Marine Products Corp. reports 2Q resultsPosted on
Marine Products Corp., the builder of Chaparral and Robalo boats, today announced a 13.6 percent second-quarter sales increase, citing higher unit sales and more sales of larger boats during the quarter.
Net sales reached $48 million for the quarter that ended June 30, compared with $42.2 million in the 2013 period. Gross profit for the quarter was $9.4 million, or 19.7 percent of net sales, a 28.9 percent increase from $7.3 million, or 17.3 percent of net sales, in the quarter last year.
As a percentage of net sales, gross profit increased because of efficiencies from higher unit sales volumes and a favorable model mix during the quarter.
The company reported net income of $3 million, or 8 cents a diluted share, for the quarter, compared with $1.94 million, or 5 cents a share, for the period a year earlier, an increase of 55.7 percent.
Unit sales of larger Robalo sportfishing boats and bay boats increased during the quarter, as well as sales of larger Chaparral H2O models, the company said today.
Sales of the Vortex jetboat, which the company began producing in the first quarter of 2014,also contributed to the unit sales increase, although the company had not yet been able to keep up with dealer and consumer demand.
“We are pleased with our financial results for the second quarter of 2014,”Marine Products CEO Richard A. Hubbell saidin a statement. “Our Robalo sportfishing boats, especially the new bay boats, continue to generate higher unit sales.”
For Chaparral, sales of the largest H2O models increased during the second quarter, and the Chaparral 307 SSX also continued to generate strong unit sales, Hubbell said.
Profitability improved because of increased efficiencies from higher unit sales and a more profitable model mix, Hubbell said.
“We also continued the introduction of our new Vortex jetboat models during the second quarter,”he said. “Although we have not yet achieved production levels that meet our dealer and consumer demand, we are pleased with the progress of these new models.”
The 2014 retail selling season “has been compressed” because of a long winter in many of the company’s markets, Hubbell said.
“Although this is disappointing, there are indications that retail sales at the end of the selling season have improved, which is confirmed by reasonable dealer inventory levels at the end of the quarter,”he said.
“The most recent market share statistics from Statistical Surveys Inc. show that Chaparral continues to hold the largest share of the 18- to 35-foot sterndrive market. These reports also show that Robalo is gaining market share within its segment,”Hubbell said.
“We continue to be gratified by this recognition from our dealers and consumers. We have started producing and shipping selected 2015 models and will soon be introducing several new models to our dealers at our annual dealer conference later in the third quarter.”
Read more about Marine Products’ quarterly earnings and other publicly traded company earnings in this week’s Trade Only Today.