Marine Products reports 3Q results

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Marine Products Corp., manufacturer of Chaparral and Robalo boats, today announced a 72.3 percent decrease in net sales and a 75.7 percent decrease in the number of boats sold for the 2009 third quarter, which ended Sept. 30.

For the quarter, Marine Products generated net sales of $8.73 million, compared to $31.58 million in the same quarter of 2008. The drop in net sales was due to a 75.7 percent decrease in the number of boats sold, as well as a 2.5 percent decrease in the average gross selling price per boat because of a change in model mix.

"During the third quarter we supported our dealers to maintain low inventories while also preparing for our 2010 model year and another winter boat show season," CEO Richard A. Hubbell said in a statement. "While our financial results were negatively impacted by low sales to dealers and our financial support of their inventory reduction efforts, this was an investment to prepare for better times in the future."

"Our focus on the support we have provided to dealers is reflected in our field inventory levels at the end of the third quarter, which are the lowest they have been in 13 years, and exceeded even our own internal goals for inventory management," he added.

Marine Products Corp. stock closed Tuesday at $5.03 per share. Its 52-week high and low are $6.64 and $2.99.

Gross profit for the quarter was $1.14 million, or 13 percent of net sales, compared to $5.1 million, or 16.2 percent of net sales, in the prior year.

Unit sales among all models declined significantly compared to the prior year because dealers met the majority of retail demand by liquidating their existing inventory, the company said.

Operating loss for the quarter was $3.34 million, compared to an operating profit of $1.02 million in the third quarter last year due to lower gross profit and higher selling, and general and administrative expenses.

Net loss for the quarter ending Sept. 30 was $1.61 million, a decrease compared to net income of $684,000 in the prior year. The net loss was due to an operating loss and lower interest income. Diluted loss per share for the quarter was 4 cents, compared to 2 cents diluted earnings per share in the prior year.

Net sales for the nine months ending Sept. 30 were $35.16 million, a 77 percent decrease compared to the first nine months of 2008. Net loss for the nine-month period was $7.93 million, or 22 cents per diluted share, compared to net income of $8.71 million, or 24 cents diluted earnings per share, in the prior year.

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