ATLANTA, Jan. 27 /PRNewswire-FirstCall/ -- Marine Products
Corporation (NYSE:MPX) announced its unaudited results for the
quarter and year ended December 31, 2009. Marine Products is a
leading manufacturer of fiberglass boats under two brand names:
sterndrive and inboard pleasure boats by Chaparral, including
Premiere Sport Yachts, SSi Wide Techs, SSX Bowriders, Sunesta Wide
Techs and Xtremes, Signature Cruisers, and outboard sport fishing
boats by Robalo. For the quarter ended December 31, 2009, Marine
Products generated net sales of $13,313,000, a 41.5 percent
decrease compared to $22,764,000 last year. The decrease in net
sales was due to a 37.8 percent decrease in the number of boats
sold and a 5.8 percent decrease in the average selling price per
boat. Units sold decreased among all of our product lines, as we
operated at very low production levels in response to weak industry
conditions. The decrease in average selling price per boat was
caused by an unfavorable model mix of smaller boats sold during the
quarter compared to the prior year. Gross profit for the quarter
was $933,000, or 7.0 percent of net sales, compared to $2,350,000,
or 10.3 percent of net sales, in the prior year. Gross profit as a
percentage of net sales declined compared to the prior year due to
cost inefficiencies resulting from lower production volumes.
Operating loss for the quarter was $4,756,000 compared to an
operating loss of $1,831,000 in the fourth quarter of last year,
due to lower gross profit and higher selling, general and
administrative expenses. Selling, general and administrative
expenses in the fourth quarter of 2009 increased by 36.1 percent
compared to the prior year due to estimated costs to be incurred to
support our dealers in their continuing efforts to sell their
remaining field inventory relating to prior model years. This
increase was partially offset by lower expenses that vary with
sales and profitability and the impact of continued cost
management. Net loss for the quarter ended December 31, 2009 was
$2,764,000 compared to a net loss of $1,126,000 in the prior year.
Loss per share for the quarter was $0.08 compared to $0.03 loss per
share in the prior year. Net sales for the twelve months ended
December 31, 2009 were $48,471,000, a 72.4 percent decrease
compared to the year ended December 31, 2008. Net loss for the
twelve-month period was $10,693,000 or $0.30 loss per share
compared to net income of $7,586,000 or $0.21 diluted earnings per
share in the prior year. Richard A. Hubbell, Marine Products' Chief
Executive Officer stated, "During the third quarter of 2009 we
introduced our 2010 models to the market, and provided support to
our dealers as they continue with their successful efforts to
liquidate old inventory in preparation to sell updated products
manufactured during the current model year. The winter boat show
season has begun, and early indications are that attendance and
sales are similar to or slightly higher than last year. Also, the
availability of floorplan financing, the lack of which was a
significant impediment during the boat show season in 2009, has
improved for our financially stable dealers. "At the end of 2009,
our field inventories were slightly more than one-third of the
prior year's field inventories. We do not believe that there will
be any additional impact on our financial results of further
financial support of our dealer network to liquidate prior year
inventories. In this environment of historically low dealer
inventories, we are uniquely positioned to meet dealer and customer
demand for new products and adjust production appropriately. By the
end of the first quarter, our unit production will be almost 100
percent higher than in the third and fourth quarters of 2009 to
satisfy current dealer demand for 2010 models. There are many signs
confirming that this cycle has bottomed, and we will leverage our
financial strength, our position with our dealers, and our fleet of
updated models to serve our dealers and customers during 2010,"
concluded Hubbell. Marine Products Corporation will hold a
conference call today, January 27, 2010 at 8:00 a.m. EST to discuss
the results of the fourth quarter and full year. Interested parties
may listen in by accessing a live webcast in the investor relations
section of Marine Products' Web site at
http://www.marineproductscorp.com/. The live conference call can
also be accessed by calling (888) 857-6930 or (719) 325-2199 and
using the access code #5747688. A replay of the conference call
will be available in the investor relations section of Marine
Products' Web site (http://www.marineproductscorp.com/) beginning
approximately two hours after the call. Marine Products Corporation
(NYSE:MPX) designs, manufactures and distributes premium-branded
Chaparral sterndrive and inboard pleasure boats; Premiere Sport
Yachts; and Robalo sport fishing boats, and continues to diversify
its product line through product innovation and is prepared to
consider strategic acquisition targets. 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 http://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 conclusion that reports
of attendance and sales at the early winter boat shows are similar
to or slightly higher than last year; our belief that the
availability of floorplan financing has improved for our
