Marine Products Annual Report 2024

FY2024 Annual Report · Marine Products

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STAYING THE COURSE
2024
ANNUAL REPORT

01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024 FINANCIAL HIGHLIGHTS
02 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LETTER TO STOCKHOLDERS
04 . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPARRAL 2025 PRODUCT OVERVIEW
05 . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROBALO 2025 PRODUCT OVERVIEW
06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPARRAL CELEBRATING 60 YEARS
06 . . . . . . . . . . . . . . . . . . . . UNLEASH ADVENTURE WITH ROBALO’S 2025 R300
07 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024 FORM 10-K
Inside Back Cover . . . . . . . . . . . . . . . . . . . . . . . . . . . CORPORATE INFORMATION

(NYSE: MPX) designs, manufactures and distributes premium-branded Chaparral
sterndrive and outboard pleasure boats and Robalo outboard sport fishing boats
through 202 domestic and 88 international independent dealers.
With premium brands, a solid capital
structure and a strong independent
dealer network, Marine Products is a
market leader that has consistently
generated strong financial
performance and paid dividends to
our stockholders.
Marine Products also seeks to utilize
its financial strength to capitalize
on opportunities that profitably
increase its market share and
broaden its product offerings within
the pleasure boat market. For more
information, visit our website at
MarineProductsCorp.com.
MARINE PRODUCTS CORPORATION
Featured on front cover: Chaparral 280 OSX
Featured on back cover: Robalo R300
Featured left: Robalo Center Console Explorer R222EX
For specific product information, please visit:
ChaparralBoats.com
Robalo.com

2024 FINANCIAL HIGHLIGHTS
Net Sales
(in thousands)
Net Income
(in thousands)
2020
2020
2021
2021
2022
2022
2023
2023
2024
$ 239,825
$ 298,014
$ 380,995
$ 383,729
$ 236,555
2020
2020
2021
2021
2022
2022
2023
2023
2024
$ 19,444
$ 29,026
$ 40,347
$ 41,695
$ 17,853
Average Selling Price Per Unit
(in thousands)
Number of Boats Sold
2020
2020
2021
2021
2022
2022
2023
2023
2024
3,689
4,165
4,331
4,139
2,492
E B I T D A
(1)
(in thousands)
2020
2020
2021
2021
2022
2022
2023
2023
2024
26,315
38,208
53,701
51,618
21,052
2020
2020
2021
2021
2022
2022
2023
2023
$ 56
$ 62
$ 77
$ 82
$ 86
2024
Diluted Earnings Per Share
(Amount in dollars)
2020
2020
2021
2021
2022
2022
2023
2023
$ 0.57
$ 0.85
$ 1.18
$ 1.21
$ 0.50
2024
(1) EBITDA is a financial measure that does not conform to
generally accepted accounting principles (GAAP). Additional
disclosures regarding this non-GAAP financial measure, including
a reconciliation of EBITDA to net income, are found in Item 7 of the
10K filing included in this 2024 Annual Report.

2024 marked a continuation of the demand challenges we saw
coming out of 2023. We responded with decisive cost-control
measures and stayed the course with respect to our operating
discipline and focus on high quality products. Facing soft dealer
demand, we right-sized our production levels and focused on cash
flow. We were pleased with the cash generation of the business
and to have finished the year with a highly liquid, debt-free
balance sheet, even after returning a significant amount of capital
to our investors. This included a large special cash dividend mid-
year. Simply put, our constant efforts in new product development
and manufacturing efficiencies, investments in our dealer network
and conservative financial stewardship remain unchanged
regardless of the external factors we face.
For approximately 18 months, domestic boat manufacturers have
been dealing with reduced order flow from dealers across the
country as they have worked to reduce excess inventories. For
context, during and shortly following the pandemic, boat demand
surged and often could not be fully met due to supply chain
constraints. As those issues were resolved, demand strength
continued into mid-2023 before waning. The boat industry
grappled with rapidly escalating interest rates, which substantially
increased dealer costs of holding inventory and financing costs
for consumers looking to secure loans for their purchases. This,
coupled with economic and political uncertainties, weighed on end-
market demand. Concurrently, dealers were holding high levels of
inventory, and with demand softening, they sought to sharply reduce
their inventory exposure and pared back their orders of new boats.
Thus while 2023 saw the initial impacts of these trends, 2024 bore
the full brunt of this broad channel de-stocking, which was clear in
our sales and profit trends for the year. We are pleased to say that
despite a challenging backdrop, we remained solidly profitable,
made great progress on reducing dealer inventory, and are
cautiously optimistic that the worst is behind us.
We were certainly frustrated with industry headwinds. However,
we took this period of reduced dealer demand to focus on things
within our control and position us to better capitalize on improved
demand when it materializes. With scaled back production
schedules to facilitate downstream inventory reductions, we spent
the year examining our operations. We found opportunities to
improve processes and make our manufacturing more efficient, all
while continuing to introduce new models, colors and features to
maintain the high standards expected from our leading brands.
We also invested in our assets, including a large solar panel
installation project at our Nashville, Georgia facilities.
Our brands continue to be some of the best performing in the
industry. During 2024, within its categories and size range,
Chaparral’s retail market share ranked number one. During this
same time, Robalo held the fourth highest retail market share in
its size range. We are proud of these accomplishments and the
consistency of the strong market share results within our product
lines in recent years. Another consistent accomplishment relates to
the recent announcement that both Chaparral and Robalo won the
CSI Award for customer satisfaction for the 18th consecutive year.
FINANCIAL OVERVIEW Net sales decreased 38% in 2024 to
$236.6 million. Unit sales decreased 40%, with a positive price/
mix impact of 2% offering a partial offset. The lower unit volumes
were a function of the significant channel de-stocking, with dealers
clearing inventory but hesitant to place stronger re-orders until
they felt more comfortable with consumer demand. Sales were
down year-over-year in each quarter, but each quarter’s declines
became slightly less pronounced as 2024 progressed. As we begin
2025, it is possible we see flat sales performance versus the prior
year in the first half, with the potential for growth in the second half
of the year. The positive price/mix was a function of price increases
to cover higher costs and shift to larger, higher-priced boats. Our
best-selling models in 2024 continued to be two of our 21- and
23-foot Chaparral sterndrive sport boats, together representing
about 16% of our total units sold.
Gross profit in 2024 was $45.5 million, down from $90.4 million
last year, largely due to lower production volume and associated
manufacturing inefficiencies. Gross margin was 19.2% of net sales
in 2024, compared with 23.6% in 2023. We adjusted our variable
labor costs and production schedules to reflect soft consumer
demand and align with order indications from our dealers. Gross
margin was also impacted by a full year of promotional program
costs, whereas in 2023 we only reinstituted those programs late in
the year (such programs were not in effect during the period of high
post-pandemic demand).
Selling, general and administrative expenses decreased to $27.4
million in 2024, down from $43.2 million last year. The decrease
was largely in line with the sales decline as many of these
expenses, such as sales commissions, warranty expenses and
incentive compensation are variable and correlate with net sales
and profitability.

LETTER TO STOCKHOLDERS
2
(1) EBITDA and free cash flow are financial measures that do not conform to
generally accepted accounting principles (GAAP). Additional disclosures regarding
these non-GAAP financial measures, including a reconciliation of EBITDA to net
income and free cash flow to cash flow from operations, are found in Item 7 of
Marine Products Corporation’s 10K filing (included in this 2024 Annual Report).
Facing soft dealer demand, we right-sized
our production levels and focused on cash flow.
We were pleased with the cash generation
of the business and to have finished the year
with a highly liquid, debt-free balance sheet...
2870 SSX

Operating income in 2024 was $18.3 million or 7.7% of net sales,
compared with $49.2 million or 12.8% of net sales, in 2023.
Interest income was $2.9 million in 2024, consistent with the prior
year. The Company paid a special cash dividend of $24 million
in the second quarter; had it not been for this dividend, we would
have maintained higher average cash balances and produced
significantly more interest income.
Net income was $17.9 million or $0.50 of diluted earnings per
share (EPS) in 2024, down from $41.7 million or $1.21 of EPS last
year. Net income benefitted from a lower tax rate in 2024 related
to credits received in conjunction with our solar panel project.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) (1) was $21.1 million in 2024, compared with $51.6 million
in 2023.
Cash provided by operating activities in 2024 was $29.5 million,
down from $56.8 million in 2023. The Company benefited from
favorable working capital movements typically associated with
reduced sales, with operating cash flow tracking net income.
Capital expenditures in 2024 of $4.6 million were lower than
the prior year when we made more significant investments in our
fleet of trailers and our warehouses. The major capital project in
2024 was the installation of a rooftop solar energy system at our
manufacturing site in Nashville, Georgia. This project is expected
to deliver energy cost savings as well as environmental benefits.
Free cash flow (1) (defined as cash flow from operations less capital
expenditures) was $24.9 million in 2024.
During 2024, our Board of Directors continued the Company’s regu
lar quarterly cash dividends for the thirteenth consecutive year. We
paid $19.4 million in regular quarterly dividends ($0.56 per share)
and a special dividend of $24.3 million ($0.70 per share) during the
second quarter, resulting in total cash dividends to shareholders of
$43.7 million ($1.26 per share) in 2024. We view our dividend policy
as a vital component of long-term stockholder value creation and
will continue to assess our regular dividend as well as other means
of distributing excess capital to our stockholders. Even after this
significant return of capital to our investors, we ended 2024 with
$52 million in cash on the balance sheet and no debt.

LOOKING AHEAD As we push ahead into 2025, we are staying
the course, focused on those elements of our business we can
control until the external environment improves. These include
projects to drive efficiency and profitability, investments in our
dealer network to maintain brand leadership and maximize market
share and a continued focus on our products to offer consumers
the highest quality engineering and design within our categories.
In addition, we have ample cash reserves to invest in potential
acquisitions. Acquisitions could offer a pathway to increased scale
by expanding our brand portfolio with complementary offerings.
The boat manufacturing industry is highly fragmented with
numerous high-quality smaller companies that would be a strong
fit under the Marine Products umbrella. We will continue to assess
potential targets with the same financial, operational and strategic
discipline we have always exercised, and, hopefully, we can find
the right deal to drive value for our Company.
I want to thank all our stockholders, employees and dealers for
your continued support and commitment. We believe we have
some of the best boat builders in the industry and that their
commitment to their craft underpins the outstanding reputations
Chaparral and Robalo enjoy in the marketplace. I also want to
highlight the celebration of the Chaparral brand’s 60th anniversary
this past year, marking another milestone on our journey as an
industry leader in design and innovation. In addition, we would
like to recognize two of our Directors, Gary W. Rollins and Pamela
R. Rollins, who have chosen not to stand for re-election at our
upcoming Annual Shareholders’ Meeting, and sincerely thank
them for their many years of service and support on our Board. To
our dealers, many of whom have been with us for several decades,
you represent our company to the consumer, ultimately serving
as our brand ambassadors. We appreciate your support and
partnership and look forward to continued, shared success.
Sincerely,
BEN M. PALMER
President and Chief Executive Officer
3
310 OSX

SURF 26
SSi SPORT BOATS
Chaparral’s SSi sport boat and premium bowrider is produced for the
quality and style-conscious recreational boater. The 20 to 23 foot SSi
models continue to set a high standard for engineering excellence,
attractive styling, and quality materials and workmanship. Our
fiberglass sterndrive and outboard-powered SSi models are high-
value runabouts marketed to family groups. The SSi is designed to
feature the handling of a runabout, with the style of a sport boat
and open concept layout. Select models offer Ski & Fish options to
meet specific needs. All lengths include trailers and are marketed
with National Advertised Prices.
OSX OUTBOARD LUXURY SPORT BOATS
Chaparral’s OSX luxury outboard sport boats combine everything an
avid boater loves about high-end pleasure cruising with the power of
an outboard motor. The model line stretches from 26 to 32 feet, packed
with generous seating options and plenty of room for entertaining
guests. An enclosed cabin with head, found on our larger OSX boats,
provides many amenities for long weekends on the water, while an
elegant, enclosed privacy head is found on our smaller models.
Enjoy abundant sun lounge options, premium performance silicone
upholstery, and yacht-like comfort.
250 OSX 270 OSX 280 OSX 310 OSX
SSX LUXURY SPORT BOATS
For the 2025 model year, Chaparral offers 24 to 30 foot Luxury Sport
Boats. Various SSX models are offered with an enclosed head, expanded
swim platform, transom sun lounge, and some have the option of a wet
bar in the cockpit. The SSX series offers high-end performance with
premium components from bow to stern. Additionally, multiple SSX
boats are standard with the award-winning Infinity Power Step for easy
onboarding and exiting to and from the water!

247 SSX 267 SSX

2870 SSX 307 SSX
SURF SERIES
Endless wave, endless fun. The SURF Series combines everything
you love about the SSi and SSX lines with the excitement of surfing.
Wakesurfing is more thrilling and easier to enjoy than ever, thanks to
the Malibu Surf GateTM that lets you instantly adjust your wake—no
repositioning necessary! Powered by Volvo and Mercruiser forward-
facing drives, the SURF features a Simrad® touch-screen display that
makes controlling your ride easy and straightforward. Fiberglass
multipurpose bowriders, the SURF Series models are marketed to
both experienced and value-conscious buyers. These boats are
designed to enhance the wake of the boat to accommodate the
popular sport of wakesurfing. Additionally, the 26, 28 and 30 SURF
are built standard with the award-winning Infinity Power Step for
easy onboarding and exiting to and from the water!

21 SURF 23 SURF 26 SURF
28 SURF 30 SURF
19 SSI Outboard
21 SSi SKI & FISH
21 SSi Outboard SKI & FISH
23 SSi Outboard
21 SSi
21 SSi Outboard
23 SSi
2025 PRODUCT OVERVIEW
21 n
SSi SKI & FISH
2870 n
SSX
23 n
SURF
4
310 n
OSX

R257
ROBALO CAYMAN BAY BOATS
The Cayman Series ranges from 20 to 26 feet and brings Robalo
quality, style and performance to a bay boat. Robalo engineers have
successfully mixed a shallow water draft with a soft-riding Extended
V-PlaneTM hull design. Robalo’s Cayman models offer rock-solid
stability; high-quality upholstery; high-tech, space-efficient cockpit,
and a tower with upper station controls on the 246 and 266 Sky
Deck. Each model also includes a trailer and a wide array of fishing
features at Reel Deal pricing.
206 226 246 246 SKY DECK

266 266 SKY DECK

ROBALO CENTER CONSOLES
Robalo’s Reel Deal pricing is available for 16 to 36 foot models. The
Kevlar® reinforcement and a seaworthy hull design on the Robalo
Center Console Series provides the serious boater with peace of mind.
Whether you’re trolling with hooks in the water or motoring through the
tough stuff in search of a trophy catch, a powerful engine and Robalo’s
Hydro LiftTM hull design can speed you to the hottest fishing spots.

R160 R180 R200 R222 R230
R250 R270 R300 R302 R360
ROBALO EXPLORER – CENTER CONSOLES
The Explorer Series of Center Consoles embraces the classic design
of a center console, providing the perfect opportunity to enjoy a day
of water sports, pleasure cruising or landing a trophy fish. Robalo’s
Explorer Series is equipped with center console versatility and per-
formance, and family comfort takes center stage. These high-quality
boats are equipped with luxury standard touches and enough space
that the entire family will enjoy being on the water.

R202EX R222EX R232EX
ROBALO DUAL CONSOLES
Multi-purpose outboard fishing boats like the Robalo Dual Console
with Reel Deal pricing are enjoying increased popularity in today’s
market! Today’s fishermen want a boat that does more than just fish,
and the dual console does just that. Serious anglers will appreciate
the secure rod storage, raw water wash down, self-bailing cockpit and
standard livewell. Fish in the morning, tow the kids all afternoon and
then cruise as the sun sets.
R207 R257 R317
2025 PRODUCT OVERVIEW
246 n
CAYMAN SKY DECK
R180 n
CENTER CONSOLE
R222 n
CENTER CONSOLE EXPLORER
R317 n
DUAL CONSOLE
5

6
We are so proud to have celebrated the Chaparral
brand’s 60th anniversary this past year. Behind
every Chaparral is a story of family, tradition, and
one-of-a-kind craftsmanship. After starting in Fort
Lauderdale, Florida, Chaparral made the move to
Nashville, Georgia and established a brand that
achieved international acclaim.
Today, our global operations still stem from that
same Georgia location, where we proudly employ
hundreds of Chaparral team members. This includes
many second and third generation craftsmen who
we believe bring unmatched passion and dedication
to work with them everyday.
THE 2025 ROBALO R300 – UNLEASH THE ADVENTURE
The all-new 2025 Robalo R300 redefines the world of center console
boats, seamlessly blending high-performance fishing capabilities with
luxurious comfort and cutting-edge technology.
It has Power and Performance with twin Yamaha Marine outboards for
smooth handling and efficiency for an optimal ride and Advanced Helm
& Navigation System featuring optional dual 16-inch Simrad™ displays
seamlessly integrated with Yamaha’s digital command gauge. You will
find the triple-wide helm seat, with flip-down bolsters and adjustable
armrests, ensures maximum comfort.
Designed with serious anglers in mind, the Tournament-Ready Fishing
Features boast Dual 28-gallon insulated livewells; 70-gallon in-floor
fish boxes; 22 strategically placed rod holders; and a port-side boarding
door and a transom entry.
Beyond its impressive performance, the R300 offers Luxury & Comfort
for Every Journey with Premium SiO silicon upholstery; fully electric
folding windshield; spacious bow with convertible seating and a sun
pad; enclosed head compartment with an electric-flushing toilet,
freshwater sink, and ample storage; Wireless charging stations; high-
quality audio system; and Optional Seakeeper gyro stabilization system.
Manufactured at Robalo’s state-of-the-art facility in Nashville, Georgia,
the R300 is constructed using premium gelcoat, Kevlar reinforcement,
and stainless-steel hardware. Backed by a lifetime limited hull
warranty and a five-year premier-level warranty for components,
Robalo ensures peace of mind for every owner.
1965
2025
CELEBRATING 60 YEARS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K

Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
FOR THE TRANSITION PERIOD FROM _____ TO _____
Commission File No. 1-16263
MARINE PRODUCTS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
58-2572419
(State of Incorporation)
(I.R.S. Employer Identiﬁcation No.)
2801 BUFORD HIGHWAY NE, SUITE 300
ATLANTA, GEORGIA 30329
(404) 321-7910
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, $0.10 Par Value
MPX
New York Stock Exchange
Securities registered pursuant to section 12(g) of the Act:
None
Indicate by check mark
YES
NO
• Indicate by check mark if the registrant is a well-known seasoned issuer, as deﬁned in Rule 405 of the Securities Act.


• Indicate by check mark if the registrant is not required to ﬁle reports pursuant to Section 13 or Section 15(d) of the Act.


• 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.


• 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).


• Indicate by check mark whether the registrant is a large accelerated ﬁler, an accelerated ﬁler, a non-accelerated ﬁler, 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. (Check one):
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 has ﬁled a report on and attestation to its management’s assessment of the
effectiveness of its internal control over ﬁnancial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b))
by the registered public accounting ﬁrm that prepared or issued its audit report.

• If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the ﬁnancial statements of the
registrant included in the ﬁling reﬂect the correction of an error to previously issued ﬁnancial statements

• Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant’s executive ofﬁcers during the relevant recovery period pursuant to
§240.10D-1(b).

• Indicate by check mark whether the registrant is a shell company (as deﬁned in Rule 12b-2 of the Exchange Act).


The aggregate market value of Marine Products Corporation common stock held by non-afﬁliates on June 30, 2024, the last business day
of the registrant’s most recent second ﬁscal quarter, was $85,817,287 based on the closing price on the New York Stock Exchange on
June 30, 2024 of $10.10 per share.
Marine Products Corporation had 34,961,460 shares of common stock outstanding as of February 14, 2025.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement for the 2025 Annual Meeting of Stockholders of Marine Products Corporation are incorporated by reference into
Part III, Items 10 through 14 of this report.

(This page has been left blank intentionally)

9
Marine Products Corporation 2024 10-K
Table of Contents
MARINE PRODUCTS CORPORATION
Form 10-K
For the Fiscal Year Ended December 31, 2024
Table of Contents
Part I
ITEM 1.
Business ................................................................................ 12
ITEM 1A.
Risk Factors ......................................................................... 19
ITEM 1B.
Unresolved Staff Comments ......................................... 23
ITEM 1C.
Cybersecurity .................................................................... 23
ITEM 2.
Properties ............................................................................ 24
ITEM 3.
Legal Proceedings ........................................................... 24
ITEM 4.
Mine Safety Disclosures ................................................ 24
Part II
ITEM 5.
Market for Registrant’s Common Equity,
Related Stockholder Matters and Issuer
Purchases of Equity Securities..................................... 25
ITEM 6.
Reserved .............................................................................26
ITEM 7.
Management’s Discussion and Analysis
of Financial Condition and Results
of Operations .....................................................................26
ITEM 7A.
Quantitative and Qualitative Disclosures
About Market Risk ..............................................................31
ITEM 8.
Financial Statements and
Supplementary Data ....................................................... 32
ITEM 9.
Changes in and Disagreements
with Accountants on Accounting
and Financial Disclosure ............................................... 54
ITEM 9A.
Controls and Procedures ............................................... 54
ITEM 9B.
Other Information ............................................................. 54
ITEM 9C.
Disclosure Regarding Foreign Jurisdictions
that Prevent Inspections ................................................. 54
Part III
ITEM 10.
Directors, Executives Ofﬁcers,
and Corporate Governance ......................................... 55
ITEM 11.
Executive Compensation ............................................... 55
ITEM 12.
Security Ownership of Certain Beneﬁcial
Owners and Management and Related
Stockholder Matters ........................................................56
ITEM 13.
Certain Relationships and Related
Transactions, and Director Independence ..............56
ITEM 14.
Principal Accounting Fees and Services ..................56
Part IV
ITEM 15.
Exhibits and Financial Statement Schedules...........57
ITEM 16.
Form 10-K Summary ......................................................... 58
Signatures ......................................................................................................59
Index to Consolidated Financial
Statements, Reports and Schedule .......................................................60
Schedule II – Valuation and Qualifying Accounts ............................. 61

