ATLANTA, Oct. 29, 2014 -- Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter ended September 30,
2014. Marine Products is a leading manufacturer of fiberglass boats
under two brand names: Chaparral and Robalo. Chaparral builds
sterndrive, outboard and jet drive pleasure boats, including H2O Sport
and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta WT Sportdecks,
Signature Cruisers, SunCoast Sportdeck and Vortex Jet Boats. Robalo
builds outboard sport fishing boats which include center console, dual
console, walkaround cabin and bay boat models.
For the quarter ended September 30, 2014, Marine Products generated net sales of $37,932,000, a 9.7 percent decrease compared to $41,989,000
in the same period of the prior year. The decrease in net sales was
due to lower unit sales of our Chaparral model lines during the quarter
as compared to the prior year, partially offset by increased unit sales
of our Robalo models as well as increased sales of our Vortex Jet Boats,
which we introduced during the first quarter of 2014. Average selling
prices also declined due to changes in the model mix in several of our
Chaparral models during the quarter as compared to the prior year.
Gross profit for the quarter was $6,967,000, or 18.4 percent of net sales, a 9.9 percent decrease compared to gross profit of $7,731,000,
or 18.4 percent of net sales, in the same period of the prior
year. Gross profit for the third quarter declined compared to the prior
year due to lower net sales.
Operating profit for the quarter was $2,576,000, a decrease of 7.9 percent compared to $2,796,000
in the third quarter of last year due to lower gross profit, partially
offset by lower selling, general and administrative expenses. Selling,
general and administrative expenses decreased by 11.0 percent to $4,391,000 in the third quarter of 2014 compared to $4,935,000
last year due to lower warranty expenses, which vary with sales, as
well as costs that vary with sales and profitability, such as incentive
compensation and sales commissions.
As a percentage of net sales, these
expenses were approximately the same in the third quarter of 2014 and
the third quarter of 2013. Interest income was $116,000 during the third quarter of 2014, an increase compared to $83,000
during the third quarter of 2013. Interest income increased during the
quarter due to a higher average cash and marketable securities balance
as well as higher returns on our marketable securities during the third
quarter of 2014 compared to the prior year.
Net income for the quarter ended September 30, 2014 was $1,882,000, compared to net income of $2,002,000 for the third quarter of 2013, a decrease of 6.0 percent. Diluted earnings per share were $0.05 in the third quarters of both 2014 and 2013.
Net sales for the nine months ended September 30, 2014 were $133,609,000, an increase of 4.0 percent compared to the first nine months of 2013. Net income for the nine-month period was $6,873,000 or $0.18 earnings per diluted share, compared to net income of $5,386,000, or $0.15 earnings per diluted share in the prior year.
Richard A. Hubbell,
Marine Products' President and Chief Executive Officer stated, "Our
consolidated net sales declined during the third quarter of 2014
compared to the prior year due to a compressed retail selling season.
Although retail sales improved towards the end of the season, we
maintained lower production levels so that our dealers would be ready to
accept our 2015 models. Unit sales of most of our Chaparral models
declined during the quarter, but our Robalo model unit sales increased.
Also, we continue to be pleased with the reception of our new Vortex
Jet Boat. Vortex unit sales during the third quarter increased compared
to the second quarter, and we continue to increase production of that
new model as well as adding two larger models to the 2015 model year
lineup.
"The market shares of both Chaparral and Robalo continue to grow as of the most recent reports. For the 12 months ended June 30, 2014,
Chaparral increased its market share to 14.0 percent, and maintained
its position as the largest U.S. sterndrive boat manufacturer. Robalo's
market share also grew within its segment to 3.1 percent for the same
period. At the end of the third quarter, our dealer inventories were
lower, and order backlog was higher, than at the end of the second
quarter. Based on these strong indicators as well as a favorable
response from our dealers during our recent annual dealer conference, we
are increasing production during the fourth quarter," said Hubbell.
Marine Products Corporation will hold a conference call today, October 29, 2014 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) 430-8705
or (719) 325-2463 and using the conference ID #2692838. A replay of
the conference call 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 jet drive pleasure boats, and Robalo sport fishing boats
and continues to diversify its product lines 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 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 related to our plans
to increase production during the fourth quarter and introduce two
larger jet boats during the 2015 model year, and our preparedness to
capitalize on opportunities to increase 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, 2013.
