Marine Products Reports Strong Q2 Results

Marine Products Corporation, manufacturer of the Chaparral and Robalo boat brands, has announced a 24 percent increase in net sales over last year as of the end of June.

For the quarter ended June 30, 2015, Marine Products generated net sales of US $59,498,000, compared to US $47,975,000 in the same period of the prior year.  The company credits its increase to higher unit sales of Chaparral Vortex jet boats, Robalo outboard sport fishing models and Chaparral SunCoast Sportdeck outboards during the quarter.

"We are pleased to report strong sales results for our Vortex Jet Boats in the second quarter,' says Richard A. Hubbell, Marine Products' President and Chief Executive Officer. "In addition, our Robalo outboard sport fishing boats generated year-over-year sales increases, and we are pleased with our dealers' and customers' reception to our Chaparral SunCoast outboards, which are new for this retail selling season. Our profitability improved due to efficiencies gained from higher unit production as well as our continued efforts to improve efficiencies within our expanded manufacturing facility.

"We are especially pleased with our Vortex sales during the second quarter, and believe that this product line's share of the jet boat market is growing significantly.  At the end of the quarter, our dealer inventories were comparable to the end of the second quarter of 2014, and order backlog was higher than at this time last year.

"Also, during the third quarter we plan to monitor dealer inventories and adjust production as necessary based on retail seasonality, our transition to the 2016 model year and our efforts to ensure that our dealers' inventory levels remain stable.'

Gross profit for the quarter was US $12,604,000, or 21.2 percent of net sales, a 33.6 percent increase compared to gross profit of $9,432,000 (19.7 percent of net sales) in the same period of 2014.

Marine Products attributes the gross profit increase to higher net sales and an improved gross margin. It says this was made possible by a favorable model mix and improved operating efficiencies due to higher production volumes.

Operating profit for the quarter was US $6,423,000, an increase of 55.7 percent compared to US $4,125,000 in the second quarter of last year.  

Selling, general and administrative expenses were US $6,181,000, an increase of 16.5 percent compared to the second quarter of 2014. Expenses rose due to costs associated with an increase in sales and profitability, such as sales commissions and incentive compensation. The company claims these increases were partially offset by a drop in warranty expenses.

Selling, general and administrative expenses decreased from 11.1 percent in the second quarter of 2014 to 10.4 percent in the second quarter of 2015.

Net income was US $4,429,000, an increase of US $1,416,000 or 47 percent compared to a net income of US $3,013,000 in Q2 of 2014. Diluted earnings per share were US $0.12 in the second quarter of 2015, an increase of US $0.04 compared to the same period last year.

Net sales for the six months ended June 30, 2015 were US $110,142,000, an increase of 15.1 percent from the same time last year.  Net income for the six-month period was US $7,358,000 or US $0.20 earnings per diluted share, compared to net income of US $4,991,000, or US $0.13 earnings per diluted share in 2014.