10
Marine Products Corporation 2024 10-K
Part I
Forward-Looking Statements
Part I
References in this document to “we,” “our,” “us,” “Marine Products,” or “the Company” mean Marine Products Corporation (“MPC”) and its
subsidiaries, Chaparral Boats, Inc. (“Chaparral”) and Robalo Boats, LLC (“Robalo”), collectively or individually, except where the context
indicates otherwise.
FORWARD-LOOKING STATEMENTS
Certain statements made in this report that are not historical facts are
“forward-looking statements” under the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements may include,
without limitation, statements regarding:
>
the Company’s belief that it has been a leading innovator in
the recreational boating industry offering exceptional quality
and consumer value;
>
the Company’s belief that its channel inventory is currently
at an appropriate level given demand expectations;
>
the Company estimates regarding U.S. market share;
>
the Company’s belief that its corporate ﬁnancial strength and
infrastructure, combined with our design, production, and
marketing capabilities and nationwide sales presence enable
it to compete effectively against its competitors;
>
the Company’s belief that Chaparral and Robalo have long
expanded the range of their offerings through insightful,
innovative product design and quality manufacturing
processes in order to reach an increasingly discerning
recreational boating market;
>
the Company’s belief that the strong retail demand for new
recreational boats which began in 2020 with the onset of the
COVID-19 pandemic has subsided and is normalizing;
>
the Company’s plan to execute on strategic investments, both
organic and potential M&A, that it believes will increase its
scale, enhance its product offering, and improve its proﬁtability
and cash ﬂow;
>
the Company’s key strategies, including, operating strategy,
growth strategy, and capital allocation strategy;
>
the Company’s belief that its facilities comply in all material
aspects with environmental regulations and that it does not
currently anticipate that any material expenditure will be
required to continue to comply with existing environmental
or safety regulations in connection with its existing
manufacturing facilities;
>
the Company’s key human capital management objectives;
>
the Company’s belief that the 2022 and 2023 increase in
interest rates has reduced retail demand for smaller boats;
>
the Company’s belief that dealer inventories of its boat
models as of December 31, 2024 are sufﬁcient to meet the
current level of retail customer demand;
>
the Company’s expectation that year-over-year sales
comparisons will be generally ﬂat in the near-term, with
potential for growth in the second half of 2025;
>
the Company’s strategy to monitor the risk of additional
defaults and resulting repurchase obligations based in part on
information provided by the third-party ﬂoor plan lenders and
its plans to adjust the guarantee liability at the end of each
reporting period based on information reasonably available
at that time;
>
the Company’s plans to continue to actively monitor dealer
inventories and order patterns for an uptick in demand and its
belief that sales comparisons to the prior year could begin to
turn positive in the second half of 2025;
>
the Company’s intentions to pursue acquisitions and form
strategic alliances that will enable it to acquire complementary
skills and capabilities, offer new products, expand its customer
base, and obtain other competitive advantages;
>
the Company’s belief that, except for the Chaparral and Robalo
trademarks, it is not dependent upon any single trademark or
trade name or group of trademarks or trade names;
>
the Company’s belief that the cost of boat ownership has risen
enough to impact retail demand and its belief that it may be
more difﬁcult to raise prices in the future to compensate for
increased costs of raw materials and components, which could
impact the Company’s sales and proﬁt margins;
>
the Company’s belief that it maintains all requisite licenses and
permits and is in compliance with all applicable federal, state
and local regulations;
>
the Company’s belief that the ultimate outcome of any litigation
will not have a material effect on its liquidity, ﬁnancial condition
or results of operations;
>
the Company’s plans to continue to monitor the number of
boats in dealer inventories and adjust its production levels
as it deems necessary to manage dealer inventory levels;
>
the Company’s intentions to monitor order patterns and
maintain reduced production levels until more deﬁnitive
signs of increased demand materialize;
>
the Company’s belief that it may take further interest rate relief
to drive increased consumer appetite for new boat purchases;
>
the Company’s belief that its ﬁnancial results during 2025 will
depend on a number of factors, including economic trends,
demand for discretionary products, the impact of interest rates
on consumer ﬁnancing options and dealer inventory carrying
costs, the effectiveness of the Company’s incentive programs,
the success of new model launches, and the Company’s
ability to manage manufacturing costs in light of reduced
production levels;
>
the Company’s expectation that capital expenditures during
2025 will be approximately $3.2 million;

11
Marine Products Corporation 2024 10-K
Part I
Forward-Looking Statements
>
the Company’s plans with respect to the termination of the
Supplemental Executive Retirement Plan;
>
the Company’s expectations that it will continue to pay regular
quarterly cash dividends to common stockholders;
>
the Company’s belief that the liquidity provided by existing
cash, cash equivalents, its overall strong capitalization, and
cash generated by operations will be sufﬁcient to meet the
Company’s requirements for at least the next twelve months;
>
the Company’s belief that the fair value of its guarantee liability
is immaterial;
>
the Company’s belief that despite its agreements with ﬁnancial
institutions, in certain situations, the Company may decide
for business reasons to repurchase boats in excess of the
contractual amounts outlined in such agreements;
>
the Company’s estimate of the amount and timing of future
contractual obligations; the Company’s judgments and
estimates with respect to its critical accounting policies
and estimates;
>
the Company’s expectation about the impact of new
accounting pronouncements on the Company’s consolidated
ﬁnancial statements;
>
the Company’s plans to issue additional stock incentives;
>
the Company’s plans to continue to monitor the impact of
Pillar Two; and
>
the Company’s expectation regarding market risk of its
investment portfolio, including its intention to invest primarily
in money market funds, that such funds are not subject to
material interest rate risk, and that it does not expect material
changes to its market risk exposures or how those risks are
managed.
The words “may,” “should,” “will,” “expect,” “believe,” “anticipate,”
“intend,” “plan,” “seek,” “project,” “estimate,” “aim,” “continue,”
“continually,” “could,” “likely,” “design,” “strategies,” “outlook,” “trend,”
the negative of such terms and different forms thereof (e.g., different
tenses or number or principle parts, as well as gerunds and other
parts of speech such as adjectives, adverbs and nouns derived
therefrom), and similar expressions used in this document that do
not relate to historical facts are intended to identify forward-looking
statements. Forward-looking statements also include any other
statement that projects, indicates or implies future results, events,
performance or achievements, and statements concerning future
ﬁnancial performance (including future sales, earnings or growth
rates), descriptions of our ongoing business strategies or prospects
(including but not limited to those set forth under “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations — Outlook” and “Business — Strategy”), and possible
actions to be taken by us or our subsidiaries, as well as statements
and descriptions of the assumptions that underlie or relate to such
statements. Our forward-looking statements are based on certain
assumptions and analyses made by our management in light of its
experience and its perception of historical trends, current conditions,
expected future developments and other factors it believes to
be appropriate. We caution you that such statements are only
predictions and not guarantees of future performance and that
actual results, developments and business decisions may differ from
those envisioned by the forward-looking statements.
Risk factors that could cause such future events not to occur as
expected include the following:
>
changes in global and/or national economic conditions;
>
availability of credit and possible decreases in the level of
consumer conﬁdence impacting discretionary spending;
>
our reliance on third-party dealer ﬂoor plan lenders;
>
business interruptions due to adverse weather conditions;
>
increased interest rates and fuel prices;
>
unanticipated changes in consumer demand and preferences;
>
our dependence on our independent boat dealers or
availability of ﬁnancing of their inventory;
>
our single operational location;
>
our ability to insulate ﬁnancial results against increasing
commodity prices;
>
the impact of disruptions in current supplier relationships;
>
our ability to purchase construction materials in sufﬁcient
quantities and quality;
>
our ability to identify, complete or successfully integrate
acquisitions or strategic alliances;
>
changing expectations from customers, investors and other
stakeholders regarding ESG practices;
>
competition from other boat manufacturers and dealers;
>
our potential liability for personal injury and property damage
claims;
>
our ability to comply with environmental and other regulatory
requirements;
>
our dependence on our key personnel and the loss or
interruption of the services of such personnel;
>
risks related to cyber-attacks or other threats, as our
operations are dependent on digital technologies and services;
>
unanticipated disruptions to and constraints in supply chain for
key components, and ﬂuctuations in costs of key components
such as engines, resins and ﬁberglass;
>
unanticipated changes or disruptions in our supply of engines
from key vendors, including Volvo, Yamaha and/or Mercury
Marine.
We caution you that such statements are only predictions and
not guarantees of future performance and that actual results,
developments and business decisions may differ from those
envisioned by the forward-looking statements. See section titled “Risk
Factors” included in our Annual Report Form 10-K for a discussion of
these and additional factors that may cause actual results to differ
from our projections and plans.

12
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
ITEM 1.
BUSINESS
Marine Products manufactures ﬁberglass motorized boats distributed and marketed through its independent dealer network. Marine Products’
product offerings include Chaparral sterndrive and outboard pleasure boats and Robalo outboard sport ﬁshing boats.
ORGANIZATION AND OVERVIEW
Marine Products is a Delaware corporation incorporated on August 31,
2000, in connection with a spin-off from RPC, Inc. (NYSE: RES) (“RPC”).
Effective February 28, 2001, RPC accomplished the spin-off by
contributing 100% of the issued and outstanding stock of Chaparral
to Marine Products, a newly formed, wholly owned subsidiary of
RPC, and then distributing the common stock of Marine Products to
RPC stockholders.
Marine Products designs, manufactures and sells recreational
ﬁberglass
powerboats
in
the
sport
boat
and
sport
ﬁshing
boat markets. The Company sells its products to a network of
202
domestic
and
88
international
independent
authorized
dealers. Marine Products’ mission is to enhance its customers’
boating experience by providing them with high quality, innovative
powerboats. The Company’s two brands are Chaparral (sport boats)
and Robalo (ﬁshing boats):
Chaparral was founded in 1965 in Ft. Lauderdale, Florida. In
1976, Chaparral moved its operations to a Nashville, Georgia
manufacturing site, which had been the previous location of another
boat producer. This move provided the business an opportunity to
expand manufacturing space and access to a trained workforce,
and set the stage for decades of innovation, growth and industry
leadership. In 1986, RPC acquired Chaparral.
Robalo was founded in 1969 and was acquired by Marine Products
in 2001, in conjunction with the spin-off from RPC as referenced
above. At the time of the acquisition, Robalo was a struggling brand,
which Marine Products has since grown to a leading ﬁshing boat
manufacturer.

13
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
PRODUCTS
Marine Products distinguishes itself by offering a wide range of products to the family recreational markets through its Chaparral brands and
to the sport ﬁshing market through its Robalo brands.
The following table provides a brief description of our product lines and their particular market focus:
Product Line
Number
of
Models
Overall
Length
Approximate
Retail
Price Range
Description
Chaparral – SSi Sport Boats
7
20' – 23'
$48,500 – $105,000
Fiberglass sterndrive and outboard powered sport
boats marketed as high value runabout for smaller to
larger groups. Design features include handling of a
runabout, style of a sportboat and open concept layout.
Select models offer Ski & Fish options to meet speciﬁc
needs. All marketed with national ﬁxed retail prices.
Chaparral – SSX Sport Boats
4
24' – 30'
$132,000 – $326,000
Fiberglass sterndrive and outboard powered models that
combine features of sportboats and bowriders. Marketed
as high value, luxury runabouts for family groups.
Chaparral – Surf Series
5
21' – 30'
$80,000 – $352,000
This model line features a forward-facing sterndrive
engine. Fiberglass multipurpose bowriders, the Surf
Series models are marketed to both experienced and
value-conscious buyers. These boats are designed to
enhance the wake of the boat to accommodate the
popular sport of wake surﬁng.
Chaparral – OSX Sport Boats
4
26' – 32'
$145,000 – $487,000
Fiberglass, multipurpose sport boats with outboard
power featuring plentiful seating and entertaining
areas, cabin and bathroom accommodations, excellent
performance, and luxury ﬁnishes.
Robalo – Center Consoles
12
16' – 36'
$36,000 – $688,000
Fiberglass outboard sport ﬁshing boats for large
freshwater lakes or saltwater use. Marketed to
experienced ﬁshermen seeking family-friendly
amenities. Smaller models include a trailer, and all
models are marketed with national ﬁxed retail prices.
The Explorer series features extra seating options.
Robalo – Cayman Bay Boats
6
20' – 26'
$57,000 – $233,000
Fiberglass outboard powered sport ﬁshing boats
for large freshwater lakes or coastal saltwater use.
Marketed to experienced ﬁshermen wanting inshore
and offshore capabilities. All models marketed with a
trailer at national ﬁxed retail prices.
Robalo – Dual Consoles
3
20' – 31'
$64,000 – $372,000
Multi-purpose ﬁberglass outboard powered sport
ﬁshing boats for large freshwater lakes or saltwater
use. Marketed with national ﬁxed retail prices to
experienced ﬁshermen and families looking for both
ﬁshing and cruising features.

14
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
MANUFACTURING
Marine Products’ manufacturing facilities are located in Nashville,
Georgia, in what management believes is the largest single-
site sport boat production plant in the U.S. At this location, we
design and test new models, create ﬁberglass hulls and decks,
manufacture interiors, and assemble various end products. Quality
control is conducted throughout the manufacturing process, which
begins with the design of a product to meet dealer and customer
needs. Plugs (used to create a mold from which prototype boats
can be built) are constructed in the research and development
phase from designs. Adjustments are made to the plug design until
acceptable parameters are met. The ﬁnal plug is used to create
the necessary number of production molds, which are then used
to produce the ﬁberglass hulls and decks. Fiberglass components
are made by applying the outside ﬁnish, or gel coat, to the mold,
then numerous layers of ﬁberglass and resin are applied during the
lamination process over the gel coat. After curing, the hull and deck
are removed from the molds and are trimmed and prepared for ﬁnal
assembly, which includes the installation of electrical and plumbing
systems, engines, upholstery, accessories and graphics. When
fully assembled and inspected, the boats are loaded onto either
Company-owned trailers or third-party marine transport trailers for
delivery to dealers.
Of note, boat manufacturing is labor-intensive and remains largely
unautomated. Most components, both large and small, are best
suited for manual production and assembly processes. Unlike large-
scale automotive production, the lack of mass volume production,
the customization required for each boat, and the high standard of
craftsmanship to support our brands’ reputation lend themselves to
a manual process with a highly skilled workforce. The Company
prides itself on the experience and quality of our production staff
and believe low plant turnover is a key differentiator for Marine
Products in the marketplace.
PRODUCT WARRANTY
For our Chaparral and Robalo products, Marine Products provides a
lifetime limited structural hull warranty and a transferable one-year
limited warranty to the original owner. Warranties for additional items
are provided for periods of one to ﬁve years and are not transferable.
Claim costs related to components are generally absorbed by the
original component manufacturer. The manufacturers of the engines,
generators, and navigation electronics included on our boats provide
and administer their own warranties for various lengths of time.
SUPPLIERS
Marine Products’ three most signiﬁcant cost components used in
manufacturing its boats are engines, resins and ﬁberglass. Each are
currently adequately supplied and available in the market, however
the costs of these components and commodities (including copper
and steel) can ﬂuctuate in response to changes in global economic
conditions.
The Company does not manufacture the engines installed in its
boats. Engines are generally speciﬁed by the dealers at the time of
ordering a boat, usually based on anticipated customer preferences
or actual customer orders. Sterndrive engines are purchased from
Mercury Marine and Volvo Penta, under annually negotiated
purchase agreements. Outboard engines are purchased from
Yamaha under a multi-year joint marketing agreement and from
Mercury Marine under an annually negotiated purchase agreement.
In the event of a sudden and extended interruption in the supply of
engines from any of these suppliers, our sales and proﬁtability could
be negatively impacted. See Item 1A Risk Factors below.
CUSTOMERS AND DISTRIBUTION
Dealer Network. Domestic sales are generated through our
independent dealer network of approximately 202 U.S. dealers,
of which 64 are Chaparral dealers, 47 are Robalo dealers and
91 dealers sell both brands. Marine Products also has 88 international
dealers. As a percentage of our total net sales, international sales
represented 5.6% in 2024, 5.9% in 2023 and 6.7% in 2022. Of note,
no single dealer nor any group of dealers owned by the same
parent company accounted for 10% or more of net sales during
2024, 2023 or 2022.
Most of our dealers also sell boat brands manufactured by other
companies, including some that compete directly with our brands.
The territories served by our dealers are not exclusive to the
dealer; however, Marine Products uses discretion in establishing
relationships with new dealers in an effort to protect the mutual
interests of the existing dealers and the Company. Marine Products
has six independent ﬁeld sales representatives who manage
relationships with existing dealers and develop new dealer
relationships. Management believes that the ﬁve largest states for
boat sales at the present time are Florida, Texas, Michigan, North
Carolina and Minnesota. The Company has dealers in each of these
and many other states across the country.
Marketing & Promotions/Incentives. As the Company does not sell
directly to consumers, it relies on the dealer network to promote
the brands and educate consumers about our boats’ features
and performance. The Company invests time and resources to
supporting our dealers’ promotional efforts and ensuring they are
well-equipped to position our boats favorably in the marketplace
with consumers. Marine Products offers both dealer and retail sales
incentive programs to promote dealer inventory replenishment
following the prime spring and summer selling seasons, and to
promote the sales of older models in dealer inventory. These
programs also help to stabilize the Company’s manufacturing
schedules between the peak and off-peak periods. For the 2025
model year (which commenced July 1, 2024), Marine Products
offered its dealers several sales incentive programs based on
dollar volume and timing of dealer purchases. With regard to retail
incentives, in late 2023 the Company returned to historically typical
levels following the post-pandemic period when retail demand
was extremely strong and incentives were not critical to drive
consumer purchases. We also supplement local advertising, sales
and marketing follow-up in boating magazines, and participation in
selected regional, national, and international boat show exhibitions,
as well as developing virtual marketing programs.
Orders & Inventory. Marine Products’ sales orders are indicators
of strong interest from its dealers. Historically, dealers have in
most cases taken delivery of all their orders. The Company does
not typically maintain a signiﬁcant inventory of ﬁnished boats. In
a typical ordering, production and delivery cycle, the Company
monitors dealer inventory levels in order to inform its production

15
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
scheduling to keep manufacturing in line with end-market demand,
and to ensure that dealers are carrying the appropriate levels of
inventory. The Company adjusts production schedules as needed
to keep its cost structure and labor expenses optimized given
the prevailing economic and demand conditions. Strong demand
during and following the 2020 pandemic, coupled with strained
supply chains resulted in low channel inventories until mid-2023.
Subsequently, the rise in interest rates, economic uncertainty, and
a slowdown in boat demand resulted in the dealer channel holding
excess inventory, which has negatively impacted sales during 2024
(more detailed recent trends are discussed below in the Industry
Overview & Key Themes section).
We believe that dealer inventories of our boat models as of
December 31, 2024 are sufﬁcient to meet the current level of retail
customer demand. The sales order backlog as of December 31,
2024 was 655 boats with estimated net sales of approximately
$53.4 million. This represents an approximate 11.7 week backlog
based on recent production levels. The sales order backlog as
of December 31, 2023 was 1,243 boats with estimated net sales
of approximately $92.3 million. This represented an approximate
20.7 week backlog based on production levels at that time. The
Company will continue to monitor the number of boats in dealer
inventories and adjust its production levels as it deems necessary
to manage dealer inventory levels.
Floor Plan Financing. Approximately 69% of Marine Products’
domestic shipments are made pursuant to “ﬂoor plan ﬁnancing” (or
“FPF”) programs in which Marine Products’ subsidiaries participate
on behalf of their dealers with major third-party ﬁnancing institutions.
The remaining dealers ﬁnance their boat inventory with smaller
regional ﬁnancial institutions or self-ﬁnance. Under these FPF
arrangements, a dealer establishes a line of credit with one or more
of these lenders for the purchase of boat inventory for sales to
retail customers in their showroom or during boat show exhibitions.
In general, when a dealer purchases and takes delivery of a boat
pursuant to an FPF arrangement, it draws against its line of credit
and the lender pays the invoice cost of the boat directly to Marine
Products, generally within ten business days. When the dealer in turn
sells the boat, the dealer repays the lender, restoring its available
credit line. Each dealer’s ﬂoor plan credit facilities are secured by
the dealer’s inventory, letters of credit, and perhaps other personal
and real property. In connection with a dealer’s FPF arrangements,
Marine Products has agreed to repurchase inventory which the
lender repossesses from a dealer and returns to Marine Products in
a “new and unused” condition subject to normal wear and tear. The
contractual agreements that we have with these qualiﬁed lenders
contain the Company’s assumption of speciﬁed percentages of the
debt obligation on repossessed boats, up to certain contractually
determined dollar limits negotiated with the lender.
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 for
the three highest monthly receivables balances during the past
twelve months, 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 $19.6 million as of December 31, 2024.
The Company has contractual repurchase agreements with
additional lenders with an aggregate maximum repurchase obligation
of $5.4 million, with various expiration and cancellation terms of less
than one year. Accordingly, the aggregate repurchase obligation
with all ﬁnancing institutions was approximately $25.0 million
as of December 31, 2024. In the event that a dealer defaults on a
credit line, the qualiﬁed lender may then invoke the manufacturer’s
repurchase obligation with respect to that dealer. In that event, all
repurchase agreements of all manufacturers supplying a defaulting
dealer are generally invoked regardless of the boat or boats with
respect to which the dealer has defaulted. Unlike Marine Products’
obligation to repurchase boats repossessed by qualiﬁed lenders,
Marine Products is under no obligation to repurchase boats directly
from dealers. Marine Products does not sponsor ﬁnancing programs
to the retail consumer; any consumer ﬁnancing promotions for a
prospective boat purchaser would be the responsibility of the dealer.
In 2024, the Company entered into a three-year ﬂoor plan ﬁnancing
agreement with a single third-party lender which will be phased
in beginning in the ﬁrst quarter of 2025 to replace a majority of
the existing agreements with the current third-party lenders. The
agreement is substantially similar to the current arrangements with
the existing third-party ﬂoor plan lenders and provides for certain
additional incentives to the Company and qualifying dealers over
the term of the agreement.
RESEARCH AND DEVELOPMENT
Marine Products has been a leading innovator in the recreational
boating industry offering exceptional quality and consumer value.
Both Chaparral and Robalo have long expanded the range of their
offerings through insightful, innovative product design and quality
manufacturing processes in order to reach an increasingly discerning
recreational boating market. Although the basic hull designs are
similar from year to year, the Company has historically introduced
a variety of new models each year and periodically replaces,
updates or discontinues existing models, as well as introduces
new features, designs and color options (both exterior and interior/
upholstery colors). As an innovation example, a proprietary and
patented feature available on many Chaparral sterndrive models is
the Inﬁnity Power StepTM. This mechanical feature allows a portion
of the stern to automatically descend underwater, creating a “step-
down” staircase effect, giving boaters the ability to step down from
the stern into the water. The step also functions as seating, creating
a semi-submerged bench.
Other areas that the Company has invested R&D resources include
3-D printers for parts development and production and virtual reality
software to aid in the design of our boats. The in-house 3-D printing
capabilities we have developed allow us to prototype new parts
quickly, accelerating our product development and design cycles.
These capabilities also decrease our reliance on third parties,
giving us more control over our supply chain, speed and quality.
The virtual reality design software has been a signiﬁcant resource
in improving the quality of our designs and speed of development,
as we can test boat layouts and designs virtually, without the time
or expense of physical prototypes.
In support of new product development efforts, Marine Products
incurred research and development costs of $762 thousand in
2024, $757 thousand in 2023, and $437 thousand in 2022.

