreements during the three months ended March 31, 2024 and March 31, 2023. Management continues to monitor the risk of defaults and resulting repurchase obligations based in part on information provided by third-party floor plan lenders and will adjust the guarantee liability at the end of each reporting period based on information reasonably available at that time. The Company currently has an agreement with one of the floor plan lenders whereby the contractual repurchase limit is based on the highest of the following criteria: (i) a specified percentage of the amount of the average net receivables financed by the floor plan lender for our dealers, (ii) the total average net receivables financed by the floor plan lender for our two highest dealers during the prior three month period, or (iii) $8.0 million, less repurchases during the prior 12 month period. As defined by the agreement, the repurchase limit for this lender was $20.3 million as of March 31, 2024. The Company has contractual repurchase agreements with additional lenders with an aggregate maximum repurchase obligation of $8.1 million with various expiration and cancellation terms of less than one year, for an aggregate repurchase obligation with all floor plan financing institutions of $28.4 million as of March 31, 2024. Short-term Cash Incentive Compensation In addition to recording Short-term Cash Incentive (STCI) compensation expense for executive officers, STCI expense has been recorded for four non-executive employees based on a percentage of Pre-Tax Profit (PTP incentive), defined as pretax income before goodwill adjustments and certain allocated corporate expenses. Through the third quarter of 2023, this PTP incentive was 16% in the aggregate per year and was subject to either a contractual arrangement or a discretionary determination. The PTP incentive under a contractual agreement with one employee, in the amount of seven percent per year, was discontinued at the end of the third quarter of 2023. Effective October 1, 2023, the PTP incentive, subject to a discretionary determination, is nine percent in the aggregate per year for three employees. Total STCI expense for the reported periods was as follows: Three months ended March 31, (in thousands) 2024 2023 STCI expense $ 860 $ 3,743 These amounts are included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 16. SUBSEQUENT EVENT On April 23, 2024, the Board of Directors declared a regular quarterly dividend of $0.14 per share and a special dividend of $0.70 per share, both payable June 10, 2024 to common stockholders of record at the close of business May 10, 2024. |
RECENT ACCOUNTING STANDARDS (Po
RECENT ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
RECENT ACCOUNTING STANDARDS | |
RECENT ACCOUNTING STANDARDS | The FASB issued the following Accounting Standards Updates (ASUs): Recently Issued Accounting Standards Not Yet Adopted: ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require an entity to disclose the title and position of the Chief Operating Decision Maker (CODM) and the significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. These amendments are effective for annual disclosures beginning in 2024 and interim disclosures beginning in the first quarter of 2025, with early adoption permitted. These amendments are effective retrospectively to all prior periods presented in the financial statements. The Company has one reportable segment and is currently evaluating the impact of adopting these provisions on its consolidated financial statements. ASU No. 2023-09 Income Taxes (Topic 740) Improvements to Income Tax Disclosures. |
NET SALES | MPC’s contract revenues are generated principally from selling: (1) fiberglass motorized boats and accessories and (2) parts to independent dealers. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied. Satisfaction of contract terms occurs with the transfer of title of our boats and accessories and parts to our dealers. Net sales are measured as the amount of consideration we expect to receive in exchange for transferring the goods to the dealer. The amount of consideration we expect to receive consists of the sales price adjusted for dealer incentives. The expected costs associated with our base warranties continue to be recognized as expense when the products are sold as they are deemed to be assurance-type warranties (See Note titled Warranty Costs). Incidental promotional items that are immaterial in the context of the contract are recognized as expense. Fees charged to customers for shipping and handling are included in Net sales in the accompanying Consolidated Statements of Operations and the related costs incurred by the Company are included in Cost of goods sold. |
