Marine Products Corporation, manufacturer of Chaparral and Robalo boats, showed some robust growth for the second quarter of the year.
For the quarter ended June 30, 2015, Marine Products generated net sales of $59,498,000, a 24.0 percent increase compared to $47,975,000 in the same period of the prior year.
The company cited increased sales of the Chaparral Vortex Jet Boats, as well as higher sales of Robalo's outboard sport fishing boats and Chaparral's SunCoast Sportdeck outboards, as key factors in the growth during the quarter.
Gross profit for the quarter was $12,604,000, or 21.2 percent of net sales, a 33.6 percent increase compared to gross profit of $9,432,000, or 19.7 percent of net sales, in the same period of the prior year. Operating profit for the quarter was $6,423,000, an increase of 55.7 percent compared to $4,125,000 in the second quarter of last year.
Net income for the quarter ended June 30, 2015, was $4,429,000, an increase of $1,416,000 or 47.0 percent compared to net income of $3,013,000 for the second quarter of 2014. Diluted earnings per share were $0.12 in the second quarter of 2015, an increase of $0.04 compared to the second quarter of the prior year.
Net sales for the six months ended June 30, 2015 were $110,142,000, an increase of 15.1 percent compared to the first six months of 2014. Net income for the six-month period was $7,358,000 or $0.20 earnings per diluted share, compared to net income of $4,991,000, or $0.13 earnings per diluted share in the prior year.
Richard A. Hubbell, Marine Products' President and Chief Executive Officer stated, "We are pleased to report strong sales results for our Vortex Jet Boats in the second quarter. In addition, our Robalo outboard sport fishing boats generated year-over-year sales increases, and we are pleased with our dealers' and customers' reception to our Chaparral SunCoast outboards, which are new for this retail selling season. Our profitability improved due to efficiencies gained from higher unit production as well as our continued efforts to improve efficiencies within our expanded manufacturing facility.
"In spite of some weather-related sales slowdowns during the quarter, Marine Products enjoyed a good 2015 retail selling season. We benefited from a strong selling environment as well as continued appeal of our product offerings. We are especially pleased with our Vortex sales during the second quarter, and believe that this product line's share of the jet boat market is growing significantly. At the end of the quarter, our dealer inventories were comparable to the end of the second quarter of 2014, and order backlog was higher than at this time last year. We are preparing for our annual dealer conference in a few weeks, and are excited about several new models that we will be introducing to our dealers for the 2016 model year. Also during the third quarter we plan to monitor dealer inventories and adjust production as necessary based on retail seasonality, our transition to the 2016 model year and our efforts to ensure that our dealers' inventory levels remain stable," concluded Hubbell.