Marine Products Corporation Reports Record 2003 Second Quarter Results |
- Net sales increased by 10 percent over prior year * Earnings per share increased by 40 percent over prior year
ATLANTA, Jul 23, 2003 /PRNewswire-FirstCall via COMTEX/ -- Marine Products Corporation (Amex: MPX) announced its unaudited results for the quarter and six months ended June 30, 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 sportfishing boats by Robalo.
For the quarter ended June 30, 2003, Marine Products generated net sales of $51,951,000, a 10.1 percent increase compared to $47,193,000 last year, the highest quarterly net sales amount in its history. The increase in net sales was due to a 3.4 percent increase in the number of boats sold coupled with a 5.6 percent increase in the average selling price per boat. Gross profit for the quarter was $13,551,000, a 29.8 percent increase over the same period in 2002. Gross profit as a percentage of sales was 26.1 percent, an increase of 4.0 percentage points compared to the second 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, increased sales of cruisers which generate higher gross margins, improvements at Robalo, and various adjustments to accruals that are routinely recorded in the second quarter as a result of the completion of the current model year. The gross profit improvement at Robalo was also due to the increased production volume and a 29.0% increase in unit sales over the second quarter of 2002.
Operating income for the quarter was $7,529,000, a 33.0 percent increase compared to the second 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 incentive compensation, sales commissions, and warranty expense.
Net income for the quarter ended June 30, 2003 was $4,961,000, a 37.4 percent increase compared to $3,611,000 in the prior year. Net income increased due to higher operating and interest income. The effective tax rate was 36 percent compared to 38 percent in the prior year, which had the effect of increasing net income by $154,000 or $0.01 per diluted share. Diluted earnings per share for the quarter were $0.28, a 40.0 percent increase compared to $0.20 diluted earnings per share in the prior year. During the quarter, the Company repurchased 95,000 shares of its common stock for cash on the open market under its stock buyback program.
Net sales for the six months ended June 30, 2003 were $102,058,000, a 19.3 percent increase from the first six months of fiscal 2002. Net income for the six-month period increased 50.1 percent to $9,154,000 or $0.51 diluted earnings per share compared to $6,098,000 or $0.34 diluted earnings per share last year.
Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The second quarter of 2003 continued the strong performance of the first quarter of this year. Dealer orders continue to be strong, following an outstanding boat show season."
Hubbell continued, "Our average unit sales price rose by more than five percent during the quarter, primarily due to greater volume from our larger, value-added Signature Cruisers coupled with increased production and higher average sales prices due to recently available larger models in our Robalo sportfishing line. Robalo accounted for over seven percent of net sales this quarter. Improved financing terms in the retail sector are spurring consumers to purchase larger boats and upgraded models. While Marine Products is not involved in financing consumer boat purchases, we benefit from a low-interest rate environment as the number and size of boats sold increases.
"We are carefully monitoring our level of dealer inventories as we introduce the new model line up for fall. While the third quarter is seasonally a slow quarter, it is very interesting to see our dealers' and the public's reaction to the 2004 model line-up. These models will debut at our dealer conference this August. We continue to experience positive results, and are gratified that the American public continues to view recreational boating as a fun, affordable way to spend its leisure time. We are also pleased to report a continued strong financial position, which we intend to use to take advantage of future growth opportunities."
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 take advantage of market opportunities, sustain our market share, and build long-term shareholder value. 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 availability of financing of their inventory. 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 ** |
Jul 10, 2003 |
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