ATLANTA, July 29, 2015 /PRNewswire/ -- Marine
Products Corporation (NYSE: MPX) announced its unaudited results
for the quarter ended June 30,
2015. Marine Products is a leading manufacturer of fiberglass
boats under two brand names: Chaparral and Robalo. Chaparral builds
sterndrive, jet drive and outboard pleasure boats, including H2O
Sport and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta
Sportdecks, Signature Cruisers, SunCoast Sportdeck outboards and
Vortex Jet Boats. Robalo builds outboard sport fishing boats
which include center console, dual console, walkaround cabin and
Cayman bay boat models.
For the quarter ended June 30,
2015, Marine Products generated net sales of $59,498,000, a 24.0 percent increase compared to
$47,975,000 in the same period of the
prior year. The increase in net sales was due to higher unit
sales of our Vortex Jet Boats during the quarter as compared to the
prior year, as well as increased unit sales of our Robalo outboard
sport fishing boats and Chaparral SunCoast Sportdeck outboards
during the quarter.
Gross profit for the quarter was $12,604,000, or 21.2 percent of net sales, a 33.6
percent increase compared to gross profit of $9,432,000, or 19.7 percent of net sales, in the
same period of the prior year. Gross profit for the second
quarter increased compared to the prior year due to higher net
sales and an improved gross margin. Gross margin improved
during the quarter compared to the prior year due to a favorable
model mix and improved operating efficiencies due to higher
production volumes.
Operating profit for the quarter was $6,423,000, an increase of 55.7 percent compared
to $4,125,000 in the second quarter
of last year. Selling, general and administrative expenses
were $6,181,000 in the second quarter
of 2015, an increase of 16.5 percent compared to the second quarter
of 2014. Selling, general and administrative expenses
increased due to expenses that increase with sales and
profitability, such as sales commissions and incentive
compensation. These increases were partially offset by
decreases in warranty expenses, which decreased due to favorable
warranty claims experience. As a percentage of net sales, selling,
general and administrative expenses decreased from 11.1 percent in
the second quarter of 2014 to 10.4 percent in the second quarter of
2015.
Net income for the quarter ended June 30,
2015 was $4,429,000, an
increase of $1,416,000 or 47.0
percent compared to net income of $3,013,000 for the second quarter of 2014.
Diluted earnings per share were $0.12
in the second quarter of 2015, an increase of $0.04 compared to the second quarter of the prior
year.
Net sales for the six months ended June
30, 2015 were $110,142,000, an
increase of 15.1 percent compared to the first six months of
2014. Net income for the six-month period was $7,358,000 or $0.20
earnings per diluted share, compared to net income of $4,991,000, or $0.13 earnings per diluted share in the prior
year.
Richard A. Hubbell, Marine
Products' President and Chief Executive Officer stated, "We are
pleased to report strong sales results for our Vortex Jet Boats in
the second quarter. In addition, our Robalo outboard sport
fishing boats generated year-over-year sales increases, and we are
pleased with our dealers' and customers' reception to our Chaparral
SunCoast outboards, which are new for this retail selling
season. Our profitability improved due to efficiencies gained
from higher unit production as well as our continued efforts to
improve efficiencies within our expanded manufacturing
facility.
"In spite of some weather-related sales slowdowns during the
quarter, Marine Products enjoyed a good 2015 retail selling
season. We benefited from a strong selling environment as
well as continued appeal of our product offerings. We are
especially pleased with our Vortex sales during the second quarter,
and believe that this product line's share of the jet boat market
is growing significantly. At the end of the quarter, our
dealer inventories were comparable to the end of the second quarter
of 2014, and order backlog was higher than at this time last
year. We are preparing for our annual dealer conference in a
few weeks, and are excited about several new models that we will be
introducing to our dealers for the 2016 model year. Also
during the third quarter we plan to monitor dealer inventories and
adjust production as necessary based on retail seasonality, our
transition to the 2016 model year and our efforts to ensure that
our dealers' inventory levels remain stable," concluded
Hubbell.
Marine Products Corporation will hold a conference call today,
July 29, 2015 at 8:00 a.m. Eastern Time to discuss the results for
the quarter. Interested parties may listen in by accessing a
live webcast in the investor relations section of Marine Products'
website at www.marineproductscorp.com. The live conference
call can also be accessed by calling (888) 455-2260 or (719)
325-2329 for international callers and using the conference ID
#9825986. A replay will be available in the investor
relations section of Marine Products' website beginning
approximately two hours after the call.
