Marine Products Corporation Reports Fourth Quarter 2015 Financial Results

27 Jan, 2016, 06:50 ET from Marine Products Corporation

ATLANTA, Jan. 27, 2016 /PRNewswire/ -- Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter ended December 31, 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 Ski & Fish 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 December 31, 2015, Marine Products generated net sales of $49,881,000, a 33.2 percent increase compared to $37,441,000 in the same period of the prior year.  The increase in net sales was due to higher unit sales of our Robalo outboard sport fishing boats, as well as higher sales of our Chaparral Suncoast outboard boats during the quarter as compared to the prior year.

Gross profit for the quarter was $11,117,000, or 22.3 percent of net sales, a 49.5 percent increase compared to gross profit of $7,434,000, or 19.9 percent of net sales, in the same period of the prior year.  Gross profit for the fourth quarter increased compared to the prior year due to higher net sales and higher production volumes, which led to improved manufacturing efficiencies.  Gross margin improved during the quarter compared to the prior year due to higher production volumes and improved manufacturing efficiencies. 

Operating profit for the quarter was $5,420,000, an increase of more than 100 percent, compared to $2,537,000 in the fourth quarter of last year.  Selling, general and administrative expenses were $5,697,000 in the fourth quarter of 2015, an increase of 16.3 percent compared to the fourth quarter of 2014.  Selling, general and administrative expenses increased due to expenses that vary with sales and profitability, as well as higher advertising expenses.  These increases were partially offset by decreases in warranty expenses, a result of favorable warranty claims experience. Selling, general and administrative expenses were 11.4 percent of net sales during the fourth quarter of 2015, a decrease compared to 13.1 percent of net sales during the same period of the prior year. 

Net income for the quarter ended December 31, 2015 was $3,845,000, an increase of $1,804,000 or 88.4 percent, compared to net income of $2,041,000 for the fourth quarter of 2014.  Diluted earnings per share were $0.10 in the fourth quarter of 2015, an increase of $0.05 per share compared to the fourth quarter of the prior year.   

Net sales for the twelve months ended December 31, 2015 were $207,061,000, an increase of 21.1 percent compared to the prior year.  Net income for the twelve months ended December 31, 2015 was $14,306,000 or $0.39 earnings per diluted share, compared to net income of $8,914,000, or $0.24 earnings per diluted share in the prior year. 

Richard A. Hubbell, Marine Products' President and Chief Executive Officer stated, "The fourth quarter of 2015 continued the favorable sales trends that we have reported throughout 2015.  The 2015 retail selling season was strong, and the dealer and customer reception of many of our new product offerings has been positive. Our profitability improved compared to the fourth quarter of last year because we have gained efficiencies from higher production and more efficient manufacturing processes.  In addition, we realized some cost savings from lower raw materials prices.  Unit sales growth among our Robalo sport fishing boats continues to be strong, particularly in sales of our new Robalo 160 models.  Chaparral SunCoast outboard sales continued to grow as well and we continue to be optimistic about the SunCoast models that we introduced for the 2016 model year.   

"Early results of attendance and sales from the 2016 boat show season are favorable, and our order backlog is higher than at this time last year.  I am proud of our innovative efforts which are driving growth in a broader product offering.  Due in part to our confidence in the effort, we have increased production slightly during the first quarter in order to meet dealer and consumer demand as the 2016 retail selling season approaches," concluded Hubbell. 

Marine Products Corporation will hold a conference call today, January 27, 2016 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) 481-2877 or (719) 457-2727 for international callers and using the conference ID #6493081.  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 offshore 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 increasing optimism about the selling environment for our products; our belief that the market for recreational boating continues to improve; our expectation that dealer and consumer demand will increase as the 2016 retail selling season approaches; and our belief that we are prepared to capitalize on opportunities to increase our market share and to 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, 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

CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)

Periods ended December 31, (Unaudited)

Fourth Quarter

Twelve Months

2015

2014

% BETTER (WORSE)

2015

2014

% BETTER (WORSE)

Net Sales

$

49,881

$

37,441

33.2

%

$

207,061

$

171,050

21.1

%

Cost of Goods Sold

38,764

30,007

(29.2)

163,261

138,379

(18.0)

Gross Profit 

11,117

7,434

49.5

43,800

32,671

34.1

Selling, General and Administrative Expenses

5,697

4,897

(16.3)

23,249

20,665

(12.5)

Operating Profit

5,420

2,537

113.6

20,551

12,006

71.2

Interest Income

95

162

(41.4)

420

521

(19.4)

Income Before Income Taxes

5,515

2,699

104.3

20,971

12,527

67.4

Income Tax Provision 

1,670

658

(153.8)

6,665

3,613

(84.5)

Net Income 

$

3,845

$

2,041

88.4

%

$

14,306

$

8,914

60.5

%

EARNINGS PER SHARE 

   Basic  

$

0.10

$

0.06

66.7

%

$

0.39

$

0.24

62.5

%

   Diluted  

$

0.10

$

0.05

100.0

%

$

0.39

$

0.24

62.5

%

AVERAGE SHARES OUTSTANDING

   Basic  

36,881

36,898

36,955

36,937

   Diluted  

37,083

37,187

37,147

37,228

 

 

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE  SHEETS

At December 31, (Unaudited)

(in thousands)

2015

2014

ASSETS

Cash and cash equivalents

$

7,986

$

4,072

Marketable securities

7,825

3,653

Accounts receivable, net

1,256

2,369

Inventories

32,638

28,819

Income taxes receivable

820

123

Deferred income taxes

-

2,480

Prepaid expenses and other current assets

2,119

1,706

  Total current assets

52,644

43,222

Property, plant and equipment, net

12,761

9,890

Goodwill 

3,308

3,308

Other intangibles, net

465

465

Marketable securities

27,129

33,831

Deferred income taxes

4,338

3,214

Other assets

10,032

9,893

  Total assets

$

110,677

$

103,823

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

$

3,681

$

3,577

Accrued expenses and other liabilities

10,117

9,631

  Total current liabilities

13,798

13,208

Long-term pension liabilities

6,590

7,039

Other long-term liabilities

77

82

  Total liabilities

20,465

20,329

Common stock 

3,811

3,813

Capital in excess of par value

3,879

3,895

Retained earnings

84,423

77,755

Accumulated other comprehensive loss

(1,901)

(1,969)

  Total stockholders' equity

90,212

83,494

  Total liabilities and stockholders' equity 

$

110,677

$

103,823

 

SOURCE Marine Products Corporation



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