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Marine Products Corporation Reports First Quarter 2015 Financial Results

ATLANTA, April 29, 2015 /PRNewswire/ -- Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter ended March 31, 2015.  Marine Products is a leading manufacturer of fiberglass boats under two brand names: Chaparral and Robalo. Chaparral builds sterndrive, jet drive and outboard pleasure boats, including H2O Sport and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta Sportdecks, Signature Cruisers, SunCoast Sportdeck outboards and Vortex Jet Boats.  Robalo builds outboard sport fishing boats which include center console, dual console, walkaround cabin and Cayman bay boat models.

For the quarter ended March 31, 2015, Marine Products generated net sales of $50,644,000, a 6.2 percent increase compared to $47,702,000 in the same period of the prior year.  The increase in net sales was due to higher unit sales during the quarter as compared to the prior year.

Gross profit for the quarter was $10,205,000, or 20.2 percent of net sales, a 15.5 percent increase compared to gross profit of $8,838,000, or 18.5 percent of net sales, in the same period of the prior year.  Gross profit for the first quarter increased compared to the prior year due to higher net sales and an improved gross margin.  Gross margin improved during the quarter compared to the prior year due to a favorable model mix and improved operating efficiencies due to higher production volumes, as well as some decreases in raw materials costs. 

Operating profit for the quarter was $4,254,000, an increase of 53.7 percent compared to $2,768,000 in the first quarter of last year.  Selling, general and administrative expenses were $5,951,000 in the first quarter of 2015, a decrease of 2.0 percent compared to the first quarter of 2014.  As a percentage of net sales, these expenses decreased from 12.7 percent in the first quarter of 2014 to 11.8 percent in the first quarter of 2015.

Net income for the quarter ended March 31, 2015 was $2,929,000, an increase of $951,000 or 48.1 percent compared to net income of $1,978,000 for the first quarter of 2014.  Diluted earnings per share were $0.08 in the first quarter of 2015, an increase of $0.03 compared to the first quarter of the prior year.   

Richard A. Hubbell, Marine Products' President and Chief Executive Officer stated, "We are pleased to report continued sales growth from Robalo and Vortex Jet Boats.  We also generated increased sales of the new SunCoast Sportdeck outboards during the first quarter, and we believe that this new line will continue to contribute to our success during the 2015 retail selling season.  Our profitability improved due to improved efficiencies from higher production volumes and a more profitable model mix.

"The recreational boating industry enjoyed a strong winter boat show season.  A late spring in the Northeast has had a slight negative impact on sales in that region, but in general, we believe that the 2015 retail selling season will be strong.  At the end of the first quarter, our order backlog was higher than at the same time last year, and our dealer inventories were comparable to the prior year, so we have decided to increase production during the second quarter.  In order to support this higher production, we have re-opened a previously idled manufacturing plant and hired additional manufacturing employees to produce our Vortex Jet Boats.  This facility will allow us to increase our production by as much as 20 percent and continue to improve our manufacturing efficiencies," concluded Hubbell. 

Marine Products Corporation will hold a conference call today, April 29, 2015 at 8:00 a.m. Eastern Time to discuss the results for the quarter.  Interested parties may listen in by accessing a live webcast in the investor relations section of Marine Products' website at www.marineproductscorp.com.  The live conference call can also be accessed by calling (888) 510-1765 or (719) 325-2494 for international callers and using the conference ID #5113326.  A replay will be available in the investor relations section of Marine Products' website beginning approximately two hours after the call. 

Marine Products Corporation (NYSE: MPX) designs, manufactures and distributes premium-branded Chaparral sterndrive, jet drive and outboard pleasure boats, and Robalo offshore sport fishing boats.  The Company continues to diversify its product lines through product innovation and is prepared to consider strategic acquisition targets.  With premium brands, a solid capital structure, and a strong independent dealer network, Marine Products Corporation is prepared to capitalize on opportunities to increase its market share and to generate superior financial performance to build long-term shareholder value.  For more information on Marine Products Corporation visit our website at www.marineproductscorp.com.

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations or hopes.  In particular, such statements include, without limitation, statements about our belief that the SunCoast Sportdeck outboards will continue to contribute to our success during the 2015 retail selling season; our belief that the 2015 retail selling season will be strong, and that our re-opened manufacturing plant and additional manufacturing employees will allow us to increase production and continue to improve our manufacturing efficiencies. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Marine Products Corporation to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements.  These risks include possible decreases in the level of consumer confidence and available funds impacting discretionary spending, increased interest rates and fuel prices, weather conditions, changes in consumer preferences, deterioration in the quality of Marine Products' network of independent boat dealers or availability of financing of their inventory, and competition from other boat manufacturers and dealers.  Additional discussion of factors that could cause the actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in Marine Products' Form 10-K, filed with the Securities and Exchange Commission for the year ending December 31, 2014.

