Marine Products Corp. reports sales spike

ATLANTA – Boat builder Marine Products Corp. (Amex: MPX) saw a 24.7-percent rise in sales and a 26.3-percent jump in earning for the quarter ended June 30, compared to the same quarter of 2003, it reported in a statement today.

“The second quarter of 2004 continued our positive momentum,” said Richard A. Hubbell, Marine Products’ chief executive officer. “All of our models sold well this quarter, and we continue to be pleased with Robalo’s growing contribution to our sales and profitability.”

For the quarter ended June 30, Marine Products generated net sales of $64,775,000, compared to $51,951,000 last year. The increase in net sales was due to a 13-percent increase in the number of boats sold and a 10.5-percent increase in the average sales price per boat, according to the company.

All four boat lines experienced increased unit sales. The increase in average sales price per boat was due to increased sales of larger cruisers and sportboats, and increased sales of Robalo sport fishing boats, MPX reported.

Gross profit for the quarter was $16,971,000, or 26.2 percent of net sales, compared to $13,551,000, or 26.1 percent of net sales, in the prior year.

Operating income for the quarter was $9,475,000, a 25.8 percent increase compared to the second quarter last year due to higher gross profit, partially offset by higher selling, general and administrative expenses, the company reported. Operating income was 14.6 percent of net sales for the quarter compared to 14.5 percent of net sales in the prior year.

Selling, general and administrative expenses increased due to costs that vary with sales and profitability, such as warranty expense, sales commissions and other incentive compensation, and increased research and development expense associated with the development of new models for the 2005 model year, MPA reported.

Net income for the quarter ended June 30 was $6,396,000, a 28.9-percent increase compared to $4,961,000 in the prior year. Net income increased due to higher operating income and a lower effective income tax rate, according to the company.

Diluted earnings per share for the quarter were $0.24, compared to $0.19 diluted earnings per share in the prior year.

Net sales for the six months ended June 30 were $126,605,000, a 24.1-percent increase from the first six months of 2003. Net income for the six-month period increased 31.5 percent to $12,042,000 or $0.44 diluted earnings per share compared to $9,154,000 or $0.34 diluted earnings per share in the prior year.

“As we finish the 2004 model year, we are pleased that dealer demand remains strong,” commented Hubbell. “Our field inventories at the end of the quarter were higher than at the end of the second quarter last year due to increased sales volume, but not as high as the increase in our order backlog compared to the same time last year.”

Hubbell added that the company has continued to work toward improving its customer service with the belief that it “will provide a great deal of future benefit to the company.”

Marine Products Corp. (Amex: MPX – News) designs, manufactures and distributes Chaparral sterndrive and inboard pleasure boats and Robalo sport fishing boats.

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