NET SALES (Tables)
NET SALES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
NET SALES | |
Schedule of disaggregation of sales by major source | Three months ended (in thousands) March 31, 2024 March 31, 2023 Boats and accessories $ 68,463 $ 117,719 Parts 877 1,195 Net sales $ 69,340 $ 118,914 |
Schedule of revenue by geographic region | Three months ended (in thousands) March 31, 2024 March 31, 2023 Domestic $ 64,402 $ 110,995 International 4,938 7,919 Net sales $ 69,340 $ 118,914 |
Schedule of contract balances | March 31, December 31, (in thousands) 2024 2023 Deferred revenue $ 1,751 $ 654 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of weighted average shares outstanding | Three months ended March 31, (in thousands) 2024 2023 Net income available for stockholders: $ 4,597 $ 11,549 Less: Adjustments for earnings attributable to participating securities (114) (274) Net income used in calculating earnings per share $ 4,483 $ 11,275 Weighted average shares outstanding (including participating securities) 34,632 34,379 Adjustment for participating securities (880) (821) Shares used in calculating basic and diluted earnings per share 33,752 33,558 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION | |
Schedule of stock-based compensation | Three months ended March 31, (in thousands) 2024 2023 Pre – tax cost $ 956 $ 777 After tax cost 746 606 |
Schedule of summary of the changes in non-vested restricted shares | Weighted Average Grant-Date Shares Fair Value Non-vested shares at December 31, 2023 839,050 $ 13.81 Granted 301,667 11.33 Vested (254,869) 14.03 Non-vested shares at March 31, 2024 885,848 $ 12.90 |
WARRANTY COSTS (Tables)
WARRANTY COSTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
WARRANTY COSTS | |
Schedule of analysis of warranty accruals | (in thousands) 2024 2023 Balance at January 1 $ 7,078 $ 5,699 Less: Payments made during the period (965) (1,063) Add: Warranty provision for the period 1,073 1,739 Changes to warranty provision for prior periods 28 112 Balance at March 31 $ 7,214 $ 6,487 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
Schedule of inventories | March 31, December 31, 2024 2023 (in thousands) Raw materials and supplies $ 33,006 $ 40,340 Work in process 11,209 10,601 Finished goods 10,995 10,670 Total inventories $ 55,210 $ 61,611 |
PENSION AND RETIREMENT PLANS (T
PENSION AND RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
PENSION AND RETIREMENT PLANS | |
Schedule of net periodic cost | Three months ended (in thousands) March 31, 2023 Interest cost $ 4 Expected return on plan assets — Amortization of net losses 22 Settlement loss 2,089 Net periodic cost (1) $ 2,115 (1) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of accumulated other comprehensive loss | Three months ended March 31, (in thousands) 2023 Balance at beginning of the period $ (1,995) Change during the period: Before-tax amount 308 Tax provision (68) Pension settlement loss, net of taxes (1) 1,629 Reclassification adjustment, net of taxes Amortization of net loss (1) 17 Total activity for the period 1,886 Balance at end of the period $ (109) (1) Reported as part of Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | March 31, December 31, March 31, 2024 2023 (in thousands) Accrued payroll and related expenses $ 2,721 $ 2,591 Accrued sales incentives and discounts 4,254 4,517 Accrued warranty costs 7,214 7,078 Deferred revenue 1,751 654 Income taxes payable 868 — Other 1,634 1,656 Total accrued expenses and other liabilities $ 18,442 $ 16,496 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of STCI expense | Three months ended March 31, (in thousands) 2024 2023 STCI expense $ 860 $ 3,743 |
GENERAL (Details)
GENERAL (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Affiliated Entity | RPC | |
Ownership control | |
Voting power (in percent) | 50% |
NET SALES - Payment Terms (Deta
NET SALES - Payment Terms (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Minimum | |
Net sales | |
Revenue satisfaction period | 7 days |
Maximum | |
Net sales | |
Revenue satisfaction period | 10 days |
NET SALES - Disaggregate sales
NET SALES - Disaggregate sales by major source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of revenue | ||
Net sales | $ 69,340 | $ 118,914 |