16
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
INDUSTRY OVERVIEW & KEY THEMES
The recreational marine market in the United States is mature,
with sales of new and used boats (consisting of outboard, inboard,
sterndrive, jet drive, sailboats and personal watercraft) as well as
motors and engines, trailers, accessories and other associated
costs varying by year and typically correlated with economic cycles
in the U.S.
While the business typically exhibits “normal” cyclical patterns
based on domestic consumer sentiment and spending, the cycle
following the COVID-19 pandemic showed more pronounced
positive and negative trends. Following a period of brief uncertainty
at the outset of the pandemic, demand for outdoor products
increased signiﬁcantly. Concurrently, global supply chains were
constrained by many factors (e.g., availability of materials and
components and delays in transportation of goods) resulting in
limited supply and escalating input costs. This naturally led to
substantial cost increases across the industry, as was commonly
seen in many industries dealing with similar supply and demand
imbalances, which ultimately resulted in signiﬁcant price increases.
However, beginning in mid-2023, industry demand began to
moderate, supply chain constraints had been resolved, and dealer
order patterns began to wane in the face of inventory levels and
production capacity that exceeded softening demand. Management
believes over the past 18 months the marine industry, and the
Company, have experienced reduced sales due to several factors:
(1) the impact of several years of selling price increases to offset
input cost inﬂation, (2) a period of rapidly rising interest rates that
increased ﬁnancing costs of boat ownership, consumer uncertainty
around the U.S. economy and disposable income, and (3) a general
oversupply of boat inventories in the retail channel relative to
consumer and dealer demand.
Dealer Inventories (post-pandemic). As noted, the Company
does not carry signiﬁcant amounts of ﬁnished boat inventories,
rather we build boats according to dealer orders and ship to their
locations upon boat completion. During 2021 and 2022, however,
extraordinarily high dealer and consumer post-pandemic demand
combined with the Company’s production delays resulting from
supply chain disruptions caused dealer inventories to fall to historic
lows. The combination of low inventory levels and high demand
through the ﬁrst half of 2023 forced the Company to allocate its
production to dealers to fulﬁll as many orders as possible and
rebuild dealer inventories. Beginning in the second half of 2023,
demand began softening and inventories were replenished, quickly
resulting in excess channel inventory heading into 2024.
As demand softened, dealers responded with reduced order ﬂow
and the Company began scaling back production to allow for
inventory reductions in the dealer channel. The Company believes
its channel inventory is currently at an appropriate level given
demand expectation, however, overall production is signiﬁcantly
less than our manufacturing capacity, thus negatively impacting
ﬁxed cost absorption and gross proﬁt margins.
Interest rates. Short-term interest rates play an important role in
the marine industry as they are a large determinant of inventory
carrying costs for dealers and ﬁnancing costs for consumers.
As discussed above, boat dealers typically purchase boats from the
Company using credit supplied by third-party ﬁnancial institutions.
Thus, the value of the inventory incurs a carrying costs, or interest
cost, each month. Since the ﬁnancial crisis in 2008, the U.S. market
has enjoyed historically low interest rates, which have been a
key support factor for the housing, auto, and other large/ﬁnanced
purchases, including large discretionary items like recreational
vehicles and boats. In response to rapid inﬂation following the
strong post-pandemic economic conditions, the Federal Reserve
began quickly raising short-term borrowing rates in early 2022
from near-zero to over 5% by mid-2023, and have since modestly
reduced rates into the mid-4% range.
The rapid pace of interest increases had a negative impact on the
marine industry. Not only did the interest rate used in calculating
dealer carrying costs increase dramatically, the “borrowing base”
increased as well due to the large prices increases in the preceding
years; thus while the units of boats in dealer inventories increased,
the impact was worsened because the outstanding balances
on their ﬂoorplan ﬁnancing had risen with the value of the boats
purchased. The rise in interest rates also had a negative impact on
consumers who ﬁnanced the purchase of their boats, as higher rates
translate into higher monthly payments. The increased cost of boat
ownership and sentiment around higher interest rates potentially
causing a recession (and the potential for lower rates in the future)
are also believed to have negatively impacted consumer demand
for boats.
COMPETITION
The recreational boat manufacturing market remains highly
fragmented, although some publicly traded companies own a
diversiﬁed group of recreational boat brands. We estimate that the
U.S. boat manufacturing industry includes nearly 100 sport/pleasure
boat producers with signiﬁcant unit production, with a large number
representing small, privately held companies with varying degrees
of professional management and manufacturing skill. Within this
fragmented market, there are many categories of size and boat type,
which can make market share data somewhat difﬁcult to compare
given the subjectivity of criteria and “market share” deﬁnition and
parameters. For illustrative purposes, the Company estimates
overall its (and other leading companies’) U.S. market share by key
categories and sizes as follows, according to Statistical Surveys, Inc.
during the latest reported year ended September 30, 2024:
>
The top ﬁve sterndrive model manufacturers of boats in lengths
from 21 to 34 feet, which includes Marine Products’ Chaparral
brand, have a combined market share of approximately 85%;
Marine Products’ Chaparral brand was the second largest
of these brands with a share of approximately 23% of this
category.
>
The top ﬁve outboard model manufacturers of boats in lengths
from 18 to 36 feet, which includes Marine Products’ Robalo and
Chaparral (outboard only) brands, have a combined market
share of approximately 35%; Robalo is the fourth largest brand of
outboard boats in the United States with a market share of 4.3%,
and when combined with Chaparral outboards, the Company
holds the fourth highest position in the outboard market of this
size range, with a market share of approximately 6%.

17
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
Our highly fragmented industry has intense competition for
customers, dealers and boat show exhibition space. There is
signiﬁcant competition both within geographic and product/category
markets we currently serve and in new markets that we may enter.
Marine Products’ brands compete with several large national or
regional manufacturers that have substantial ﬁnancial, marketing and
other resources. Such competitors include Brunswick Corporation,
Sea Hunt Boats, Malibu Boats, Inc., Mastercraft Boat Holdings, Inc.
and Regal Marine Industries, Inc. However, we believe that our
corporate ﬁnancial strength and infrastructure, combined with our
design, production, and marketing capabilities and nationwide
sales presence enable us to compete effectively against these
companies. We compete on the basis of responsiveness to customer
needs, the quality and range of models offered, and the competitive
pricing of those models. Additionally, Marine Products faces general
competition from all other recreational businesses seeking to attract
consumers’ leisure time and discretionary spending dollars.
STRATEGY
The Company has historically aimed to grow its boat sales, net
sales and market share by differentiating our product lines through
industry-leading feature innovations and designs. To achieve these
objectives, we plan to execute strategic investments, both organic
and potential M&A, that we believe will increase our scale, enhance
our product offering, and improve our proﬁtability and cash ﬂow.
In assessing MPX’s strategy, ﬁnancial condition and operating
performance, management generally reviews results and trends
related to sales, plant utilization, pricing, cost structure, proﬁtability,
cash ﬂows and the return on our invested capital. We also monitor
industry-wide and general macro-economic factors that impact
dealer order activity.
Our key strategies can be broken down into three categories:
operating, growth and capital allocation.
Operating strategy
>
Drive a culture of highly engaged, empowered,
and appropriately incentivized employees
>
Focus on high-quality, stylish, innovative and differentiated
powerboats for our dealers and retail consumers
>
Actively manage our manufacturing schedules and dealer
order backlog to align production with expected demand
>
Maintain a ﬂexible, variable cost structure which can be
adjusted quickly to respond to changing demand
>
Support our dealers with competitive promotional and
incentive programs to drive sales activity; in addition, provide
sales education and technical training to enhance dealer
effectiveness, customer satisfaction and retention
Growth strategy
>
Increase market share by expanding dedicated sales,
marketing and distribution systems
>
Invest in innovation and manufacturing capabilities to
maintain or grow our category leadership positions
>
Explore potential acquisitions that could increase our scale,
strengthen certain geographic presences, expand our product
line and brand portfolio, and deliver attractive ﬁnancial returns
Capital allocation strategy
>
Maintain a conservative and low-cost capital structure, with
minimal use of debt ﬁnancing, to sustain operational strength
and liquidity during industry downturns
>
Balance the use of cash invested in the Company (both organic
and potential M&A) and returned to stockholders with strong
alignment of management and shareholder interests; given
the limited common stock ﬂoat, the Company has not typically
been an active repurchaser of its shares on the open market
>
Continue paying regular quarterly dividends; though we do not
currently intend to steadily grow the regular dividend, if we do
not use our signiﬁcant cash balance to make acquisitions, we
may continue to periodically pay special dividends
ENVIRONMENTAL AND
REGULATORY MATTERS
Certain materials used in boat manufacturing, including the resins
used to make the decks and hulls, are toxic, ﬂammable, corrosive,
or reactive and are classiﬁed by the federal and state governments
as “hazardous materials.” Control of these substances is regulated
by the Environmental Protection Agency (“EPA”) and state pollution
control agencies, which require reports and facility inspections to
monitor compliance with their regulations. The Occupational Safety
and Health Administration (“OSHA”) standards limit the number of
emissions to which an employee may be exposed without the need
for respiratory protection or upgraded plant ventilation. Marine
Products’ manufacturing facilities are regularly inspected by OSHA
and by state and local inspection agencies and departments.
Marine Products believes that its facilities comply in all material
aspects with these regulations. We do not currently anticipate that
any material expenditure will be required to continue to comply with
existing environmental or safety regulations in connection with our
existing manufacturing facilities.
Recreational powerboats sold in the United States must be
manufactured to meet the standards of certiﬁcation required by the
United States Coast Guard. In addition, boats manufactured for sale
in the European Community must be compliant with the International
Organization
for
Standardization
requirements
which
specify
standards for the design and construction of powerboats. All boats
sold by Marine Products meet these standards. In addition, safety
of recreational boats is subject to federal regulation under the Boat
Safety Act of 1971. The Boat Safety Act requires boat manufacturers
to recall products for replacement of parts or components that
have demonstrated defects affecting safety. Marine Products has
from time to time instituted recalls for defective component parts
produced by other manufacturers. None of the recalls has had a
material adverse effect on Marine Products.
The EPA has adopted regulations stipulating that many marine
propulsion engines meet an air emission standard that requires
ﬁtting a catalytic converter to the engine. These regulations also
require, among other things, that the engine manufacturer provides
a warranty that the engine meets EPA emission standards. The
engines used in Marine Products’ Chaparral and Robalo product
lines are subject to these regulations. These regulations are similar
to regulations adopted by the California Air Resources Board in
2007 but apply to all U.S. states and territories. These regulations

18
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
have increased the cost to manufacture the majority of the
Company’s boat products. Compliance with these EPA regulations
has increased Marine Products’ cost and may also reduce Marine
Products’ net sales, because the increased cost of owning a boat
may force consumers to buy a smaller or less expensive boat.
HUMAN CAPITAL
The table below shows the number of employees at December 31,
2024 and 2023:
At December 31,
2024
2023
Employees
617
690
The
recreational
boating
industry
is
cyclical
and
therefore
headcount is subject to change based on production levels which
are a function of dealer and consumer demand. The Company’s
key human capital management objectives are focused on fostering
talent in the following areas:
Workplace Inclusion – The Company’s workforce reﬂects the
diversity of the community in which it operates. Our dedicated
team of employees work toward a common purpose. We provide
employment in a small community which we have supported as
the largest employer since 1976 under the same management.
Our company is strong in its values, relationships and consistency
in management. The Board of Directors has a human capital
and compensation committee that, among other things, monitors
compliance with applicable non-discrimination laws related to
race, gender and other protected classes. The Committee provides
quarterly reports to the Board, including discussion of any signiﬁcant
compliance matters.
Development and Training – The Company’s management team
and all its employees are expected to exhibit and promote
honest, ethical and respectful conduct in the workplace. We have
implemented and maintained a corporate compliance program
to provide guidance for everyone associated with the Company,
including its employees, ofﬁcers and directors (the “Code”). Annual
review of the Code is required, and the Code prohibits unlawful
or unethical activity, including discrimination, and directs our
employees, ofﬁcers, and directors to avoid actions that, even if
not unlawful or unethical, might create an appearance of illegality
or impropriety. In addition, the Company provides annual training
for preventing, identifying, reporting and stopping any type of
unlawful discrimination.
Employee
Retention
–
Marine
Products
monitors
voluntary
employee turnover and reports these statistics to senior operational
management. From time to time, the Company has rewarded
employee tenure through various bonus programs for its hourly
employees based on attendance and job performance.
Compensation and Beneﬁts – The Company focuses on attracting
and retaining employees by providing compensation and beneﬁt
packages that are competitive in the market, taking into account
the location and responsibilities of the job. We provide competitive
ﬁnancial beneﬁts such as a 401(k) retirement plan with a company
match, and generally grant awards of restricted stock for certain of
our salaried employees.
The Company provides a health insurance option that includes
a local primary care physician who provides immediate care or
medical consultation to most employees at a reduced or no cost, as
well as certain maintenance medications at a reduced or no cost.
Under this program, an employee with a health concern visits the
physician’s ofﬁce, which is close to our manufacturing facilities, and
either receives care or is referred to another facility for testing or
additional care. We believe that this program improves employee
well-being by facilitating their access to health care.
Safety – Marine Products monitors several safety measures and
reports them to senior operational management on a regular basis.
Management reviews safety incidents, and the Company works
to remediate operational issues that may be potential causes of
any frequent incidents. In addition, the Company awards safety
bonuses to the drivers of its company-owned vehicles based on
their driving records.
PROPRIETARY MATTERS
Marine Products owns several trademarks, trade names and
patents that it believes are important to its business. Except for
the Chaparral and Robalo trademarks, Marine Products is not
dependent upon any single trademark or trade name or group of
trademarks or trade names. The Chaparral and Robalo trademarks
are currently registered in the United States. The current duration for
such registration ranges from seven to 15 years but each registration
may be renewed an unlimited number of times.
SEASONALITY
Marine Products’ quarterly operating results are affected by weather
and general economic conditions. Quarterly operating results for
the second quarter traditionally record the highest sales volume
for the year because this corresponds with the highest retail sales
volume period. For similar reasons, quarterly operating results for
the fourth quarter often record the lowest sales volume for the year.
The results for any quarter are not necessarily indicative of results
to be expected in any future period.
INFLATION
New boat buyers typically ﬁnance their purchases. The Company
believes that the 2022 and 2023 increases in interest rates (which is
generally linked to higher inﬂation) have reduced retail demand for
smaller boats, since purchasers of smaller boats are typically more
sensitive to increases in the cost of boat ownership and typically
ﬁnance their purchases. Higher interest rates also impact our
dealers, as their boat purchases are ﬁnanced and they bear much
of the carrying costs of holding inventories. Lastly, the Company
incurs higher costs from rising interest rates because we often pay a
portion of dealer ﬂoor plan interest costs as part of our dealer sales
incentive programs.
During 2021 and 2022, inﬂation in the general economy had
increased to its highest level in more than 40 years due to economic
growth following the COVID-19 pandemic, labor shortages, supply
chain constraints, and U.S. ﬁscal policy. As a result, the market
prices of the raw materials and components used by the Company’s
manufacturing
processes
increased
during
these
periods.
In
response to historically high consumer demand as well as higher
raw materials and components costs, the Company increased the
prices for its products. During 2023, prices of many raw materials

19
Marine Products Corporation 2024 10-K
Part I
Item 1. — Business
used in the Company’s manufacturing processes began to decline,
and transportation became more available and less expensive,
thus easing the Company’s cost pressures. However, the Company
believes the cost of boat ownership has risen enough to impact retail
demand. Therefore, it may be more difﬁcult to raise prices in the future
to compensate for increased costs of raw materials and components,
which could impact the Company’s sales and proﬁt margins.
AVAILABILITY OF FILINGS
Marine Products makes available free of charge on its website,
MarineProductsCorp.com,
the
annual
report
on
Form
10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K and all
amendments to those reports on the same day as they are ﬁled with
the Securities and Exchange Commission.
ITEM 1A.
RISK FACTORS
RISKS RELATED TO OUR BUSINESS
Economic Conditions, Availability of Credit and
Consumer Conﬁdence Levels Aﬀect Marine Products’
Sales Because Marine Products’ Products are Purchased
with Discretionary Income.
During an economic recession or when an economic recession is
perceived as a threat, Marine Products will be adversely affected as
consumers have less discretionary income or are more apt to save
their discretionary income rather than spend it. During times of global
political or economic uncertainty, Marine Products will be negatively
affected to the extent consumers forego or delay large discretionary
purchases pending the resolution of those uncertainties. Historical
volatility in the prices and ﬁnancial returns of investments and
residential real estate may force consumers to delay retirement,
or to choose more modest lifestyles when they do retire. In such a
case, consumers may not purchase boats, may purchase boats later
in their lives, or may purchase smaller or less expensive boats. Tight
lending and credit standards, which until recently have been in use
by lenders in the United States, can make loans for boats harder to
secure, and such loans may carry unfavorable terms, which may
force consumers to forego boat purchases. These factors have also
resulted in the past, and may continue to result in the future, in a
reduction in the quality and number of dealers upon which Marine
Products relies to sell its products.
Marine Products Relies Upon Third-Party Dealer Floor
Plan Lenders Which Provide Financing to its Network
of Independent Dealers.
Marine Products sells its products to a network of independent
dealers, most of whom rely on one or more third-party dealer ﬂoor
plan lenders to provide ﬁnancing for their inventory prior to its sale
to retail customers. In general, this source of ﬁnancing is vital to
Marine Products’ ability to sell products to its dealer network. While
dealer ﬂoor plan credit is currently available for many of our dealers
during the 2025 model year, the Company’s sales and proﬁtability
could be adversely affected in the event of a decline in ﬂoor plan
ﬁnancing availability, or if ﬁnancing terms change unfavorably.
Interest Rates and Fuel Prices Aﬀect Marine Products’ Sales.
The Company’s products are often ﬁnanced by our dealers and the
retail boat consumers. Higher interest rates increase the borrowing
costs and, accordingly, the cost of doing business for dealers and
the cost of boat ownership for consumers. Fuel costs can represent
a large portion of the costs to operate our products. Therefore,
higher interest rates and fuel costs can adversely affect consumers’
decisions relating to recreational boating purchases.
Marine Products’ Dependence on its Network of Independent
Boat Dealers May Aﬀect its Operating Results and Sales.
Virtually all Marine Products’ sales are derived from its network
of independent boat dealers. Marine Products has no long-term
agreements with these dealers. Competition for dealers among
recreational
powerboat
manufacturers
continues
to
increase
based on the quality of available products, the price and value of
the products, and attention to customer service, and individual
dealers frequently also sell boats manufactured by our competitors.
The Company faces intense competition from other recreational
powerboat manufacturers in attracting and retaining independent
boat dealers. The number of independent boat dealers supporting
the Chaparral and Robalo trade names and the quality of their
marketing and servicing efforts are essential to Marine Products’
ability to generate sales. A deterioration in the number of Marine
Products’ network of independent boat dealers could have a material
adverse effect on its boat sales. Marine Products’ inability to attract
new dealers and retain those dealers, or its inability to increase sales
with existing dealers, could substantially impair its ability to execute
its business plans. Although Marine Products’ management believes
that the quality of its products and services in the recreational boating
market should permit it to maintain its relationship with its dealers and
its market position, there can be no assurance that Marine Products
will be able to sustain its current sales levels.
Marine Products’ Financial Condition and Operating Results
may be Adversely Aﬀected by Boat Dealer Defaults.
The Company’s products are sold through independent dealers,
and the ﬁnancial health of these dealers is critical to the Company’s
continued success. The Company’s results can be negatively affected
if a dealer defaults because Marine Products or its subsidiaries may
be contractually required to repurchase inventory up to certain
limits, although for business reasons, the Company may decide to
purchase additional boats in excess of this contractual obligation.
Marine Products’ Sales are Aﬀected by Weather Conditions,
Which May Involve Long-Term Impact from Global Warming.
Marine Products’ business is subject to weather patterns that may
adversely affect its sales. For example, drought conditions, or
merely reduced rainfall levels, or excessive rain, may close area
boating locations or render boating dangerous or inconvenient,
thereby curtailing customer demand for our products. In addition,
unseasonably cool weather and prolonged winter conditions may
lead to a shorter selling season in some locations. Hurricanes and
other storms could cause disruptions to our operations or damage
to our boat inventories and manufacturing facilities. Global warming
may continue to worsen the impact of extreme weather conditions.

20
Marine Products Corporation 2024 10-K
Marine Products’ Single Operational Location Creates Risk
for its Sales, Proﬁts and the Value of its Assets.
Marine Products’ manufacturing operations are conducted in a
single location in Nashville, Georgia. To support our operations,
several of our suppliers have also established facilities close to
our manufacturing facility to provide timely delivery of fabricated
components. Catastrophic weather, civil unrest, ﬁres, natural
disasters or other unanticipated events beyond our control may
disrupt both our and our suppliers’ ability to conduct manufacturing
operations or transport our ﬁnished boats to our dealer network.
We do not own or have access to alternate manufacturing locations.
In the event of such events or conditions, we may incur damage
to our work-in-process and ﬁnished goods inventory and will incur
impairment charges to the value of that inventory. Furthermore, our
sales and proﬁts may be adversely affected during and immediately
after such events or conditions due to our inability to manufacture
and deliver boats to our dealer network.
Marine Products Encounters Intense Competition
Which Aﬀects our Sales and Proﬁts.
The recreational boat industry is highly fragmented, resulting in
intense competition for customers, dealers and boat show exhibition
space. This competition affects both the markets which we currently
serve and new markets that we may enter in the future. We compete
with several large national or regional manufacturers that have
substantial ﬁnancial, marketing and other resources.
Because Marine Products Relies on Third-Party Suppliers,
Marine Products may be Unable to Obtain Adequate
Raw Materials, Engines and Components at Reasonable
Prices or at All, Which Could Increase our Working Capital
Requirements and Adversely Aﬀect Sales and Proﬁt Margins.
Marine Products is dependent on third-party suppliers to provide raw
materials, engines and components essential to the construction
of its various powerboats. Especially critical are the availability
and cost of marine engines and commodity raw materials used in
the manufacture of Marine Products’ boats. Marine Products has
three suppliers for the three types of engines it purchases. While
Marine Products’ management believes that supplier relationships
currently in place are sufﬁcient to provide the engines and materials
necessary to meet present production demands, there can be
no assurance that these relationships will continue, that these
suppliers will remain in operation or that the quantity or quality of
materials available from these suppliers will be sufﬁcient to meet
Marine Products’ future needs. Disruptions in current supplier
relationships or the inability of Marine Products to continue to
purchase construction materials in sufﬁcient quantities and of
sufﬁcient quality at acceptable prices to meet ongoing production
schedules could cause a decrease in sales or a sharp increase in
the cost of goods sold. Additionally, because of this dependence,
the volatility in commodity raw materials or current or future price
increases in production materials or the inability of Marine Products’
management to purchase engines and materials required to execute
its growth and acquisition strategies could reduce the number of
boats Marine Products may be able to produce for sale or cause a
reduction in Marine Products’ proﬁt margins.
As noted, we rely on third parties to supply a number of raw
materials used in our manufacturing processes. Prices for these
raw materials ﬂuctuate, often unpredictably, due to market forces
beyond our control. When prices of these raw materials increase,
we attempt to preserve our proﬁt margins by increasing the prices of
our products. There is no assurance that we will be able to increase
the prices of our products and preserve our proﬁtability in the event
of future inﬂation and cost increases.
Marine Products may be Unable to Identify, Complete or
Successfully Integrate Acquisitions.
Marine
Products
intends
to
pursue
acquisitions
and
form
strategic alliances that will enable Marine Products to acquire
complementary skills and capabilities, offer new products, expand
its customer base, and obtain other competitive advantages.
There can be no assurance, however, that Marine Products will
be able to successfully identify suitable acquisition candidates or
strategic partners, obtain ﬁnancing on satisfactory terms, complete
acquisitions or strategic alliances, integrate acquired operations into
its existing operations, or expand into new markets. Once integrated,
acquired operations may not achieve anticipated levels of sales or
proﬁtability, or otherwise perform as expected. Acquisitions also
involve special risks, including risks associated with unanticipated
problems, liabilities and contingencies, diversion of management
resources, and possible adverse effects on earnings and earnings
per share resulting from increased interest costs, the issuance of
additional securities, and difﬁculties related to the integration of the
acquired business. The failure to integrate acquisitions successfully
may divert management’s attention from Marine Products’ existing
operations and may damage Marine Products’ relationships with its
key dealers and suppliers.
Increasing Expectations from Customers, Investors and Other
Stakeholders Regarding Our Environmental, Social and
Governance (ESG) Practices may Aﬀect Our Business, may
Create Additional Costs for Us, or Expose Us to Related Risks.
Many companies are receiving greater attention from stakeholders
regarding their ESG practices, as well as their oversight of relevant
ESG issues. The various stakeholders are placing growing
importance on our potential environmental and social issue risk
exposure and the impact of our choices. This trend appears likely to
continue. Increased focus on ESG and related decision-making may
negatively impact us as customers, investors and other stakeholders
may choose not to work with us or reallocate capital or decline to
make an investment as a result of their assessment of our ESG
practices. Companies that do not comport with, or do not adapt to,
these evolving investor and stakeholder ESG-related expectations
and standards, or that are assessed as not having responded
appropriately to the growing focus on ESG matters, may have their
brand and reputation harmed, and we or our stock price may be
adversely affected even though we may be in full compliance with
all relevant laws and regulations.
Marine Products purchases materials and components
for boat production, as well as conducts business
internationally; these aspects of our business could be
aﬀected by tariﬀs.
Boat production entails the purchase of ﬁberglass and other raw
materials, as well as electrical components, small parts, and
aluminum trailers to transport boats. These purchases are often
made from international suppliers, from distributors who procure
these items overseas, or from domestic manufacturers who rely
on imported raw materials to manufacture their products. Potential
Part I
Item 1A. — Risk Factors

