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 September 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 October 21, 2022, Marine Products Corporation had 34,217,582 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 September 30, 2022 and December 31, 2021	3

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

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

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

	Consolidated Statements of Cash Flows – for the nine months ended September 30, 2022 and 2021	8

	Notes to Consolidated Financial Statements	9 - 17

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18 - 24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25

Item 4.	Controls and Procedures	26

Part II. Other Information

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 3.	Defaults upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	27

Item 6.	Exhibits	28

Signatures		29

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021

(In thousands)


	September 30,		December 31,
	2022		2021
ASSETS		(Unaudited)	(Note 1)
Cash and cash equivalents	$	26,860	$	14,102
Accounts receivable, net of allowance for doubtful accounts of $12 in 2022 and 2021		11,492		3,262
Inventories		82,812		73,261
Income taxes receivable		98		10
Pension plan assets		938		—
Prepaid expenses and other current assets		2,538		2,474
Total current assets		124,738		93,109
Property, plant and equipment, net of accumulated depreciation of $32,566 in 2022 and $31,878 in 2021		14,327		14,370
Goodwill		3,308		3,308
Other intangibles, net		465		465
Deferred income taxes		5,520		4,392
Other assets		13,319		17,197
Total assets	$	161,677	$	132,841

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accounts payable	$	14,641	$	6,771
Accrued expenses and other liabilities		16,075		11,298
Total current liabilities		30,716		18,069
Pension and retirement plans liabilities		13,706		15,564
Other long-term liabilities		1,062		683
Total liabilities		45,484		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 – 34,217,582 shares in 2022 and 33,992,054 shares in 2021		3,422		3,399
Capital in excess of par value		—		—
Retained earnings		115,280		97,702
Accumulated other comprehensive loss		(2,509)		(2,576)
Total stockholders’ equity		116,193		98,525
Total liabilities and stockholders’ equity	$	161,677	$	132,841

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

Table of Contents

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(In thousands except per share data)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Net sales	$	100,061	$	75,843	$	272,486	$	221,477
Cost of goods sold		75,056		59,799		206,089		172,363
Gross profit		25,005		16,044		66,397		49,114
Selling, general and administrative expenses		10,326		7,701		29,449		23,383
Operating income		14,679		8,343		36,948		25,731
Interest income, net		76		4		52		22
Income before income taxes		14,755		8,347		37,000		25,753
Income tax provision		3,283		1,660		8,510		5,175
Net income	$	11,472	$	6,687	$	28,490	$	20,578

Earnings per share
Basic	$	0.34	$

SEC Form 10-Q filed by Marine Products Corporation