ATLANTA, March 30, 2020 /PRNewswire/ -- Marine
Products Corporation (NYSE: MPX) announced today that it has
temporarily suspended manufacturing operations in its Nashville, Georgia production facility. This
facility produces all of the Company's recreational pleasure boats
under the Chaparral, Robalo and Vortex brand names. The suspension
in production activities is temporary, but the Company has not
decided at this time when production will resume. Essential
administrative and management functions will continue without
interruption, and the Company's corporate headquarters in
Atlanta remains open. Marine
Products Corporation does not anticipate any delays in its upcoming
first quarter 2020 earnings announcement, its Securities and
Exchange Commission filings, or its 2020 annual meeting to be held
on April 28, 2020.
"We have made the decision to suspend our production in order to
protect our employees, their families and our community from the
potential spread of the novel coronavirus (COVID-19). We cannot
predict the duration of this temporary, short-term suspension
because we are proceeding cautiously and coordinating our actions
with the recommendations and mandates of local, state and Federal
authorities," stated Richard A.
Hubbell, Chief Executive Officer. "We have prepared for this
possibility during the past several weeks by expediting shipment of
boats which have been pre-sold to retail customers, and stand ready
to serve our dealers with existing inventory during this time. Our
essential management and public company functions will continue
normally during this production suspension.
"I want to emphasize that Marine Products is among the most
financially stable companies in our industry. We maintain a
variable cost structure which will allow us to maintain our liquid,
debt-free balance sheet during this time. In addition, we do not
believe that there will be any delays in payments for boats we have
shipped to our dealers and retail customers, or any meaningful
long-term deterioration in our supply chain. We will continue to
provide updates regarding the resumption of our production
operations as they become clear," concluded Hubbell.
Marine Products Corporation (NYSE: MPX) 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. 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 the temporary suspension of our production
activities will be short-term in nature, that the suspension of our
production activities will benefit our employees and community
during the COVID-19 pandemic, that our essential administrative and
management functions will continue during this period, there will
be no meaningful long-term deterioration in our supply chain, that
we stand ready to serve our dealers with existing inventory, that
our variable cost structure will allow us to maintain a liquid,
debt-free balance sheet, that there will not be any delays in
payments for boats we have shipped to our dealers and retail
customers, and there will be no delays in our first quarter 2020
earnings announcement, Securities and Exchange Commission filings,
or 2020 annual meeting. These risks include the effect of economic
conditions, availability of credit and consumer confidence levels
on our business, our dependence on our network of independent
dealers and the possibility of defaults by our boat dealers, and
our reliance on suppliers and their ability to continue or to
return to supplying raw materials, engines and components.
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, 2019.
For information about Marine Products Corporation or this event,
please contact:
Ben
Palmer
Chief Financial Officer
(404) 321-7910
irdept@marineproductscorp.com
Jim Landers
Vice President, Corporate Finance
(404) 321-2162
jlanders@marineproductscorp.com
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SOURCE Marine Products Corporation