Marine Products Corporation Reports Fourth Quarter and Year-End 2014 Financial Results
ATLANTA, Jan. 28, 2015 /PRNewswire/ -- Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter and year ended December 31, 2014. 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 Fish & Ski Boats, SSi and SSX Sportboats, Sunesta WT 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, 2014, Marine Products generated net sales of $37,441,000, a 5.9 percent decrease compared to $39,786,000 in the same period of the prior year. The decrease in net sales was due to lower unit sales during the quarter as compared to the prior year.
Gross profit for the quarter was $7,434,000, or 19.9 percent of net sales, a 2.9 percent decrease compared to gross profit of $7,655,000, or 19.2 percent of net sales, in the same period of the prior year. Gross profit for the fourth quarter declined compared to the prior year due to lower net sales for the quarter, partially offset by improved margins compared to the fourth quarter of last year.
Operating profit for the quarter was $2,537,000, a decrease of 7.9 percent compared to $2,756,000 in the fourth quarter of last year. Selling, general and administrative expenses were $4,897,000 in the fourth quarter of 2014, a decrease of less than one percent compared to the fourth quarter of 2013. As a percentage of net sales, these expenses increased from 12.3 percent in the fourth quarter of 2013 to 13.1 percent in the fourth quarter of 2014. Interest income was $162,000 during the fourth quarter of 2014, an increase compared to $114,000 during the fourth quarter of 2013.
Net income for the quarter ended December 31, 2014 was $2,041,000, compared to net income of $2,142,000 for the fourth quarter of 2013, a decrease of 4.7 percent. Diluted earnings per share were $0.05 in the fourth quarter of 2014, a decrease of $0.01 compared to the fourth quarter of the prior year.
Net sales for the twelve months ended December 31, 2014 were $171,050,000, an increase of 1.6 percent compared to the prior year. Net income for the twelve months ended December 31, 2014 was $8,914,000 or $0.24 earnings per diluted share, compared to net income of $7,528,000, or $0.20 earnings per diluted share in the prior year.
Richard A. Hubbell, Marine Products' President and Chief Executive Officer stated, "We are pleased to report growth at Robalo as well as strong acceptance of our Vortex Jet Boats, a product line that we introduced in 2014. We are pleased with this model's reception by dealers and customers. Our profitability improved due to improved manufacturing efficiencies and a favorable model mix. At the end of the fourth quarter, our dealer inventories were comparable to the end of the fourth quarter 2013 but order backlog was higher.
"Early indications of attendance and sales at the winter boat shows have been positive. Our sales at these early shows have shown that buyers are interested in larger boats, including larger sterndrive models, which is consistent with our fourth quarter model mix. In addition, the recent steep decline in fuel prices and positive data regarding U.S. unemployment and consumer confidence are encouraging indicators for the strength of the upcoming retail selling season. Based on these factors, as well as our healthy order backlog, we will increase production during the first quarter to meet this anticipated higher demand," concluded Hubbell.
Marine Products Corporation will hold a conference call today, January 28, 2015 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 (877) 280-1254 or (212) 444-0896 and using the conference ID #1011959. 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 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 about our belief that sales at winter boat shows have shown that buyers are interested in buying larger boats including larger sterndrive models; that the recent steep decline in fuel prices and positive data regarding U.S. unemployment and consumer confidence are encouraging indicators for the strength of the upcoming retail selling season; our plan to increase production during the first quarter of 2015 to meet the anticipated higher demand; and the statement that we are prepared to capitalize on opportunities to increase our market share 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, 2013.