Boats and accessories | ||
Disaggregation of revenue | ||
Net sales | 68,463 | 117,719 |
Parts | ||
Disaggregation of revenue | ||
Net sales | $ 877 | $ 1,195 |
NET SALES - Disaggregate revenu
NET SALES - Disaggregate revenue by location (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of revenue | ||
Net sales | $ 69,340 | $ 118,914 |
Domestic | ||
Disaggregation of revenue | ||
Net sales | 64,402 | 110,995 |
International | ||
Disaggregation of revenue | ||
Net sales | $ 4,938 | $ 7,919 |
NET SALES - Deferred revenue (D
NET SALES - Deferred revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued expenses and other liabilities | ||
Disaggregation of revenue | ||
Deferred revenue | $ 1,751 | $ 654 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EARNINGS PER SHARE | ||
Net Income (Loss) | $ 4,597 | $ 11,549 |
Less: Adjustments for earnings attributable to participating securities | (114) | (274) |
Net income used in calculating earnings per share | $ 4,483 | $ 11,275 |
Weighted average shares outstanding (including participating securities) | 34,632 | 34,379 |
Adjustment for participating securities | (880) | (821) |
Shares used in calculating basic earnings per share | 33,752 | 33,558 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 23, 2024 | |
Stock-based compensation | ||
Stock based compensation award, vesting period | 3 years | |
Stock Incentive Plans Member | ||
Stock-based compensation | ||
Available for grant (in shares) | 475,532 | |
2024 Stock Incentive Plan | Subsequent Event. | ||
Stock-based compensation | ||
Stock authorized (in shares) | 3,000,000 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
STOCK-BASED COMPENSATION | ||
Pre - tax cost | $ 956 | $ 777 |
After tax cost | $ 746 | $ 606 |
STOCK-BASED COMPENSATION - Non
STOCK-BASED COMPENSATION - Non vested RSU's (Details) - Restricted shares of common stock | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Shares | |
Non-vested shares at beginning | shares | 839,050 |
Granted | shares | 301,667 |
Vested | shares | (254,869) |
Non-vested shares at ending | shares | 885,848 |
Weighted Average Grant-Date Fair Value | |
Non-vested shares at beginning | $ / shares | $ 13.81 |
Granted | $ / shares | 11.33 |
Vested | $ / shares | 14.03 |
Non-vested shares at ending | $ / shares | $ 12.90 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted shares of common stock | ||
Stock-based compensation | ||
Fair value, shares vested | $ 2.7 | $ 2.8 |
STOCK-BASED COMPENSATION - Othe
STOCK-BASED COMPENSATION - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted shares of common stock | ||
Stock-based compensation | ||
Tax benefits for compensation tax deductions in excess of compensation expense | $ 164 | $ 24 |
WARRANTY COSTS - Warranty Costs
WARRANTY COSTS - Warranty Costs (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Warranty Costs: | |
Period of transferable limited warranty to original owner | 1 year |
Period of transferable hull warranty available to second subsequent owner | 5 years |
Length of period after original retail purchase the 5-year transferable hull warranty terminates | 5 years |
Minimum | |
Warranty Costs: | |
Period of non-transferable warranty on additional items | 1 year |
Maximum | |
Warranty Costs: | |
Period of non-transferable warranty on additional items | 5 years |
Chaparral | |
Warranty Costs: | |
Period of limited warranty on structural deck | 5 years |
WARRANTY COSTS - Analysis of wa
WARRANTY COSTS - Analysis of warranty accruals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Warranty accruals | ||
Balance at beginning of year | $ 7,078 | $ 5,699 |
Less: Payments made during the period | (965) | (1,063) |
Add: Warranty provision for the current year | 1,073 | 1,739 |
Changes to warranty provision for prior periods | 28 | 112 |
Balance at end of year | $ 7,214 | $ 6,487 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
BUSINESS SEGMENT INFORMATION | |
Number of reportable segments | 1 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INVENTORIES | ||
Raw materials and supplies | $ 33,006 | $ 40,340 |
Work in process | 11,209 | 10,601 |
Finished goods | 10,995 | 10,670 |
Total inventories | $ 55,210 | $ 61,611 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAXES | ||
Effective tax rate (as a percent) | 24.60% | 22.90% |
PENSION AND RETIREMENT PLANS -
PENSION AND RETIREMENT PLANS - Components of net periodic cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | ||
Settlement loss | $ 2,089 | |