For information contact:
BEN M. PALMER / Chief Financial Officer / (404) 321-7910 / irdept@marineproductscorp.com
JIM LANDERS /8 Vice President, Corporate Finance / (404) 321-2162 jlanders@marineproductscorp.com
|
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
|
|||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)
|
|||||||||||||||||
|
Periods ended September 30, (Unaudited)
|
Third Quarter
|
Nine Months
|
|||||||||||||||
|
2014
|
2013
|
% BETTER
(WORSE) |
2014
|
2013
|
% BETTER
(WORSE) |
||||||||||||
|
Net Sales
|
$
|
37,932
|
$
|
41,989
|
(9.7)
|
%
|
$
|
133,609
|
$
|
128,507
|
4.0
|
%
| |||||
|
Cost of Goods Sold
|
30,965
|
34,258
|
9.6
|
108,372
|
106,349
|
(1.9)
|
|||||||||||
|
Gross Profit
|
6,967
|
7,731
|
(9.9)
|
25,237
|
22,158
|
13.9
|
|||||||||||
|
Selling, General and Administrative Expenses
|
4,391
|
4,935
|
11.0
|
15,768
|
15,408
|
(2.3)
|
|||||||||||
|
Operating Profit
|
2,576
|
2,796
|
(7.9)
|
9,469
|
6,750
|
40.3
|
|||||||||||
|
Interest Income
|
116
|
83
|
39.8
|
359
|
410
|
(12.4)
|
|||||||||||
|
Income Before Income Taxes
|
2,692
|
2,879
|
(6.5)
|
9,828
|
7,160
|
37.3
|
|||||||||||
|
Income Tax Provision
|
810
|
877
|
7.6
|
2,955
|
1,774
|
(66.6)
|
|||||||||||
|
Net Income
|
$
|
1,882
|
$
|
2,002
|
(6.0)
|
%
|
$
|
6,873
|
$
|
5,386
|
27.6
|
%
| |||||
|
EARNINGS PER SHARE
|
|||||||||||||||||
|
Basic
|
$
|
0.05
|
$
|
0.05
|
0.0
|
%
|
$
|
0.19
|
$
|
0.15
|
26.7
|
%
| |||||
|
Diluted
|
$
|
0.05
|
$
|
0.05
|
0.0
|
%
|
$
|
0.18
|
$
|
0.15
|
20.0
|
%
| |||||
|
AVERAGE SHARES OUTSTANDING
|
|||||||||||||||||
|
Basic
|
36,904
|
36,827
|
36,950
|
36,779
|
|||||||||||||
|
Diluted
|
37,190
|
37,180
|
37,236
|
37,058
|
|||||||||||||
|
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
|
|||||
|
CONSOLIDATED BALANCE SHEETS
|
|||||
|
At September 30, (Unaudited)
|
(in thousands)
| ||||
|
2014
|
2013
| ||||
|
ASSETS
|
|||||
|
Cash and cash equivalents
|
$
|
5,296
|
$
|
5,854
| |
|
Marketable securities
|
12,024
|
5,281
| |||
|
Accounts receivable, net
|
3,515
|
3,972
| |||
|
Inventories
|
24,573
|
27,587
| |||
|
Income taxes receivable
|
332
|
-
| |||
|
Deferred income taxes
|
1,374
|
1,426
| |||
|
Prepaid expenses and other current assets
|
1,644
|
1,567
| |||
|
Total current assets
|
48,758
|
45,687
| |||
|
Property, plant and equipment, net
|
11,052
|
11,169
| |||
|
Goodwill
|
3,308
|
3,308
| |||
|
Other intangibles, net
|
465
|
465
| |||
|
Marketable securities
|
32,492
|
32,726
| |||
|
Deferred income taxes
|
3,347
|
3,630
| |||
|
Other assets
|
8,495
|
7,004
| |||
|
Total assets
|
$
|
107,917
|
$
|
103,989
| |
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||
|
Accounts payable
|
$
|
5,939
|
$
|
7,286
| |
|
Accrued expenses and other liabilities
|
10,369
|
9,818
| |||
|
Total current liabilities
|
16,308
|
17,104
| |||
|
Long-term pension liabilities
|
6,518
|
6,421
| |||
|
Other long-term liabilities
|
83
|
87
| |||
|
Total liabilities
|
22,909
|
23,612
| |||
|
Common stock
|
3,817
|
3,809
| |||
|
Capital in excess of par value
|
3,638
|
3,127
| |||
|
Retained earnings
|
78,381
|
75,083
| |||
|
Accumulated other comprehensive loss
|
(828)
|
(1,642)
| |||
|
Total stockholders' equity
|
85,008
|
80,377
| |||
|
Total liabilities and stockholders' equity
|
$
|
107,917
|
$
|
103,989
| |
SOURCE Marine Products Corporation through PRNewswire by press release
http://www.marineproductscorp.com
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