21
Marine Products Corporation 2024 10-K
implementation of tariffs on US trade partners could cause the
prices of the items and materials to increase, which could result in
us raising prices to our customers, and those efforts may or may
not be successful. Marine Products also sells boats to dealers in
other countries, including Canada, and a tariff-related trade war
with retaliatory tariffs could make our products more expensive in
those markets or cause delays in ordering our products.
RISK MANAGEMENT RISKS
Marine Products Has Potential Liability for Personal Injury
and Property Damage Claims.
The products or services we sell may expose Marine Products to
potential liabilities for personal injury or property damage claims
relating to the use of those products. Historically, the resolution of
product liability claims has not materially affected Marine Products’
business. Marine Products maintains product liability insurance that
it believes to be adequate. However, there can be no assurance
that Marine Products will not experience legal claims in excess of
its insurance coverage or that claims will be covered by insurance.
Furthermore, any signiﬁcant claims against Marine Products could
result in negative publicity, which could cause Marine Products’
sales to decline.
REGULATORY RISKS
If Marine Products is Unable to Comply with Environmental
and Other Regulatory Requirements, its Business may be
Exposed to Liability and Fines.
Marine Products’ operations are subject to extensive regulation,
supervision and licensing under various federal, state and local
statutes, ordinances and regulations. While Marine Products
believes that it maintains all requisite licenses and permits and is in
compliance with all applicable federal, state and local regulations,
there can be no assurance that Marine Products will be able to
continue to maintain all requisite licenses and permits and comply
with applicable laws and regulations. The failure to satisfy these
and other regulatory requirements could cause Marine Products
to incur ﬁnes or penalties or could increase the cost of operations.
The adoption of additional laws, rules and regulations could also
increase Marine Products’ costs.
The U.S. Environmental Protection Agency (EPA) has adopted
regulations
affecting
many
marine
propulsion
engines.
This
regulation has increased the cost of boats subject to the regulation,
which may either reduce the Company’s proﬁtability or reduce sales.
As with boat construction in general, our manufacturing processes
involve the use, handling, storage and contracting for recycling or
disposal of hazardous or toxic substances or wastes. Accordingly,
we are subject to regulations regarding these substances, and the
misuse or mishandling of such substances could expose Marine
Products to liability or ﬁnes.
Additionally, certain states have required or are considering
requiring a license to operate a recreational boat. While such
licensing requirements are not expected to be unduly restrictive,
regulations may discourage potential ﬁrst-time buyers, thereby
reducing future sales.
RISKS RELATED TO OUR LABOR FORCE
Marine Products’ Success Will Depend on its Key Personnel, and
the Loss of any Key Personnel may Aﬀect its Powerboat Sales.
Marine Products’ success will depend to a signiﬁcant extent on
the continued service of key management personnel. The loss or
interruption of the services of any senior management personnel or
the inability to attract and retain other qualiﬁed management, sales,
marketing and technical employees could disrupt Marine Products’
operations and cause a decrease in its sales and proﬁt margins.
Marine Products’ Ability to Attract and Retain Qualiﬁed
Employees is Crucial to its Results of Operations and
Future Growth.
Marine Products relies on the existence of an available hourly
workforce to manufacture its products. As with many businesses,
we are challenged at times to ﬁnd qualiﬁed employees. There are
no assurances that Marine Products will be able to attract and retain
qualiﬁed employees to meet current and/or future growth needs.
RISKS RELATED TO OUR CAPITAL
AND OWNERSHIP STRUCTURE
Marine Products’ Executive Oﬃcers, Directors and Their
Aﬃliates Together Have a Substantial Ownership Interest,
and Public Stockholders may Have no Eﬀective Voice in
Marine Products’ Management.
The Company has elected the “Controlled Corporation” exemption
under Section 303A of the New York Stock Exchange (“NYSE”) Listed
Company Manual. The Company is a “Controlled Corporation”
because a group that includes Gary W. Rollins, Pamela R. Rollins,
Amy R. Kreisler and Timothy C. Rollins, each of whom is a director
of the Company, and certain companies under their control (the
“Controlling Group”), controls in excess of ﬁfty percent of the
Company’s voting power. As a “Controlled Corporation,” the
Company need not comply with certain NYSE rules including those
requiring a majority of independent directors and independent
nominating and compensation committees.
Marine Products’ executive ofﬁcers, directors and their afﬁliates
hold directly or through indirect beneﬁcial ownership, in the
aggregate, approximately 70% of Marine Products’ outstanding
shares of common stock as of February 14, 2025. As a result, these
stockholders effectively control the operations of Marine Products,
including the election of directors and approval of signiﬁcant
corporate transactions such as acquisitions. This concentration of
ownership could also have the effect of delaying or preventing a
third-party from acquiring control of Marine Products at a premium.
Our Executive Oﬃcers, Directors and Their Aﬃliates
Together Have a Substantial Ownership Interest, and the
Availability of Marine Products’ Common Stock to the
Investing Public may be Limited.
The availability of Marine Products’ common stock to the investing
public may be limited to those shares not held by the executive
ofﬁcers, directors and their afﬁliates, which could negatively impact
Marine Products’ stock trading prices and affect the ability of
minority stockholders to sell their shares. Future sales by executive
ofﬁcers, directors and their afﬁliates of all or a portion of their shares
could also negatively affect the trading price of our common stock.
Part I
Item 1A. — Risk Factors

22
Marine Products Corporation 2024 10-K
Part I
Item 1A. — Risk Factors
The Controlling Group Could Take Actions That Could
Negatively Impact Our Results of Operations, Financial
Condition or Stock Price.
The Controlling Group may from time to time and at any time, in their
sole discretion, acquire or cause to be acquired, additional equity
or other instruments of the Company, its subsidiaries or afﬁliates,
or derivative instruments the value of which is linked to Company
securities, or dispose or cause to be disposed, such equity or
other securities or instruments, in any amount that the Controlling
Group may determine in their sole discretion, through open market
transactions,
privately
negotiated
transactions
or
otherwise.
In addition, depending upon a variety of factors, the Controlling
Group may at any time engage in discussions with the Company and
its afﬁliates, and other persons, including retained outside advisers,
concerning
the
Company’s
business,
management,
strategic
alternatives and direction, and in their sole discretion, consider,
formulate and implement various plans or proposals intended to
enhance the value of their investment in the Company. In the event
the Controlling Group were to engage in any of these actions, our
common stock price could be negatively impacted, such actions
could cause volatility in the market for our common stock or could
have a material adverse effect on our results of operations and our
ﬁnancial condition.
Provisions in Marine Products’ Certiﬁcate of Incorporation
and Bylaws may Inhibit a Takeover of Marine Products.
Marine
Products’
certiﬁcate
of
incorporation,
bylaws
and
other documents contain provisions including advance notice
requirements for stockholder proposals and director nominations,
and staggered terms of ofﬁce for the Board of Directors, unless
the shareholders approve the proposed Charter amendment to
declassify the Board at the upcoming shareholders meeting. These
provisions may make a tender offer, change in control or takeover
attempt that is opposed by Marine Products’ Board of Directors
more difﬁcult or expensive.
RISKS RELATED TO DIGITAL
OPERATIONS, CYBERSECURITY
AND BUSINESS DISRUPTION
Our Operations Rely on Digital Systems and Processes
That are Subject to Cyber-Attacks or Other Threats That
Could Have a Material Adverse Eﬀect on our Business,
Consolidated Results of Operations and Consolidated
Financial Condition.
Our operations are dependent on digital technologies and services.
We use these technologies and services for internal purposes,
including
data
storage,
processing
and
transmissions,
and
manufacturing robotics, as well as in our interactions with customers
and suppliers. Digital technologies are subject to the risk of
cyber-attacks, both from internal and external threats. Internal threats
in cybersecurity are caused by the misuse of access to networks
and assets by individuals within the Company by maliciously or
negligently disclosing, modifying or deleting sensitive information.
Individuals
within
the
Company
include
current
employees,
contractors and partners. External threats in cybersecurity are
caused by unauthorized parties attempting to gain access to our
networks and assets by exploiting security vulnerabilities or through
the introduction of malicious code, such as viruses, worms, Trojan
horses and ransomware. In response to the risk of cyber-attacks,
we regularly review and update processes to prevent unauthorized
access to our networks, information technology assets and misuse
of data. We provide security awareness training for appropriate
employees and closely manage the information system accounts
and privileges of all employees and contractors. We also maintain an
up-to-date incident response plan to quickly address cybersecurity
incidents. We have experienced unsuccessful cyber-attack attempts
to gain unauthorized access to our network. To date, these attacks
have not had a material impact on our operations.
If our systems for protecting against cybersecurity risks prove to
be insufﬁcient, we could be adversely affected by, among other
things, loss of or damage to intellectual property, proprietary or
conﬁdential information, or customer, supplier, or employee data, as
well as, interruption of our business operations and increased costs
required to prevent, respond to, or mitigate cybersecurity attacks.
These risks could harm our reputation and our relationships with
customers, suppliers, employees and other third parties, and may
result in claims against us. In addition, we may not have adequate
insurance coverage to compensate for losses from any of the risks
listed herein, our existing insurance coverage may not continue to
be available on acceptable terms or at all, and our insurers may
deny coverage as to any future claims. These risks could have a
material adverse effect on our business, consolidated results of
operations and consolidated ﬁnancial condition.
GENERAL RISKS
Marine Products’ Stock Price Has Been Volatile.
Historically, the market price of common stock of companies
engaged in the discretionary consumer products industry has been
highly volatile. Likewise, the market price of our common stock has
varied signiﬁcantly in the past. In addition, the availability of Marine
Products common stock to the investing public is limited to the
extent that shares are not sold by the executive ofﬁcers, directors
and their afﬁliates, which could negatively impact the trading price
of Marine Products’ common stock, increase volatility and affect the
ability of minority stockholders to sell their shares. Future sales by
executive ofﬁcers, directors and their afﬁliates of all or a substantial
portion of their shares could also negatively affect the trading price
of Marine Products’ common stock.

23
Marine Products Corporation 2024 10-K
Part I
Item 1B. — Unresolved Staff Comments
ITEM 1B.
UNRESOLVED STAFF COMMENTS
None.
ITEM 1C.
CYBERSECURITY
RISK MANAGEMENT AND STRATEGY
Marine Products approaches cybersecurity as an enterprise-
wide risk and has created a Cybersecurity Risk and Compliance
Program that outlines governance programs in place and outlines
efforts undertaken to mitigate cyber risks. We have implemented
policies and processes designed to detect, prevent, and respond
to cybersecurity incidents. To help guide its overall program, the
Company uses the Center for Internet Security (“CIS”) Controls
framework to provide best practices for securing IT systems and
data. We have implemented a majority of version 8.0 of the CIS
Controls which supports a Zero Trust architecture.
The Company has several security policies that are published
and accessible to all employees. All these policies are reviewed
annually and updated as needed to address emerging risks
or gaps in compliance. Marine Products has not experienced a
material cybersecurity incident to date. If a material cybersecurity
breach occurs, the incident will be reviewed to determine if further
escalation is appropriate. Any incident assessed as potentially
being or becoming material will immediately be escalated for
further assessment and reported to designated members of our
executive leadership team and if deemed necessary, the Board of
Directors, outside legal counsel and our independent registered
public accounting ﬁrm, as appropriate, including on materiality
analyses and disclosure matters, to make the ﬁnal materiality
determination
regarding
disclosure
and
other
compliance
decisions. The Company has a periodic touchpoint with all third-
party information technology service providers to identify materials
risks from cybersecurity threats.
The Company maintains a cyber liability insurance policy that
is designed to cover certain expenses, business losses, business
interruption, and ﬁnes and penalties associated with data breach
or other similar incidents. Cyber liability insurance also provides
coverage in the event of a ransomware attack. Our cyber risk
coverage includes assistance in the timely remediation of material
cyberattacks and incidents.
Our business strategy, results of operations and ﬁnancial condition
have not been materially affected by risks from cybersecurity
threats, including as a result of previously identiﬁed cybersecurity
incidents, but we cannot provide assurance that they will not be
materially affected in the future by such risks or any future material
incidents. For more information on our cybersecurity related risks
see Item 1A Risk Factors of this Annual Report on Form 10-K.
GOVERNANCE
Role of the Board
On an annual basis, the Board reviews and approves the overall
enterprise risk management approach and processes implemented
by management to identify, assess, manage, and mitigate risk.
The Board has delegated its responsibility for oversight of the
Company’s cybersecurity and information security framework and
risk management to the Audit Committee. The Audit Committee
receives information and updates at least quarterly and actively
engages with senior leaders with respect to the effectiveness of the
Company’s cybersecurity and information security framework, data
privacy, and risk management. In addition, the Audit Committee
receives reports summarizing threat detection and mitigation
plans, audits of internal controls, training and certiﬁcation, and
other cyber priorities and initiatives, as well as timely updates from
senior leaders on material incidents relating to information systems
security, including cybersecurity incidents. The Audit Committee
includes members with experience in risk management including
cybersecurity.
Role of Management
Company
management
has
established
a
Cybersecurity
Governance Committee that is comprised of the Information
Technology Manager and senior members of management. The
Committee meets periodically to discuss cybersecurity program
updates and challenges, watch for potential threats from both
external and internal sources, monitor compliance in existing
or emerging business practices, and respond to stakeholder
inquiries. The Information Technology department is comprised
of professionals with extensive expertise and led by its manager
with over 20 years of experience in network security, cybersecurity
and enterprise risk management. The manager is continuously
monitoring trends and stays current with the various cybersecurity
threats
and
related
mitigation
opportunities.
The
Company
periodically engages a third-party service provider to perform an
external vulnerability scan of the Company network to identify
known threats and to date no critical vulnerabilities have been
identiﬁed during these assessments.

24
Marine Products Corporation 2024 10-K
Part I
Item 2. — Properties
ITEM 2.
PROPERTIES
Marine Products’ corporate ofﬁces are in Atlanta, Georgia. These ofﬁces are currently shared with RPC and are leased. The monthly rent
paid is allocated between Marine Products and RPC. Under this arrangement, Marine Products pays approximately $4,500 per month in rent.
Marine Products may cancel this arrangement at any time after giving a 30-day notice.
Chaparral owns and maintains approximately 1,284,000 square feet of space utilized for manufacturing, research and development,
warehouse, sales ofﬁce and operations in Nashville, Georgia. In addition, the Company owns 83,000 square feet of manufacturing space
in Valdosta, Georgia. Marine Products’ total square footage under roof is allocated as follows: manufacturing — 729,400, research and
development — 68,500, warehousing — 446,900, ofﬁce and other — 122,200.
ITEM 3.
LEGAL PROCEEDINGS
Marine Products is involved in litigation from time to time in the ordinary course of its business. Marine Products does not believe that the
ultimate outcome of such litigation will have a material adverse effect on its liquidity, ﬁnancial condition or results of operations.
ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.

25
Marine Products Corporation 2024 10-K
Part II
Item 5. — Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Part II
ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Marine Products’ common stock is listed for trading on the New York Stock Exchange under the symbol “MPX.” As of February 14, 2025,
there were 34,961,460 shares of common stock outstanding and approximately 7,800 beneﬁcial holders of our Company’s common stock.
ISSUER PURCHASES
OF EQUITY SECURITIES
The Company has a stock buyback program initially adopted in
2001 and subsequently amended in 2013 and 2019 that authorized
the repurchase of 8,250,000 shares, in the aggregate, in the open
market. The Company did not repurchase any shares under this
program in 2024 and 2023. There are 1,570,428 shares that remain
available for repurchase as of December 31, 2024. The program
does not have a predetermined expiration date.
PERFORMANCE GRAPH
The following graph shows a ﬁve-year comparison of the
cumulative total stockholder return based on the performance of
the stock of the Company, assuming dividend reinvestment, as
compared with both a broad equity market index and an industry
or peer group index. The indices included in the following graph are
the Russell 2000 Index (“Russell 2000”) and a peer group which
includes companies that are considered peers of the Company
(“Peer Group”). The companies included in the Peer Group have
been weighted according to each respective issuer’s stock market
capitalization at the end of each year. The companies in the Peer
Group are Brunswick Corporation, MarineMax, Inc., Malibu Boats,
Inc. and Mastercraft Boat Holdings, Inc.
The Company was a component of the Russell 2000 during 2024.
The Russell 2000 is a stock index measuring the performance of
the small-cap segment of the U.S. equity universe. The components
of the index had a weighted average market capitalization in 2024
of $3.6 billion, and a median market capitalization of $987 million.
The Russell 2000 is used because the Company is a component of
the Russell 2000, and because the Russell 2000 is a stock index
representing small capitalization U.S. stocks.
The graph below assumes the value of $100.00 invested on
December 31, 2019.
0
50
100
150
200
250
2019
2020
2021
2022
2023
2024
COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN
Assumes Initial Investment of $100
December 2024
Marine Products Corporation
Common Stock
Russell
2000 Index
Peer
Group
December 31,
Company/Index
2019
2020
2021
2022
2023
2024
Marine Products Corporation Common Stock
100
104
92
91
92
83
Peer Group
100
138
183
132
168
117
Russell 2000 Index
100
120
138
110
128
143

26
Marine Products Corporation 2024 10-K
Part II
Item 6. — Reserved
ITEM 6.
RESERVED
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PRESENTATION
The following discussion should be read in conjunction with
the Consolidated Financial Statements included elsewhere in
this document. See also “Forward-Looking Statements” in Part I
included in this Form 10-K. Discussions of 2023 items and year-to-
year comparisons of 2023 and 2022 that are not included in this
Form 10-K can be found in “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in Part II, Item 7 of
our Annual Report on Form 10-K for the year ended December 31,
2023, which Item is incorporated herein by reference.
OVERVIEW
Consolidated net sales decreased 38.4% to $236.6 million in 2024
due primarily to a 40% decrease in unit sales to dealers partially
offset by a positive price/mix of 2%. Gross proﬁt decreased to
$45.5 million in 2024, from $90.4 million in 2023. Operating
income decreased to $18.3 million in 2024, from $49.2 million in
the prior year. Net income decreased to $17.9 million in 2024, from
$41.7 million in the prior year. Diluted earnings per share was $0.50
for 2024, down from $1.21 for 2023. These results reﬂected lower
demand as our dealers sought to reduce inventories after strong
demand immediately after Covid-19. While the Company made
signiﬁcant efforts in 2023 and 2024 to reduce costs and align
production to a lower demand level, proﬁt margins contracted due
to increased promotional expenses and the negative impact of ﬁxed
costs coupled with the sales decline.
OUTLOOK
We believe that the strong retail demand for new recreational boats
which began in 2020 with the onset of the COVID-19 pandemic
has subsided and has now normalized. Higher selling prices for
boats following rapid inﬂation and rising interest rates have also
both contributed to higher costs of boat ownership, further curbing
consumer demand. We have adjusted production levels to more
closely align with expected demand, however this reduction has
resulted in reduced ﬁxed cost absorption and negatively impacted
our proﬁt margins.
Our ﬁnancial results during 2025 will depend on a number of factors,
including economic trends, demand for discretionary products, the
impact of interest rates on consumer ﬁnancing options and dealer
inventory carrying costs, the effectiveness of the Company’s
incentive programs, the success of new model launches, and
the Company’s ability to manage manufacturing costs in light
of reduced production levels. While interest rates have begun to
decrease, the Company believes it may take further interest rate
relief to drive increased consumer appetite for new boat purchases.
The Company is actively monitoring dealer inventories and order
patterns for an uptick in demand, at which point we may increase
production schedules. Management believes sales comparisons to
the prior year could begin to turn positive in the second half of 2025.
HOW WE EVALUATE OUR OPERATIONS
We use Earnings per share, Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA), EBITDA margin and Free
cash ﬂow, non-GAAP ﬁnancial measures, to evaluate and analyze
the Company’s operating performance. We believe that presenting
EBITDA and EBITDA margin enables a comparison of our operating
performance consistently over various time periods without regard
to changes in our capital structure. In addition, we believe that free
cash ﬂow, which measures our ability to generate additional cash
from our business operations, is an important ﬁnancial measure
for use in evaluating Marine Products’ liquidity. Marine Products’
deﬁnition of free cash ﬂow is limited, in that it does not represent
residual cash ﬂows available for discretionary expenditures, since
the measure does not deduct the payments required for debt
service and other contractual obligations or payments made for
business acquisitions, if any.
EBITDA and EBITDA margin have limitations as analytical tools and
should not be considered as an alternative to net income, operating
income, net income margin, or any other measure of ﬁnancial
performance presented in accordance with accounting principles
generally accepted in the United States of America (GAAP). Similarly,
free cash ﬂow should be considered in addition to, rather than as a
substitute for, GAAP presentation of net cash provided by operating,
investing and ﬁnancing activities, as a measure of our liquidity.
See section titled Non-GAAP Financial Measures for a reconciliation
of EBITDA to net income and EBITDA margin to net income margin,
the most directly comparable ﬁnancial measures calculated and
presented in accordance with GAAP and a reconciliation of Free Cash
Flow to Operating Cash Flow, the most directly comparable ﬁnancial
measure calculated and presented in accordance with GAAP.

