Exhibit 99
Marine Products Corporation Reports Record First Quarter Results
- Net sales for the quarter increased 23.4 percent over prior year
- Earnings per share for the quarter increased 31.3 percent over prior year
ATLANTA, April 28 /PRNewswire-FirstCall/ -- Marine Products Corporation
(Amex: MPX) announced its unaudited results for the quarter ended March 31,
2004. 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 March 31, 2004, Marine Products generated net sales
of $61,830,000, the highest first quarter net sales in its history, and a 23.4
percent increase compared to $50,107,000 last year. The increase in net sales
was due to a 15.1 percent increase in the average sales price per boat, a 6.3
percent increase in the number of boats sold, and an increase in parts and
accessories sales. The increase in average sales prices per boat was due to a
favorable model mix, highlighted by volume increases in cruisers, sales of
larger sportboats, and increases in sales of sport fishing boats. Gross
profit for the quarter was $15,723,000, or 25.4 percent of net sales, compared
to $12,092,000, or 24.1 percent of net sales, in the prior year. The increase
in gross profit as a percentage of net sales was due to higher production
volumes and the increase in the average sales price per boat.
Operating income for the quarter was $8,564,000, a 33.0 percent increase
compared to the first 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 warranty expense, sales commissions and other
incentive compensation, and increased expenses associated with our continued
growth in sales and our expanded customer service efforts.
Net income for the quarter ended March 31, 2004 was $5,646,000, a 34.6
percent increase compared to $4,194,000 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 first quarter was 35 percent compared
to an effective tax rate of 36 percent in the prior year. The effective tax
rate change increased net income by $87,000, which is less than $0.01 per
diluted share. Diluted earnings per share for the quarter were $0.21, a 31.3
percent increase compared to $0.16 diluted earnings per share in 2003.
Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The
first quarter of 2004 continued the positive momentum from 2003. The winter
boat show season was stronger than last year, which has increased our sales
and reduced field inventories. In fact, our field inventories are down eight
percent at the end of the first quarter of 2004 compared to the prior year.
Our average unit sales price per boat rose by 15 percent during the quarter,
driven by higher unit sales volumes in the cruiser, large sportboat and sport
fishing boat product lines. Robalo continues to grow and positively
contribute to our bottom line.
"As we have discussed, we believe that customer service is a key to our
future growth. Our past success has also created a large population of
existing boat owners who require support as well. For this reason, we are
continuing to make investments in customer service, and we believe it will
provide a great deal of future benefit to the Company."
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,
2003.
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 March 31, (Unaudited) First Quarter
% BETTER
2004 2003 (WORSE)
Net Sales $61,830 $50,107 23.4 %
Cost of Goods Sold 46,107 38,015 (21.3)
Gross Profit 15,723 12,092 30.0
Selling, General and Administrative
Expenses 7,159 5,652 (26.7)
Operating Income 8,564 6,440 33.0
Interest Income 122 113 8.0
Income Before Income Taxes 8,686 6,553 32.5
Income Tax Provision 3,040 2,359 (28.9)
NET INCOME $5,646 $4,194 34.6 %
EARNINGS PER SHARE
Basic $0.22 $0.17 29.4 %
Diluted $0.21 $0.16 31.3 %
AVERAGE SHARES OUTSTANDING
Basic 25,493 25,393
Diluted 27,106 26,836
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At March 31, (Unaudited) (in thousands)
2004 2003
ASSETS
Cash and cash equivalents $32,933 $20,647
Marketable securities 3,735 6,336
Accounts receivable, net 8,045 4,209
Inventories 19,678 17,774
Income taxes receivable 65 -
Deferred income taxes 2,519 2,797
Prepaid expenses and other current
assets 1,136 1,266
Total current assets 68,111 53,029
Property, plant and equipment, net 18,197 16,772
Intangibles, net 3,808 3,848
Marketable securities 5,433 3,707
Other assets 2,024 928
Total assets $97,573 $78,284
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $6,883 $3,965
Income taxes payable - 2,987
Other accrued expenses 11,363 9,139
Total current liabilities 18,246 16,091
Pension liabilities 2,023 722
Deferred taxes 1,091 813
Other long-term liabilities 1,579 973
Total liabilities 22,939 18,599
Common stock 2,579 2,565
Capital in excess of par value 35,711 36,760
Retained earnings 37,023 20,583
Accumulated other comprehensive
(loss) income (476) 85
Deferred compensation (203) (308)
Total stockholders' equity 74,634 59,685
Total liabilities and stockholders'
equity $97,573 $78,284
Certain prior year balances have been reclassified to conform with
the current year presentation.
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, (Unaudited)
(In Thousands)
2004 2003
Operating Activities:
Net income $5,646 $4,194
Depreciation and amortization 589 571
Other non-cash charges
(credits) to earnings (341) (168)
Other net changes in operating
activities 4,640 4,492
Net cash provided by
operating activities 10,534 9,089
Investing Activities:
Capital expenditures (989) (1,091)
Other investing activities (1,819) (3,281)
Net cash used for investing
activities (2,808) (4,372)
Financing Activities:
Payment of dividends (1,032) (684)
Cash paid for common stock
purchased and retired (169) (812)
Other financing activities 164 146
Net cash used for financing
activities (1,037) (1,350)
Net increase in cash and cash
equivalents 6,689 3,367
Cash and cash equivalents at
beginning of period 26,244 17,280
Cash and cash equivalents at end of
period $32,933 $20,647
SOURCE Marine Products Corporation
-0- 04/28/2004
/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
SU: ERN