UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2022

Commission File No. 1-16263

MARINE PRODUCTS CORPORATION

(exact name of registrant as specified in its charter)

Delaware	58-2572419
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

2801 Buford Highway, Suite 300, Atlanta, Georgia 30329

(Address of principal executive offices) (zip code)

Registrant’s telephone number, including area code -- (404) 321-7910

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:		Trading Symbol(s)		Name of each exchange on which registered:
Common stock, par value $0.10		MPX		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	⌧
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of July 22, 2022, Marine Products Corporation had 34,238,382 shares of common stock outstanding.

Table of Contents

Marine Products Corporation

Table of Contents

		Page No.
Part I. Financial Information

Item 1.	Financial Statements (Unaudited)

	Consolidated Balance Sheets – As of June 30, 2022 and December 31, 2021	3

	Consolidated Statements of Operations – for the three and six months ended June 30, 2022 and 2021	4

	Consolidated Statements of Comprehensive Income – for the three and six months ended June 30, 2022 and 2021	5

	Consolidated Statements of Stockholders’ Equity – for the three and six months ended June 30, 2022 and 2021	6

	Consolidated Statements of Cash Flows – for the six months ended June 30, 2022 and 2021	7

	Notes to Consolidated Financial Statements	8 - 16

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17 - 23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24

Item 4.	Controls and Procedures	24

Part II. Other Information

Item 1.	Legal Proceedings	25

Item 1A.	Risk Factors	25

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3.	Defaults upon Senior Securities	25

Item 4.	Mine Safety Disclosures	25

Item 5.	Other Information	25

Item 6.	Exhibits	26

Signatures		27

Table of Contents

-MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2022 AND DECEMBER 31, 2021

(In thousands)

(Unaudited)


	June 30,		December 31,
	2022		2021
ASSETS			(Note 1)

Cash and cash equivalents	$	21,568	$	14,102
Accounts receivable, net of allowance for doubtful accounts of $12 in 2022 and 2021		9,344		3,262
Inventories		78,271		73,261
Income taxes receivable		77		10
Pension plan assets		971		—
Prepaid expenses and other current assets		2,164		2,474
Total current assets		112,395		93,109
Property, plant and equipment, net of accumulated depreciation of $32,814 in 2022 and $31,878 in 2021		14,232		14,370
Goodwill		3,308		3,308
Other intangibles, net		465		465
Deferred income taxes		5,372		4,392
Other assets		13,831		17,197
Total assets	$	149,603	$	132,841

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accounts payable	$	11,573	$	6,771
Accrued expenses and other liabilities		14,912		11,298
Total current liabilities		26,485		18,069
Pension and retirement plans liabilities		13,942		15,564
Other long-term liabilities		1,052		683
Total liabilities		41,479		34,316

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 – 34,238,382 shares in 2022 and 33,992,054 shares in 2021		3,424		3,399
Capital in excess of par value		—		—
Retained earnings		107,232		97,702
Accumulated other comprehensive loss		(2,532)		(2,576)
Total stockholders’ equity		108,124		98,525
Total liabilities and stockholders’ equity	$	149,603	$	132,841

The accompanying notes are an integral part of these consolidated financial statements.

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MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(In thousands except per share data)

(Unaudited)


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Net sales	$	95,813	$	67,259	$	172,425	$	145,634
Cost of goods sold		72,816		52,651		131,033		112,564
Gross profit		22,997		14,608		41,392		33,070
Selling, general and administrative expenses		9,883		7,245		19,123		15,682
Operating income		13,114		7,363		22,269		17,388
Interest (expense) income		(7)		10		(24)		18
Income before income taxes		13,107		7,373		22,245		17,406
Income tax provision		3,152		1,579		5,227		3,515
Net income	$	9,955	$	5,794	$	17,018	$	13,891

Earnings per share
Basic	$	0.29	$	0.17	$	0.50	$	0.41
Diluted	$	0.29	$	0.17	$	0.50	$	0.41
Dividends paid per share	$	0.12	$	0.12	$	0.24	$	0.22

The accompanying notes are an integral part of these consolidated financial statements.

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MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(In thousands)

(Unaudited)


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Net income	$	9,955	$	5,794	$	17,018	$	13,891
Other comprehensive income, net of taxes:
Pension adjustment		22		14		44		28
Comprehensive income	$	9,977	$	5,808	$	17,062	$	13,919

The accompanying notes are an integral part of these consolidated financial statements.

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MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022

(In thousands)

(Unaudited)


								Accumulated
				Capital in				Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		(Loss) Income		Total
Balance, December 31, 2021	33,993	$	3,399	$	—	$	97,702	$	(2,576)	$	98,525
Stock issued for stock incentive plans, net	211		21

SEC Form 10-Q filed by Marine Products Corporation