27
Marine Products Corporation 2024 10-K
Part II
Item 7. — Management’s Discussion and Analysis of Financial Condition and Results of Operations
RESULTS OF OPERATIONS
Years ended December 31,
(in thousands, except per share and number of boats sold)
2024
2023
2022
Net sales
$
236,555
$
383,729
$
380,995
Cost of goods sold
191,057
293,350
287,278
Selling, general and administrative expenses
27,376
43,213
41,921
Gain on disposition of assets, net
(144)
(2,036)
—
Interest income, net
2,876
2,860
338
Income tax provision
3,289
10,367
11,787
Net income
$
17,853
$
41,695
$
40,347
Net income margin
7.5%
10.9%
10.6%
Earnings per share
$
0.50
$
1.21
$
1.18
Cash ﬂow from operating activities
$
29,526
$
56,846
$
49,348
Total number of boats sold
2,492
4,139
4,331
Average gross selling price per boat
$
85.7
$
82.4
$
76.8
Non-GAAP ﬁnancial measures:
EBITDA
$
21,052
$
51,618
$
53,701
EBITDA margin
8.9%
13.5%
14.1%
Free cash ﬂow
$
24,930
$
46,672
$
46,848
Year Ended December 31, 2024 Compared to Year Ended
December 31, 2023
Net Sales. Marine Products’ net sales decreased by $147.2 million, or
38.4%, to $236.6 million in 2024 compared to $383.7 million in 2023.
The change in net sales in 2024 compared to the prior year was
primarily due to a 40% decrease in unit sales volume partially offset
by a positive price/mix change of 2%. Dealers continued to tightly
manage their inventories in the face of elevated ﬂoor plan carrying
costs and soft consumer demand. The Company’s quarterly sales
decreases in the current year compared to the prior year became
less pronounced as 2024 progressed. Management expects year-
over-year sales comparisons to be generally ﬂat in the near-term,
with potential for growth in the second half of 2025.
In 2024, net sales outside of the United States accounted for 5.6% of
net sales compared to 5.9% of net sales in the prior year.
Cost of Goods Sold. Cost of goods sold decreased 34.9% in 2024
compared to 2023 due to lower materials expense and labor costs.
As a percentage of net sales, cost of goods sold increased to
80.8% in 2024 compared to 76.4% in 2023 primarily due to lower
sales volumes and associated manufacturing cost inefﬁciencies,
as well as higher promotional expenses compared to the prior
year. Production schedules and labor costs have been adjusted to
more closely align with reduced demand. The Company intends
to monitor order patterns and maintain these reduced production
levels until more deﬁnitive signs of increased demand develop.
Selling, General and Administrative Expenses. Selling, general
and administrative expenses decreased by $15.8 million or 36.6% in
2024 compared to 2023. This decrease was primarily due to costs
that vary with sales and proﬁtability, such as incentive compensation,
sales commissions and warranty expense, as well as a decrease in
pension expense in comparison to the prior year. In 2023, selling,
general and administrative expenses also included a non-cash
pension settlement charge of $2.4 million. Selling, general and
administrative expenses were 11.6% of net sales in 2024 compared
to 11.3% in 2023.
Gain on disposition of assets, net. Gain on disposition of assets,
net for 2024 was $144 thousand compared to $2.0 million for 2023.
In 2023, gains on disposition of assets included a $1.8 million gain
related to a real estate transaction.
Interest Income, net. Interest income, net was unchanged at
$2.9 million in both 2024 and 2023. Marine Products generated
interest income from investments of excess cash in money market
funds. Additionally, interest expense is recorded for the revolving credit
facility, primarily related to fees on the unused portion of the facility.
Income Tax Provision. The income tax provision decreased to
$3.3 million in 2024 from $10.4 million in 2023. The effective tax rate
reﬂects an income tax provision of 15.6% in 2024 compared to 19.9%
in 2023. The decrease in the 2024 effective tax rate is primarily
due to the stronger impact of favorable permanent and discrete
adjustments on a decreased pretax income, coupled with increased
tax credits, including credits related to the Company’s solar panel
installation at its manufacturing site in Nashville, Georgia.

28
Marine Products Corporation 2024 10-K
Part II
Item 7. — Management’s Discussion and Analysis of Financial Condition and Results of Operations
Net income and diluted earnings per share. Net income decreased
to $17.9 million in 2024, or $0.50 diluted earnings per share, from net
income of $41.7 million in 2023, or $1.21 diluted earnings per share.
Net income margin was 7.5% in 2024 compared to 10.9% in 2023.
The decline in 2024 was primarily due to lower revenues and gain
of disposition of assets, net.
EBITDA and EBITDA margin. EBITDA was $21.1 million in 2024
compared to $51.6 million in 2023. EBITDA margin was 8.9% in 2024
compared to 13.5% in 2023.
Net cash provided by operating activities and Free cash ﬂow.
Net cash provided by operating activities and Free cash ﬂow
decreased in 2024 primarily due to lower net income partially offset
by favorable working capital changes. Free cash ﬂow was also
positively impacted by a decrease in capital expenditures in 2024
compared to the prior year.
NON-GAAP FINANCIAL MEASURES
Reconciliation of GAAP and non-GAAP Financial Measures
Marine Products has disclosed non-GAAP ﬁnancial measures
of EBITDA, EBITDA margin and free cash ﬂow in the Results
of Operations section above. These measures should not be
considered in isolation or as a substitute for performance or liquidity
measures prepared in accordance with GAAP.
A non-GAAP ﬁnancial measure is a numerical measure of
ﬁnancial performance, ﬁnancial position or cash ﬂows that either
1) excludes amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with
GAAP in the statement of operations, balance sheet or statement
of cash ﬂows, or 2) includes amounts, or is subject to adjustments
that have the effect of including amounts, that are excluded from the
most directly comparable measure so calculated and presented.
The following are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures.
(Unaudited)
Years ended December 31,
(in thousands)
2024
2023
2022
Reconciliation of Net Income to EBITDA
Net income
$
17,853
$
41,695
$
40,347
Adjustments:
Add: Income tax provision
3,289
10,367
11,787
Add: Depreciation and amortization
2,786
2,416
1,905
Less: Interest income, net
2,876
2,860
338
EBITDA
$
21,052
$
51,618
$
53,701
Net sales
$
236,555
$
383,729
$
380,995
Net income margin (1)
7.5%
10.9%
10.6%
EBITDA margin (1)
8.9%
13.5%
14.1%
(1) Net income margin is calculated as net income divided by net sales. EBITDA margin is calculated as EBITDA divided by net sales.
(Unaudited)
Years ended December 31,
(in thousands)
2024
2023
2022
Reconciliation of Operating Cash Flow to Free Cash Flow
Net cash provided by operating activities
$
29,526
$
56,846
$
49,348
Capital expenditures
(4,596)
(10,174)
(2,500)
Free cash ﬂow
$
24,930
$
46,672
$
46,848

29
Marine Products Corporation 2024 10-K
Part II
Item 7. — Management’s Discussion and Analysis of Financial Condition and Results of Operations
LIQUIDITY AND CAPITAL RESOURCES
Cash and Cash Flows
The Company’s cash and cash equivalents were $52.4 million at December 31, 2024, $72.0 million at December 31, 2023 and $43.2 million
at December 31, 2022. The following table sets forth the historical cash ﬂows for the twelve months ended December 31:
Years ended December 31,
(in thousands)
2024
2023
2022
Net cash provided by operating activities
$
29,526
$
56,846
$
49,348
Net cash used for investing activities
(4,433)
(7,871)
(2,500)
Net cash used for ﬁnancing activities
(44,666)
(20,194)
(17,779)
Cash provided by operating activities in 2024 decreased by
$27.3 million compared to 2023, primarily due to the decrease in
net income. In addition, working capital was a source of cash of
$6.0 million in 2024 compared to a source of cash of $13.7 million
in the prior year. Working capital was a source of cash in 2024 due
primarily to a net favorable change of $11.7 million in inventory,
partially offset by a net unfavorable change in other components of
working capital. The net favorable change in inventory during 2024
was due primarily to the decrease in production during 2024 in
comparison to the prior year. The changes in the other components
of working capital were consistent with the decrease in net sales
and lower production levels as well as the timing of payments and
receipts.
Cash used for investing activities in 2024 decreased $3.4 million
in comparison to 2023 due to lower capital expenditures in 2024.
Key capital investment projects in 2024 included the solar panel
installation at the Company’s production site, and in 2023 included
warehouse expansions and transportation equipment purchases.
Cash used for ﬁnancing activities in 2024 increased $24.5 million
compared to 2023 primarily due to higher dividends paid to common
shareholders, including a special dividend of $0.70 per share
($24 million) paid during the second quarter of 2024.
Cash Requirements
Management expects that capital expenditures during 2025 will be
approximately $3.2 million.
The Company participated in a multiple employer Retirement
Income Plan (“Plan”), sponsored by RPC. During 2023, the Plan was
fully terminated through a liquidation of the assets held in a trust.
The Company has a stock buyback program initially adopted in
2001 and subsequently amended in 2013 and 2019 that authorized
the aggregate repurchase of 8,250,000 shares in the open market.
The Company did not repurchase any shares under this program in
2024 and 2023. There are 1,570,428 shares that remain available
for repurchase as of December 31, 2024. The program does not
have a predetermined expiration date.
In the fourth quarter of 2024, the Board of Directors approved the
termination of the Supplemental Executive Retirement Plan (“SERP”).
Pursuant to the Internal Revenue Service rules, participant balances
will be distributed between 12 and 24 months after termination. The
Company is currently evaluating its funding options and timing to
distribute participant balances.
On January 28, 2025, the Board of Directors declared a regular
quarterly cash dividend of $0.14 per common share payable
March 10, 2025 to stockholders of record at the close of business
on February 10, 2025. Subject to industry conditions and Marine
Products’ earnings, ﬁnancial condition, and other relevant factors,
the Company expects to continue to pay regular quarterly cash
dividends to common stockholders.
Effective October 1, 2023, the Company began recording short-term
cash incentive compensation expense to certain non-executive
employees in an annual amount equal to nine percent 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 as of September 30, 2023. Management
expects this reduction to continue to favorably impact operating
cash ﬂow in future periods.
The Company has entered into agreements with third-party ﬂoor
plan lenders where it has agreed, in the event of default by a
qualifying dealer, to repurchase MPC boats repossessed from the
dealer. These arrangements are subject to maximum repurchase
amounts and the associated risk is mitigated by the value of the
boats repurchased. The Company had no material repurchases
of dealer inventory in 2024 and 2023. See further information
regarding repurchase obligations in the note titled Commitments
and Contingencies in the Notes to the Consolidated Financial
Statements.
In 2024, the Company entered into a three-year ﬂoor plan ﬁnancing
agreement with a single third-party lender which will be phased
in beginning in the ﬁrst quarter of 2025 to replace a majority of
the existing agreements with the current third-party lenders. The
agreement is substantially similar to the current arrangements with
the existing third-party ﬂoor plan lenders and provides for certain
additional incentives to the Company and qualifying dealers over
the term of the agreement.
The Company believes that the liquidity provided by existing
cash, cash equivalents, its overall strong capitalization and cash
generated by operations will be sufﬁcient to meet the Company’s
requirements for at least the next twelve months. The Company’s
decisions about the amount of cash to be used for investing
and ﬁnancing purposes are inﬂuenced by its capital position

30
Marine Products Corporation 2024 10-K
Part II
Item 7. — Management’s Discussion and Analysis of Financial Condition and Results of Operations
and the expected amount of cash to be provided by operations.
The Company also has a revolving line of credit facility to increase
its ﬂexibility for managing its investment in its working capital or for
funding other purposes.
The revolving credit agreement with Truist Bank provides a credit
facility of $20.0 million which is scheduled to mature on November
12, 2026. The facility includes (i) a $5 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 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 and is subject to certain
ﬁnancial and other customary covenants. As of December 31, 2024,
the Company had no outstanding borrowings under the revolving
credit agreement.
CONTRACTUAL OBLIGATIONS
The Company’s obligations and commitments that require future
payments
include
our
credit
facility,
certain
non-cancelable
operating leases, amounts related to the usage of corporate aircraft
and other long-term liabilities. For additional information with respect
to MPC’s contractual obligations, see notes titled Notes Payable to
Banks, Commitments and Contingencies, and Leases in the Notes to
the Consolidated Financial Statements.
FAIR VALUE MEASUREMENTS
The Company’s assets and liabilities measured at fair value are
classiﬁed in the fair value hierarchy (Level 1, 2 or 3) based on the
inputs used for valuation. Assets and liabilities that are traded on an
exchange with a quoted price are classiﬁed as Level 1. Assets and
liabilities that are valued using signiﬁcant observable inputs in addition
to quoted market prices are classiﬁed as Level 2. The Company
currently has no assets or liabilities measured on a recurring basis
that are valued using unobservable inputs and therefore no assets
or liabilities measured on a recurring basis are classiﬁed as Level 3.
The Supplemental Executive Retirement Plan (“SERP”) investments
are measured at net asset value, which is computed using inputs
such as cost, discounted future cash ﬂows, independent appraisals
and market based comparable data or net asset values calculated
by the investment fund which are not publicly available.
OFF BALANCE SHEET ARRANGEMENTS
To assist dealers in obtaining ﬁnancing for the purchase of their
boats for inventory, the Company has entered into agreements
with various third-party ﬂoor plan lenders whereby the Company
guarantees varying amounts of debt for qualifying dealers 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, in exchange for the Company’s assumption of the
debt obligation on those boats, as contractually deﬁned by each
lender. The Company had no material repurchases of dealer
inventory under contractual agreements during 2024 and 2023.
Management continues to monitor the risk of additional defaults and
resulting repurchase obligations based primarily upon information
provided by the third-party ﬂoor plan lenders and to adjust the
guarantee liability at the end of each reporting period based on
information reasonably available at that time. As of December
31, 2024, the Company believes the fair value of its guarantee
liability is immaterial. See further information regarding repurchase
obligations in the note titled Commitments and Contingencies in the
Notes of the Consolidated Financial Statements.
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 for
the three highest monthly receivables balances during the past
twelve months, 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 $19.6 million as of December 31, 2024.
The Company has contractual repurchase agreements with
additional
lenders
with
an
aggregate
maximum
repurchase
obligation of $5.4 million, with various expiration and cancellation
terms of less than one year. Accordingly, the aggregate repurchase
obligation
with
all
ﬁnancing
institutions
was
approximately
$25.0 million as of December 31, 2024. Although the Company has
these agreements with ﬁnancial institutions, in certain situations, the
Company may decide for business reasons to repurchase boats in
excess of these contractual amounts.
RELATED PARTY TRANSACTIONS
See the note titled Related Party Transactions in the Notes to the
Consolidated Financial Statements for a description of certain
related party transactions.
CRITICAL ACCOUNTING ESTIMATES
The consolidated ﬁnancial statements are prepared in accordance
with accounting principles generally accepted in the United States
of America, which require signiﬁcant judgment by management in
selecting the appropriate assumptions for calculating accounting
estimates. These judgments are based on our historical experience,
terms of existing contracts, trends in the industry, and information
available from other outside sources, as appropriate. Senior
management has discussed the development, selection and
disclosure of its critical accounting policies that require signiﬁcant
judgments or estimates with the Audit Committee of our Board of
Directors. The Company believes that of its signiﬁcant accounting
policies and estimates, the following may involve a higher degree
of judgment and complexity.

31
Marine Products Corporation 2024 10-K
Part II
Item 7. — Management’s Discussion and Analysis of Financial Condition and Results of Operations
Sales incentives and discounts
The Company sells its boats through its network of independent
dealers and recognizes revenues from contracts with its customers
based on the consideration received in exchange for the goods
sold. The Company records incentives as a reduction of sales. Using
historical trends and management estimates, adjusted for current
changes, the Company estimates the amount of incentives that
will be paid in the future on boats sold and accrues an estimated
liability. The Company offers various incentives that promote sales
to dealers and, to a lesser extent, retail customers. These incentives
are designed to encourage timely replenishment of dealer
inventories after peak selling seasons, stabilize manufacturing
volumes throughout the year, and improve production model mix.
The dealer incentive programs are a combination of annual volume
commitment discounts, and additional discounts at the time of
invoice for those dealers who do not ﬁnance their inventory through
speciﬁed ﬂoor plan ﬁnancing agreements. The annual dealer
volume discounts are primarily based on July 1 through June 30
model year purchases. In addition, the Company offers at various
times other time-speciﬁc or model-speciﬁc incentives.
The factors that complicate estimating the cost of incentives are
the ability to estimate incentive payments of the Company, the
volume and timing of inventory ﬁnanced by speciﬁc dealers, and the
notiﬁcation of boats sold subject to certain incentives. Settlement of
the incentives generally occurs from three to twelve months after
the sale. The Company regularly analyzes the historical incentive
trends and adjusts recorded liabilities for changes in trends and
terms of incentive programs. Total cost of incentives recorded
in net sales as a percentage of gross sales was 9.2% in 2024,
7.3% in 2023, and 5.6% in 2022. A 0.25 percentage point change in
cost of incentives as a percentage of gross sales during 2024 would
have increased or decreased net sales, gross margin and operating
income by approximately $0.5 million.
Warranty costs
The Company records as part of selling, general and administrative
expenses an experience-based estimate of the future warranty costs
to be incurred when sales are recognized. The Company evaluates
its warranty obligation for each product line on a model year basis.
The Company provides warranties against manufacturing defects for
various components of the boats, primarily the ﬁberglass deck and
hull, with warranty periods extending up to a lifetime. Warranty costs, if
any, on other components of the boats are generally absorbed by the
original component manufacturer. Warranty costs can vary depending
upon the size and number of components in the boats sold, the
pre-sale warranty claims, and the desired level of customer service.
Additionally, we focus on high quality manufacturing programs and
processes, including actively monitoring the quality of our component
suppliers and managing the dealer and customer service warranty
experience and reimbursements. Our estimated warranty obligation
is based upon the warranty terms and the Company’s enforcement of
those terms over time, manufacturing defects or issues, repair costs,
and the volume and mix of boat sales. The estimate of warranty
costs is regularly analyzed and is adjusted based on several
factors including the actual claims that occur. Warranty expense
as a percentage of net sales was 1.5% in 2024, 1.5% in 2023 and
1.5% in 2022. A 0.10 percentage point increase in the estimated
warranty expense as a percentage of net sales during 2024 would
have increased selling, general and administrative expenses and
reduced operating income by approximately $0.2 million.
IMPACT OF RECENT ACCOUNTING
PRONOUNCEMENTS
See the note titled Signiﬁcant Accounting Policies in the Notes to
the Consolidated Financial Statements for a description of recent
accounting pronouncements, including the expected dates of
adoption and expected effects on results of operations and ﬁnancial
condition, if known.
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is subject to interest rate risk exposure through borrowings on its revolving credit agreement. As of December 31, 2024, there
were no outstanding interest-bearing advances under our credit facility which bore interest at a ﬂoating rate.
Marine Products has no derivative ﬁnancial instruments which could expose the Company to signiﬁcant market risk. Marine Products maintains
investments primarily in money market funds which are not subject to material interest rate risk exposure. Marine Products does not expect
any material changes in market risk exposures or how those risks are managed.

32
Marine Products Corporation 2024 10-K
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
To the Stockholders of Marine Products Corporation:
The management of Marine Products Corporation is responsible for establishing and maintaining adequate internal control over ﬁnancial
reporting for the Company. Marine Products Corporation maintains a system of internal accounting controls designed to provide reasonable
assurance, at a reasonable cost, that assets are safeguarded against loss or unauthorized use and that the ﬁnancial records are adequate
and can be relied upon to produce ﬁnancial statements in accordance with accounting principles generally accepted in the United States
of America. The internal control system is augmented by written policies and procedures, an internal audit program and the selection and
training of qualiﬁed personnel. This system includes policies that require adherence to ethical business standards and compliance with all
applicable laws and regulations.
There are inherent limitations to the effectiveness of any controls system. A controls system, no matter how well designed and operated, can
provide only reasonable, not absolute, assurance that the objectives of the controls system are met. Also, no evaluation of controls can provide
absolute assurance that all control issues and any instances of fraud, if any, within the Company will be detected. Further, the design of a
controls system must reﬂect the fact that there are resource constraints, and the beneﬁts of controls must be considered relative to their costs.
Under the supervision and with the participation of our management, including our principal executive ofﬁcer and principal ﬁnancial ofﬁcer, we
conducted an evaluation of the effectiveness of the design and operations of our internal control over ﬁnancial reporting, as of December 31,
2024 based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission. Based on this evaluation, management’s assessment is that Marine Products Corporation maintained effective
internal control over ﬁnancial reporting as of December 31, 2024.
The independent registered public accounting ﬁrm, Grant Thornton LLP, has audited the consolidated ﬁnancial statements as of and for
the year ended December 31, 2024, and has also issued their report on the effectiveness of the Company’s internal control over ﬁnancial
reporting, included in this report on page 33.
Ben M. Palmer
Michael L. Schmit
President and Chief Executive Ofﬁcer
Vice President, Chief Financial Ofﬁcer
and Corporate Secretary
Atlanta, Georgia
February 28, 2025
Part II
Item 8. — Financial Statements and Supplementary Data

33
Marine Products Corporation 2024 10-K
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Marine Products Corporation
OPINION ON INTERNAL CONTROL OVER FINANCIAL REPORTING
We have audited the internal control over ﬁnancial reporting of Marine Products Corporation (a Delaware corporation) and subsidiaries
(the “Company”) as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material
respects, effective internal control over ﬁnancial reporting as of December 31, 2024, based on criteria established in the 2013 Internal
Control—Integrated Framework issued by COSO.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the
consolidated ﬁnancial statements of the Company as of and for the year ended December 31, 2024, and our report dated February 28, 2025
expressed an unqualiﬁed opinion on those ﬁnancial statements.
BASIS FOR OPINION
The Company’s management is responsible for maintaining effective internal control over ﬁnancial reporting and for its assessment of
the effectiveness of internal control over ﬁnancial reporting, included in the accompanying Management’s Report on Internal Control over
Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over ﬁnancial reporting based on our audit.
We are a public accounting ﬁrm registered with the PCAOB and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over ﬁnancial reporting was maintained in all material respects. Our
audit included obtaining an understanding of internal control over ﬁnancial reporting, assessing the risk that a material weakness exists,
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
DEFINITION AND LIMITATIONS OF INTERNAL CONTROL
OVER FINANCIAL REPORTING
A company’s internal control over ﬁnancial reporting is a process designed to provide reasonable assurance regarding the reliability of
ﬁnancial reporting and the preparation of ﬁnancial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over ﬁnancial reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reﬂect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of ﬁnancial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the ﬁnancial statements.
Because of its inherent limitations, internal control over ﬁnancial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
GRANT THORNTON LLP
Atlanta, Georgia
February 28, 2025
Part II
Item 8. — Financial Statements and Supplementary Data

34
Marine Products Corporation 2024 10-K
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Marine Products Corporation
OPINION ON THE FINANCIAL STATEMENTS
We have audited the accompanying consolidated balance sheets of Marine Products Corporation (a Delaware corporation) and subsidiaries
(the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, stockholders’
equity, and cash ﬂows for each of the three years in the period ended December 31, 2024, and the related notes and ﬁnancial statement
schedule included under Item 15(a) (collectively referred to as the “consolidated ﬁnancial statements”). In our opinion, the consolidated
ﬁnancial statements present fairly, in all material respects, the ﬁnancial position of the Company as of December 31, 2024 and 2023, and the
results of its operations and its cash ﬂows for each of the three years in the period ended December 31, 2024, in conformity with accounting
principles generally accepted in the United States of America.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the
Company’s internal control over ﬁnancial reporting as of December 31, 2024, based on criteria established in the 2013 Internal Control—
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated
February 28, 2025 expressed an unqualiﬁed opinion.
BASIS FOR OPINION
These consolidated ﬁnancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s consolidated ﬁnancial statements based on our audits. We are a public accounting ﬁrm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the ﬁnancial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the ﬁnancial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the ﬁnancial statements. Our audits also included evaluating the accounting principles used and signiﬁcant
estimates made by management, as well as evaluating the overall presentation of the ﬁnancial statements. We believe that our audits
provide a reasonable basis for our opinion.
CRITICAL AUDIT MATTER
The critical audit matter communicated below is a matter arising from the current period audit of the ﬁnancial statements that was
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to
the ﬁnancial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit
matters does not alter in any way our opinion on the ﬁnancial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
ACCRUED FUTURE WARRANTY COSTS
As described further in Note 1 to the consolidated ﬁnancial statements, the Company provides a lifetime limited structural hull warranty, a
ﬁve-year structural deck warranty, and a one-year limited warranty to the original owner for all boats sold to dealers. The Company estimates
the cost of future warranty claims at the time of sale of the boat based on historical claims experience. The estimate may subsequently be
adjusted based on qualitative considerations, such as identiﬁed manufacturing defects. We identiﬁed the accrued future warranty costs
(“warranty liability”) as a critical audit matter.
The principal consideration for our determination that the warranty liability is a critical audit matter is the higher degree of estimation
uncertainty related to the Company’s warranty liability. The estimation uncertainty and subjectivity in determining the liability resulted in the
need for signiﬁcant auditor judgment when assessing the reasonableness of the estimate.
Part II
Item 8. — Financial Statements and Supplementary Data

