MPX reports fourth quarter and annual results
ATLANTA – Marine Products Corporation released its unaudited results for the quarter and year ended Dec. 31, 2005, the company said in a statement Wednesday. Marine Products Corporation is a fiberglass boat manufacturer with two brand names: Chaparral sterndrive and inboard pleasure boats, including SSi Sportboats, Sunesta Deckboats and Signature Cruisers; and Robalo outboard sport fishing boats.
For the quarter ended Dec. 31, 2005, Marine Products generated net sales of $56,873,000, a 9.3 percent decrease compared to $62,684,000 last year. The decrease in net sales was due to a 21.3 percent decrease in the number of boats sold, partially offset by an 11.8 percent increase in the average gross selling price per boat. The increase in average gross selling price was due to a favorable model mix. Gross profit for the quarter was $13,153,000, or 23.1 percent of net sales, compared to $15,775,000, or 25.2 percent of net sales, in the prior year. The decrease in gross profit as percent of net sales was primarily the result of increased raw materials costs which were not offset by price increases.
Operating income for the quarter was $5,299,000, a 34.5 percent decrease compared to the fourth quarter last year due primarily to lower gross profit as selling, general and administrative expenses were approximately the same in both quarters. Operating income was 9.3 percent of net sales for the quarter compared to 12.9 percent of net sales in the prior year.
Net income for the quarter ended Dec. 31, 2005 was $4,185,000, a 23.3 percent decrease compared to $5,457,000 in the prior year. Net income decreased due to lower operating income, partially offset by a lower effective tax rate resulting from the benefit of the new manufacturing deduction and a contingency adjustment, and increased interest income. Diluted earnings per share for the quarter were $0.11, a 15.4 percent decrease compared to $0.13 diluted earnings per share in the quarter in the prior year.
Net sales for the twelve months ended Dec. 31, 2005 were $272,057,000, a 7.8 percent increase compared to 2004. Net income for the year increased 10.4 percent to $26,223,000 or $0.65 diluted earnings per share compared to $23,743,000 or $0.58 diluted earnings per share last year. Diluted earnings per share increased because of higher operating income, a lower effective tax rate, and the impact of fewer shares outstanding due to open market repurchases during 2005.
“We decreased our production volumes during the fourth quarter in response to concerns about retail sales arising from the hurricanes, rising fuel prices, and the potential of declining consumer confidence,” said Richard Hubbell, Marine Products’ CEO. “We accomplished this during the fourth quarter, resulting in improved dealer inventory levels, while at the same time introducing our 2006 models. Our current backlog is comparable to the prior year due to higher average selling prices of dealer unit orders.
“The winter boat show season has started and will be an important indicator for our retail selling season during 2006,” Hubbell continued. “Retail traffic and sales coming from these shows are generally favorable, and dealers and retail buyers are also reacting positively to the new Chaparral and Robalo models that we have introduced for the 2006 model year. Both of these are positive indicators, given the concerns that we had at the beginning of the fourth quarter. For these reasons, we have increased production slightly above our fourth quarter 2005 levels in order to meet this demand. However, we continue to monitor closely consumer confidence, fuel prices and other indicators of retail demand and will adjust production as necessary to maintain dealer inventories and backlog at appropriate levels.”
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