Marine Products Corp. reports 4Q, year-end results

During the quarter, Marine Products generated higher unit sales among Chaparral H2O and Robalo outboard models.
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Chaparral and Robalo Boats parent company Marine Products Corp. attributed a 14.7 percent increase in fourth-quarter net sales to a rise in unit sales and an increase in parts and accessories sales.

The company said net sales of $57.2 million for the quarter that ended Dec. 31 rose primarily because of a 13.6 percent increase in the number of boats sold, but the figure was partially offset by a slight decrease in the average selling price.

During the quarter, Marine Products generated higher unit sales among Chaparral H2O and Robalo outboard models.

"Our fourth-quarter financial results reflect a continued strong selling season for recreational boating, as well as the appeal of a number of our successful models,” CEO Richard Hubbell said in a statement. “Sales of our Robalo outboard sport fishing boats continued to be strong across this product's size range and our largest Chaparral H2O models continue to be popular.”

Gross profit for the quarter was $12.2 million, a 9.8 percent increase from $11.1 million in the quarter a year earlier, and operating profit for the quarter was $5.2 million, a slight decrease from $5.4 million in the prior year’s quarter.

“We were pleased with the favorable product mix within all of our model lines during the fourth quarter, and we note that our Chaparral sterndrive models recorded a slight increase in unit sales during 2016 in spite of preliminary reports that overall industry retail unit sales of sterndrives continued to decline year over year,” Hubbell said.

“Chaparral sterndrives continue to hold the largest market share within its size category, and our other product categories hold significant market share as well.”

Net income for the quarter was $3.7 million, or 10 cents a diluted share, a decrease of $123,000, or 3.2 percent, from $3.85 million, also 10 cents a share, a year earlier.

Net sales for the full year totaled $241.3 million, a 16.6 percent increase from the prior year. Full-year net income was $16.7 million, or 44 cents a diluted share, compared with $14.3 million, or 39 cents a share, in 2015.

"The 2017 winter boat show season is underway, and attendance and sales at shows has thus far exceeded last year,” Hubbell said. “Dealer and consumer interest in some of our new models has been very strong, and we are also enthusiastic about improving economic indicators, including consumer confidence. Order backlog is comparable to the prior year at this time, so we are continuing with our higher production levels during the first quarter of 2017.”

The company declared a 17 percent increase in the regular quarterly cash dividend, raising it from 6 cents a share to 7 cents a share.

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