Marine Products Corp. has announced a net sales increase of 9.1 percent for first quarter 2018. The increase in net sales was due to a 9.6 percent increase in the average selling price per boat, as well as an increase in parts and accessories sales, the company reported.
For the quarter ending March 31, 2018, Marine Products generated net sales of $77.5 million, compared to $71 million in the same period last year.
Average selling prices increased during the quarter due to a model mix which included larger boats.
"Our first quarter 2018 financial results were driven by sales of several popular 2018 models, including the three new Chaparral SSX models and several of the larger Robalo Explorer models,” said Richard A. Hubbell, Marine Products' president and chief executive officer.
Dealer inventories increased slightly, and backlog is higher than at this time in 2017, Hubbell reported, reflecting high levels of dealer demand during the retail selling season.
“We are pleased to report continued strong market positions in both our sterndrive and outboard sport fishing boat product lines,” Hubble added.
Gross profit for the quarter was $17.6 million , an 18.4 percent increase compared to gross profit of $14.9 million in the same period of the prior year.
Gross profit for the first quarter increased compared to the prior year due to higher net sales and improved profitability.
Gross margin was 22.8 percent in the first quarter of 2018, compared to 21 percent in 2017. Gross margin improved as compared to the prior year due to an increase in average selling prices, a favorable model mix and improved manufacturing efficiencies, the company reported.
Operating profit for the quarter was $9 million an increase of 31 percent, compared to $6.9 million in the first quarter of last year.
Net income for the first quarter of 2018 was $7.6 million an increase of $2.3 million or 44.6 percent compared to the first quarter of 2017.
For the 12-month period ending December 2017, Chaparral maintained its position as the largest sterndrive manufacturer in its size category, with a market share of 16.7 percent, the company reported.
In addition, Marine Products Corp. reported Robalo’s market position increased to become the third largest brand in its category, with a market share of 5.3 percent.
During the quarter, Marine Products Corp. issued the largest regular quarterly cash dividend in its history and continued share repurchases under our open market share repurchase program.
In spite of these uses of cash, the company finished the first quarter with $21.4 million in cash and marketable securities, an increase of $3.4 million compared with the first quarter of last year, Hubbell reported.