Marine Products Corporation (NYSE: MPX) designs, manufactures
and distributes premium-branded Chaparral sterndrive, jet drive and
outboard pleasure boats, and Robalo outboard sport fishing
boats. The Company continues to diversify its product lines
through product innovation. 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 that look forward in
time or express management's beliefs, expectations or hopes.
In particular, such statements include, without limitation,
statements about our belief that the market share of our Vortex jet
boat product line is growing significantly, our excitement about
several new models that we will be introducing to our dealers for
the 2016 model year, and our plans to monitor dealer inventories
and adjust production as necessary based on retail seasonality, our
transition to the 2016 model year and our efforts to ensure that
our dealers' inventory levels will remain stable. 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,
2014.
For information
contact:
|
|
BEN M.
PALMER
|
JIM
LANDERS
|
Chief Financial
Officer
|
Vice President,
Corporate Finance
|
(404)
321-7910
|
(404)
321-2162
|
irdept@marineproductscorp.com
|
jlanders@marineproductscorp.com
|
MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands except per
share data)
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Periods ended June
30, (Unaudited)
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Second
Quarter
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Six Months
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2015
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2014
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% BETTER
(WORSE)
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2015
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2014
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% BETTER
(WORSE)
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Net
Sales
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$
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59,498
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$
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47,975
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24.0
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%
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$
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110,142
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$
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95,677
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15.1
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%
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Cost of Goods
Sold
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46,894
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38,543
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(21.7)
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87,333
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77,407
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(12.8)
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Gross
Profit
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12,604
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9,432
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33.6
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22,809
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18,270
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24.8
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Selling, General and
Administrative Expenses
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6,181
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5,307
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(16.5)
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12,132
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11,377
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(6.6)
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Operating
Profit
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6,423
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4,125
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55.7
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10,677
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6,893
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54.9
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Interest
Income
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105
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121
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(13.2)
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222
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243
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(8.6)
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Income Before Income
Taxes
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6,528
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4,246
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53.7
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10,899
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7,136
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52.7
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Income Tax
Provision
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2,099
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1,233
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(70.2)
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3,541
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2,145
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(65.1)
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Net
Income
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$
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4,429
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$
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3,013
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47.0
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%
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$
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7,358
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$
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4,991
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47.4
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%
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EARNINGS PER
SHARE
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Basic
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$
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0.12
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$
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0.08
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50.0
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%
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$
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0.20
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$
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0.13
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53.8
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%
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Diluted
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$
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0.12
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$
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0.08
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50.0
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%
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$
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0.20
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$
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0.13
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53.8
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%
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AVERAGE SHARES
OUTSTANDING
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Basic
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37,026
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36,989
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37,025
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36,973
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Diluted
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37,120
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37,180
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37,224
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37,240
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MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
BALANCE SHEETS
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At June 30,
(Unaudited)
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(in
thousands)
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2015
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2014
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ASSETS
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Cash and cash
equivalents
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$
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9,312
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$
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2,453
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Marketable
securities
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8,288
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8,125
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Accounts receivable,
net
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4,582
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4,370
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Inventories
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30,136
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25,177
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Deferred income
taxes
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2,412
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1,293
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Prepaid expenses and
other current assets
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1,864
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1,610
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Total current
assets
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56,594
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43,028
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Property, plant and
equipment, net
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12,476
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11,142
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Goodwill
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3,308
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3,308
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Other intangibles,
net
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465
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465
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Marketable
securities
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28,153
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36,305
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Deferred income
taxes
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2,855
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3,122
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Other
assets
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10,009
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8,499
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Total
assets
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$
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113,860
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$
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105,869
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Accounts
payable
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$
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9,209
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$
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4,476
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Accrued expenses and
other liabilities
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10,883
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11,006
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Total current
liabilities
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20,092
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15,482
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Long-term pension
liabilities
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6,724
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6,488
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Other long-term
liabilities
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78
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|
|
83
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Total
liabilities
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26,894
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22,053
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Common
stock
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3,816
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3,817
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Capital in excess of
par value
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3,075
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3,157
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Retained
earnings
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82,050
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77,643
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Accumulated other
comprehensive loss
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(1,975)
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(801)
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Total
stockholders' equity
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86,966
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83,816
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Total
liabilities and stockholders' equity
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$
|
113,860
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$
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105,869
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/marine-products-corporation-reports-second-quarter-2015-financial-results-300120144.html
SOURCE Marine Products Corporation