Retirement Income Plan | ||
EMPLOYEE BENEFIT PLANS | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense |
Retirement Income Plan | Affiliated Entity | RPC | ||
EMPLOYEE BENEFIT PLANS | ||
Interest cost | $ 4 | |
Amortization of net losses | 22 | |
Settlement loss | 2,089 | |
Net periodic cost | $ 2,115 |
PENSION AND RETIREMENT PLANS (D
PENSION AND RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 16,782 | $ 15,379 | |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16,800 | 15,400 | |
Trading (losses) gains related to the SERP assets | 1,400 | $ 337 | |
Participant deferrals net of distributions stated at fair value | 19,400 | $ 18,000 | |
Change in fair value of liability unrealized gains | $ 297 | ||
Change in fair value of liability unrealized gains (losses) | $ 1,500 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - Pension adjustments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2024 | |
AOCI Roll Forward | ||
Balance at beginning of the period | $ (1,995) | |
Change during the period: | ||
Before-tax amount | 308 | |
Tax provision | (68) | |
Pension settlement loss, net of taxes | 1,629 | |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 17 | |
Total activity for the period | 1,886 | |
Balance at end of the period | (109) | |
Accumulated other comprehensive loss | $ (109) | $ 0 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Accrued payroll and related expenses | $ 2,721 | $ 2,591 |
Accrued sales incentives and discounts | 4,254 | 4,517 |
Accrued warranty costs | 7,214 | 7,078 |
Deferred revenue | 1,751 | 654 |
Income taxes payable | 868 | |
Other | 1,634 | 1,656 |
Total accrued expenses and other liabilities | $ 18,442 | $ 16,496 |
NOTES PAYABLE TO BANKS (Details
NOTES PAYABLE TO BANKS (Details) $ in Thousands | 3 Months Ended | |||
Jul. 01, 2023 | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Line of Credit Facility | ||||
Maximum debt consolidated leverage ratio | 2.50 | |||
Minimum debt consolidated fixed charge coverage ratio | 1.25 | |||
Origination and other debt related costs | $ 195 | |||
Revolving Credit Facility | ||||
Line of Credit Facility | ||||
Maximum borrowing capacity | 20,000 | |||
Increase in the aggregate commitments from committed accordion | 35,000 | |||
Additional interest | 0.1145% | |||
Outstanding borrowings | 0 | $ 0 | ||
Interest incurred | 22 | $ 22 | ||
Interest expense paid | 0 | $ 38 | ||
Revolving Credit Facility | Minimum | ||||
Line of Credit Facility | ||||
Interest rate | 1.50% | |||
Facility fee | 0.25% | |||
Revolving Credit Facility | Maximum | ||||
Line of Credit Facility | ||||
Interest rate | 2.50% | |||
Facility fee | 0.45% | |||
Swingline loans | ||||
Line of Credit Facility | ||||
Maximum borrowing capacity | 5,000 | |||
Letter of Credit | ||||
Line of Credit Facility | ||||
Maximum borrowing capacity | $ 2,500 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Repurchase Obligations (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Repurchase obligations | |
Total purchase obligation | $ 28.4 |
Floor plan lender one | |
Repurchase obligations | |
Total purchase obligation | 20.3 |
Floor plan lender one | Minimum | |
Repurchase obligations | |
Total purchase obligation | 8 |
Additional floor plan lenders | |
Repurchase obligations | |
Total purchase obligation | $ 8.1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Short term cash incentive compensation (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 employee | Mar. 31, 2024 USD ($) employee | Sep. 30, 2023 employee | Mar. 31, 2023 USD ($) | Sep. 30, 2023 employee | |
COMMITMENTS AND CONTINGENCIES | |||||
Number of non-executive employee | 4 | ||||
Pre-tax profit incentive percentage | 16% | ||||
Number of non-executive employee subject to contractual agreement | 1 | 1 | |||
Pre-tax profit incentive percentage subject to contractual agreement | 7% | ||||
Pre-tax profit incentive percentage subject to discretionary determination | 9% | ||||
Number of non-executive employee, subject to discretionary determination | 3 | ||||
STCI expense | $ | $ 860 | $ 3,743 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event. | Apr. 23, 2024 $ / shares |
Subsequent Event | |
Amount of dividend payable in cash per share | $ 0.14 |
Dividend payable, date to be payable | Jun. 10, 2024 |
Dividends payable, date declared | May 10, 2024 |
Special dividend | $ 0.70 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 4,597 | $ 11,549 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |