Marine Products Corp., maker of Chaparral and Robalo boats, reported a nearly 90 percent increase in sales for the fourth quarter and a 156 percent increase in sales for the year.
For the quarter, which ended Dec. 31, Marine Products generated net sales of $20,814,000, an increase of 89.4 percent, compared with $10,990,000 last year.
"The increase in net sales was due to a significant increase in the number of boats sold and more normalized incentive costs as a percentage of net sales, compared to the prior year, as well as a slight increase in the average gross selling price per boat," the company said in a statement.
Gross profit for the quarter was $3,595,000, or 17.3 percent of net sales, compared with a gross loss of $1,390,000 in the prior year. The company attributed the gain to significantly lower incentive costs as a percentage of net sales and operating at significantly higher production levels, compared with the same period in 2009.
Net income for the quarter was $468,000, compared with a net loss of $2,764,000 in the prior year. Earnings per share for the quarter were 1 cent, compared with an 8 cent loss per share in the prior year.
Net sales for the 12 months that ended Dec. 31 were $101,011,000, a 156.1 percent increase from the year that ended Dec. 31, 2009. Net income for the period was $3,853,000 or 11 cents a share, compared with a net loss of $10,693,000, or 30 cents a share, in the prior year.
"In the fourth quarter of 2010 we continued to experience the ability and willingness of our dealer network to build inventory levels to meet anticipated customer demand for the 2011 retail selling season," CEO Richard Hubbell said in a statement.
"As a result, we were able to produce and sell a higher number of units and plan future production with more certainty than during the fourth quarter of 2009," he added. "In addition, we recorded much lower retail incentive costs than in 2009, due to the renewed financial strength of our dealer network and their appropriate inventory levels, relative to current and anticipated customer demand."
Hubbell said the company is "guardedly optimistic" about the coming selling season.
"Attendance at the early winter boat shows has been slightly better than last year and dealers and customers continue to be impressed with the benefits that our financial strength and management expertise present," he said.
Marine Products' stock closed Tuesday at $7.33 a share. Its 52-week high and low are $8.28 and $4.80.