According to Fortune Business Insights, the global boats market was valued at $30.9 billion in 2022. The North America share is approximately $18.4 billion. Fortune estimates the boat market will grow at approximately 6.4% annually through 2029, as consumers return to routines and lifestyle choices typical before the COVID-19 pandemic. Such a large and growing industry affords numerous competitors, allowing even small operations to compete effectively with a distinguish product line. Since recreational boats are entirely a discretionary purchase, demand is particularly influenced by consumer confidence.
Marine Products has gained a well defended footprint in the market with its proprietary fiberglass power boats designs for sporting and fishing. The Company manufactures and markets . The Company’s boats are sold worldwide under several brand names through a network of independent dealers. In the first nine months of calendar year 2023, the Company recorded $312.9 million in total revenue from the sale of its various boat models, capturing $36.3 million in net income or $1.05 per share. Both revenue and earnings compared favorably to the same nine-month period in the previous year.
The Company converted 12.8% of each sales dollar to operating cash flow, leaving net positive free cash flow in the first nine months of 2023. With ample internal cash generation, resources in the bank increased to $0.7 million. The Company has no long-term debt, but does have access to revolving line of credit with $20.0 million in borrowing capacity.
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