Marine Products Corporation, manufacturer of fiberglass boats under the brand names of Chaparral and Robalo, announced its unaudited results for the quarter ended September 30, 2023.
For the quarter ended September 30, 2023, Marine Products reported it generated net sales of $77.8 million, a 22% decrease compared to $100.1 million in the third quarter of the prior year. The company said the decrease in net sales was primarily due to a 24% decrease in the number of boats sold during the quarter, partially offset by a 5% increase in average selling price. Average selling price per boat increased primarily due to a favorable model mix and, to a lesser extent, price increases to cover higher costs of materials and components. Unit sales decreased during the quarter compared to the prior year as production has been adjusted to align more with current demand, including seasonally lower dealer demand during the third quarter of each calendar year. In addition, unit sales were impacted during the quarter by severe weather-related production shutdowns.
“Our third quarter results reflect the reduction in production and delivery rates due to normalization of retail boat demand that has occurred during 2023, following significant post-COVID demand. In addition, our production in the third quarter was adversely impacted by Hurricane Idalia,” stated Ben M. Palmer, Marine Products’ President and CEO.
Gross profit for the third quarter of 2023 was $19.2 million compared to $25.0 million in the third quarter of the prior year. Gross margin as a percentage of net sales was 24.7% in the third quarter of 2023 compared to 25% in the prior year period. Operating income for the third quarter of 2023 was $12.4 million, a decrease of 15% compared to operating profit of $14.7 million in the third quarter of the prior year.
Net income for the third quarter of 2023 was $10.4 million, a decrease of 9% compared to net income of $11.5 million in the third quarter of 2022.
Net sales for the nine months ended September 30, 2023 were $312.9 million, an increase of 15% compared to the first nine months of 2022.
“We were pleased with the orders placed during our annual dealer conference in August. Dealer inventories are reasonable by historical standards and remain below pre-pandemic levels, and we have firm production scheduled into 2024. We, along with our dealers, will reassess retail demand during the winter boat shows. While we are still experiencing some delays in timely receipts of certain components used in our manufacturing operations, these issues are less of a problem than earlier this year,” concluded Palmer.
Find the full Marine Products Corporation Q3 results on the company’s website.