Marine Products Corporation Reports 2001 Fourth Quarter Results |
ATLANTA, Jan. 18 /PRNewswire-FirstCall/ -- Marine Products Corporation (Amex: MPX) ("Marine Products") announced its unaudited results for the quarter and twelve months ended December 31, 2001. Marine Products is a leading manufacturer of fiberglass boats under two brand names; pleasure boats by Chaparral, including SS Sportboats, Sunesta Deckboats, and Signature Cruisers, and offshore fishing boats by Robalo.
For the quarter ended December 31, 2001, Marine Products generated net sales of $30,139,000, a 7.8 percent decrease compared to $32,703,000 last year. The decline in net sales was due to a year over year decrease in the number of Chaparral boats sold, partially offset by an increase in the average sales price per boat, especially in the larger boats. Although representing only approximately one percent of sales, initial deliveries of the new Robalo fishing boats were included in the fourth quarter of 2001. Gross profit for the quarter was $5,911,000, a 5.4 percent decrease over the same period in 2000. Operating income for the quarter was $2,374,000, a 17.4 percent decrease compared to the fourth quarter last year. Operating income decreased due to lower net sales, startup expenses associated with the Robalo product line, and slightly higher selling, general and administrative expenses. Net income for the quarter ended December 31, 2001 was $1,537,000 or $0.09 diluted earnings per share compared to $1,812,000 or $0.11 diluted earnings per share in the prior year.
Net sales for the twelve months ending December 31, 2001 were $134,689,000, a 9.2 percent decrease compared to the prior year. Net income for the twelve months was $8,563,000, or $0.49 diluted earnings per share. Net income for the prior year, excluding a one-time gain on settlement of a claim, was $9,734,000 or $0.57 diluted earnings per share.
Richard A. Hubbell, Marine Products' Chief Executive Officer, stated, "Marine Products' results for the fourth quarter reflect a continued softness in the market for pleasure boats. In light of the continued weak domestic economy, we are pleased with our operating performance. Based on recently received survey results, Chaparral continues to gain market share in the stern-drive segment. We have effectively used our strong capital position and cash flow by investing in new production facilities and research and development of a broader product line and more innovative products and features.
"Our model mix is changing as we extend our product line to accommodate demand for larger boats and to expand into higher margin products. As a result of our strategic decision to improve production efficiencies and produce large cruisers, we will complete a new 130,000 square foot cruiser plant in the first quarter of 2002. We have more models this year than last year, appealing to a wider segment of the market, from the first time boat buyer to the seasoned saltwater fisherman. We are encouraged by the market's reception of our larger cruisers and saltwater fishing boats. We are cautiously optimistic about the outlook for the industry, and will continue to expand our salt water fishing boat line as well as our larger cruiser line."
Hubbell continued, "In line with our announcement at the time of the Robalo acquisition, Robalo entered production and sold its first boats in the fourth quarter of 2001. Production was initiated with two different Robalo models of 23-foot boats. The Robalo dealer network is being expanded to generate sales and we will continue to increase the offerings and geographic reach of Robalo through 2002.
"The fourth quarter and early first quarter is boat show season, where 35 percent to 40 percent of boat buyers initiate their decision to purchase a boat. The industry has enjoyed a strong boat show season so far. Chaparral and Robalo have experienced increased traffic and unit sales at this year's shows compared to previous years as consumers are searching for recreational activities that keep them together and close to home. From what we have seen in the marketplace, the pleasure boat business seems to have bottomed out; however, the timing and strength of the recovery is hard to predict. We will continue to monitor the sales trends through the rest of the boat show season and throughout the first quarter of 2002, as we transition into the second quarter of 2002, which is traditionally the best quarter for boat sales. We continue to align our costs with sales activities and we remain diligent about minimizing our inventory levels and our dealers' inventory."
Marine Products is a leading manufacturer of fiberglass boats, including Chaparral pleasure boats as well as Robalo offshore fishing boats. Marine Products' wholly-owned Chaparral subsidiary is recognized as one of the leading boat builders in the United States as evidenced by 22 Powerboat Magazine awards since 1981, including eight coveted "Boat of the Year" titles. Marine Products Corporation sells 26 Chaparral models from 18 to 35 feet in length, including 14 SS Sportboats, six Sunesta Deckboats, and six Signature Cruisers. Chaparral boats are distributed through approximately 150 domestic and 30 international dealers. In the fourth quarter of 2001, Marine Products began manufacturing and marketing Robalo offshore fishing boats. The Company's mission is to enhance its customers' boating experience by providing them with high quality, innovative products. Marine Products Corporation's investor Web site can be found on the Internet 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 regarding Chaparral's ability to gain market share, the outlook for the industry, and our ability to continue to expand our product lines. 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. 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, on file with the Securities and Exchange Commission.
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Jan 18, 2002 |
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