Marine Products Corp. sold more boats at higher prices in the first quarter of 2021, compared with the same quarter last year, resulting in a 33 percent increase in net sales to $59.1 million.
The builder of Chaparral, Robalo and Vortex boats said in a statement that the primary driver for the increase was an 18 percent rise in the number of units sold and an average price that was 15.5 percent higher than a year prior.
Gross profit was up 52.5 percent to $18.4 million, and gross margin increased 23.6 percent, from 20.5 percent last year, the builder reported, pointing to increased production and its model mix.
Net income was up 92.4 percent to $8.1 million, compared with $4.2 million a year prior, and diluted earnings per share rose to $0.24, compared with $0.12 in the first quarter of 2020. Operating profit grew 106.5 percent to $10 million for the period.
President and CEO Richard A. Hubbell said that even with nearly all winter boat shows canceled, the company’s pivot to virtual and limited in-person events was successful.
“Our first quarter results reflect continued strong interest in recreational boating and the appeal of our products, as dealers continue to report strong retail demand in all of the markets,” Hubbell said in the statement. “We are looking forward to a very strong retail selling season, as our order backlog remains at historically high levels.”
Updated numbers for the 12 months ending Dec. 31, 2020, showed an increase in market share for Chaparral and Robalo boats; Chaparral sterndrives retain the second-highest market share in that category. However, concerns about getting finished models to dealers is a concern.
“We have started to experience supply chain disruptions, which will impact our second quarter production and sales growth,” Hubbell said. “We are working closely with our suppliers to understand these disruptions and manage our manufacturing processes, and we are communicating with our dealers and retail customers to manage their expectations and seek the best possible outcomes during this extraordinary time.”