ATLANTA, April 28, 2021 /PRNewswire/ -- Marine Products Corporation MPX announced its unaudited results for the quarter ended March 31, 2021. Marine Products is a leading manufacturer of fiberglass boats under three brand names: Chaparral, Robalo and Vortex. Chaparral's sterndrive models include SSi and SSX, along with the Chaparral Surf Series. Chaparral's outboard offerings include OSX Luxury Sportboats, the 267 SSX OB, SSi outboard models and SunCoast Sportdecks. Robalo builds an array of outboard sport fishing boats, which include center consoles, dual consoles and Cayman Bay Boat models. Chaparral also offers jet powered boats under the Vortex brand name.
For the quarter ended March 31, 2021, Marine Products generated net sales of $78,375,000, a 32.6 percent increase compared to $59,119,000 in the same period of the prior year. The increase in net sales was due to a 17.9 percent increase in the number of units sold during the quarter as compared to the prior year as well as a 15.5 percent increase in average selling price per boat. Unit sales increased in all of our major product categories. Average selling prices also increased compared to the first quarter of the prior year due to a model mix that included more of our larger boats.
Gross profit for the first quarter of 2021 was $18,462,000, a 52.5 percent increase compared to gross profit of $12,107,000 in the same period of the prior year. Gross margin as a percentage of net sales increased to 23.6 percent in the first quarter of 2021 compared to 20.5 percent in the first quarter of 2020. Gross margin as a percentage of net sales increased due to manufacturing efficiencies resulting from higher production and a favorable model mix during the first quarter of 2021 as compared to the prior year.
Operating profit for the first quarter of 2021 was $10,025,000, an increase of 106.5 percent compared with operating profit of $4,854,000 in the first quarter of last year. Selling, general and administrative expenses were $8,437,000 in the first quarter of 2021 compared to $7,253,000 in the first quarter of 2020. These expenses increased due to costs that vary with sales and profitability, such as incentive compensation and warranty expense, partially offset by marketing cost savings during the quarter. Selling, general and administrative expenses as a percentage of net sales were 10.8 percent in the first quarter of 2021 compared to 12.3 percent of net sales during the first quarter of 2020.
Net income for the first quarter of 2021 was $8,097,000, an increase of $3,889,000, or 92.4 percent, compared with net income of $4,208,000 in the first quarter of 2020. Diluted earnings per share were $0.24 in the first quarter of 2021 compared to $0.12 in the first quarter of 2020. The effective tax rate for the first quarter of 2021 was 19.3 percent, an increase compared to an effective tax rate of 14.4 percent for the first quarter of the prior year.
Richard A. Hubbell, Marine Products' President and Chief Executive Officer stated, "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. We generated strong sales across all our product lines. Although most of the winter boat shows were cancelled this year, our virtual and limited in-person marketing and sales efforts have been successful and we are looking forward to a very strong retail selling season, as our order backlog remains at historically high levels. We continue to be pleased by our growing market share. Updated statistics for the 12 months ended December 31, 2020 indicate that market share in our Robalo product line increased slightly, as did the combination of our Robalo and Chaparral outboard units. Market share within our Chaparral sterndrive models increased as well, and that product line continues to hold the second highest market share in its category.
"We are optimistic about the continued strength in the recreational boat market and our near-term financial results. However, like so many manufacturing businesses, we have started to experience supply chain disruptions which will impact our second quarter production and sales growth. 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," concluded Hubbell.
Marine Products Corporation will hold a conference call today, April 28, 2021, at 8:00 a.m. Eastern Time to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of Marine Products' website at marineproductscorp.com. Additionally, the live conference call can be accessed by calling (833) 968-2235 or (825) 312-2057 for international callers, and using conference ID number 6784804. A replay will be available in the investor relations section of Marine Products' website beginning approximately two hours after the call.
