Marine Products Corporation has announced its unaudited results for the quarter ended Sept. 30, 2022. Marine Products is a leading manufacturer of fiberglass boats under the brand names of Chaparral and Robalo. Chaparral's sterndrive models include SSi and SSX, along with the Chaparral Surf Series. Chaparral's outboard offerings include OSX Luxury Sportboats, and SSi and SSX outboard models. Robalo builds an array of outboard sport fishing boats, which include center consoles, dual consoles and Cayman Bay Boat models.
For the quarter ended September 30, 2022, Marine Products generated quarterly net sales of $100.1 million, a 32% increase compared to $75.8 million in the same quarter of the prior year. The increase in net sales was due to a 33% increase in the average selling price per boat. The number of units sold during the third quarter of 2022 were relatively flat compared to the same quarter of the prior year.
Gross profit for the third quarter of 2022 was $25.0 million compared to $16.0 million in the third quarter of the prior year. Gross margin as a percentage of net sales increased to 25% in the third quarter of 2022 compared to 21 percent in the third quarter of 2021.
Operating profit for the third quarter of 2022 was $14.7 million, an increase of 76% compared to operating profit of $8.3 million in the third quarter of last year. Selling, general and administrative expenses were $10.3 million in the third quarter of 2022 compared to $7.7 million in the third quarter of 2021. These expenses increased consistent with higher sales and profitability, such as incentive compensation, sales commissions and warranty expenses. Selling, general and administrative expenses were 10% of net sales in the third quarter of both years. Net income for the third quarter of 2022 was $11.5 million, an increase of 72 percent compared to net income of $6.7 million in the third quarter of 2021. Earnings before interest, taxes, depreciation and amortization (EBITDA)1 for the third quarter of 2022 was $15.2 million, an increase of $6.4 million or 72%, compared to the third quarter of 2021.
Diluted earnings per share in the third quarter of 2022 were a record $0.34, an increase of 70% compared to $0.20 in the third quarter of the prior year. The effective tax rate for the third quarter of 2022 was 22%, an increase compared to an effective tax rate of 20% for the third quarter of the prior year due to an unfavorable change in permanent differences.
Net sales for the nine months ended September 30, 2022 were $272.5 million, an increase of 23% compared to the first nine months of 2021. Net income for the nine-month period was $28.5 million or $0.83 diluted earnings per share, compared to net income of $20.6 million or $0.61 diluted earnings per share in the comparable period of the prior year.
"During the third quarter we continued our efforts to meet high retail and dealer demand," stated Ben M. Palmer, Marine Products' president and CEO. "As the quarter progressed, we began to experience some relief in both transportation and supply chain issues which facilitated shipments of boats during the quarter. Our model mix continued to improve, and along with price increases that we have instituted over the past year to compensate for higher costs, generated record net sales and net income. Our dealers continue to request shipments both for boats which have been committed to retail customers as well as units which will begin to replenish historically low dealer inventories.
"Our manufacturing and product development efforts continue to reward us with dealer demand for models which appeal to boaters. We conducted our first in-person dealer conference in three years during the third quarter, and our dealers were very enthusiastic about our new larger models for the 2023 model year. In our recent experience, consumers interested in these models are less likely to be concerned about higher fuel prices and interest rates than customers who purchase smaller boats," concluded Palmer.