ATLANTA, Oct. 25, 2017 /PRNewswire/ -- Marine Products
Corporation (NYSE: MPX) announced its unaudited results for the
quarter ended September 30,
2017. Marine Products is a leading manufacturer of fiberglass
boats under two brand names: Chaparral and Robalo. Chaparral's
sterndrive models include H2O Sport and Ski & Fish Boats, SSi
and SSX Sportboats, Sunesta Sportdecks and Signature
Cruisers. In addition, Chaparral manufactures SunCoast
Sportdeck outboards, Vortex Jet Boats and the Surf Series of
Chaparral SSi and SSX Sportboats and Sunesta Sportdecks.
Robalo builds outboard sport fishing boats which include center
console, dual console, walkaround cabin and Cayman bay boat
models.
For the quarter ended September 30,
2017, Marine Products generated net sales of $59,201,000, a 6.9 percent increase, compared to
$55,361,000 in the same period of the
prior year. The increase in net sales was due to a 5.7
percent increase in the average selling price per boat as well as
an increase in parts and accessories sales. Consolidated unit
sales were unchanged for the quarter compared to the prior
year. During the quarter we generated higher unit
sales in our Robalo sport fishing boats and several of our larger
Chaparral models, offset by continued weakness in industry-wide
sterndrive sales. Average selling prices increased during the
quarter due to a model mix which included larger boats.
Gross profit for the quarter was $13,461,000, a 14.4 percent increase compared to
gross profit of $11,768,000 in the
same period of the prior year. Gross profit for the third
quarter increased compared to the prior year due to higher net
sales and improved profitability. Gross margin was 22.7
percent in the third quarter of 2017, compared to 21.3 percent in
2016. Gross margin improved during the third quarter of 2017
as compared to the prior year due to the increase in average
selling prices and improved manufacturing efficiencies.
Operating profit for the quarter was $6,669,000, an increase of 22.1 percent, compared
to $5,461,000 in the third quarter of
last year. Selling, general and administrative expenses were
$6,792,000 in the third quarter of
2017, an increase of 7.7 percent compared to the third quarter of
2016. Selling, general and administrative expenses increased
compared to the prior year due primarily to higher incentive
compensation consistent with improved results. Selling,
general and administrative expenses were 11.5 percent of net sales
during the third quarter of 2017, comparable to the same period of
the prior year.
Net income for the quarter ended September 30, 2017 was $4,564,000, an increase of $280,000 or 6.5 percent, compared to net income
of $4,284,000 for the third quarter
of 2016. The effective income tax rate for the third quarter
of 2017 was 32.4 percent, compared to 23.3 percent in the third
quarter of 2016. The lower effective tax rate in the third
quarter of 2016 was due to tax planning that generated tax
benefits. Diluted earnings per share were $0.13 in the third quarter of 2017, an increase
of $0.02 per share compared to the
third quarter of the prior year. Diluted earnings per share
increased due to higher net income as well as a lower share count
resulting from the Company's open market share repurchases and
partial tender offer conducted during the past year.
Net sales for the nine months ended September 30, 2017 were $201,725,000, an increase of 9.6 percent compared
to the first nine months of 2016. Net income for the
nine-month period increased by 22.4 percent to $15,944,000 or $0.46 diluted earnings per share, compared to net
income of $13,023,000, or
$0.34 diluted earnings per share in
the prior year.
Richard A. Hubbell, Marine
Products' President and Chief Executive Officer stated, "Our third
quarter 2017 financial results were driven by continued improvement
in sales of our Robalo outboard sport fishing boats and selected
Chaparral models such as our popular new Chaparral Surf Series,
offset by continued weakness in the sterndrive recreational boat
market. Average selling prices improved due to a favorable
model mix which featured larger models. Industry-wide retail
sales continued to be strong during the quarter, although the
long-term weakness in U.S. domestic sterndrive sales and the
international markets have continued thus far during the second
half of 2017. Also, we noted that our sales for the third
quarter were negatively impacted by approximately three percent due
to manufacturing plant closures and delayed deliveries resulting
from Hurricane Irma, which impacted our manufacturing operations
late in the third quarter. Delayed shipments due to the
hurricane occurred early in the fourth quarter of 2017.
We are pleased to report continued market share gains in both
our sterndrive and outboard sport fishing boat product lines.
For the 12-month period ending in June
2017, Chaparral's market share increased to 16.0 percent of
the sterndrive market in its size category, and Robalo's market
share increased to 5.2 percent of its market, and was the fourth
largest brand in this category. At the end of the third
quarter of 2017, our dealer inventory levels were lower than at the
end of the second quarter as our dealers sold large numbers of
boats to their retail customers through the end of the 2017 retail
selling season while continuing to accept our shipments," concluded
Hubbell.
Marine Products Corporation will hold a conference call today,
October 25, 2017 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 (800) 239-9838 or (323)
794-2551 for international callers and using the conference ID
#4477324. 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, 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, 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' Form 10-K, filed with
the Securities and Exchange Commission for the year ending
December 31, 2016.
MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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|
|
|
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CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands except
per share data)
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Periods ended
September 30, (Unaudited)
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Third
Quarter
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Nine
Months
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|
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2017
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2016
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% BETTER
(WORSE)
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|
|
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2017
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|
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2016
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% BETTER
(WORSE)
|
|
Net
Sales
|
$
|
59,201
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|
$
|
55,361
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|
6.9
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%
|
|
$
|
201,725
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|
$
|
184,092
|
|
9.6
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%
|
Cost of Goods
Sold
|
|
45,740
|
|
|
43,593
|
|
(4.9)
|
|
|
|
157,071
|
|
|
145,828
|
|
(7.7)
|
|
Gross
Profit
|
|
13,461
|
|
|
11,768
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|
14.4
|
|
|
|
44,654
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|
|
38,264
|
|
16.7
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|
Selling, General and
Administrative Expenses
|
|
6,792
|
|
|
6,307
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|
(7.7)
|
|
|
|
22,365
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|
|
20,446
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|
(9.4)
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|
Operating
Profit
|
|
6,669
|
|
|
5,461
|
|
22.1
|
|
|
|
22,289
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|
|
17,818
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|
25.1
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|
Interest
Income
|
|
81
|
|
|
121
|
|
(33.1)
|
|
|
|
189
|
|
|
364
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|
(48.1)
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|
Income Before Income
Taxes
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|
6,750
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|
|
5,582
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|
20.9
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|
|
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22,478
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|
|
18,182
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|
23.6
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|
Income Tax
Provision
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|
2,186
|
|
|
1,298
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|
(68.4)
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|
|
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6,534
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|
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5,159
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(26.7)
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Net
Income
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$
|
4,564
|
|
$
|
4,284
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|
6.5
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%
|
|
$
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15,944
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|
$
|
13,023
|
|
22.4
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%
|
|
|
|
|
|
|
|
|
|
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EARNINGS PER
SHARE
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Basic
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$
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0.13
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$
|
0.11
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18.2
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%
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$
|
0.46
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$
|
0.34
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35.3
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%
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Diluted
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$
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0.13
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$
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0.11
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|
18.2
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%
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|
$
|
0.46
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|
$
|
0.34
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|
35.3
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%
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|
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|
|
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|
|
|
|
|
|
|
|
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AVERAGE SHARES
OUTSTANDING
|
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|
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|
Basic
|
|
34,829
|
|
|
38,355
|
|
|
|
|
|
34,898
|
|
|
38,339
|
|
|
|
Diluted
|
|
34,829
|
|
|
38,355
|
|
|
|
|
|
34,898
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|
|
38,339
|
|
|
|
MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
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At September 30,
(Unaudited)
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|
(in
thousands)
|
|
|
2017
|
|
|
2016
|
ASSETS
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|
|
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Cash and cash
equivalents
|
$
|
4,052
|
|
$
|
5,182
|
Marketable
securities
|
|
3,329
|
|
|
11,516
|
Accounts receivable,
net
|
|
7,438
|
|
|
6,040
|
Inventories
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|
41,442
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|
|
37,698
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Income taxes
receivable
|
|
995
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|
|
520
|
Prepaid expenses and
other current assets
|
|
1,466
|
|
|
1,734
|
Total current
assets
|
|
58,722
|
|
|
62,690
|
Property, plant and
equipment, net
|
|
13,742
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|
|
13,229
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Goodwill
|
|
3,308
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|
|
3,308
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Other intangibles,
net
|
|
465
|
|
|
465
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Marketable
securities
|
|
10,177
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|
|
30,183
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Deferred income
taxes
|
|
5,481
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|
|
4,570
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Other
assets
|
|
9,197
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|
|
9,128
|
Total
assets
|
$
|
101,092
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|
$
|
123,573
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|
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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|
|
|
|
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Accounts
payable
|
$
|
8,278
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|
$
|
9,128
|
Accrued expenses and
other liabilities
|
|
13,625
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|
|
11,212
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Total current
liabilities
|
|
21,903
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|
|
20,340
|
Long-term pension
liabilities
|
|
6,466
|
|
|
5,497
|
Other long-term
liabilities
|
|
57
|
|
|
68
|
Total
liabilities
|
|
28,426
|
|
|
25,905
|
Common
stock
|
|
3,478
|
|
|
3,836
|
Capital in excess of
par value
|
|
-
|
|
|
5,107
|
Retained
earnings
|
|
71,281
|
|
|
90,546
|
Accumulated other
comprehensive loss
|
|
(2,093)
|
|
|
(1,821)
|
Total
stockholders' equity
|
|
72,666
|
|
|
97,668
|
Total
liabilities and stockholders' equity
|
$
|
101,092
|
|
$
|
123,573
|
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
|
View original
content:http://www.prnewswire.com/news-releases/marine-products-corporation-reports-third-quarter-2017-financial-results-300542665.html
SOURCE Marine Products Corporation