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Marine Products Corp. reports 3Q results

Marine Products Corp. said a spike in third-quarter sales was attributable to increasing unit sales of boats such as this Robalo R180.

Marine Products Corp. said a spike in third-quarter sales was attributable to increasing unit sales of boats such as this Robalo R180.

Chaparral and Robalo boats parent company Marine Products Corp. said it generated third-quarter net sales of $55.4 million, a 17.7 percent increase from last year.

The company said the increase was primarily attributable to 12.5 percent growth in unit sales and a 1.7 percent rise in the average selling price per boat.

Marine Products said it generated higher unit sales during the quarter among its SunCoast and Robalo outboard models, as well as Vortex Jet Boats.

Gross profit for the quarter, which ended Sept. 30, was nearly $11.8 million, a 19.2 percent increase from almost $9.9 million in the period last year. The company said gross profit increased because of higher net sales and slightly higher gross margin.

Gross margin during the quarter was 21.3 percent, compared with 21 percent in the year-earlier quarter.

"Our third-quarter financial results reflect a strong retail selling season and the continued popularity of our product offerings,” Marine Products president and CEO Richard Hubbell said in a statement.

“The trends of the last several quarters continued, with strong sales of our Robalo outboard sportfishing boats, particularly the Robalo 180 and 246 models, as well as our SunCoast outboards and Vortex Jet Boats. Within our Chaparral sterndrive offerings, several of our SSX models also sold well, compared to the prior year.”

Operating profit for the quarter was $5.46 million, an increase of 22.6 percent from $4.45 million in the quarter last year.

Selling, general and administrative expenses totaled $6.3 million in the quarter, an increase of 16.4 percent from the year-earlier period.

Selling, general and administrative expenses, which the company said increased primarily because of expenses that vary with sales, were 11.4 percent of net sales during the quarter this year and 11.5 percent during the prior-year period.

Net income for the quarter was $4.28 million, or 11 cents a diluted share, an increase of $1.18 million, or 38.1 percent, from $3.1 million, or 8 cents a share, in the quarter last year.

"We held our annual dealer conference during the third quarter and observed that our dealers continue to be enthusiastic about the recreational boating market, as well as our 2017 models,” Hubbell said.

“We are particularly enthusiastic regarding the Chaparral Surf Series, which we will soon be introducing to our dealers and customers,” he said. “At the end of the third quarter our order backlog was significantly higher than at the end of the third quarter of 2015, and field inventories were higher than the prior year, but lower than at the end of the second quarter. We have increased production at the beginning of the fourth quarter in response to these indications of demand and in preparation for the 2017 winter boat show season.”

The company announced on Tuesday that it will extend its terms and raise the offer price at which it is willing to purchase shares. The original offer price of $9 a share has been increased to $9.64 a share, and the extension pushes the Nov. 1 deadline to Nov. 11.

The company also said its board declared a regular quarterly cash dividend of 6 cents a share, payable Dec. 9 to common stockholders of record at the close of business on Nov. 10.

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