Marine Products Corporation Reports 2001 First Quarter Results

Apr 20, 2001, 01:00 ET from Marine Products Corporation

    ATLANTA, April 20 /PRNewswire Interactive News Release/ -- Marine Products
 Corporation (Amex:   MPX) announced its unaudited results for the quarter ended
 March 31, 2001.  Marine Products, through its wholly owned subsidiary
 Chaparral Boats, Inc., is a leading manufacturer of sterndrive fiberglass
 recreational boats.  Marine Products became a public company on February 28,
 2001, the result of a tax-free spin-off from RPC, Inc. (NYSE:   RES).
     For the quarter ended March 31, 2001, Marine Products generated net sales
 of $36,318,000, a 4 percent decrease compared to $37,885,000 last year.  The
 decline in net sales was due to a decrease in the number of boats sold, as the
 company shifted production to larger boats, offset by an increase in the
 average sales price per boat.  Gross profit for the quarter was $8,485,000 a
 1 percent improvement over the same period in 2000.  Operating income for the
 quarter was $3,859,000, a 2 percent decrease compared to the first quarter
 last year.  The company's higher gross margins were due to a favorable model
 mix as compared to the prior year.  Operating income declined slightly due to
 higher expenses related primarily to increased research and development
 efforts.
     Net income for the quarter ended March 31, 2001, was $2,465,000 or
 $0.14 pro forma diluted earnings per share compared to $2,469,000 (excluding a
 gain on settlement of a claim) or $0.14 pro forma diluted earnings per share
 in the prior year.  In the first quarter of 2000, Marine Products recorded a
 pre-tax gain of $6,817,000 or $0.25 after-tax diluted earnings per share
 relating to a gain on settlement of a claim.
     Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The
 first quarter results reflect strong demand for several of our new models
 including the 220 SSi, which recently won a Powerboat Magazine Boat of the
 Year award, and for our larger boats.  Due to the current economic
 uncertainty, we are still very cautious about sales prospects for the second
 quarter and the remainder of 2001.  We will closely monitor dealer inventories
 and demand and adjust our operating costs as necessary."
     As part of the formation of Marine Products, it was determined by RPC's
 Board of Directors that Marine Products would have an initial cash balance of
 $15 million.  Following the spin-off, RPC transferred $13.8 million in cash
 and marketable securities to Marine Products to fund the remainder of this
 balance.  Also as part of the spin-off, a $53.6 million receivable from RPC
 was cancelled.  Stated Hubbell, "We are seeking to use Marine Products' strong
 capital position and cash flow generating potential for attractive acquisition
 opportunities and market share growth.  We are also interested in expanding
 the breadth of our product offerings and improving our distribution network."
     Chaparral (http://www.chaparralboats.com ), founded in 1965, is the third
 largest domestic manufacturer of sterndrive fiberglass recreational boats.
 Chaparral is recognized as one of the leading boatbuilders in the United
 States as evidenced by twenty-two Powerboat Magazine awards for product
 excellence since 1981, including eight coveted boat of the year titles.  The
 company designs and produces a comprehensive range of boats from 18 to 35 feet
 in length, including Signature cruisers, SSi sport boats, and Sunesta deck
 boats.  Chaparral has approximately 150 domestic and 30 international dealers.
 The company's mission is to enhance its customers' boating experience by
 providing them with high quality, innovative powerboats.
     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
 involve known and unknown risks, uncertainties and other factors which may
 cause the actual results, performance or achievements of Marine Products to be
 materially different from any future results, performance or achievements
 expressed or implied in such forward-looking statements.  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' Securities and Exchange Commission filings.
 