For information contact:
BEN M. PALMER      
Chief Financial Officer   
(404) 321-7910  
irdept@marineproductscorp.com       

JIM LANDERS 
Vice President, Corporate Finance
(404) 321-2162
jlanders@marineproductscorp.com 

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
















CONSOLIDATED STATEMENTS OF OPERATIONS  (In thousands except per share data)


Periods ended March 31, (Unaudited)


First Quarter






2015



2014


% BETTER
(WORSE)


Net Sales

$

50,644


$

47,702


6.2

%

Cost of Goods Sold


40,439



38,864


(4.1)


Gross Profit 


10,205



8,838


15.5


Selling, General and Administrative Expenses


5,951



6,070


2.0


Operating Profit


4,254



2,768


53.7


Interest Income


117



122


(4.1)


Income Before Income Taxes


4,371



2,890


51.2


Income Tax Provision 


1,442



912


(58.1)


Net Income 

$

2,929


$

1,978


48.1

%



















EARNINGS PER SHARE 









   Basic  

$

0.08


$

0.05


60.0

%

   Diluted  

$

0.08


$

0.05


60.0

%










AVERAGE SHARES OUTSTANDING









   Basic  


37,028



36,958




   Diluted  


37,264



37,255




 

 

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES












CONSOLIDATED BALANCE  SHEETS






At March 31, (Unaudited)


(in thousands)



2015



2014

ASSETS






Cash and cash equivalents

$

9,175


$

8,663

Marketable securities


6,165



8,439

Accounts receivable, net


5,406



3,000

Inventories


30,412



26,548

Income taxes receivable


366



416

Deferred income taxes


2,323



1,162

Prepaid expenses and other current assets


1,184



1,193

  Total current assets


55,031



49,421

Property, plant and equipment, net


10,525



11,164

Goodwill 


3,308



3,308

Other intangibles, net


465



465

Marketable securities


28,694



32,164

Deferred income taxes


2,761



2,882

Other assets


9,973



8,351

  Total assets

$

110,757


$

107,755







LIABILITIES AND STOCKHOLDERS' EQUITY






Accounts payable

$

8,503


$

8,409

Accrued expenses and other liabilities


10,788



10,762

  Total current liabilities


19,291



19,171

Long-term pension liabilities


6,675



6,288

Other long-term liabilities


79



87

  Total liabilities


26,045



25,546

Common stock 


3,833



3,821

Capital in excess of par value


3,670



3,455

Retained earnings


79,152



75,776

Accumulated other comprehensive loss


(1,943)



(843)

  Total stockholders' equity


84,712



82,209

  Total liabilities and stockholders' equity 

$

110,757


$

107,755

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/marine-products-corporation-reports-first-quarter-2015-financial-results-300073900.html

SOURCE Marine Products Corporation

Apr 29, 2015
Forward-Looking Statement:
This website 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: our belief that international sales will continue to be weak in 2019; statements regarding our maintenance of conservative standards of liquidity and credit quality in our marketable securities portfolio; our belief that our effective tax rate in 2019 will be similar to our effective tax rate in 2018; our view that open market repurchases are an important part of our capital allocation strategy and an important tool to increase overall shareholder return; our belief that our cash and marketable securities balance continues to provide liquidity to support both our current operations as well as future growth opportunities; our receptiveness to considering acquisition candidates which manufacture products which complement our own offerings; our belief that interest in recreational boating as a safe, fun recreational activity continues to be strong in 2019; our belief that high consumer confidence, general economic strength and a favorable dealer and consumer financing environment will generate strong sales in 2019; our belief that we will be a leader in marketing and branding strategies that consistently present a luxury-oriented message and integrate those expectations into the boater's entire experience; our belief that the popularity of our Robalo outboard sportfishing boats will continue to grow and that boaters are increasingly gravitating towards larger models; and our belief that our implementation of an enhanced marketing effort will better serve to elevate the customer experience. 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 under the title "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ending December 31, 2018. In addition, the payment of future dividends is subject to Board discretion and depends on many factors, including the Company's available cash flow and competing uses for cash. 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.


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