Marine Products Corp. Reports Record 2003 Fourth Quarter And Full Year Results
02/17/2004
Today Marine Products Corp. reported record 4th quarter results.
Recommended for our Primary Stock Portfolio,
the stock is now up 357% since our buy signal 32 months ago
(an annualized rate of 74.5% per year). The company's earnings
release follows:
- Net sales for the quarter increased 32.0
percent over prior year
- Earnings per share for the quarter increased
51.1 percent over prior year
- Three-for-two stock split and 50 percent
dividend increase announced January 27, 2004
ATLANTA, February 17, 2004 – Marine Products
Corporation (AMEX: MPX) announced its unaudited results for
the quarter and twelve months ended December 31, 2003. Marine
Products is a leading manufacturer of fiberglass boats under
two brand names: sterndrive and inboard pleasure boats by
Chaparral, including SSi Sportboats, Sunesta Deckboats, and
Signature Cruisers, and outboard sport fishing boats by Robalo.
For the quarter ended December 31, 2003,
Marine Products generated net sales of $47,019,000, the highest
fourth quarter net sales in its history, and a 32.0 percent
increase compared to $35,614,000 last year. The increase in
net sales was due to a 12.7 percent increase in the average
sales price per boat and an 18.9 percent increase in the number
of boats sold. The increase in average sales prices was due
to a favorable model mix as Marine Products is selling larger
boats. Gross profit for the quarter was $13,171,000, a 44.4
percent increase over the same period in 2002. Gross profit
as a percentage of sales was 28.0 percent, an increase of
2.4 percentage points compared to the fourth quarter of 2002.
Operating income for the quarter was $6,767,000,
a 45.3 percent increase compared to the fourth quarter last
year due to higher gross profit, partially offset by higher
selling, general and administrative expenses. The increases
in selling, general and administrative expenses included costs
that vary with sales and profitability, such as sales commissions
and other incentive compensation, as well as increases in
advertising and public company compliance costs.
Net income for the quarter ended December
31, 2003 was $4,458,000, a 51.1 percent increase compared
to $2,951,000 in the prior year. Net income increased due
to higher operating income and a lower effective income tax
rate. The effective tax rate during the current year fourth
quarter was 35 percent compared to an effective tax rate of
38 percent in the prior year. The effective rate change increased
net income by $200,000 or $0.01 per diluted share. Diluted
earnings per share for the quarter were $0.25 ($0.17 adjusted
for the three-for-two split previously announced on January
27, 2004), a 56.3 percent increase compared to $0.16 diluted
earnings per share in the prior year ($0.11 adjusted for the
three-for-two split).
Net sales for the twelve months ended December
31, 2003 were $193,980,000, a 19.2 percent increase compared
to the prior year. Net income for the year increased 45.9
percent to $18,072,000 or $1.01 diluted earnings per share
($0.67 adjusted for the three-for-two split) compared to $12,389,000
or $0.69 diluted earnings per share ($0.46 adjusted for the
three-for-two split) last year.
Richard A. Hubbell, Marine Products’ Chief
Executive Officer stated, “The fourth quarter of 2003 continued
the strong performance from earlier this year, making 2003
a record year for Marine Products Corporation. Our average
unit sales price rose by over 12 percent during the quarter,
due to selling a larger number of our cruisers and our larger
sportboats than in 2002. At six percent of net sales this
quarter, Robalo exhibited exceptionally strong growth in unit
sales and in average sales price. Although we are not involved
in financing consumer boat purchases, we continue to benefit
from a low-interest rate environment that makes it easier
for consumers to purchase larger boats and upgraded models.
"We are pleased to announce that in the fourth quarter,
Chaparral's Sterndrive Bowrider Boats were selected among
elite boat builders by the National Marine Manufacturers Association
(NMMA) for its first ever Customer Service Index award. We
appreciate this recognition, but recognize that this is an
area of our business that we need to improve to continue our
profitable growth. A key part of improving customer service
is enhancing our relationship with our dealers. We are investing
more into our sales and service training programs with the
opening of our new training facility on site at the Chaparral
campus in Nashville, Georgia. In addition to the knowledge
that these seminars impart on our dealers, these programs
bring goodwill to the relationship that we expect to be ultimately
reflected in the dealers' sales.
"Chaparral's dealer inventory levels
are lower than last year, due to strong retail sales through
our dealer network and a successful start to the boat show
season. We are also pleased to report a continued strong financial
position, which we intend to use to take advantage of future
growth opportunities."
"As we announced on January 27, the
Board of Directors has approved a three-for-two split of Marine
Products' outstanding common shares, and a 50 percent increase
in the quarterly cash dividend. We are taking this action
in response to our excellent earnings and stock price performance.
We believe that increasing the dividend and splitting the
shares will not only reward our current stockholders, but
will also increase the liquidity and investment appeal of
our common stock."
Marine Products Corporation (AMEX: MPX) designs, manufactures
and distributes premium-branded Chaparral sterndrive and inboard
pleasure boats and Robalo sport fishing boats, and continues
to diversify its product line through product innovation and
strategic acquisition. With premium brands, a solid capital
structure, and a strong independent dealer network, Marine
Products Corporation is prepared to capitalize on opportunities
to increase its market share and to generate superior financial
performance to build long-term shareholder value. For more
information on Marine Products Corporation visit our website
at www.marineproductscorp.com.
Certain statements and information included
in this press release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements include statements
regarding our ability to take advantage of market opportunities,
sustain our market share, build long-term shareholder value,
and improve and expand the Robalo dealer network. These statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements
of Marine Products Corporation to be materially different
from any future results, performance or achievements expressed
or implied in such forward-looking statements. These risks
include possible decreases in the level of consumer confidence
impacting discretionary spending, increased interest rates,
changes in consumer preferences, deterioration in the quality
of Marine Products' network of independent boat dealers or
availability of financing of their inventory, and competition
from other boat dealers. Additional discussion of factors
that could cause the actual results to differ materially from
management's projections, forecasts, estimates and expectations
is contained in Marine Products' Form 10-K, filed with the
Securities and Exchange Commission for the year ending December
31, 2002.
For information contact:
BEN M. PALMER JIM LANDERS
Chief Financial Officer Corporate Finance
404.321.7910 404.321.2162
irdept@marineproductscorp.com
SOURCE: Marine Products Corporation
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