Marine Products Corp. has announced its unaudited results for the quarter ending Sept. 30, 2018. Generated net sales rose to $72 million, a 21.6 percent increase when compared to $59.2 million generated in the same period of the prior year.
The increase in net sales was due to a 7.9 percent increase in units sold coupled with a 12.6 percent increase in the average selling price per boat.
Gross profit for the quarter was $16.1 million, a 20.2 percent increase compared to gross profit of $13.4 million in the same period of the prior year.
Gross profit for the third quarter increased compared to the prior year due to higher net sales. Gross margin was 22.5 percent in the third quarter of 2018, compared to 22.7 percent in the third quarter of 2017.
Operating profit for the quarter was $9.1 million, an increase of 37.8 percent, compared to $6.7 million n the third quarter of last year.
Net income for the third quarter of 2018 was $7.1 million, an increase of $2.6 million, or 56.9 percent compared to the third quarter of 2017.
Net sales for the nine months ended Sept. 30, 2018 were $236 million, an increase of 17.3 percent compared to the first nine months of 2017. Net income for the nine-month period was $23.7 million.
"Our results during the third quarter of 2018 were driven by a model mix which included larger boats, such as our larger Chaparral 277 and 347 SSX models, as well as several of our larger Robalo models,’ said Richard Hubbell, Marine Products' president and CEO.
Hubble added: “Unit sales of most of our product lines increased, including sales of our sterndrive models, which increased in contrast to the overall weakness in this recreational boating segment.”
Marine Products reported continued strong market positions in sterndrive and outboard sport fishing boat product lines. For the 12-month period ending in June 2018, Chaparral maintained its position as the largest sterndrive manufacturer in its size category, with a market share of 16.8 percent.
In addition, Robalo held the third largest market position in its category, with a market share of 5.1 percent. During the third quarter the company held its annual dealer conference.
“Our dealer network is optimistic about market demand in the upcoming year and enthusiastic about our 2019 models,” Hubbell said. “Our order backlog at the end of the third quarter was higher than at the end of the third quarter of last year, and dealer inventories were relatively unchanged, reflecting strong retail sales levels.”
During the quarter, Marine Products continued its regular quarterly cash dividends and share repurchases under its open market share repurchase program, Hubbell report. In spite of these uses of cash, Marnie Products Corp. finished the third quarter with $22.3 million in cash and marketable securities, an increase of $4.8 million compared with the third quarter of last year.
A replay of Marine Products third quarter conference call is available in the investor relations section of www.marineproductscorp.com.