Marine Products Corp. posted a strong second quarter of the year, with net sales jumping 65 percent to $67.3 million.
The builder of Chaparral, Robalo and Vortex boats said the $26.4 million gain can be attributed to a 59 percent increase in the number of units sold, as well as a 7.5 percent pricing increase in the average selling price per boat. High dealer and retail demand for the builder’s larger boats like the Chaparral OSX Sportboats also helped contribute to the increase.
Net income for the quarter skyrocketed 239 percent to $5.8 million, compared to $1.7 million in Q2 of 2020. Gross profit also saw a big jump — 87 percent — to $14.6 million.
For the six-month period that ended on June 30, the company reported a 46 percent increase in net sales to $145.6 million, with net income up 135 percent to $13.9 million, or $0.41 diluted earnings per share (compared to $5.9 million and $0.17 diluted EPS).
"The extraordinarily high demand for our products has continued unabated, and we expect it to remain so beyond the 2021 retail selling season," said president and CEO Richard A. Hubbell in a statement.
While the numbers are partially offset by higher material costs and continued supply chain disruptions, Marine Products Corp. pointed out that the company’s Q2 2020 numbers were impacted by the suspension of manufacturing operations for five weeks due to Covid-19.
Hubbell also addressed the company’s market share gains and continued supply chain strains they have experienced over the last year.
“The most recent reported data indicate that total retail sales among our various product categories increased by 28 percent during the first five months of 2021 compared to the prior year [and] updated statistics...indicate that our Robalo product continued to hold the highest market share for outboard boats in its size category, and that Chaparral continues to hold the second-highest market share in the sterndrive category.”
Hubbell continued: “Our second quarter 2021 financial results also reflect significant supply chain and other logistical challenges which negatively impacted our production processes and shipment schedules. These issues caused production delays and in some cases, prevented us from shipping all finished boats during the quarter. We are coordinating with our suppliers to establish realistic expectations for the resolution of the various supply chain disruptions we have faced, and we are using their projections to set our production schedules for the next few months. There are many favorable indications that supply chain problems will be less significant during the upcoming months, but we still face a great deal of uncertainty in this area.”