35
Marine Products Corporation 2024 10-K
Part II
Item 8. — Financial Statements and Supplementary Data
Our audit procedures related to this matter included the following, among others:
>
We tested the design and operating effectiveness of management’s review control over the warranty liability.
>
We tested the process used to determine the warranty liability, which included agreeing a sample of claims to source documents.
>
We compared the Company’s prior year warranty liability related to future warranty costs in the current year to actual claims paid
in the current year to evaluate the historical reasonableness of the Company’s estimate.
GRANT THORNTON LLP
We have served as the Company’s auditor since 2004.
Atlanta, Georgia
February 28, 2025

36
Marine Products Corporation 2024 10-K
CONSOLIDATED BALANCE SHEETS
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
(in thousands except share information)
December 31,
2024
2023
ASSETS
Cash and cash equivalents
$
52,379
$
71,952
Accounts receivable, net of allowance for credit losses of $11 in 2024 and $11 in 2023
4,176
2,475
Inventories
49,960
61,611
Income taxes receivable
439
361
Prepaid expenses and other current assets
3,040
2,847
Total current assets
109,994
139,246
Property, plant and equipment, net of accumulated depreciation of $34,409 in 2024
and $32,789 in 2023
24,247
22,456
Goodwill
3,308
3,308
Other intangibles, net
465
465
Deferred income taxes
9,729
8,590
Retirement plan assets
18,489
15,379
Other long-term assets
5,015
4,358
Total assets
$
171,247
$
193,802
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Accounts payable
$
5,499
$
6,071
Accrued expenses and other liabilities
13,425
16,496
Total current liabilities
18,924
22,567
Retirement plan liabilities
21,667
17,998
Other long-term liabilities
1,653
1,649
Total liabilities
42,244
42,214
Commitments and contingencies (Note 11)
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 –
34,707,304 shares in 2024 and 34,466,726 shares in 2023
3,471
3,447
Capital in excess of par value
—
—
Retained earnings
125,532
148,141
Total stockholders’ equity
129,003
151,588
Total liabilities and stockholders’ equity
$
171,247
$
193,802
The accompanying notes are an integral part of these statements.
Part II
Item 8. — Financial Statements and Supplementary Data

37
Marine Products Corporation 2024 10-K
CONSOLIDATED STATEMENTS OF OPERATIONS
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
(in thousands except per share data)
Year ended December 31,
2024
2023
2022
Net sales
$
236,555
$
383,729
$
380,995
Cost of goods sold
191,057
293,350
287,278
Gross proﬁt
45,498
90,379
93,717
Selling, general and administrative expenses
27,376
43,213
41,921
Gain on disposition of assets, net
(144)
(2,036)
—
Operating income
18,266
49,202
51,796
Interest income, net
2,876
2,860
338
Income before income taxes
21,142
52,062
52,134
Income tax provision
3,289
10,367
11,787
Net income
$
17,853
$
41,695
$
40,347
Earnings per share
Basic
$
0.50
$
1.21
$
1.18
Diluted
0.50
1.21
1.18
The accompanying notes are an integral part of these statements.
Part II
Item 8. — Financial Statements and Supplementary Data

38
Marine Products Corporation 2024 10-K
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
(in thousands)
Year ended December 31,
2024
2023
2022
Net income
$
17,853
$
41,695
$
40,347
Other comprehensive income, net of taxes:
Pension settlement and adjustment, net of tax
—
1,995
581
Comprehensive income
$
17,853
$
43,690
$
40,928
The accompanying notes are an integral part of these statements.
Part II
Item 8. — Financial Statements and Supplementary Data

39
Marine Products Corporation 2024 10-K
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
(in thousands)
Common Stock
Capital in
Excess of
Par Value
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Shares
Amount
Total
Balance, December 31, 2021
33,993
$
3,399
$
—
$
97,702
$
(2,576)
$
98,525
Stock issued for stock incentive plans, net
285
29
2,678
—
—
2,707
Stock purchased and retired
(60)
(6)
(2,678)
1,982
—
(702)
Net income
—
—
—
40,347
—
40,347
Pension adjustment, net of taxes
—
—
—
—
581
581
Cash dividends ($0.50 per share)
—
—
—
(17,077)
—
(17,077)
Balance, December 31, 2022
34,218
$
3,422
$
—
$
122,954
$
(1,995)
$
124,381
Stock issued for stock incentive plans, net
318
32
3,679
—
—
3,711
Stock purchased and retired
(69)
(7)
(3,679)
2,776
—
(910)
Net income
—
—
—
41,695
—
41,695
Pension adjustment, net of taxes
—
—
—
—
1,995
1,995
Cash dividends ($0.56 per share)
—
—
—
(19,284)
—
(19,284)
Balance, December 31, 2023
34,467
$
3,447
$
—
$
148,141
$
—
$
151,588
Stock issued for stock incentive plans, net
328
33
4,195
—
—
4,228
Stock purchased and retired
(88)
(9)
(4,195)
3,271
—
(933)
Net income
—
—
—
17,853
—
17,853
Cash dividends ($1.26 per share)
—
—
—
(43,733)
—
(43,733)
Balance, December 31, 2024
34,707
$
3,471
$
—
$
125,532
$
—
$ 129,003
The accompanying notes are an integral part of these statements.
Part II
Item 8. — Financial Statements and Supplementary Data

40
Marine Products Corporation 2024 10-K
CONSOLIDATED STATEMENTS OF CASH FLOWS
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
(in thousands)
Year ended December 31,
2024
2023
2022
OPERATING ACTIVITIES
Net income
$
17,853
$
41,695
$
40,347
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,786
2,416
1,905
Stock-based compensation expense
4,228
3,711
2,707
Gain on disposition of assets, net
(144)
(2,036)
—
Deferred income tax provision
(1,139)
(3,126)
(1,798)
Pension settlement loss
—
2,363
1,180
(Increase) decrease in assets:
Accounts receivable
(1,701)
2,865
(2,078)
Income taxes receivable
(78)
(333)
(18)
Inventories
11,651
11,404
246
Prepaid expenses and other current assets
(193)
792
(614)
Other long-term assets
(3,767)
(5,658)
2,675
Increase (decrease) in liabilities:
Accounts payable
(572)
(2,179)
1,479
Accrued expenses and other liabilities
(3,071)
1,130
4,042
Other long-term liabilities
3,673
3,802
(725)
Net cash provided by operating activities
29,526
56,846
49,348
INVESTING ACTIVITIES
Capital expenditures
(4,596)
(10,174)
(2,500)
Proceeds from sale of assets
163
2,303
—
Net cash used for investing activities
(4,433)
(7,871)
(2,500)
FINANCING ACTIVITIES
Payment of dividends
(43,733)
(19,284)
(17,077)
Cash paid for common stock purchased and retired
(933)
(910)
(702)
Net cash used for ﬁnancing activities
(44,666)
(20,194)
(17,779)
Net (decrease) increase in cash and cash equivalents
(19,573)
28,781
29,069
Cash and cash equivalents at beginning of period
71,952
43,171
14,102
Cash and cash equivalents at end of period
$
52,379
$
71,952
$
43,171
Supplemental information:
Income tax payments, net
$
4,476
$
13,911
$
13,022
The accompanying notes are an integral part of these consolidated ﬁnancial statements.
Part II
Item 8. — Financial Statements and Supplementary Data

41
Marine Products Corporation 2024 10-K
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Marine Products Corporation and Subsidiaries
Years ended December 31, 2024, 2023 and 2022
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
Basis of Consolidation and Presentation
The consolidated ﬁnancial statements include the accounts of
Marine Products Corporation (a Delaware corporation) and its wholly
owned subsidiaries (“Marine Products”, “MPC” or the “Company”).
The consolidated ﬁnancial statements included herein may not
necessarily be indicative of the future results of operations, ﬁnancial
position and cash ﬂows of Marine Products.
The Company has one reportable segment — its Powerboat
Manufacturing business. The Company’s results of operations and
its ﬁnancial condition are not signiﬁcantly reliant upon any single
customer or product model. No single dealer nor any group of
dealers owned by the same parent company accounted for 10%
or more of net sales during 2024, 2023 or 2022. Net sales to the
Company’s international dealers were approximately $13.3 million
in 2024, $22.5 million in 2023, and $25.6 million in 2022.
Common Stock
Marine Products is authorized to issue 74,000,000 shares of common
stock, $0.10 par value. Holders of common stock are entitled to receive
dividends when, as, and if declared by our Board of Directors out of
legally available funds. Each share of common stock is entitled to
one vote on all matters submitted to a vote of stockholders. Holders
of common stock do not have cumulative voting rights. In the event
of any liquidation, dissolution or winding up of the Company, holders
of common stock are entitled to ratable distribution of the remaining
assets available for distribution to stockholders.
Preferred Stock
Marine Products is authorized to issue up to 1,000,000 shares of
preferred stock, $0.10 par value. As of December 31, 2024, there
were no shares of preferred stock issued. The Board of Directors is
authorized, subject to any limitations prescribed by law, to provide
for the issuance of preferred stock as a class without series or, if so
determined from time to time, in one or more series, and by ﬁling a
certiﬁcate pursuant to the applicable laws of the state of Delaware
and to ﬁx the designations, powers, preferences and rights, and
exchangeability for shares of any other class or classes of stock.
Any preferred stock to be issued could rank prior to the common
stock with respect to dividend rights and rights on liquidation.
Share Repurchases
The Company records the cost of share repurchases in stockholders’
equity as a reduction to common stock to the extent of par value
of the shares acquired and the remainder is allocated to capital
in excess of par value and retained earnings if capital in excess
of par value is depleted. The Company tracks capital in excess
of par value on a cumulative basis and for each reporting period,
discloses the excess over capital in excess of par value as part
of stock purchased and retired in the Consolidated Statements of
Stockholders’ Equity.
Use of Estimates in the Preparation of Financial Statements
The preparation of ﬁnancial statements in conformity with accounting
principles generally accepted in the United States of America
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the ﬁnancial
statements and the reported amounts of sales and expenses during
the reporting period. Actual results could differ from those estimates.
Signiﬁcant estimates are used in the determination of sales, sales
incentives and discounts, and warranty costs.
Sales Recognition
Marine Products recognizes revenues from contracts with its
customers based on the amount of consideration it receives in
exchange for the goods sold. See the note titled Net Sales for
additional information.
Advertising
Advertising expenses are charged to expense during the period
in which they are incurred. Expenses associated with product
brochures and other inventoriable marketing materials are deferred
and amortized over the related model year which approximates
the consumption of these materials. The Company had prepaid
expenses related to unamortized product brochure costs of
$145 thousand as of December 31, 2024 and $117 thousand as of
December 31, 2023. Advertising expenses totaled approximately
$2.4 million in 2024, $2.3 million in 2023 and $2.1 million in 2022
and are recorded in selling, general and administrative expenses.
Cash and Cash Equivalents
Highly liquid investments with original maturities of three months
or less when acquired are considered to be cash equivalents. The
Company maintains its cash in bank accounts which, at times, may
exceed federally insured limits. MPC maintains cash equivalents
and investments in one or more large ﬁnancial institutions, and
MPC’s policy restricts investment in any securities rated less than
“investment grade” by national rating services.
Accounts Receivable
The majority of the Company’s accounts receivable is due
from dealers located in markets throughout the United States.
Approximately 69% of Marine Products’ domestic shipments
are made pursuant to “ﬂoor plan ﬁnancing” programs in which
Marine Products’ subsidiaries participate on behalf of their dealers
with various major third-party ﬁnancing institutions. Under these
arrangements, a dealer establishes lines of credit with one or more
of these third-party lenders for the purchase of boat inventory for
sales to retail customers in their showroom or during boat show
exhibitions. When a dealer purchases and takes delivery of a boat
pursuant to a ﬂoor plan ﬁnancing arrangement, it draws against
its line of credit and the lender pays the invoice cost of the boat
directly to Marine Products within approximately ten business days.
The Company determines its credit loss allowance by considering
Part II
Item 8. — Financial Statements and Supplementary Data

42
Marine Products Corporation 2024 10-K
a number of factors, including the length of time trade accounts
receivable are past due, the Company’s previous loss history, the
customer’s current ability to pay its obligation to the Company, and
the condition of the general economy and the industry as a whole.
The Company writes off accounts receivable when they become
uncollectible, and payments subsequently received on such
receivables are credited to the allowance.
Inventories
Inventories are stated at the lower of cost (determined on a ﬁrst-
in, ﬁrst-out basis) and net realizable value. When evidence exists
that the net realizable value of inventory is lower than its cost,
the Company recognizes the difference as a loss in earnings in
the period in which it occurs. Net realizable value is the estimated
selling price in the ordinary course of business, less reasonably
predictable costs of completion, disposal, and transportation.
Property, Plant and Equipment
Property, plant and equipment is carried at cost. Depreciation is
provided principally on a straight-line basis over the estimated
useful lives of the assets. The cost of assets retired or otherwise
disposed of and the related accumulated depreciation are
eliminated from the accounts in the year of disposal with the
resulting gain or loss credited or charged to income. Expenditures
for additions, major renewals, and betterments are capitalized while
expenditures for routine maintenance and repairs are expensed as
incurred. Depreciation expense on operating equipment used in
production is included in cost of goods sold in the accompanying
Consolidated Statements of Operations. All other depreciation
is included in selling, general and administrative expenses in the
accompanying Consolidated Statements of Operations. Property,
plant and equipment are reviewed for impairment when indicators
of impairment exist.
Goodwill and Other Intangibles
Intangibles consist primarily of goodwill and trade names related
to businesses acquired. Goodwill represents the excess of the
purchase price over the fair value of net assets of businesses
acquired. The carrying amount of goodwill was $3,308,000 as of
December 31, 2024 and 2023. The Company evaluates whether
goodwill is impaired by comparing its market capitalization based
on its closing stock price (Level 1 input) to the book value of its equity
on the annual evaluation date. The Company also periodically
performs a valuation of its indeﬁnite – lived trade names and has
concluded that the fair value of these assets is not impaired. Based
on these evaluations, the Company concluded that no impairment
of its goodwill or trade names has occurred for the years ended
December 31, 2024, 2023 and 2022.
Investments
The Company maintains certain securities in the non-qualiﬁed
Supplemental Executive Retirement Plan that have been classiﬁed
as trading. See the note titled Employee Beneﬁt Plans for further
information regarding these securities.
Warranty Costs
The Company provides a lifetime limited structural hull warranty,
a ﬁve-year limited structural deck warranty, and a transferable
one-year limited warranty to the original owner. Warranties for
additional items are provided for periods of one to ﬁve years and
are not transferable. Additionally, as it relates to the ﬁrst subsequent
owner, a ﬁve-year transferable hull warranty and the remainder of
the original one-year limited warranty on certain components are
available. The ﬁve-year transferable hull warranty terminates ﬁve
years after the date of the original retail purchase. Claim costs
related to components are generally absorbed by the original
component manufacturer. The Company accrues estimated future
warranty costs at the time of the sale based on its historical claims
experience. An analysis of the warranty accruals for the years
ended December 31, 2024 and 2023 is as follows:
(in thousands)
2024
2023
Balance at beginning of year
$
7,078
$
5,699
Less: Payments made during the year
(4,466)
(4,450)
Add: Warranty provision for the
current year
3,681
5,864
Changes to warranty provision for
prior years
(65)
(35)
Balance at end of year
$
6,228
$
7,078
Insurance Accruals
The Company fully insures its risks related to general liability,
product liability, vehicle liability and cyber security liability, whereas
the health insurance plan, up to a maximum annual claim amount
for each covered employee and related dependents, and workers’
compensation are self-funded. The estimated cost of claims under
the self-insurance program is accrued as the claims are incurred
and may subsequently be revised based on developments relating
to such claims.
Research and Development Costs
The Company expenses research and development costs for new
products and components as incurred. Research and development
costs are included in selling, general and administrative expenses
and totaled $762 thousand in 2024, $757 thousand in 2023 and
$437 thousand in 2022.
Repurchase Obligations
The Company has entered into agreements with third-party ﬂoor
plan lenders where it has agreed, in the event of default by the
dealer, to repurchase MPC boats repossessed from the dealer.
These arrangements are subject to maximum repurchase amounts
and the associated risk is mitigated by the value of the boats
repurchased. The Company accrues estimated losses when a loss,
due primarily to the default of one of our dealers, is determined to be
probable and the amount of the loss can be reasonably estimated.
Such losses were not material for 2024, 2023 or 2022.
Income Taxes
Deferred tax liabilities and assets are determined based on the
difference between the ﬁnancial and tax bases of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse. The Company establishes
a valuation allowance against the carrying value of deferred tax
assets if the Company concludes that it is more likely than not that
the asset will not be realized through future taxable income.
Part II
Item 8. — Financial Statements and Supplementary Data

43
Marine Products Corporation 2024 10-K
Leases
The Company determines at contract inception, if an arrangement is
a lease or contains a lease based on whether the Company obtains
the right to control the use of speciﬁcally identiﬁable property, plant
and equipment for a period of time in exchange for consideration.
The Company has elected not to separate non-lease components
from lease components for its leases. Variable lease payments are
recognized as expenses when incurred. See the note titled Leases
for additional information.
Stock-Based Compensation
Stock-based compensation expense is recognized for all share-
based payment awards, net of an estimated forfeiture rate. Thus,
compensation cost is amortized for those shares expected to
vest on a straight-line basis over the requisite service period of
the award. See the note titled Employee Beneﬁt Plans for
additional information.
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. See the note titled Employee Beneﬁt Plans for further information on
restricted stock granted to employees.
Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding are
as follows:
(in thousands)
2024
2023
2022
Net income available for stockholders:
$
17,853
$
41,695
$
40,347
Less: Adjustments for earnings attributable to participating securities
(1,108)
(999)
(858)
Net income used in calculating earnings per share
$
16,745
$
40,696
$
39,489
Weighted average shares outstanding (including participating securities)
34,689
34,443
34,183
Adjustment for participating securities
(877)
(834)
(743)
Shares used in calculating basic and diluted earnings per share
33,812
33,609
33,440
Fair Value of Financial Instruments
The Company’s ﬁnancial instruments consist primarily of cash
and cash equivalents, accounts receivable, accounts payable
and marketable securities. The carrying values of cash and
cash equivalents, accounts receivable and accounts payable
approximate their fair values because of the short-term nature of
such instruments. The Company’s marketable securities, held in the
non-qualiﬁed Supplemental Executive Retirement Plan (“SERP”), are
classiﬁed as trading securities. All of these securities are carried
at fair value in the accompanying Consolidated Balance Sheets.
See the note titled Fair Value Measurements for further information
regarding the fair value measurement of assets and liabilities.
Concentration of Suppliers
The Company has three suppliers for the three types of engines it
purchases. This concentration of suppliers could impact our sales
and proﬁtability in the event of a sudden interruption in the delivery
of these engines.
Recent Accounting Pronouncements
The Financial Accounting Standards Board issued the following
Accounting Standards Updates (“ASU”s):
Recently Adopted Accounting Standards:
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.
The Company has one reportable segment and adopted these
provisions in the fourth quarter of 2024. The updated disclosure is
reﬂected in the footnote titled Business Segment.
ASU No. 2023-09 — Income Taxes (Topic 740): Improvements to
Income Tax Disclosures. The amendments in this ASU require an
entity to include consistent categories and greater disaggregation
of information in the rate reconciliation and income taxes paid,
disaggregated by jurisdiction. The Company early adopted these
provisions in the fourth quarter of 2024. The updated disclosures
are reﬂected in the footnote titled Income Taxes.
Recently Issued Accounting Standards Not Yet Adopted:
Securities and Exchange Commission (SEC) Final Rules —
Climate-related Disclosure. The SEC adopted ﬁnal rules designed
to enhance public company disclosures related to the risks and
impacts of climate-related matters. The new rules require disclosures
relating to climate-related risks and risk management as well as
the board and management’s governance of such risks. In addition,
the rules include requirements to disclose the ﬁnancial effects of
severe weather events and other natural conditions in the audited
ﬁnancial statements and disclose information about greenhouse
gas emissions, which will be subject to a phased-in assurance
requirement. On April 4, 2024, the SEC stayed its climate disclosure
rules to “facilitate the orderly judicial resolution” of pending legal
challenges. If litigation is resolved in favor of the SEC, a majority of the
ﬁnal rules are effective for the Company beginning in the year 2026.
Part II
Item 8. — Financial Statements and Supplementary Data

44
Marine Products Corporation 2024 10-K
ASU 2024-03 — Income Statement (Topic 220): Disaggregation of
Income Statement Expenses. The amendments in this ASU require
public companies to disclose, in interim and reporting periods,
additional information about certain expenses in the ﬁnancial
statements. ASU 2024-03 is effective for annual periods beginning
after December 15, 2026, and interim reporting periods beginning
after December 15, 2027. Early adoption is permitted and is effective
on either a prospective basis or retrospective basis. The Company
is currently assessing the potential impacts of adoption on the
consolidated ﬁnancial statements.
NOTE 2: 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 the title of our boats,
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 the note
titled Signiﬁcant Accounting Policies). 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 fulﬁlled its
performance obligations prior to submitting an invoice to the dealer.
MPC invoices the customer when the products are delivered and
receives the related compensation, typically within seven to ten
business days after invoicing. For some domestic customers and all
international customers, MPC requires payment prior to transferring
control of the goods. These amounts are classiﬁed as deferred
revenue and recognized when control has transferred, which
generally occurs within three months of receiving the payment.
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 utilized 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:
(in thousands)
2024
2023
2022
Boats and
accessories
$ 232,401
$
378,321
$
375,912
Parts
4,154
5,408
5,083
Net sales
$ 236,555
$ 383,729
$
380,995
The following table disaggregates our revenues between domestic
and international:
(in thousands)
2024
2023
2022
Domestic
$ 223,248
$
361,221
$
355,371
International
13,307
22,508
25,624
Net sales
$ 236,555
$ 383,729
$
380,995
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 on the
Consolidated Balance Sheets.
(in thousands)
2024
2023
Deferred revenue
$
191
$
654
Substantially all of the amounts of deferred revenue as of December 31,
2024 and December 31, 2023 were or will be recognized as sales
during the immediately following quarters, when control is transferred.
Part II
Item 8. — Financial Statements and Supplementary Data