For information contact:
BEN M. PALMER
Chief Financial Officer
(404) 321-7910
[email protected]
JIM LANDERS
Vice President, Corporate Finance
(404) 321-2162
[email protected]
| MARINE PRODUCTS CORPORATION AND SUBSIDIARIES |
|||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) |
|||||||||||||||||
| Periods ended December 31, (Unaudited) |
Fourth Quarter |
Twelve Months |
|||||||||||||||
| 2014 |
2013 |
% BETTER |
2014 |
2013 |
% BETTER |
||||||||||||
| Net Sales |
$ |
37,441 |
$ |
39,786 |
(5.9) |
% |
$ |
171,050 |
$ |
168,293 |
1.6 |
% |
|||||
| Cost of Goods Sold |
30,007 |
32,131 |
6.6 |
138,379 |
138,480 |
0.1 |
|||||||||||
| Gross Profit |
7,434 |
7,655 |
(2.9) |
32,671 |
29,813 |
9.6 |
|||||||||||
| Selling, General and Administrative Expenses |
4,897 |
4,899 |
0.0 |
20,665 |
20,307 |
(1.8) |
|||||||||||
| Operating Profit |
2,537 |
2,756 |
(7.9) |
12,006 |
9,506 |
26.3 |
|||||||||||
| Interest Income |
162 |
114 |
42.1 |
521 |
524 |
(0.6) |
|||||||||||
| Income Before Income Taxes |
2,699 |
2,870 |
(6.0) |
12,527 |
10,030 |
24.9 |
|||||||||||
| Income Tax Provision |
658 |
728 |
9.6 |
3,613 |
2,502 |
(44.4) |
|||||||||||
| Net Income |
$ |
2,041 |
$ |
2,142 |
4.7 |
% |
$ |
8,914 |
$ |
7,528 |
18.4 |
% |
|||||
| EARNINGS PER SHARE |
|||||||||||||||||
| Basic |
$ |
0.06 |
$ |
0.06 |
0.0 |
% |
$ |
0.24 |
$ |
0.20 |
20.0 |
% |
|||||
| Diluted |
$ |
0.05 |
$ |
0.06 |
(16.7) |
% |
$ |
0.24 |
$ |
0.20 |
20.0 |
% |
|||||
| AVERAGE SHARES OUTSTANDING |
|||||||||||||||||
| Basic |
36,898 |
36,827 |
36,937 |
36,820 |
|||||||||||||
| Diluted |
37,187 |
37,237 |
37,228 |
37,144 |
|||||||||||||
| MARINE PRODUCTS CORPORATION AND SUBSIDIARIES |
|||||
| CONSOLIDATED BALANCE SHEETS |
|||||
| At December 31, (Unaudited) |
(in thousands) |
||||
| 2014 |
2013 |
||||
| ASSETS |
|||||
| Cash and cash equivalents |
$ |
4,072 |
$ |
5,114 |
|
| Marketable securities |
3,653 |
5,639 |
|||
| Accounts receivable, net |
2,369 |
2,021 |
|||
| Inventories |
28,819 |
28,859 |
|||
| Income taxes receivable |
123 |
692 |
|||
| Deferred income taxes |
2,480 |
1,096 |
|||
| Prepaid expenses and other current assets |
1,706 |
1,839 |
|||
| Total current assets |
43,222 |
45,260 |
|||
| Property, plant and equipment, net |
9,890 |
11,265 |
|||
| Goodwill |
3,308 |
3,308 |
|||
| Other intangibles, net |
465 |
465 |
|||
| Marketable securities |
33,831 |
30,949 |
|||
| Deferred income taxes |
3,214 |
3,177 |
|||
| Other assets |
9,893 |
8,129 |
|||
| Total assets |
$ |
103,823 |
$ |
102,553 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
| Accounts payable |
$ |
3,577 |
$ |
5,569 |
|
| Accrued expenses and other liabilities |
9,631 |
8,993 |
|||
| Total current liabilities |
13,208 |
14,562 |
|||
| Long-term pension liabilities |
7,039 |
6,420 |
|||
| Other long-term liabilities |
82 |
88 |
|||
| Total liabilities |
20,329 |
21,070 |
|||
| Common stock |
3,813 |
3,810 |
|||
| Capital in excess of par value |
3,895 |
3,583 |
|||
| Retained earnings |
77,755 |
74,943 |
|||
| Accumulated other comprehensive loss |
(1,969) |
(853) |
|||
| Total stockholders' equity |
83,494 |
81,483 |
|||
| Total liabilities and stockholders' equity |
$ |
103,823 |
$ |
102,553 |
|
SOURCE Marine Products Corporation
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