Marine Products Corp. has announced its financial results for the quarter ended June 30, 2018.
For the quarter ended June 30, 2018, Marine Products generated record quarterly net sales of $87 million, a 21.7 percent increase, compared to $71.4 million in the same period of the prior year.
The increase in net sales was due to a 13.3 percent increase in units sold coupled with a 6.9 percent increase in the average selling price per boat.
Gross profit for the quarter was $19.4 million , a 19.6 percent increase compared to gross profit of $16.2 million in the same period of the prior year.
"Our record results this quarter were driven by sales of a number of our Robalo models and several Chaparral SSX, Surf and Suncoast models,” said Marine Products' President and CEO Richard A. Hubbell. “Our dealer inventories have increased slightly compared to the same time last year, although they have declined during the second quarter as compared to the first quarter of 2018.”
Hubbell reported continued strong market positions in both sterndrive and outboard sport fishing boat product lines.
For the 12-month period ending in March 2018, Chaparral maintained its multi-year position as the largest sterndrive manufacturer in its size category, with a market share of 16.7 percent.
In addition, Robalo also maintained its market position as the third largest brand in its category, with a market share of 5.3 percent.
“During the quarter, we continued our historically high regular quarterly cash dividends and share repurchases under our open market share repurchase program. In spite of these uses of cash, we finished the second quarter with $27.9 million in cash and marketable securities, an increase of $6.2 million compared with the second quarter of last year," Hubbell said.
Gross profit for the second quarter increased compared to the prior year due to higher net sales.
Gross margin was 22.4 percent in the second quarter of 2018, compared to 22.8 percent in the second quarter of 2017.
Operating profit for the quarter was $11.1 million , an increase of 27.8 percent, compared to $8.7 million in the second quarter of last year.
Net income for the second quarter of 2018 was a record $8.9 million, an increase of $2.8 million or 46.9 percent compared to the second quarter of 2017.
Net sales for the six months ended June 30, 2018 were $164.5 million, an increase of 15.4 percent compared to the first six months of 2017.
Net income for the six-month period was $16.5 million, compared to net income of $11.3 million
Marine Products Corporation held a conference call on July 25, 2018, to discuss the results for the quarter.
A replay will be available in the investor relations section of Marine Products' website.