Marine Products Corp., the builder of Chaparral and Robalo boats, today reported a 16 percent fourth-quarter sales gain and said it more than doubled its profit for the period.
The Atlanta-based company said net income for the quarter that ended Dec. 31 was $2.41 million, or 6 cents a diluted share, a 126 percent increase from $1.07 million, or 3 cents a share, for the quarter a year earlier.
Net sales were $39.5 million, compared with $34.2 million in the 2012 quarter.
Net income for the full year was $7.8 million, or 21 cents a diluted share, an 11.7 percent increase from $6.98 million, or 19 cents a share, in 2012. Net sales for the full year were $168 million, a 12.8 percent increase from $149 million the previous year.
Marine Products said the increase in net sales for the quarter was attributable to an increase of 8 percent in the number of units sold and a 6.3 percent increase in the average selling price per boat, as well as higher parts and accessories sales. Unit sales and average selling prices of the company’s Robalo sportfishing boats increased significantly.
Average selling prices of several of the builder’s Chaparral models increased, as well, because of a favorable model mix that included a greater number of large Chaparral SSX Sportboats and Sunesta Sportdecks.
Gross profit for the quarter was $8.2 million, or 20.8 percent of net sales, a 48.2 percent increase from $5.54 million, or 16.2 percent of net sales, in the same period in the prior year.
Operating profit for the quarter increased by 177.4 percent, to $3.3 million, compared with $1.18 million in the fourth quarter last year, because of higher gross profit, partially offset by higher selling, general and administrative expenses.
"Our financial results for the fourth quarter reflect continued growth in the sales of our Robalo sportfishing boats and a favorable model mix both at Robalo and several of our Chaparral product lines,” CEO Richard A. Hubbell said in a statement.
“Higher production also enhanced our profitability. At the end of the quarter our dealer inventories were higher than at the same time in 2012, which we believe to be appropriate, given our belief that consumer demand will be stronger in the upcoming retail selling season. The winter boat show season has started, and in general, attendance is higher than last year, as is the interest level of boat show attendees.
"Dealer and consumer interest in our 2014 models remains strong. We sold more of our larger SSX Sportboats in the fourth quarter, as well as more larger Robalo sportfishing boats. Interest in our new Vortex jetboat continues to be strong, and we will introduce three jetboat models during the 2014 retail selling season.
“In a relatively lackluster selling environment for sterndrive fiberglass recreational boats, we are pleased to report continued leading market share. The most recently available market share statistics from Statistical Surveys Inc. show that for the first nine months of 2013, Chaparral's share of the 18- to 35-foot sterndrive market was 13.9 percent, compared to 11.7 percent during the same period in 2012, and that we held the largest market share within this segment.
“Our leading market share is the result of our enduring ability to provide our customers with high-quality, stylish products throughout the economic cycles."