Exhibit 99
Marine Products Corporation Reports Record 2003 Fourth Quarter
And Full Year Results
- 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, Feb. 17 /PRNewswire-FirstCall/ -- 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
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
Periods ended December 31,
(Unaudited) Fourth Quarter Twelve Months
2003 2002 % BETTER 2003 2002 % BETTER
(WORSE) (WORSE)
Net Sales $47,019 $35,614 32.0% $193,980 $162,682 19.2%
Cost of
Goods Sold 33,848 26,493 (27.8) 143,663 125,282 (14.7)
Gross Profit 13,171 9,121 44.4 50,317 37,400 34.5
Selling, General
and Administrative
Expenses 6,404 4,465 (43.4) 23,015 18,018 (27.7)
Operating Income 6,767 4,656 45.3 27,302 19,382 40.9
Interest Income 91 104 (12.5) 501 600 (16.5)
Income Before
Income Taxes 6,858 4,760 44.1 27,803 19,982 39.1
Income Tax
Provision 2,400 1,809 (32.7) 9,731 7,593 (28.2)
NET INCOME $4,458 $2,951 51.1% $18,072 $12,389 45.9
EARNINGS PER SHARE
Basic $0.26 $0.17 52.9% $1.07 $0.73 46.6
Diluted $0.25 $0.16 56.3% $1.01 $0.69 46.4
AVERAGE SHARES OUTSTANDING
Basic 16,967 16,954 16,924 16,947
Diluted 17,998 17,946 17,908 17,918
RESTATED FOR THE THREE-FOR-TWO STOCK SPLIT EFFECTIVE MARCH 10, 2004
EARNINGS PER SHARE
Basic $0.18 $0.12 50.0% $0.71 $0.49 44.9
Diluted $0.17 $0.11 54.5% $0.67 $0.46 45.7
AVERAGE SHARES OUTSTANDING
Basic 25,451 25,431 25,386 25,421
Diluted 26,997 26,919 26,862 26,877
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At December 31, (Unaudited) (in thousands)
2003 2002
ASSETS
Cash and cash equivalents $26,244 $17,280
Marketable securities 1,402 1,929
Accounts receivable, net 3,970 1,471
Inventories 21,770 20,685
Income taxes receivable 1,073 --
Deferred income taxes 2,265 2,419
Prepaid expenses and other current
assets 616 1,623
Total current assets 57,340 45,407
Property, plant and equipment, net 17,761 16,216
Intangibles, net 3,818 3,858
Marketable securities 5,930 4,865
Other assets 1,465 717
Total assets $86,314 $71,063
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $2,730 $3,414
Income taxes payable -- 1,066
Other accrued expenses 8,626 7,537
Total current liabilities 11,356 12,017
Pension liabilities 2,233 626
Deferred taxes 1,160 614
Other long-term liabilities 1,599 973
Total liabilities 16,348 14,230
Common stock 1,715 1,712
Capital in excess of par value 36,580 38,278
Retained earnings 32,409 17,074
Deferred compensation (229) (334)
Accumulated comprehensive (loss)
income (509) 103
Total stockholders' equity 69,966 56,833
Total liabilities and stockholders'
equity $86,314 $71,063
Certain prior year balances have been reclassified to conform with
current year presentation.
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
TWELVE MONTHS ENDED DECEMBER 31, (Unaudited)
(In Thousands)
2003 2002
Operating Activities:
Net income $18,072 $12,389
Depreciation and amortization 2,306 2,079
Other non-cash charges
(credits) to earnings 1,029 (247)
Other net changes in operating activities (3,579) (2,525)
Net cash provided by
operating activities 17,828 11,696
Investing Activities:
Capital expenditures (3,707) (3,800)
Other investing activities (725) 6,660
Net cash (used for) provided
by investing activities (4,432) 2,860
Financing Activities:
Payment of dividends (2,737) (1,370)
Cash paid for common stock
purchased and retired (2,271) (1,222)
Other financing activities 576 363
Net cash used for financing
activities (4,432) (2,229)
Net increase in cash and cash equivalents 8,964 12,327
Cash and cash equivalents at
beginning of period 17,280 4,953
Cash and cash equivalents at end of period $26,244 $17,280
SOURCE Marine Products Corporation
-0- 02/17/2004
/CONTACT: Ben M. Palmer, Chief Financial Officer, +1-404-321-7910, or
irdept@marineproductscorp.com, or Jim Landers, Corporate Finance,
+1-404-321-2162, both of Marine Products Corporation /
/Web site: http://www.marineproductscorp.com /
(MPX)
CO: Marine Products Corporation
ST: Georgia
IN: MAR REA
SU: ERN