ATLANTA, Jan. 29, 2020 /PRNewswire/ -- Marine
Products Corporation (NYSE: MPX) announced its unaudited results
for the quarter ended December 31,
2019. Marine Products is a leading manufacturer of fiberglass
boats under three brand names: Chaparral, Robalo and Vortex.
Chaparral's sterndrive models include SSi and SSX, along with the
Chaparral Surf Series. Chaparral's outboard offerings include
various models, such as OSX Luxury Sportboats, the 257 SSX, and
SunCoast Sportdecks. Robalo builds an array of outboard sport
fishing boats, which include center consoles, dual consoles and
Cayman Bay Boat models. Chaparral also offers jet powered
boats under the Vortex brand name.
For the quarter ended December 31,
2019, Marine Products generated net sales of $48,175,000, a 22.4 percent decrease compared
with net sales of $62,062,000 in the
same period of the prior year. During the quarter, unit sales
declined by 21.0 percent, as sales declined across all model lines.
Average selling price declined by 1.3 percent due to a change in
model mix.
Gross profit for the fourth quarter of 2019 was $10,522,000, a 19.2 percent decrease compared
with gross profit of $13,017,000 in
the same period of the prior year. Gross margin as a
percentage of net sales was 21.8 percent in the fourth quarter of
2019, compared with 21.0 percent in the fourth quarter of
2018.
Operating profit for the fourth quarter of 2019 was $4,178,000, a decrease of 30.6 percent compared
with operating profit of $6,016,000
in the fourth quarter of the prior year. Selling, general and
administrative expenses were $6,344,000 in the fourth quarter of 2019,
compared with $7,001,000 in the
fourth quarter of 2018. These expenses decreased due to expenses
that vary with sales and profitability, such as warranty expenses
and incentive compensation expenses, as well as lower research and
development expenses during the fourth quarter of 2019 as compared
to the fourth quarter of the prior year. Selling, general and
administrative expenses as a percentage of net sales were 13.2
percent in the fourth quarter of 2019 compared with 11.3 percent of
net sales during the fourth quarter of 2018.
Net income for the fourth quarter of 2019 was $3,542,000, a decrease of $1,186,000, or 25.1 percent, compared with net
income of $4,728,000 in the fourth
quarter of 2018. Diluted earnings per share were $0.10 in the fourth quarter of 2019, a decrease
of $0.04 compared to $0.14 diluted earnings per share in the fourth
quarter of 2018. The effective tax rate for the fourth quarter of
2019 was 17.0 percent, a decrease compared to an effective tax rate
of 22.0 percent for the fourth quarter of the prior year.
Net sales for the 12 months ended December 31, 2019 were $292,136,000, a decrease of 2.2 percent compared
to the prior year. Net income for the 12 months ended
December 31, 2019 was $28,239,000, essentially unchanged compared with
$28,488,000 in the prior year.
Diluted earnings per share were $0.83
in both years.
Richard A. Hubbell, Marine
Products' President and Chief Executive Officer stated, "As we
discussed at the end of the third quarter, our dealer inventories
had increased to levels that prompted us to adjust production to be
aligned with field inventory as we prepared for the 2020 model year
and retail selling season. Our fourth quarter sales show the result
of that decision. Our inventory aging shows a high percentage of
newer 2020 models, which is a positive attribute. We continue
to monitor dealer inventories and orders very closely as we
formulate our plans for 2020 production. The early 2020 winter boat
shows are better attended than last year, and more sales are being
closed at the shows than in prior years, both of which indicate
that the 2020 retail selling season is likely to be strong. We will
monitor orders from the boat shows during the next month and are
considering appropriate production increases during the first
quarter.
"For the trailing 12 months ended September 30, 2019, Chaparral held the second
highest sterndrive market share in its size category. Robalo
continued to hold the second-highest market share in its category,
and the combination of Robalo and Chaparral's outboard boats held
6.5 percent of their market for this period, the highest market
share in that category. During the fourth quarter we
repurchased 88,983 shares under our share repurchase program. Also
during the fourth quarter we issued a regular $0.12 per share dividend as well as a special
$0.10 per share dividend. In spite of
these uses of cash, our balance sheet as of December 31, 2019 reflected $19.8 million in cash compared with $16.4 million in cash and marketable securities
at the end of the fourth quarter of the prior year," concluded
Hubbell.
Marine Products Corporation will hold a conference call today,
January 29, 2020, at 8:00 a.m. Eastern Time to discuss the results for
the fourth quarter. Interested parties may listen in by
accessing a live webcast in the investor relations section of
Marine Products' website at marineproductscorp.com.