 
     MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
 
     STATEMENTS OF INCOME  (In thousands except per share data)
     Periods ended March 31, (Unaudited)                 First Quarter
                                                     2001               2000
     Net Sales                                      $36,318           $37,885
     Cost of Goods Sold                              27,833            29,499
     Gross Profit                                     8,485             8,386
     Selling, General and Administrative
      Expenses                                        4,626             4,467
     Operating Income                                 3,859             3,919
     Gain on Settlement of Claim                        ---             6,817
     Interest Income                                    116                59
     Income Before Income Taxes                       3,975            10,795
     Income Tax Provision                             1,510             4,099
     NET INCOME                                      $2,465            $6,696
 
     PRO FORMA EARNINGS PER SHARE
        Basic                                         $0.14             $0.39
        Diluted                                       $0.14             $0.39
 
     PRO FORMA AVERAGE SHARES OUTSTANDING
        Basic                                        17,012            17,012
        Diluted                                      17,045            17,045
 
 
 
     MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
 
     BALANCE  SHEETS
     (In thousands)                                  March            December
                                                     2001               2000
     ASSETS
     Cash and cash equivalents                       $2,291             $1,097
     Marketable securities                            2,075                ---
     Accounts receivable, net                         2,488              1,746
     Inventories                                     17,120             15,064
     Deferred income taxes                            2,425              2,425
     Prepaid expenses and other current
      assets                                            494                668
       Current assets                                26,893             21,000
     Property, plant and equipment, net               9,988              9,796
     Goodwill, net                                    3,821              3,992
     Marketable securities                           11,760                ---
     Receivable from RPC, Inc.                          ---             68,276
     Other assets                                       391                385
       Total assets                                 $52,853           $103,449
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Accounts payable                                $3,106             $2,910
     Other accrued expenses                           8,174              7,602
       Current liabilities                           11,280             10,512
     Deferred income taxes                              344                344
       Total liabilities                             11,624             10,856
     Common stock                                     1,701                ---
     Capital in excess of par value                  38,549                ---
     Earnings retained                                  979                ---
     RPC, Inc. equity investment                        ---             92,593
       Total stockholders' equity                    41,229             92,593
       Total liabilities and stockholders'
        equity                                      $52,853           $103,449
 
     CONTACT:  Ben M. Palmer of Marine Products Corporation, 404-321-2140
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X83476728
 
 

SOURCE Marine Products Corporation
    ATLANTA, April 20 /PRNewswire Interactive News Release/ -- Marine Products
 Corporation (Amex:   MPX) announced its unaudited results for the quarter ended
 March 31, 2001.  Marine Products, through its wholly owned subsidiary
 Chaparral Boats, Inc., is a leading manufacturer of sterndrive fiberglass
 recreational boats.  Marine Products became a public company on February 28,
 2001, the result of a tax-free spin-off from RPC, Inc. (NYSE:   RES).
     For the quarter ended March 31, 2001, Marine Products generated net sales
 of $36,318,000, a 4 percent decrease compared to $37,885,000 last year.  The
 decline in net sales was due to a decrease in the number of boats sold, as the
 company shifted production to larger boats, offset by an increase in the
 average sales price per boat.  Gross profit for the quarter was $8,485,000 a
 1 percent improvement over the same period in 2000.  Operating income for the
 quarter was $3,859,000, a 2 percent decrease compared to the first quarter
 last year.  The company's higher gross margins were due to a favorable model
 mix as compared to the prior year.  Operating income declined slightly due to
 higher expenses related primarily to increased research and development
 efforts.
     Net income for the quarter ended March 31, 2001, was $2,465,000 or
 $0.14 pro forma diluted earnings per share compared to $2,469,000 (excluding a
 gain on settlement of a claim) or $0.14 pro forma diluted earnings per share
 in the prior year.  In the first quarter of 2000, Marine Products recorded a
 pre-tax gain of $6,817,000 or $0.25 after-tax diluted earnings per share
 relating to a gain on settlement of a claim.
     Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The
 first quarter results reflect strong demand for several of our new models
 including the 220 SSi, which recently won a Powerboat Magazine Boat of the
 Year award, and for our larger boats.  Due to the current economic
 uncertainty, we are still very cautious about sales prospects for the second
 quarter and the remainder of 2001.  We will closely monitor dealer inventories
 and demand and adjust our operating costs as necessary."
     As part of the formation of Marine Products, it was determined by RPC's
 Board of Directors that Marine Products would have an initial cash balance of
 $15 million.  Following the spin-off, RPC transferred $13.8 million in cash
 and marketable securities to Marine Products to fund the remainder of this
 balance.  Also as part of the spin-off, a $53.6 million receivable from RPC
 was cancelled.  Stated Hubbell, "We are seeking to use Marine Products' strong
 capital position and cash flow generating potential for attractive acquisition
 opportunities and market share growth.  We are also interested in expanding
 the breadth of our product offerings and improving our distribution network."
     Chaparral (http://www.chaparralboats.com ), founded in 1965, is the third
 largest domestic manufacturer of sterndrive fiberglass recreational boats.
 Chaparral is recognized as one of the leading boatbuilders in the United
 States as evidenced by twenty-two Powerboat Magazine awards for product
 excellence since 1981, including eight coveted boat of the year titles.  The
 company designs and produces a comprehensive range of boats from 18 to 35 feet
 in length, including Signature cruisers, SSi sport boats, and Sunesta deck
 boats.  Chaparral has approximately 150 domestic and 30 international dealers.
 The company's mission is to enhance its customers' boating experience by
 providing them with high quality, innovative powerboats.
     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
 involve known and unknown risks, uncertainties and other factors which may
 cause the actual results, performance or achievements of Marine Products to be
 materially different from any future results, performance or achievements
 expressed or implied in such forward-looking statements.  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' Securities and Exchange Commission filings.
 
