Marine Products Corporation Reports 2002 First Quarter Results |
ATLANTA, Apr 19, 2002 /PRNewswire-FirstCall via COMTEX/ -- Marine Products Corporation (Amex: MPX) announced its unaudited results for the quarter ended March 31, 2002. Marine Products is a leading manufacturer of fiberglass boats under two brand names: sterndrive pleasure boats by Chaparral, including SS Sportboats, Sunesta Deckboats, and Signature Cruisers, and offshore sport fishing boats by Robalo.
For the quarter ended March 31, 2002, Marine Products generated net sales of $38,323,000, a six percent increase compared to $36,318,000 last year. The increase in net sales was due to an increase in the number of boats sold coupled with an increase in the average sales price per boat. Gross profit for the quarter was $8,138,000, a four percent decrease over the same period in 2001. Gross profit as a percentage of sales was 21.2 percent, a decrease of 2.2 percentage points from the first quarter of 2001. The company's lower gross margins were due to an unfavorable model mix as compared to the prior year, coupled with the continued effect of initiating production of the Robalo product line. Robalo's margins have been negatively impacted by low production volumes, as preparation is made for higher volume later in the year.
Despite lower gross profit margins, operating income for the quarter decreased only $4,000 to $3,855,000, or a 0.1 percent decrease compared to the first quarter last year. The lower gross profit was offset by lower selling, general and administrative expenses, relating primarily to lower research and development costs, and the elimination of goodwill amortization.
Net income for the quarter ended March 31, 2002 was $2,487,000 or $0.14 diluted earnings per share compared to $2,465,000 or $0.14 pro forma diluted earnings per share in the prior year.
Richard A. Hubbell, Marine Products' Chief Executive Officer, stated, "The first quarter results reflect strong demand for our products, especially the Sunesta deckboats. We are grateful to our dealers for making this boat show season so successful through their hard work and promotional partnerships. We recently received market share results for the full year 2001 and are pleased to report that Chaparral has continued to gain market share in the sterndrive category.
Hubbell continued, "Our average unit sales price rose almost three percent, due to the change in the model mix sold and the incremental increase in sales of Robalo offshore sport fishing boats, which rose from less than one percent of sales in fourth quarter 2001 to approximately three percent of first quarter 2002 sales.
"Overall, the outlook for the marine industry is brighter than it was at the end of the fourth quarter and we are cautiously optimistic. Our production is increasing for the transition into the second quarter, which is traditionally the best quarter for boat sales. We continue to align our costs with sales activities and we remain diligent about closely monitoring dealer inventories and demand.
Stated Hubbell, "We will continue to use Marine Products' strong capital position and cash flow generating potential to generate market share growth. We are pleased with the progress and potential of the Robalo acquisition, and are prepared for the opportunity to acquire complementary boat builders, to continue the expansion of our product offerings and to improve our distribution network."
Marine Products is a leading manufacturer of fiberglass boats, including Chaparral pleasure boats and 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 25 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 10K, on file with the Securities and Exchange Commission.
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Apr 19, 2002 |
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