Marine Products Corporation MPX designs, manufactures and distributes premium-branded Chaparral sterndrive and outboard pleasure boats, Vortex jet drive boats, and Robalo outboard sport fishing boats. The Company continues to diversify its product lines through product innovation. With premium brands, a solid capital structure, and a strong independent dealer network, Marine Products Corporation is prepared to capitalize on opportunities to increase its market share and to generate superior financial performance to build long-term shareholder value. For more information on Marine Products Corporation visit our website at MarineProductsCorp.com.
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations or hopes. In particular, such statements include, without limitation, the statement that we are looking forward to a very strong retail selling season; our optimism about the continued strength in the recreational boat market and our near-term financial results; and our belief that supply chain disruptions will impact our second quarter production and sales growth. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Marine Products Corporation to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. These risks include risks related to the supply chain disruptions that may impact our production and sales in 2021. Additional discussion of factors that could cause the actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in Marine Products' Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the "SEC") for the year ended December 31, 2020.
For information contact: | |
BEN M. PALMER | JIM LANDERS |
Chief Financial Officer | Vice President Corporate Services |
(404) 321-7910 | (404) 321-2162 |
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) | ||||||||
Period ended March 31, (Unaudited) | First Quarter | |||||||
2021 | 2020 | % BETTER | ||||||
Net Sales | $ | 78,375 | $ | 59,119 | 32.6 | % | ||
Cost of Goods Sold | 59,913 | 47,012 | (27.4) | |||||
Gross Profit | 18,462 | 12,107 | 52.5 | |||||
Selling, General and Administrative Expenses | 8,437 | 7,253 | (16.3) | |||||
Operating Profit | 10,025 | 4,854 | 106.5 | |||||
Interest Income | 8 | 61 | (86.9) | |||||
Income Before Income Taxes | 10,033 | 4,915 | 104.1 | |||||
Income Tax Provision | 1,936 | 707 | (173.8) | |||||
Net Income | $ | 8,097 | $ | 4,208 | 92.4 | % | ||
EARNINGS PER SHARE | ||||||||
Basic | $ | 0.24 | $ | 0.12 | 100.0 | % | ||
Diluted | $ | 0.24 | $ | 0.12 | 100.0 | % | ||
AVERAGE SHARES OUTSTANDING | ||||||||
Basic | 33,958 | 33,940 | ||||||
Diluted | 33,958 | 33,940 | ||||||
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
At March 31, (Unaudited) | (in thousands) | |||||
2021 | 2020 | |||||
ASSETS | ||||||
Cash and cash equivalents | $ | 35,016 | $ | 20,064 | ||
Accounts receivable, net | 7,727 | 9,170 | ||||
Inventories | 45,929 | 45,946 | ||||
Income taxes receivable | 551 | 733 | ||||
Prepaid expenses and other current assets | 2,161 | 1,442 | ||||
Total current assets | 91,384 | 77,355 | ||||
Property, plant and equipment, net | 14,727 | 14,925 | ||||
Goodwill | 3,308 | 3,308 | ||||
Other intangibles, net | 465 | 465 | ||||
Pension assets | 12,662 | 6,662 | ||||
Deferred income taxes | 3,917 | 3,429 | ||||
Other assets | 3,702 | 3,681 | ||||
Total assets | $ | 130,165 | $ | 109,825 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Accounts payable | $ | 10,847 | $ | 9,803 | ||
Accrued expenses and other liabilities | 16,583 | 13,708 | ||||
Total current liabilities | 27,430 | 23,511 | ||||
Long-term pension liabilities | 13,209 | 8,805 | ||||
Other long-term liabilities | 791 | 523 | ||||
Total liabilities | 41,430 | 32,839 | ||||
Common stock | 3,399 | 3,397 | ||||
Capital in excess of par value | - | - | ||||
Retained earnings | 87,269 | 76,218 | ||||
Accumulated other comprehensive loss | (1,933) | (2,629) | ||||
Total stockholders' equity | 88,735 | 76,986 | ||||
Total liabilities and stockholders' equity | $ | 130,165 | $ | 109,825 | ||
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SOURCE Marine Products Corporation
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