Marine Products Corp. reports 2Q results

The company generated nearly $59.5 million in net sales during the quarter that ended June 30.
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Marine Products Corp., the parent company of Chaparral, Robalo and Vortex jetboats, attributed a 24 percent hike in second-quarter net sales to higher unit sales of Vortex jetboats, Robalo outboard sportfishing boats and Chaparral SunCoast Sportdeck outboards.

The company generated nearly $59.5 million in net sales during the quarter that ended June 30, compared with $48 million last year.

Net profit for the quarter rose 47 percent to $4.43 million, or 12 cents a diluted share, from $3 million, or 8 cents a share, a year earlier.

“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,” Marine Products president and CEO Richard Hubbell said in a statement. “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.”

Gross second-quarter profit was just over $12.6 million, or 21.2 percent of net sales, a 33.6 percent increase from $9.43 million, or 19.7 percent of net sales, in the same period last year.

The company said gross profit for the quarter increased from the prior year because of higher net sales and an improved gross margin, which improved from the prior year because of a favorable model mix and improved operating efficiencies attributable to higher production volumes.

"In spite of some weather-related sales slowdowns during the quarter, Marine Products enjoyed a good 2015 retail selling season,” Hubbell said. “We benefited from a strong selling environment, as well as continued appeal of our product offerings.”

“We are preparing for our annual dealer conference in a few weeks and are excited about several new models that we will be introducing to our dealers for the 2016 model year,” he said. “ 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.”

Operating profit for the quarter was $6.42 million, an increase of 55.7 percent from almost $4.13 million last year.

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