Additionally, the live conference call can be accessed by calling
(800) 367-2403 or (334) 777-6978 for international callers, and
using conference ID number 6976379. 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 and outboard
pleasure boats, Vortex jet drive 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 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, the
statement that our dealer inventory aging is a positive attribute,
and strong attendance and sales at the early winter boat shows
indicate that the 2020 retail selling season is likely to be
strong. 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 the strength of the 2020
retail selling season, 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, the ability of Marine Products'
network of independent boat dealers to finance their inventory,
continued weakness in the sterndrive recreational boat market, 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' Annual Report on Form 10-K, filed with the U.S.
Securities and Exchange Commission (the "SEC") for the year ended
December 31, 2018 and in Marine
Products' Quarterly Report on Form 10-Q, filed with the SEC for the
quarter ended September 30, 2019.
For information
contact:
|
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BEN M.
PALMER
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JIM
LANDERS
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Chief Financial
Officer
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Vice President,
Corporate Finance
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(404)
321-7910
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(404)
321-2162
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irdept@marineproductscorp.com
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jlanders@marineproductscorp.com
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MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands except
per share data)
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Period ended December
31, (Unaudited)
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Fourth
Quarter
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Twelve
Months
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2019
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2018
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% BETTER
(WORSE)
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2019
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2018
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% BETTER
(WORSE)
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Net
Sales
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$
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48,175
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$
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62,062
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(22.4)
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%
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$
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292,136
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$
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298,616
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(2.2)
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%
|
Cost of Goods
Sold
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37,653
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49,045
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23.2
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226,742
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232,293
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2.4
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Gross
Profit
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10,522
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13,017
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(19.2)
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65,394
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66,323
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(1.4)
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Selling, General and
Administrative Expenses
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6,344
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7,001
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9.4
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31,259
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30,936
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(1.0)
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Operating
Profit
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4,178
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6,016
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(30.6)
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34,135
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35,387
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(3.5)
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Interest
Income
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88
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48
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83.3
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323
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268
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20.5
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Income Before Income
Taxes
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4,266
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6,064
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(29.7)
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34,458
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35,655
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(3.4)
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Income Tax
Provision
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724
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1,336
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45.8
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6,219
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7,167
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13.2
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Net
Income
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$
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3,542
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$
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4,728
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(25.1)
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%
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$
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28,239
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$
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28,488
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(0.9)
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%
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EARNINGS PER
SHARE
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Basic
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$
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0.10
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$
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0.14
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(28.6)
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%
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$
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0.83
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$
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0.83
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0.0
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%
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Diluted
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$
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0.10
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$
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0.14
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(28.6)
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%
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$
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0.83
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$
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0.83
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0.0
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%
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AVERAGE SHARES
OUTSTANDING
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Basic
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33,915
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34,431
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34,061
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34,529
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Diluted
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33,915
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34,431
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34,061
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34,529
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MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
BALANCE SHEETS
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At December 31,
(Unaudited)
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(in
thousands)
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2019
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2018
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ASSETS
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Cash and cash
equivalents
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$
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19,804
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$
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8,745
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Marketable
securities
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-
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2,966
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Accounts receivable,
net
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6,607
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3,872
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Inventories
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41,553
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46,770
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Income taxes
receivable
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907
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452
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Prepaid expenses and
other current assets
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2,056
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1,795
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Total current
assets
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70,927
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64,600
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Property, plant and
equipment, net
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14,796
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14,552
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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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-
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4,699
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Pension
assets
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7,597
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6,487
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Deferred income
taxes
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3,990
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3,325
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Other
assets
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3,681
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3,444
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Total
assets
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$
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104,764
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$
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100,880
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Accounts
payable
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$
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3,886
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$
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4,673
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Accrued expenses and
other liabilities
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13,155
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13,494
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Total current
liabilities
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17,041
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18,167
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Long-term pension
liabilities
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9,980
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7,045
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Other long-term
liabilities
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531
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456
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Total
liabilities
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27,552
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25,668
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Common
stock
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3,387
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3,433
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Capital in excess of
par value
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-
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-
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Retained
earnings
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76,573
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73,954
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Accumulated other
comprehensive loss
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(2,748)
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(2,175)
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Total
stockholders' equity
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77,212
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75,212
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Total
liabilities and stockholders' equity
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$
|
104,764
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$
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100,880
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View original
content:http://www.prnewswire.com/news-releases/marine-products-corporation-reports-fourth-quarter-2019-financial-results-300994934.html
SOURCE Marine Products Corporation