45
Marine Products Corporation 2024 10-K
NOTE 3: ACCOUNTS RECEIVABLE
Accounts receivable consist of the following:
(in thousands)
December 31,
2024
2023
Trade receivables
$
1,166
$
1,348
Other
3,021
1,138
Total
4,187
2,486
Less: allowance for credit losses
(11)
(11)
Net accounts receivable
$
4,176
$
2,475
Trade receivables consist primarily of balances related to the
sales of boats which are shipped pursuant to “ﬂoor-plan ﬁnancing”
programs with qualiﬁed lenders. Other receivables consist primarily
of certain incentives recorded in 2024 together with rebates from
suppliers for both 2024 and 2023. Changes in the Company’s
allowance for credit losses are disclosed in Schedule II Valuation
and Qualifying Accounts.
NOTE 4: INVENTORIES
Inventories consist of the following:
(in thousands)
December 31,
2024
2023
Raw materials and supplies
$
29,686
$
40,340
Work in process
9,950
10,601
Finished goods
10,324
10,670
Total inventories
$
49,960
$
61,611
NOTE 5: PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are presented at cost, net of
accumulated depreciation, and consist of the following:
(in thousands)
December 31,
Estimated
Useful
Lives
2024
2023
Land
N/A
$
1,233
$
1,024
Buildings
7-40
26,643
26,069
Operating equipment
3-15
19,368
15,872
Furniture and ﬁxtures
5-7
3,476
3,290
Vehicles
5-10
7,936
8,990
Gross property,
plant and equipment
58,656
55,245
Less: accumulated
depreciation
(34,409)
(32,789)
Net property,
plant and equipment
$
24,247
$ 22,456
Depreciation expense was $2.8 million in 2024, $2.4 million in
2023 and $1.9 million in 2022. The Company’s accounts payable
for purchases of property and equipment were $116 thousand as
of December 31, 2024, $11 thousand as of December 31, 2023 and
$4 thousand as of December 31, 2022.
NOTE 6: ACCRUED EXPENSES AND
OTHER LIABILITIES
Accrued expenses and other liabilities consist of the following:
(in thousands)
December 31,
2024
2023
Accrued payroll and related expenses
$
1,668
$
2,591
Accrued sales incentives
and discounts
3,110
4,517
Accrued warranty costs
6,228
7,078
Deferred revenue
191
654
Accrued insurance expenses
1,791
820
Other
437
836
Total accrued expenses
and other liabilities
$ 13,425
$
16,496
NOTE 7: NOTES PAYABLE TO BANKS
On November 12, 2021, the Company entered into 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 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 at 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 December 31, 2024
and 2023, the Company was in compliance with these 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 in 2021. 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 non-current
other assets. As of December 31, 2024 and 2023, MPC had no
outstanding borrowings under the revolving credit facility.
Part II
Item 8. — Financial Statements and Supplementary Data

46
Marine Products Corporation 2024 10-K
Interest incurred, which includes facility fees on the unused portion
of the revolving credit facility and the amortization of loan origination
costs, on the credit facility was $90 thousand in 2024, $90 thousand
in 2023 and $90 thousand in 2022. Interest paid was $51 thousand
in 2024, $76 thousand in 2023 and $32 thousand in 2022.
NOTE 8: INCOME TAXES
For ﬁnancial reporting purposes, income before income taxes
includes the following component:
(in thousands)
Years ended December 31,
2024
2023
2022
Income before income
taxes – Domestic
$ 21,142
$
52,062
$
52,134
The following table lists the components of the provision (beneﬁt)
for income taxes:
(in thousands)
Years ended December 31,
2024
2023
2022
Current provision:
Federal
$ 3,986
$
12,384
$
12,225
State
442
1,109
1,360
Deferred (beneﬁt):
Federal
(1,101)
(3,047)
(1,687)
State
(38)
(79)
(111)
Total income tax
provision
$ 3,289
$
10,367
$
11,787
The Organization for Economic Co-operation and Development (“OECD”) has released the Base Erosion and Proﬁt Shifting framework 2.0
(“Pillar Two”) to introduce a global minimum corporate tax of 15% for companies with global revenues and proﬁts above certain thresholds. As of
December 31, 2024, we have no recorded effects for Pillar Two due to our operational jurisdiction being wholly domestic. The United States has
not yet enacted legislation to adopt Pillar Two. We will continue to monitor the impact of this legislation going forward.
A reconciliation between the federal statutory rate and Marine Products’ income tax provision and effective tax rate is as follows:
(in thousands)
Years ended December 31,
2024
2023
2022
Federal statutory rate
$
4,440
21.0%
$
10,933
21.0%
$
10,948
21.0%
State income taxes, net of federal beneﬁt (a)
275
1.3
647
1.2
652
1.3
Tax credits
Research and Development Credit
(110)
(0.5)
(652)
(1.3)
(353)
(0.7)
Investment Tax Credit
(1,003)
(4.7)
—
—
—
—
Change in unrecognized tax beneﬁts
49
0.2
241
0.5
434
0.8
Non-deductible expenses
(162)
(0.8)
(137)
(0.2)
391
0.7
Cross-border tax laws
(71)
(0.3)
(243)
(0.5)
(232)
(0.4)
Other
(129)
(0.6)
(422)
(0.8)
(53)
(0.1)
Income tax provision and effective tax rate
$
3,289
15.6%
$
10,367
19.9%
$
11,787
22.6%
(a) State taxes in Florida and Georgia made up the majority (greater than 50 percent) of the tax effect in this category.
Signiﬁcant components of the Company’s deferred tax assets and
liabilities are as follows:
(in thousands)
December 31,
2024
2023
Deferred tax assets:
Warranty costs
$
1,370
$
1,557
Sales incentives and discounts
436
570
Self-insurance
524
215
Stock-based compensation
908
824
Long-term retirement plan
4,767
3,960
Capitalized research and
development
3,226
2,900
All others, net
331
250
Total deferred tax assets
11,562
10,276
Deferred tax liabilities:
Depreciation and amortization
expense
(1,833)
(1,686)
Net deferred tax assets
$
9,729
$
8,590
Total net income tax payments were $4.5 million in 2024,
$13.9 million in 2023, and $13.0 million in 2022. The following table
lists the components of the payments for income taxes.
(in thousands)
Years ended December 31,
2024
2023
2022
Federal
$ 4,000
$
12,999
$
12,100
State
Florida
160
450
375
North Carolina
94
175
90
Other
222
287
457
Total net payments
$ 4,476
$
13,911
$
13,022
The Company’s policy is to record interest and penalties related to
income tax matters, as part of income tax expense.
Part II
Item 8. — Financial Statements and Supplementary Data

47
Marine Products Corporation 2024 10-K
During 2024, the Company recognized an increase in its liability for
unrecognized tax beneﬁts related primarily to prior year positions
and recorded in other long-term liabilities on the Consolidated
Balance Sheet. This liability, if released, would affect our effective
rate. A reconciliation of the beginning and ending amount of
unrecognized tax beneﬁts is as follows:
(in thousands)
2024
2023
Balance at January 1
$ 1,349
$
1,058
Additions based on tax positions
related to the current year
21
236
Additions for tax positions of prior years
41
55
Balance at December 31
$
1,411
$
1,349
The Company and its subsidiaries are subject to U.S. federal
and state income tax in multiple jurisdictions. In many cases, the
uncertain tax positions are related to tax years that remain open
and subject to examination by the relevant taxing authorities. In
general, the Company’s 2021 through 2023 tax years remain
open to examination. Additional years may be open to the extent
attributes are being carried forward to an open year.
NOTE 9: ACCUMULATED OTHER
COMPREHENSIVE LOSS
Accumulated other comprehensive loss consists of changes
related to the pension plan for the year ended December 31, 2023
as follows:
(in thousands)
2023
Balance at beginning of the year
$ (1,995)
Change during the year:
Before-tax amount
2,536
Tax beneﬁt
(558)
Reclassiﬁcation adjustment, net of taxes
Amortization of net loss
17
Total activity in the year
1,995
Balance at end of the year
$
—
NOTE 10: 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.
The Company determines the fair value of the marketable securities
that are available-for-sale through quoted prices for similar
instruments in active markets or quoted prices for identical or similar
instruments in markets that are not active. There are no available-
for-sale securities held as of December 31, 2024 and 2023. Trading
securities are comprised of SERP assets, as described in the note
titled Employee Beneﬁt 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. The expected holding period for these assets measured
at net asset value is unknown. Trading securities were valued
at $18.5 million as of December 31, 2024 and $15.4 million as of
December 31, 2023. Signiﬁcant observable inputs, in addition to
quoted market prices, were used to value the trading securities.
The Company’s policy is to recognize transfers between levels at
the beginning of quarterly reporting periods. For the years ended
December 31, 2024 and 2023, there were no signiﬁcant transfers in
or out of levels 1, 2 or 3.
The carrying amount of other ﬁnancial instruments reported in the
balance sheet 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.
NOTE 11: COMMITMENTS AND CONTINGENCIES
Lawsuits
The Company is a defendant in certain lawsuits which allege that
plaintiffs have been injured or incurred damages as a result of
Company business activities or the use of the Company’s products.
The Company is vigorously contesting these actions. Management,
after consultation with legal counsel, is of the opinion that the outcome
of these lawsuits will not have a material adverse effect on the ﬁnancial
position, results of operations or liquidity of Marine Products.
Dealer Floor Plan Financing
To assist dealers in obtaining ﬁnancing for the purchase of its
boats for inventory, the Company has entered into agreements
with various dealers and selected third-party ﬂoor plan lenders to
guarantee varying amounts of qualifying dealers’ debt obligations.
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, in
exchange for the Company’s assumption of the debt obligation on
those boats, as contractually deﬁned by each lender. The Company
had no material repurchases of dealer inventory under contractual
agreements during 2024 and 2023 as a result of dealer defaults.
Management continues to monitor the risk of additional defaults
and resulting repurchase obligations based in part on information
provided by the 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
Part II
Item 8. — Financial Statements and Supplementary Data

48
Marine Products Corporation 2024 10-K
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 for the
three highest monthly receivables balances during the past twelve
months, 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 $19.6 million as of December 31, 2024. The Company
has contractual repurchase agreements with additional lenders with
an aggregate maximum repurchase obligation of approximately
$5.4 million, with various expiration and cancellation terms of less
than one year. Accordingly, the aggregate repurchase obligation
with all ﬁnancing institutions was approximately $25.0 million as of
December 31, 2024. This repurchase obligation risk is mitigated by
the value of any boats repurchased.
In 2024, the Company entered into a three-year ﬂoor plan ﬁnancing
agreement with a single third-party lender which will be phased
in beginning in the ﬁrst quarter of 2025 to replace a majority of
the existing agreements with the current third-party lenders. The
agreement is substantially similar to the current arrangements with
the existing third-party ﬂoor plan lenders and provides for certain
additional incentives to the Company and qualifying dealers over
the term of the agreement.
Income Taxes
The amount of income taxes the Company pays is subject to
ongoing audits by federal and state tax authorities, which often
result in proposed assessments. See the note titled Income Taxes
for further information related to those liabilities.
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 certain 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 years was as follows:
(in thousands)
2024
2023
2022
STCI expense
$ 2,698
$
10,651
$
12,039
These amounts are included in Selling, general and administrative
expenses in the accompanying Consolidated Statements of
Operations.
NOTE 12: EMPLOYEE BENEFIT PLANS
Supplemental Executive Retirement Plan (“SERP”)
The Company permits selected highly compensated employees to
defer a portion of their compensation into the SERP. The liabilities
related to these deferrals are recognized as Retirement plan
liabilities on the Consolidated Balance Sheets. The SERP assets are
invested primarily in company-owned life insurance (“COLI”) policies
as a funding source to satisfy the obligation of the SERP. The assets
are subject to claims by creditors, and the Company can designate
them for another purpose at any time. Investments in COLI policies
consist of variable life insurance policies of $9.6 million as of
December 31, 2024 and $8.5 million as of December 31, 2023. In
the COLI policies, the Company is able to allocate assets across a
set of choices provided by the insurance underwriter, including ﬁxed
income securities and equity funds. The COLI policies are recorded
at their net cash surrender values, which approximates fair value,
as provided by the issuing insurance company, whose Standard &
Poor’s credit rating was A+ in 2024.
The Company classiﬁes the SERP assets as trading securities as
described in the note titled Signiﬁcant Accounting Policies. The fair
value of these assets totaled $18.5 million as of December 31, 2024
and $15.4 million as of December 31, 2023. The SERP assets are
reported in retirement plan assets on the Consolidated Balance
Sheets and changes to the fair value of the assets are reported in
selling, general and administrative expenses in the Consolidated
Statements of Operations. Trading gains (losses) related to the
SERP assets totaled $3.1 million in 2024, $1.5 million in 2023 and
$(2.4) million in 2022.
The SERP liabilities include participant deferrals net of distributions
and are stated at a fair value of $21.7 million as of December 31, 2024
and $18.0 million as of December 31, 2023. The SERP liabilities are
reported on the 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
Consolidated Statements of Operations. Changes in the fair value of
the SERP liabilities represented unrealized gains (loss) of $3.4 million
in 2024, $1.8 million in 2023 and $(2.3) million in 2022.
In the fourth quarter of 2024, the Board of Directors approved the
termination of the SERP. Pursuant to the Internal Revenue Service
rules, participant balances will be distributed between 12 and
24 months after termination. The Company is currently evaluating its
funding options and timing to distribute participant balances.
Part II
Item 8. — Financial Statements and Supplementary Data

49
Marine Products Corporation 2024 10-K
Retirement Income Plan (“Plan”)
The Company participated in a multi-employer Retirement Income Plan sponsored by RPC, which was fully terminated in 2023. As part of
termination, the Company settled its participant liabilities in one of the following ways – (i) through a lump-sum settlement at the election
of the participants; or (ii) transfer to a commercial annuity provider or a government agency. The Company funded this transfer through the
liquidation of investments in the Plan assets. The Company recognized a pre-tax, non-cash settlement charge of $2.4 million during 2023,
which represented the accelerated recognition of net actuarial loss that was previously recorded in accumulated other comprehensive loss
(net of tax) and deferred taxes (tax effect). In addition, RPC utilized funds related to the Company’s Plan assets to settle its participant liabilities.
(in thousands)
December 31,
2023
Accumulated beneﬁt obligation at end of year
$
—
Change in projected beneﬁt obligation:
Beneﬁt obligation at beginning of year
$
3,146
Service cost
—
Interest cost
5
Actuarial loss
(243)
Beneﬁts paid
(131)
Settlement
(2,777)
Projected beneﬁt obligation at end of year
$
—
Change in plan assets:
Fair value of plan assets at beginning of year
$
3,502
Actual return on plan assets
(70)
Beneﬁts paid
(131)
Transfer of assets
(524)
Settlement
(2,777)
Fair value of plan assets at end of year
$
—
Funded status at end of year
$
—
The components of net periodic beneﬁt cost of the Plan are summarized as follows:
(in thousands)
2023
2022
Interest cost
$
5
$
133
Expected return on plan assets
—
—
Amortization of net losses
22
113
Settlement loss
2,363
1,180
Net periodic cost (1)
$
2,390
$
1,426
(1)
Reported as part of Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations.
The pre-tax amounts recognized in other comprehensive income for the years ended December 31, 2023 and 2022 are summarized as follows:
(in thousands)
2023
2022
Net loss (gain)
$
(173)
$
549
Amortization of net loss
(22)
(113)
Settlement loss
(2,363)
(1,180)
Amount recognized in accumulated other comprehensive income (loss)
$
(2,558)
$
(744)
Part II
Item 8. — Financial Statements and Supplementary Data

50
Marine Products Corporation 2024 10-K
401(k) Plan
Marine Products participates in a deﬁned contribution 401(k) plan sponsored by RPC that is available to substantially all full-time employees
with more than 90 days of service. Effective January 1, 2019, the Company began matching 100% of employee contributions for each dollar
of a participant’s contribution to the 401(k) Plan for the ﬁrst three percent of his or her annual compensation, and 50% for each dollar of a
participant’s contribution to the 401(k) Plan for the next three percent of his or her annual compensation. Employees vest in the Company’s
contributions after two years of service. The charges to expense for Marine Products’ contributions to the 401(k) plan were $1.0 million in 2024,
$1.2 million in 2023 and $1.2 million in 2022.
Stock Incentive Plan
The Company has issued various forms of stock compensation, including incentive and non-qualiﬁed stock options, time-lapse restricted
shares and performance share unit awards under its stock incentive plans to ofﬁcers, selected employees and non-employee directors. In
April 2024 the Company reserved 3,000,000 shares of common stock under the 2024 Stock Incentive Plan (“SIP”) with a term of 10 years
expiring in April 2034. As of December 31, 2024, there were 2,965,216 shares available for grant under the SIP.
The Company recognizes compensation expense for the unvested portion of awards outstanding over the remainder of the service period.
The compensation cost recorded for these awards will be based on their fair value at grant date less the cost of estimated forfeitures.
Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reﬂect actual forfeitures.
Pre-tax stock-based employee compensation expense was approximately $4.2 million ($3.3 million after tax) for 2024, $3.7 million ($2.9 million
after tax) for 2023, and $2.7 million ($2.1 million after tax) for 2022.
We have not issued any stock options since 2003 and have no immediate plans to issue additional stock options.
Restricted Stock
Marine Products grants selected employees and non-employee directors time lapse restricted stock that vest after a certain stipulated
number of years from the grant date in the case of employees and that vest immediately for non-employee directors, depending on the
terms of the issue. Time-lapse restricted shares granted to employees in 2024 vest ratably over a period of three years; the shares granted
to employees in 2023 vest ratably over a period of four years; and the shares granted in 2022 vest ratably over a period of ﬁve years. Prior
to 2022, the time-lapse restricted shares vested one-ﬁfth per year beginning on the second anniversary of the grant date. Grantees receive
dividends declared and retain voting rights for the granted shares. The agreement under which the restricted stock is issued provides that
shares awarded may not be sold or otherwise transferred until restrictions established under the stock plans have lapsed. Upon termination
of employment from the Company, with the exception of death (fully vests) or normal retirement/disability (partially vests based on pre-
approved formula), shares with restrictions are forfeited in accordance with the SIP.
In addition to time-lapse restricted stock, ofﬁcers and selected employees are granted Performance Share Unit (“PSU”) awards that vest at
different levels based on pre-established ﬁnancial performance targets with a modiﬁer for stock performance based on total shareholder
return. The Company periodically evaluates the portion of performance share unit awards that are probable to vest and updates compensation
expense accruals accordingly. The PSUs typically cliff-vest at the end of a three year performance period. Upon termination of employment
(other than due to death or disability as deﬁned in the agreements), the unvested PSUs will be forfeited. In the event of death or disability
as deﬁned in the agreements, all unvested PSUs shall vest immediately at 100% of target levels, without regard to the actual EBITDA
performance, and with no adjustment for the Total Shareholder Return modiﬁer. PSU awards also include the right to dividend equivalents
with respect to the underlying shares which are accrued over the performance period, based upon target payout level and paid out in cash
upon vesting of the PSUs. To the extent the awards fail to vest or are forfeited, or the performance goals are not met but no such dividend
equivalents will be payable. PSUs confer no voting rights with respect to the underlying shares prior to vesting and payout.
Part II
Item 8. — Financial Statements and Supplementary Data

51
Marine Products Corporation 2024 10-K
The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2024:
Shares
Weighted
Average
Grant-Date
Fair Value
Non-vested shares at January 1, 2024
839,050
$ 13.81
Granted
336,451
11.35
Vested
(297,303)
13.70
Forfeited
(7,750)
12.81
Non-vested shares at December 31, 2024
870,448
$ 12.90
The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2023:
Shares
Weighted-
Average
Grant-Date
Fair Value
Non-vested shares at January 1, 2023
764,170
$
14.15
Granted
318,348
13.25
Vested
(243,468)
14.16
Non-vested shares at December 31, 2023
839,050
$
13.81
The fair value of restricted stock awards is based on the market price of the Company’s stock on the date of grant and is amortized to compensation
expense on a straight-line basis over the requisite service period. The weighted average grant date fair value of these restricted stock awards
was $11.35 in 2024, $13.25 in 2023 and $11.61 in 2022. The total fair value of shares vested was approximately $3.1 million in 2024, $3.2 million
in 2023 and $2.2 million in 2022. The above table does not include any activity related to PSUs since they are not currently granted or vested.
For the year ending December 31, 2024, approximately $47 thousand of excess tax beneﬁts for stock-based compensation awards were
recorded as a discrete tax adjustment and classiﬁed within operating activities in the Consolidated Statements of Cash Flows compared to
approximately $57 thousand of excess tax beneﬁts for the year ending December 31, 2023.
Other Information
As of December 31, 2024, total unrecognized compensation cost related to non-vested restricted shares was approximately $7.1 million which
is expected to be recognized over a weighted-average period of 2.0 years.
NOTE 13: RELATED PARTY TRANSACTIONS
In conjunction with its spin-off from RPC, the Company and RPC entered into various agreements that deﬁne the companies’ relationship.
Per the terms of their Transition Support Services agreement, which may be terminated by either party, RPC provides certain administrative
services, including ﬁnancial reporting and income tax administration, acquisition assistance, etc., to Marine Products. Charges from RPC (or
from corporations that are subsidiaries of RPC) for such services were $1.1 million in 2024, $1.0 million in 2023 and $0.9 million in 2022. The
Company’s payable to RPC for these services was $99 thousand as of December 31, 2024 and $120 thousand as of December 31, 2023.
During 2023, RPC owed the Company $524 thousand for using Marine Products’ assets in the Plan to settle its participant liabilities, which
was fully settled in 2024. All of the Company’s directors are also directors of RPC and the Company’s executive ofﬁcers are employees of
both the Company and RPC.
RPC and Marine Products own 50% each of a limited liability company called 255 RC, LLC that was created for the joint purchase and
ownership of a corporate aircraft. The purchase was funded primarily by a $2.6 million contribution by each company to 255 RC, LLC. Each
of RPC and Marine Products is currently a party to an operating lease agreement with 255 RC, LLC for a period of ﬁve years. Marine Products
recorded certain net operating costs for the corporate aircraft comprised of rent and an allocable share of ﬁxed costs of $188 thousand in
2024 and $160 thousand for each year in 2023 and 2022. The Company has a payable to 255 RC, LLC of $2.0 million as of December 31,
2024 and $1.8 million as of December 31, 2023. The Company accounts for this investment using the equity method and its proportionate
share of income or loss is recorded in selling, general and administrative expenses. As of December 31, 2024, the investment closely
approximates the underlying equity in the net assets of 255 RC, LLC and the undistributed earnings represented in retained earnings was
approximately $675 thousand.
A group that includes Gary W. Rollins, Pamela R. Rollins, Amy R. 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.
Part II
Item 8. — Financial Statements and Supplementary Data

52
Marine Products Corporation 2024 10-K
NOTE 14: LEASES
The Company recognizes leases with a duration greater than 12 months on the balance sheet with a Right-Of-Use (“ROU”) asset and liability at
the present value of lease payments over the term. Renewal options are factored into the determination of lease payments when appropriate.
There are no residual value guarantees on the existing leases. The Company estimates its incremental borrowing rate, at lease commencement,
to determine the present value of lease payments, since most of the Company’s leases do not provide an implicit rate of return. ROU assets
exclude lessor incentives received. The Company’s lease population consists primarily of ofﬁce equipment.
The Company does not have any ﬁnance leases. As of December 31, 2024, the Company had no operating leases that had not yet commenced.
Lease position:
The table below presents the assets and liabilities related to operating leases recorded on the balance sheet:
December 31,
(in thousands)
Classiﬁcation on Consolidated Balance Sheet
2024
2023
Assets:
Operating lease right-of-use assets
Other assets
$
219
$
295
Liabilities:
Current portion of operating lease liabilities
Accrued expenses and other liabilities
$
79
$
77
Long-term operating lease liabilities
Other long-term liabilities
141
220
Total lease liabilities
$
220
$
297
Lease costs:
The components of lease expense are included in selling, general and administrative expenses in the Consolidated Statements of Operations
as disclosed below:
(in thousands)
2024
2023
2022
Operating lease cost
$
89
$
93
$
59
Short-term lease cost
—
—
—
Variable lease cost
11
3
—
Total lease cost
$
100
$
96
$
59
Other information:
As of December 31,
2024
2023
Cash paid for amounts included in the measurement of operating lease liabilities (in thousands)
$
77
$
77
ROU assets obtained in exchange for operating lease liabilities (in thousands)
—
127
Weighted average remaining lease term — operating leases (years)
2.7
3.7
Weighted average discount rate — operating leases
4.87%
4.85%
Part II
Item 8. — Financial Statements and Supplementary Data

