Marine Products Corporation Reports 2004 Second Quarter Results |
• Net sales for the quarter increased 24.7 percent over prior year
• Earnings per share for the quarter were $0.24, an increase of 26.3 percent over prior year
ATLANTA, July 28, 2004 – Marine Products Corporation (AMEX: MPX) announced its unaudited results for the quarter ended June 30, 2004. Marine Products is a leading manufacturer of fiberglass boats under two brand names: sterndrive and inboard pleasure boats by Chaparral, including SSi Sportboats, Sunesta Deckboats, and Signature Cruisers, and outboard sport fishing boats by Robalo.
For the quarter ended June 30, 2004, Marine Products generated net sales of $64,775,000, a 24.7 percent increase compared to $51,951,000 last year. The increase in net sales was due to a 13.0 percent increase in the number of boats sold and a 10.5 percent increase in the average sales price per boat. All four lines experienced increased unit sales. The increase in average sales price per boat was due to increased sales of larger cruisers and sportboats, and increased sales of Robalo sport fishing boats. Gross profit for the quarter was $16,971,000, or 26.2 percent of net sales, compared to $13,551,000, or 26.1 percent of net sales, in the prior year.
Operating income for the quarter was $9,475,000, a 25.8 percent increase compared to the second quarter last year due to higher gross profit, partially offset by higher selling, general and administrative expenses. Operating income was 14.6 percent of net sales for the quarter compared to 14.5 percent of net sales in the prior year. Selling, general and administrative expenses increased due to costs that vary with sales and profitability, such as warranty expense, sales commissions and other incentive compensation, and increased research and development expense associated with the development of new models for the 2005 model year.
Net income for the quarter ended June 30, 2004 was $6,396,000, a 28.9 percent increase compared to $4,961,000 in the prior year. Net income increased due to higher operating income and a lower effective income tax rate. The effective income tax rate during the second quarter was 33 percent compared to an effective income tax rate of 36 percent in the prior year, primarily because of a previously unrecognized tax refund received during the current year quarter. The effective tax rate change increased net income by $259,000, or $0.01 per diluted share. Diluted earnings per share for the quarter were $0.24, a 26.3 percent increase compared to $0.19 diluted earnings per share in the prior year.
Net sales for the six months ended June 30, 2004 were $126,605,000, a 24.1 percent increase from the first six months of 2003. Net income for the six-month period increased 31.5 percent to $12,042,000 or $0.44 diluted earnings per share compared to $9,154,000 or $0.34 diluted earnings per share in the prior year.
Richard A. Hubbell, Marine Products’ Chief Executive Officer stated, “The second quarter of 2004 continued our positive momentum. All of our models sold well this quarter, and we continue to be pleased with Robalo's growing contribution to our sales and profitability. As we finish the 2004 model year, we are pleased that dealer demand remains strong. Our field inventories at the end of the quarter were higher than at the end of the second quarter last year due to increased sales volume, but not as high as the increase in our order backlog compared to the same time last year. We are looking forward to our dealer meetings in August, which will provide valuable insight into dealer and retail demand. We have continued our commitment to improved customer service, and believe it will provide a great deal of future benefit to the Company."
Marine Products Corporation (AMEX: MPX) designs, manufactures and distributes premium-branded Chaparral sterndrive and inboard pleasure boats and Robalo sport 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 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 regarding our ability to take advantage of market opportunities, increase our market share, build long-term shareholder value, and improve and increase the contribution of Robalo to our sales and profitability. 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, 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, 2003. |
Jul 28, 2004 |
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