financially stable dealers; our belief that there will not be any
additional impact on our financial results of further financial
support of our dealer network to liquidate prior year inventories;
our belief that we are prepared to meet dealer and customer demand
for new products with increased production; our belief that by the
end of our first quarter our unit production will be almost 100
percent higher than in the third and fourth quarters of 2009 to
satisfy current dealer demand for 2010 models, our belief that many
signs confirm that the market cycle in our industry has bottomed,
and that we are uniquely positioned to leverage our financial
strength, our position with our dealers, and our fleet of updated
models to increase our production and serve our dealers and
customers during 2010, and our belief that we are prepared to
capitalize on opportunities to increase our market share and
generate superior financial performance to 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 and available funds impacting discretionary
spending, increased interest rates and fuel prices, weather
conditions, 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, 2008. MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
-------------------------------------------- CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands except per share data)
---------------------------------------------------------------------
Periods ended December 31, (Unaudited) Fourth Quarter
-------------------------- -------------- 2009 2008 % BETTER
-------- (WORSE) ------- Net Sales $13,313 $22,764 (41.5)% Cost of
Goods Sold 12,380 20,414 39.4 ------------------ ------ ------ ----
Gross Profit 933 2,350 (60.3) Selling, General and Administrative
Expenses 5,689 4,181 (36.1) ------------------------ ----- -----
----- Operating (Loss) Income (4,756) (1,831) (159.7) Interest
Income 406 605 (32.9) --------------- --- --- ----- (Loss) Income
Before Income Taxes (4,350) (1,226) N/M Income Tax (Benefit)
Provision (1,586) (100) N/M -------------------- ------ ---- ---
Net (Loss) Income $(2,764) $(1,126) (145.5)% =================
======= ======= ======= (LOSS) EARNINGS PER SHARE Basic $(0.08)
$(0.03) (166.7)% ====== ====== ======= Diluted $(0.08) $(0.03)
(166.7)% ====== ====== ======= AVERAGE SHARES OUTSTANDING Basic
36,086 35,825 ====== ====== Diluted 36,086 35,825 ====== ======
Periods ended December 31, (Unaudited) Twelve Months
-------------------------- ------------- % BETTER 2009 2008 (WORSE)
-------- Net Sales $48,471 $175,622 (72.4)% Cost of Goods Sold
45,996 143,677 68.0 ------------------ ------ ------- ---- Gross
Profit 2,475 31,945 (92.3) Selling, General and Administrative
Expenses 21,638 23,146 6.5 ------------------------ ------ ------
--- Operating (Loss) Income (19,163) 8,799 N/M Interest Income
1,663 2,420 (31.3) --------------- ----- ----- ----- (Loss) Income
Before Income Taxes (17,500) 11,219 N/M Income Tax (Benefit)
Provision (6,807) 3,633 N/M -------------------- ------ ----- ---
Net (Loss) Income $(10,693) $7,586 N/M % ================= ========
====== === === (LOSS) EARNINGS PER SHARE Basic $(0.30) $0.21 N/M %
====== ===== === === Diluted $(0.30) $0.21 N/M % ====== ===== ===
=== AVERAGE SHARES OUTSTANDING Basic 35,964 35,786 ====== ======
Diluted 35,964 36,444 ====== ====== MARINE PRODUCTS CORPORATION AND
SUBSIDIARIES --------------------------------------------
CONSOLIDATED BALANCE SHEETS ---------------------------- At
December 31, (Unaudited) (in thousands) ---------------------------
-------------- 2009 2008 ASSETS Cash and cash equivalents $2,573
$4,622 Marketable securities 23,328 8,799 Accounts receivable, net
1,265 5,575 Inventories 19,487 22,453 Income taxes receivable 6,304
2,464 Deferred income taxes 1,008 1,116 Prepaid expenses and other
current assets 2,783 1,681 -------------------------- ----- -----
Total current assets 56,748 46,710 -------------------- ------
------ Property, plant and equipment, net 13,310 14,579 Goodwill
3,308 3,308 Other intangibles, net 465 465 Marketable securities
16,117 37,953 Deferred income taxes 3,224 2,934 Other assets 5,077
4,344 ------------ ----- ----- Total assets $98,249 $110,293
============ ======= ======== LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $1,972 $1,437 Accrued expenses and other
liabilities 8,711 12,281 -------------------------- ----- ------
Total current liabilities 10,683 13,718 Pension liabilities 5,689
5,285 Other long-term liabilities 365 501
--------------------------- --- --- Total liabilities 16,737 19,504
----------------- ------ ------ Common stock 3,688 3,643 Capital in
excess of par value - - Retained earnings 78,690 88,535 Accumulated
other comprehensive loss (866) (1,389) ------------------- ----
------ Total stockholders' equity 81,512 90,789
-------------------------- ------ ------ Total liabilities and
stockholders' equity $98,249 $110,293 ===================== =======
======== For information contact: BEN M. PALMER JIM LANDERS Chief
Financial Officer Vice President, Corporate Finance (404) 321-7910
(404) 321-2162 DATASOURCE: Marine Products Corporation CONTACT: BEN
M. PALMER, Chief Financial Officer, +1-404-321-7910, , or JIM
LANDERS, Vice President, Corporate Finance, +1-404-321-2162, , both
of Marine Products Corporation Web Site:
http://www.marineproductscorp.com/
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