Marine Products Corporation (MPC) -- manufacturer of Chaparral and Robalo boats -- announced its unaudited results for the quarter ended June 30, 2022.
"Our manufacturing facility operated throughout the second quarter of 2022 as we worked to satisfy continued high dealer and consumer demand during the height of the retail selling season," stated Ben M. Palmer, Marine Products' President and Chief Executive Officer. "We continue to work toward more timely receipts of short components from our suppliers and overcome boat delivery transportation challenges. Although some of our supply chain issues have improved, we are still being impacted by sporadic and unexpected shortages of critical components. These delays continue to impact our ability to meet demand and lead to higher-than-normal inventory levels of substantially completed boats that could not be shipped to dealers."
For the quarter, Marine Products reported net sales of $95.8 million, a 42% increase compared to $67.3 million in the same period of the prior year. MPC said the increase in net sales was primarily due to a 22% increase in the average selling price per boat and a 15% increase in the number of boats sold. The increase in units sold during the second quarter as compared to the prior year was primarily due to higher production and increased shipments of boats in the current year compared to the second quarter of the prior year. The results in the second quarter of the prior year were also negatively impacted by a brief production shutdown due to supply chain issues. Average selling prices increased primarily due to model price increases to cover increased costs of materials and components and a favorable model mix.
Gross profit for the second quarter of 2022 was $23 million compared to $14.6 million in the second quarter of the prior year. Gross margin as a percentage of net sales increased to 24% in the second quarter of 2022 compared to 22% in the second quarter of 2021.
Net sales for the six months ended June 30, 2022 were $172.4 million, an increase of 18% compared to the first six months of 2021. Net income for the six-month period was $17 million or $0.50 diluted earnings per share, compared to net income of $13.9 million or $0.41 diluted earnings per share in the comparable prior year period.
"We are closely monitoring retail demand indications as consumers assess rising interest rates and the near-term prospect of a recession. We will conduct an in-person dealer conference during the third quarter and we are eager to hear our dealers' assessments of demand in their markets as well as display our models for the 2023 model year. Our dealer inventories remain at historic lows and consumer demand continues to exceed our industry's capacity to meet that demand. For these reasons, we believe any slowdown in consumer demand will not impact our near-term results; therefore, we continue to focus on maximizing unit production and quality," concluded Palmer.
Read the full MPC Q2 financial report here.