Exhibit 99
Marine Products Corporation Reports Second Quarter Results
- Net sales for the quarter increased 24.7 percent over prior year
- Earnings per share for the quarter were $0.24, an increase of 26.3
percent over prior year
ATLANTA, July 28 /PRNewswire-FirstCall/ -- Marine Products Corporation
(Amex: MPX) announced its unaudited results for the quarter ended June 30,
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 June 30, 2004, Marine Products generated net sales
of $64,775,000, a 24.7 percent increase compared to $51,951,000 last year.
The increase in net sales was due to a 13.0 percent increase in the number of
boats sold and a 10.5 percent increase in the average sales price per boat.
All four lines experienced increased unit sales. The increase in average
sales price per boat was due to increased sales of larger cruisers and
sportboats, and increased sales of Robalo sport fishing boats. Gross profit
for the quarter was $16,971,000, or 26.2 percent of net sales, compared to
$13,551,000, or 26.1 percent of net sales, in the prior year.
Operating income for the quarter was $9,475,000, a 25.8 percent increase
compared to the second quarter last year due to higher gross profit, partially
offset by higher selling, general and administrative expenses. Operating
income was 14.6 percent of net sales for the quarter compared to 14.5 percent
of net sales in the prior year. Selling, general and administrative expenses
increased due to costs that vary with sales and profitability, such as
warranty expense, sales commissions and other incentive compensation, and
increased research and development expense associated with the development of
new models for the 2005 model year.
Net income for the quarter ended June 30, 2004 was $6,396,000, a 28.9
percent increase compared to $4,961,000 in the prior year. Net income
increased due to higher operating income and a lower effective income tax
rate. The effective income tax rate during the second quarter was 33 percent
compared to an effective income tax rate of 36 percent in the prior year,
primarily because of a previously unrecognized tax refund received during the
current year quarter. The effective tax rate change increased net income by
$259,000, or $0.01 per diluted share. Diluted earnings per share for the
quarter were $0.24, a 26.3 percent increase compared to $0.19 diluted earnings
per share in the prior year.
Net sales for the six months ended June 30, 2004 were $126,605,000, a 24.1
percent increase from the first six months of 2003. Net income for the six-
month period increased 31.5 percent to $12,042,000 or $0.44 diluted earnings
per share compared to $9,154,000 or $0.34 diluted earnings per share in the
prior year.
Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The
second quarter of 2004 continued our positive momentum. All of our models
sold well this quarter, and we continue to be pleased with Robalo's growing
contribution to our sales and profitability. As we finish the 2004 model
year, we are pleased that dealer demand remains strong. Our field inventories
at the end of the quarter were higher than at the end of the second quarter
last year due to increased sales volume, but not as high as the increase in
our order backlog compared to the same time last year. We are looking forward
to our dealer meetings in August, which will provide valuable insight into
dealer and retail demand. We have continued our commitment to improved
customer service, and 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 http://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, increase our market share, build long-term shareholder value,
and improve and increase the contribution of Robalo to our sales and
profitability. 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 manufacturers
and 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 June 30, (Unaudited)
Second Quarter
BETTER
2004 2003 (WORSE)
Net Sales $64,775 $51,951 24.7 %
Cost of Goods Sold 47,804 38,400 (24.5)
Gross Profit 16,971 13,551 25.2
Selling, General and
Administrative Expenses 7,496 6,022 (24.5)
Operating Income 9,475 7,529 25.8
Interest Income 114 222 (48.6)
Income Before Income Taxes 9,589 7,751 23.7
Income Tax Provision 3,193 2,790 (14.4)
NET INCOME $6,396 $4,961 28.9 %
EARNINGS PER SHARE
Basic $0.25 $0.20 25.0 %
Diluted $0.24 $0.19 26.3 %
AVERAGE SHARES OUTSTANDING
Basic 25,662 25,282
Diluted 27,216 26,636
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share data)
Periods ended June 30, (Unaudited)
Six Months
BETTER
2004 2003 (WORSE)
Net Sales $126,605 $102,058 24.1 %
Cost of Goods Sold 93,911 76,415 (22.9)
Gross Profit 32,694 25,643 27.5
Selling, General and
Administrative Expenses 14,655 11,675 (25.5)
Operating Income 18,039 13,968 29.1
Interest Income 236 335 (29.6)
Income Before Income Taxes 18,275 14,303 27.8
Income Tax Provision 6,233 5,149 (21.1)
NET INCOME $12,042 $9,154 31.5 %
EARNINGS PER SHARE
Basic $0.47 $0.36 30.6 %
Diluted $0.44 $0.34 29.4 %
AVERAGE SHARES OUTSTANDING
Basic 25,577 25,347
Diluted 27,139 26,748
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At June 30, (Unaudited) (in thousands)
2004 2003
ASSETS
Cash and cash equivalents $34,785 $20,326
Marketable securities 2,319 2,965
Accounts receivable, net 6,354 6,037
Inventories 24,807 18,172
Income taxes receivable 1,696 -
Deferred income taxes 2,571 3,102
Prepaid expenses and other current
assets 698 740
Total current assets 73,230 51,342
Property, plant and equipment, net 18,079 18,017
Intangibles, net 3,798 3,838
Marketable securities 5,910 5,383
Other assets 2,220 1,320
Total assets $103,237 $79,900
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $7,522 $3,437
Income taxes payable - 2,003
Other accrued expenses 11,709 9,307
Total current liabilities 19,231 14,747
Pension liabilities 2,157 586
Deferred taxes 1,227 796
Other long-term liabilities 1,599 821
Total liabilities 24,214 16,950
Common stock 2,598 2,567
Capital in excess of par value 36,606 35,779
Retained earnings 42,391 24,861
Accumulated other comprehensive
(loss) income (549) 25
Deferred compensation (2,023) (282)
Total stockholders' equity 79,023 62,950
Total liabilities and stockholders'
equity $103,237 $79,900
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
SIX MONTHS ENDED JUNE 30, (Unaudited) (in thousands)
2004 2003
Operating Activities:
Net income $12,042 $9,154
Depreciation, amortization and other
non-cash charges 1,232 1,144
Other net changes in operating activities 1,588 263
Net cash provided by
operating activities 14,862 10,561
Investing Activities:
Capital expenditures (1,435) (2,873)
Other investing activities (973) (1,632)
Net cash used for investing activities (2,408) (4,505)
Financing Activities:
Payment of dividends (2,060) (1,366)
Cash paid for common stock purchased and retired (2,612) (2,046)
Other financing activities 759 402
Net cash used for financing activities (3,913) (3,010)
Net increase in cash and cash equivalents 8,541 3,046
Cash and cash equivalents at beginning of period 26,244 17,280
Cash and cash equivalents at end of period $34,785 $20,326
SOURCE Marine Products Corporation
-0- 07/28/2004
/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