Marine Products Corporation Reports 2005 First Quarter Financial Results |
*Net sales for the quarter increased 17.4 percent over prior year
*Diluted earnings per share for the quarter increased 21.4 percent over prior year
ATLANTA, April 27, 2005 – Marine Products Corporation (AMEX: MPX) announced its unaudited results for the quarter ended March 31, 2005. Marine Products Corporation 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 March 31, 2005, Marine Products generated net sales of $72,586,000, a 17.4 percent increase compared to $61,830,000 in the first quarter of last year. The increase in net sales was primarily due to an 11.2 percent increase in the number of boats sold, a 5.9 percent increase in the average selling price per boat, and an increase in parts and accessories sales. The increase in unit sales was highlighted by increases in the sales of Robalo sport fishing boats and Sunesta deckboats. The increase in average selling price was primarily due to sales of larger SSi Sportboats and Signature Cruisers. Gross profit for the quarter was $18,948,000, or 26.1 percent of net sales, compared to $15,723,000, or 25.4 percent of net sales, in the prior year. The increase in gross profit as a percent of sales was the result of efficiencies from higher production volumes and a favorable model mix.
Operating income for the quarter was $10,101,000, a 17.9 percent increase compared to the first quarter last year due to higher gross profit, partially offset by higher selling, general and administrative expenses. Operating income was 13.9 percent of net sales for the quarter, the same as in the prior year. Selling, general and administrative expenses increased primarily due to the variable nature of many of these costs. The increase was primarily due to an increase in incentive compensation and sales commissions, which resulted from the higher gross margin as a percentage of net sales and higher operating profit. In addition, expenses associated with public company compliance increased.
Net income for the quarter ended March 31, 2005 was $6,817,000, a 20.7 percent increase compared to $5,646,000 in the prior year. Net income increased due to higher operating income and increased interest income compared to the prior year. Diluted earnings per share for the quarter were $0.17, representing a 21.4 percent increase compared to $0.14 diluted earnings per share in the prior year.
Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The first quarter sales continued to reflect strong demand for our products. All of our lines sold well this quarter, and our overall model mix improved average selling prices as well. The winter boat show season was strong for pleasure boat manufacturers such as Marine Products Corporation, so we are continuing with high production levels that will meet demand through the remainder of the retail selling season."
Hubbell continued, "In the first quarter of 2005 we increased our production and realized efficiencies in our operations, which yielded strong sales and a higher gross margin as a percentage of net sales than in the fourth quarter of 2004 and the same period last year. At the end of the quarter, our unit backlog was lower than at this time last year due to higher production levels in the last several months compared to one year ago, and our dealer inventories were higher to support retail sales. While we are comfortable with these levels due to the strong boat show season this year, we are closely monitoring these key indicators as well as macroeconomic indicators such as consumer confidence and interest rates."
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 strategically 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 meet dealer demand for the remainder of the selling season, our ability to design innovative products and make strategic acquisitions, and our beliefs regarding the appropriate levels of backlog and dealer inventory and continued strong demand and the outlook for the remainder of the year. 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, business interruptions due to adverse weather conditions, 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, our ability to insulate our financial results against increasing commodity prices, the impact of rising gasoline prices on consumer demand for our products, 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, 2004.
For information about Marine Products Corporation, please contact:
BEN M. PALMER
Chief Financial Officer
404.321.7910
irdept@marineproductscorp.com
JIM LANDERS
Corporate Finance
404.321.2162
jlanders@marineproductscorp.com
|
Apr 27, 2005 |
Give Feedback |
|