53
Marine Products Corporation 2024 10-K
Lease commitments:
Maturity of lease liabilities – Operating Leases:
(in thousands)
As of December 31,
2024
2025
$
88
2026
85
2027
55
2028
6
2029
—
Total lease payments
234
Less: Amounts representing interest
(14)
Present value of lease liabilities
$
220
The Company is party to an operating lease as the lessor for certain real estate leased to a third party with an initial term of 36 months
that was renewed in 2023 for an additional 36 months. The lease requires ﬁxed monthly payments and does not contain clauses for future
rental escalations or renewal options. There are no terms and conditions under which the lessee has the option to purchase this asset.
As of December 31, 2024, projected future lease income on this lease totaled $60 thousand scheduled to be received in 2025. The Company
recorded rental income of $240 thousand in 2024, $240 thousand in 2023 and $239 thousand in 2022 that is recorded as part of selling,
general and administrative expenses on the Consolidated Statements of Operations.
During 2023, the Company entered into a lease agreement related to a warehouse as a lessor that qualiﬁed to be a sales type lease.
As part of this transaction, the Company recognized a gain of approximately $1.8 million which has been reported as part of Gain on disposition
of assets, net on the Consolidated Statement of Operations.
NOTE 15: BUSINESS SEGMENT
MPC has one reportable segment — its Powerboat Manufacturing business. The Chief Operating Decision Maker (CODM) makes resource
allocation and performance assessment decisions based on this segment as a whole. MPC’s CODM is the Chief Executive Ofﬁcer.
Signiﬁcant segment expenses for the years ended December 31, 2024, 2023 and 2022 are shown in the following table:
(in thousands)
2024
2023
2022
Materials
$ 123,441
$ 203,847
$
199,469
Overhead
22,987
25,575
23,428
Labor costs
25,887
33,907
33,147
Other cost of goods sold (1)
18,742
30,021
31,234
Cost of goods sold
$
191,057
$ 293,350
$
287,278
Employment costs
$
17,580
$
28,439
$
26,713
Warranty expense
3,616
5,829
5,903
Other selling, general and administrative expenses (2)
6,180
8,945
9,305
Selling, general and administrative expenses
$
27,376
$
43,213
$
41,921
(1) Comprised primarily of accessories costs.
(2) Includes professional fees, advertising & promotions, and other costs.
NOTE 16: SUBSEQUENT EVENT
On January 28, 2025, the Board of Directors declared a regular cash dividend of $0.14 per share payable March 10, 2025 to stockholders of
record at the close of business on February 10, 2025.
Part II
Item 8. — Financial Statements and Supplementary Data

54
Marine Products Corporation 2024 10-K
Part II
Item 9. — Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
None.
ITEM 9A.
CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures — The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized and reported within the
time periods speciﬁed in the Commission’s rules and forms, and that such information is accumulated and communicated to its management,
including the Chief Executive Ofﬁcer and Chief Financial Ofﬁcer, as appropriate, to allow timely decisions regarding required disclosure.
As of the end of the period covered by this report, December 31, 2024 (the “Evaluation Date”), the Company carried out an evaluation,
under the supervision and with the participation of its management, including the Chief Executive Ofﬁcer and Chief Financial Ofﬁcer, of the
effectiveness of the design and operation of its disclosure controls and procedures. Based upon this evaluation, the Chief Executive Ofﬁcer
and the Chief Financial Ofﬁcer concluded that the Company’s disclosure controls and procedures were effective at a reasonable assurance
level as of the Evaluation Date.
Management’s report on internal control over ﬁnancial reporting — Management is responsible for establishing and maintaining adequate
internal control over ﬁnancial reporting, as such term is deﬁned in Exchange Act Rules 13a-15(f) and 15d-15(f). Management’s report on internal
control over ﬁnancial reporting is included on page 32 of this report. Grant Thornton LLP, the Company’s independent registered public
accounting ﬁrm, has audited the effectiveness of internal control as of December 31, 2024 and issued a report thereon which is included on
page 33 of this report.
Changes in internal control over ﬁnancial reporting — There were no changes in the Company’s internal control over ﬁnancial reporting during the
fourth quarter of 2024 which were identiﬁed in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under
the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over ﬁnancial reporting.
ITEM 9B.
OTHER INFORMATION
During the quarter ended December 31, 2024, no director or ofﬁcer, as deﬁned in Rule 16a-1(f) under the Securities Exchange Act of 1934, as
amended, of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each
term is deﬁned in Item 408(a) of Regulation S-K.
On February 27, 2025, we and our largest stockholder, LOR, Inc. (“LOR”), entered into a registration rights agreement (the “Agreement”),
pursuant to which we have granted LOR and certain of its afﬁliates (collectively, the “Selling Stockholders”) and their permitted transferees
the right to require, subject to certain conditions and limitations, us to register for resale all Company securities held by such stockholders,
and certain customary piggy back registration rights with respect to registrations initiated by us. The Agreement also contains customary
provisions relating to indemniﬁcation. The Selling Stockholders own approximately 70% of the outstanding shares of our common stock in the
aggregate as of February 14, 2025, and the Agreement calls for us to register all of those shares on a Form S-3 shelf registration statement,
if available, by ﬁling the registration statement with the SEC as soon as reasonably practicable on or after April 15, 2025 but in any event
not later than April 30, 2025. The Agreement has a term of 15 years, and in addition to piggyback registration rights, allows the Selling
Stockholders to make up to two demands for shelf takedowns per year, subject to a maximum of ten takedowns in total and a minimum
requirement that at least $10 million of common stock, in the aggregate, be included in each takedown. All registration and ﬁling fees with
respect to ﬁlings required to be made with the SEC shall be paid by LOR. In addition, LOR shall reimburse the Company for other speciﬁed
expenses in connection with SEC registration and takedowns from the shelf, subject to speciﬁed expense caps. The Selling Stockholders
include Gary W. Rollins, Pamela R. Rollins, Amy R. Kreisler, and Timothy C. Rollins, each of whom is a current director of the Company, and
certain additional entities that are under their control or otherwise afﬁliated with them. The foregoing description is qualiﬁed in its entirety by
reference to the full text of the Agreement, a copy of which is attached hereto as Exhibit 10.16 and is incorporated herein by reference.
ITEM 9C.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.

55
Marine Products Corporation 2024 10-K
Part III
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
Information concerning directors, director nominees and executive ofﬁcers will be included in the Marine Products Proxy Statement for its
2025 Annual Meeting of Stockholders, in the sections titled “Information Regarding Director Nominees and Continuing Directors” and
“Executive Ofﬁcers.”
AUDIT COMMITTEE AND AUDIT COMMITTEE FINANCIAL EXPERT
Information concerning the Audit Committee of the Company and the Audit Committee Financial Expert(s) will be included in the Marine
Products Proxy Statement for its 2025 Annual Meeting of Stockholders, in the section titled “Board of Directors and Corporate Governance,
Meetings and Committees of the Board of Directors — Audit Committee.” This information is incorporated herein by reference.
CODE OF ETHICS
Marine Products has a Code of Business Conduct that applies to all employees. In addition, the Company has a Code of Business Conduct
and Ethics for Directors and Executive Ofﬁcers and Related Party Transaction Policy. Both of these documents are available on the Company’s
website at MarineProductsCorp.com. Copies are also available at no extra charge by writing to Attn: Human Resources, Marine Products
Corporation, 2801 Buford Highway NE, Suite 300, Atlanta, Georgia 30329. Marine Products intends to satisfy the disclosure requirement
under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, a provision of its code of ethics that relates to any elements of the
code of ethics deﬁnition enumerated in SEC rules by posting such information on its internet website, the address of which is provided above.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Information regarding compliance with Section 16(a) of the Exchange Act will be included under “Section 16(a) Beneﬁcial Ownership Reporting
Compliance” in the Company’s Proxy Statement for its 2025 Annual Meeting of Stockholders, which is incorporated herein by reference.
INSIDER TRADING POLICIES AND PROCEDURES
Information regarding the Company’s insider trading policies and procedures will be included in the Marine Products Proxy Statement for
its 2025 Annual Meeting of Stockholders in the section titled “Board of Directors and Corporate Governance — Insider Trading Policy”.
This information is incorporated herein by reference.
ITEM 11.
EXECUTIVE COMPENSATION
Information concerning director and executive compensation will be included in the Marine Products Proxy Statement for its 2025 Annual
Meeting of Stockholders, in the sections titled “Human Capital Management and Compensation Committee Interlocks and Insider Participation,”
“Director Compensation,” “Compensation Discussion and Analysis,” “Human Capital Management and Compensation Committee Report”
and “Executive Compensation.” This information is incorporated herein by reference.
Part III
Item 10. — Directors, Executive Ofﬁcers and Corporate Governance

56
Marine Products Corporation 2024 10-K
Part III
Item 12. — Security Ownership of Certain Beneﬁcial Owners and Management and Related Stockholder Matters
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS
Information concerning security ownership of certain beneﬁcial owners and management, and all directors and executive ofﬁcers as a group,
will be included in the Marine Products Proxy Statement for its 2025 Annual Meeting of Stockholders in the section titled “Stock Ownership of
Certain Beneﬁcial Owners and Management.” This information is incorporated herein by reference.
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS
The following table sets forth certain information regarding equity compensation plans as of December 31, 2024.
Plan Category
(A)
Number of Securities
To Be Issued Upon
Exercise of Outstanding
Options, Warrants and Rights
(B)
Weighted Average
Exercise Price of
Outstanding Options,
Warrants and Rights
(C)
Number of Securities Remaining
Available for Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reﬂected in Column (A))
Equity compensation plans
approved by security holders
—
$
—
2,965,216 (1)
Equity compensation plans not
approved by security holders
—
—
—
Total
—
$
—
2,965,216
(1)
All of the securities can be issued in the form of restricted stock or other stock awards.
See the note titled Employee Beneﬁt Plans for information regarding the material terms of the equity compensation plans.
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
AND DIRECTOR INDEPENDENCE
Information concerning certain relationships and related party transactions will be included in the Marine Products Proxy Statement for its
2025 Annual Meeting of Stockholders in the section titled “Certain Relationships and Related Party Transactions.” Information regarding
director independence will be included in the Marine Products Proxy Statement for its 2025 Annual Meeting of Stockholders in the section
titled “Director Independence and NYSE Requirements.” This information is incorporated herein by reference.
ITEM 14.
PRINCIPAL ACCOUNTING FEES AND SERVICES
Information regarding principal accountant fees and services will be included in the section titled, “Audit Matters — Independent Registered
Public Accounting Firm” in the Marine Products Proxy Statement for its 2025 Annual Meeting of Stockholders. This information is incorporated
herein by reference.

57
Marine Products Corporation 2024 10-K
Exhibit No.
Exhibit Description
3.1
(a) Articles of Incorporation of Marine Products Corporation (incorporated herein by reference to Exhibit 3.1 to the Form 10 ﬁled
on February 13, 2001).
(b) Certiﬁcate of Amendment of Certiﬁcate of Incorporation of Marine Products Corporation executed on June 8, 2005
(incorporated herein by reference to Exhibit 99.1 to the current report on Form 8-K ﬁled on June 9, 2005).
3.2
Amended and Restated Bylaws of Marine Products Corporation.
4.1
Form of Common Stock Certiﬁcate of Marine Products Corporation (incorporated herein by reference to Exhibit 4.1 to the Form
10 ﬁled on February 13, 2001).
4.2
Description of Registrant’s Securities (incorporated herein by reference to Exhibit 4.2 to the Form 10-K ﬁled on February 28, 2020).
10.1
Agreement Regarding Distribution and Plan of Reorganization, dated February 12, 2001, by and between RPC, Inc. and
Marine Products Corporation (incorporated herein by reference to Exhibit 10.2 to the Form 10 ﬁled on February 13, 2001).
10.2
Employee Beneﬁts Agreement, dated February 12, 2001, by and between RPC, Inc., Chaparral Boats, Inc. and Marine Products
Corporation (incorporated herein by reference to Exhibit 10.3 to the Form 10 ﬁled on February 13, 2001).
Part IV
Item 15. — Exhibits and Financial Statement Schedules
Part IV
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
Consolidated Financial Statements, Financial Statement Schedule and Exhibits
1.
Consolidated ﬁnancial statements listed in the accompanying Index to Consolidated Financial Statements and Schedule are ﬁled as
part of this report.
2.
The ﬁnancial statement schedule listed in the accompanying Index to Consolidated Financial Statements and Schedule is ﬁled as part
of this report.
3.
Exhibits listed in the accompanying Index to Exhibits are ﬁled as part of this report. The following exhibits are management contracts or
compensatory plans or arrangements:
Exhibit No.
Exhibit Description
10.8
Supplemental Retirement Plan (incorporated herein by reference to Exhibit 10.16 to the Form 10-K ﬁled on March 15, 2005).
10.9
First Amendment to 2001 Employee Stock Incentive Plan and 2004 Stock Incentive Plan (incorporated by reference to
Exhibit 10.19 to the Form 10-K ﬁled on March 2, 2007).
10.10
Summary of compensation arrangements with the Executive Ofﬁcers.
10.11
Form of time lapse restricted stock agreement under the 2004 Stock Incentive Plan (incorporated herein by reference to
Exhibit 10.1 to the Form 10-Q ﬁled on May 2, 2012).
10.13
2014 Stock Incentive Plan (incorporated herein by reference to Appendix A to the Registrant’s deﬁnitive Proxy Statement
ﬁled on March 17, 2014).
10.14
Marine Products Corporation Cash Based Incentives (Discretionary) Acknowledgement of Cash Based Incentives for
Executive Ofﬁcers (incorporated herein by reference to Exhibit 10.18 to the Form 10-K ﬁled on February 28, 2017).
10.15
Marine Products Corporation 2024 Stock Incentive Plan (incorporated herein by reference to the Registrant’s Proxy
Statement ﬁled on March 14, 2024).
10.17
Form of performance share unit award agreement (incorporated herein by reference to Exhibit 10.15 to the Form 10-Q
ﬁled on April 28, 2023).
Exhibits (inclusive of item 3 above):

58
Marine Products Corporation 2024 10-K
Part IV
Item 15. — Exhibits and Financial Statement Schedules
Exhibit No.
Exhibit Description
10.3
Transition Support Services Agreement, dated February 12, 2001, by and between RPC, Inc. and Marine Products Corporation
(incorporated herein by reference to Exhibit 10.4 to the Form 10 ﬁled on February 13, 2001).
10.8
Supplemental Retirement Plan (incorporated herein by reference to Exhibit 10.16 to the Form 10-K ﬁled on March 15, 2005).
10.10
Summary of compensation arrangements with the Executive Ofﬁcers.
10.11
Form of time lapse restricted stock agreement under the 2004 Stock Incentive Plan (incorporated herein by reference to
Exhibit 10.1 to the Form 10-Q ﬁled on May 2, 2012).
10.13
2014 Stock Incentive Plan (incorporated herein by reference to Appendix A to the Registrant’s deﬁnitive Proxy Statement ﬁled
on March 17, 2014).
10.14
Marine Products Corporation Cash Based Incentives (Discretionary) Acknowledgement of Cash Based Incentives for Executive
Ofﬁcers (incorporated herein by reference to Exhibit 10.18 to the Form 10-K ﬁled on February 28, 2017).
10.15
Marine Products Corporation 2024 Stock Incentive Plan (incorporated herein by reference to the Registrant’s Proxy Statement
ﬁled on March 14, 2024).
10.16
Registration Rights Agreement, dated February 27, 2025, by and between Marine Products Corporation and LOR, Inc.
10.17
Form of performance share unit award agreement (incorporated herein by reference to Exhibit 10.15 to the Form 10-Q ﬁled on
April 28, 2023).
19
Marine Products Corporation Insider trading policies and procedures
21
Subsidiaries of Marine Products Corporation
23
Consent of Grant Thornton LLP
24
Powers of Attorney for Directors
31.1
Section 302 certiﬁcation for Chief Executive Ofﬁcer
31.2
Section 302 certiﬁcation for Chief Financial Ofﬁcer
32.1
Section 906 certiﬁcation for Chief Executive Ofﬁcer and Chief Financial Ofﬁcer
97.1
Policy relating to recovery of erroneously awarded compensation (incorporated herein by reference to Exhibit 97.1 to the
Form 10-K ﬁled on February 28, 2024).
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Deﬁnition Linkbase Document
104
The cover page from the Company’s Annual Report for the year ended December 31, 2024, formatted in Inline XBRL
ITEM 16.
FORM 10-K SUMMARY
Not applicable.

59
Marine Products Corporation 2024 10-K
Part IV
Signatures
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Marine Products Corporation
Date:
Ben M. Palmer
President and Chief Executive Ofﬁcer
(Principal Executive Ofﬁcer)
February 28, 2025
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.
By:
By:
Date:
Ben M. Palmer
President and Chief Executive Ofﬁcer
(Principal Executive Ofﬁcer)
February 28, 2025
Date:
Michael L. Schmit
Vice President, Chief Financial Ofﬁcer
and Corporate Secretary
(Principal Financial and Accounting Ofﬁcer)
February 28, 2025
The Directors of Marine Products Corporation (listed below) executed a power of attorney, appointing Ben M. Palmer their attorney-in-fact,
empowering him to sign this report on their behalf.
Richard A. Hubbell, Director
Gary W. Rollins, Director
Jerry W. Nix, Director
Timothy C. Rollins, Director
Susan R. Bell, Director
Pamela R. Rollins, Director
Patrick J. Gunning, Director
John F. Wilson, Director
Amy R. Kreisler, Director
Ben M. Palmer
Director and as Attorney-in-fact
February 28, 2025

60
Marine Products Corporation 2024 10-K
Part IV
Index To Consolidated Financial Statements, Reports and Schedule
Index To Consolidated Financial Statements,
Reports and Schedule
The following documents are ﬁled as part of this report.
FINANCIAL STATEMENTS AND REPORTS
PAGE
Management’s Report on Internal Control Over Financial Reporting
32
Report of Independent Registered Public Accounting Firm (PCAOB ID Number 248) on
Internal Control Over Financial Reporting
33
Report of Independent Registered Public Accounting Firm (PCAOB ID Number 248) on
Consolidated Financial Statements
34
Consolidated Balance Sheets as of December 31, 2024 and 2023
36
Consolidated Statements of Operations for each of the three years ended December 31, 2024
37
Consolidated Statements of Comprehensive Income for each of the three years ended December 31, 2024
38
Consolidated Statements of Stockholders’ Equity for each of the three years ended December 31, 2024
39
Consolidated Statements of Cash Flows for each of the three years ended December 31, 2024
40
Notes to Consolidated Financial Statements
41
SCHEDULE
Schedule II — Valuation and Qualifying Accounts
61
Schedules not listed above have been omitted because they are not applicable or the required information
is included in the Consolidated Financial Statements or notes thereto.

61
Marine Products Corporation 2024 10-K
Part IV
Schedule II – Valuation and Qualifying Accounts
Schedule II – Valuation and Qualifying Accounts
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
(in thousands)
For the years ended
December 31, 2024, 2023 and 2022
Description
Balance at
Beginning
of Period
Charged to
Costs and
Expenses
Net
(Write-Offs)/
Recoveries
Balance
at End of
Period
Year ended December 31, 2024
Credit loss allowance for accounts receivable
$
11
$
—
$
—
$
11
Year ended December 31, 2023
Credit loss allowance for accounts receivable
$
12
$
—
$
(1)
$
11
Year ended December 31, 2022
Credit loss allowance for accounts receivable
$
12
$
—
$
—
$
12
Any schedules not shown above have been omitted because they are not applicable.

MARINE PRODUCTS CORPORATION 2024 ANNUAL REPORT
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Annual Report contains statements that constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995,
including all statements that look forward in time or express management’s beliefs, expectations or hopes. In particular, such statements
include, without limitation, statements regarding: our optimism with respect to market conditions in the future, our delivery of high-quality
products to our customers, providing returns to shareholders, and our position to capitalize on improved demand when it materializes. The
actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and
uncertainties, including, without limitation, those identiﬁed at Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K included as
part of this Annual Report. All of the foregoing risks and uncertainties are beyond the ability of the Company to control, and in many cases the
Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated in the forward-
looking statements. The Company does not undertake to update these forward-looking statements except as required by law.
62
Marine Products Corporation

CORPORATE OFFICES
Marine Products Corporation
2801 Buford Highway NE, Suite 300
Atlanta, Georgia 30329
Telephone: (404) 321-7910
STOCK LISTING AND
TICKER SYMBOL
New York Stock Exchange (NYSE: MPX)
TRANSFER AGENT AND
REGISTRAR
For inquiries related to stock certificates,
including changes of address,
please contact:
EQUINITI TRUST COMPANY, LLC
PO Box 500
Newark, NJ 07101
(877) 864-5055
www.equiniti.com/us/ast-access/
individuals/
INVESTOR RELATIONS
WEBSITE
MarineProductsCorp.com
ANNUAL MEETING
The Annual Stockholders Meeting of
Marine Products Corporation will be
held at 12:00 p.m., April 22, 2025, at
2170 Piedmont Road NE,
Atlanta, GA 30324.
CORPORATE INFORMATION
RICHARD A. HUBBELL
Executive Chairman of the Board
BEN M. PALMER
President and Chief Executive Officer
MICHAEL L. SCHMIT
Vice President, Chief Financial Officer,
Treasurer and Corporate Secretary
RICHARD A. HUBBELL (1)
Executive Chairman of the Board,
RPC, Inc.
JERRY W. NIX (2)
Former Vice Chairman,
Executive Vice President and
Chief Financial Officer of
Genuine Parts Company
SUSAN R. BELL (3)
Retired Partner, Ernst & Young LLP
PATRICK J. GUNNING (4)
Retired Partner, Ernst & Young LLP
AMY R. KREISLER (5)
Executive Director, The O. Wayne
Rollins Foundation
BEN M. PALMER (6)
President and Chief Executive Officer,
RPC, Inc.
GARY W. ROLLINS
Executive Chairman Emeritus,
Rollins, Inc.
PAMELA R. ROLLINS
Community Leader
TIMOTHY C. ROLLINS (5)
Vice President, LOR, Inc.
JOHN F. WILSON (7)
Executive Chairman, Rollins, Inc.
(1) Chairman of the Executive Committee

(2) Lead Independent Director; Chairman
of the Human Capital Management and
Compensation Committee; Chairman
of the Nominating and Corporate
Governance Committee; and Member of
the Audit Committee
(3) Member of the Audit Committee

(4) Chairman of the Audit Committee; Member
of the Human Capital Management
and Compensation Committee; and
Member of the Nominating and Corporate
Governance Committee

(5) Member of the Nominating and Corporate
Governance Committee

(6) Member of the Executive Committee

(7) Member of the Audit Committee; Human
Capital Management and Compensation
Committee; and Nominating and
Corporate Governance Committee
DIRECTORS
OFFICERS
STOCKHOLDER INFORMATION

2801 Buford Highway NE, Suite 300
Atlanta, Georgia 30329
(404) 321-7910
© 2025 Marine Products Corporation
All rights reserved. The names of other companies and products
mentioned herein may be the trademarks of their respective owners.