Marine Products Corporation Reports 2003 First Quarter Results |
- Net Sales Increased By 30.7 Percent Over Prior Year
- Earnings Per Share Increased By 64.3 Percent Over Prior Year
ATLANTA, April 23 /PRNewswire-FirstCall/ -- Marine Products Corporation (Amex: MPX) announced its unaudited results for the quarter ended March 31, 2003. 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, 2003, Marine Products generated net sales of $50,107,000, a 30.7 percent increase compared to $38,323,000 last year. The increase in net sales was due to a 24 percent increase in the number of boats sold coupled with a six percent increase in the average selling price per boat. Gross profit for the quarter was $12,092,000, a 48.6 percent increase over the same period in 2002. Gross profit as a percentage of sales was 24.1 percent, an increase of 2.9 percentage points compared to the first quarter of 2002. The improvement in gross profit as a percentage of net sales was due to higher overall production volume that provided better production efficiency coupled with increased sales of cruisers which generate higher gross margins.
Operating income for the quarter was $6,440,000, a 67.1 percent increase compared to the first quarter last year. This increase over the prior year was due to higher gross profit, partially offset by higher selling, general and administrative expenses during the period. The higher selling, general and administrative expenses include costs that vary with sales and profitability, such as warranty expense, incentive compensation, and sales commissions.
Net income for the quarter ended March 31, 2003 was $4,194,000, a 68.6 percent increase compared to $2,487,000 in the prior year. Net income increased due to higher operating income and the decrease in the Company's effective tax rate, from 38 percent in the prior year to 36 percent in 2003. Diluted earnings per share for the quarter were $0.23, a 64.3 percent increase compared to $0.14 diluted earnings per share in the prior year. During the quarter, the Company repurchased 101,990 shares of its common stock for cash on the open market under its stock buyback program.
Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The first quarter of 2003 continued the strong performance of 2002. Dealer orders continue to be strong, following an outstanding boat show season."
Hubbell continued, "Our average unit sales price rose by six percent during the quarter, primarily due to success with sales of our larger, value- added Signature Cruisers complemented by strong sales in larger SSi Sportboats, our premium-branded sportboat line. Sales of Robalo offshore sport fishing boats were approximately five percent of first quarter 2003 sales.
"We are carefully monitoring our level of dealer inventories as we move into the second quarter, typically our strongest quarter of the year. While we continue to experience positive results, the overall sales environment for recreational products is not as favorable as it was in 2002. We are concerned about the possible effects on our sales of the timing and strength of the economic recovery, the war with Iraq, and recent increases in fuel prices. We will use Marine Products' strong capital position and cash flow generating potential to sustain our business, should we be affected by declining consumer confidence and economic uncertainty."
Marine Products Corporation (Amex: MPX) designs, manufactures and distributes premium-branded Chaparral sterndrive pleasure boats and Robalo outboard offshore fishing boats, and continues to diversify its product line through product innovation and strategic acquisition. 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 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 our ability to continue to gain market share, the outlook for the industry, continued demand for our products and our ability to continue to generate superior financial performance. 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 impacting discretionary spending, increased interest rates, deterioration in the quality of Marine Products' network of independent boat dealers or a decrease in the number of 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, 2002.
** See attachment for entire release ** |
Apr 23, 2003 |
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