 
     MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
 
     STATEMENTS OF INCOME  (In thousands except per share data)
     Periods ended March 31, (Unaudited)                 First Quarter
                                                     2001               2000
     Net Sales                                      $36,318           $37,885
     Cost of Goods Sold                              27,833            29,499
     Gross Profit                                     8,485             8,386
     Selling, General and Administrative
      Expenses                                        4,626             4,467
     Operating Income                                 3,859             3,919
     Gain on Settlement of Claim                        ---             6,817
     Interest Income                                    116                59
     Income Before Income Taxes                       3,975            10,795
     Income Tax Provision                             1,510             4,099
     NET INCOME                                      $2,465            $6,696
 
     PRO FORMA EARNINGS PER SHARE
        Basic                                         $0.14             $0.39
        Diluted                                       $0.14             $0.39
 
     PRO FORMA AVERAGE SHARES OUTSTANDING
        Basic                                        17,012            17,012
        Diluted                                      17,045            17,045
 
 
 
     MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
 
     BALANCE  SHEETS
     (In thousands)                                  March            December
                                                     2001               2000
     ASSETS
     Cash and cash equivalents                       $2,291             $1,097
     Marketable securities                            2,075                ---
     Accounts receivable, net                         2,488              1,746
     Inventories                                     17,120             15,064
     Deferred income taxes                            2,425              2,425
     Prepaid expenses and other current
      assets                                            494                668
       Current assets                                26,893             21,000
     Property, plant and equipment, net               9,988              9,796
     Goodwill, net                                    3,821              3,992
     Marketable securities                           11,760                ---
     Receivable from RPC, Inc.                          ---             68,276
     Other assets                                       391                385
       Total assets                                 $52,853           $103,449
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Accounts payable                                $3,106             $2,910
     Other accrued expenses                           8,174              7,602
       Current liabilities                           11,280             10,512
     Deferred income taxes                              344                344
       Total liabilities                             11,624             10,856
     Common stock                                     1,701                ---
     Capital in excess of par value                  38,549                ---
     Earnings retained                                  979                ---
     RPC, Inc. equity investment                        ---             92,593
       Total stockholders' equity                    41,229             92,593
       Total liabilities and stockholders'
        equity                                      $52,853           $103,449
 
     CONTACT:  Ben M. Palmer of Marine Products Corporation, 404-321-2140
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X83476728
 
 SOURCE  Marine Products Corporation