Marine Products Corp. announce unaudited results for the quarter ended September 30, 2012.
Marine Products is a leading manufacturer of fiberglass boats under two brand names: sterndrive and inboard pleasure boats by Chaparral, including H2O Sport and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta Sportdecks, Xtreme Towboats, Signature Cruisers and Premiere Sport Yachts, and outboard sport fishing boats by Robalo.
For the quarter ended September 30, 2012, they generated net sales of $38,494,000, a 73.0 percent increase compared to $22,254,000 last year. The increase in net sales was due to a 125.1 percent increase in the number of boats sold, partially offset by a 23.9 percent decrease in the average selling price per boat. Average selling prices reflect significantly higher unit sales of our value-priced Chaparral H2O and Robalo sport fishing boats. Both of these products carry lower average selling prices than the other models in our lineup.
Gross profit for the quarter was $7,374,000, or 19.2 percent of net sales, compared to a gross profit of $4,634,000, or 20.8 percent of net sales, in the prior year. Gross profit in the third quarter of 2012 increased compared to the prior year due to higher sales. As a percentage of net sales, however, gross profit decreased due to higher materials costs as a percentage of net sales for our value-priced Chaparral H2O and Robalo sport fishing boats, partially offset by increased efficiencies from higher production volumes.
Operating profit for the quarter increased by 85.6 percent to $2,773,000 compared to $1,494,000 in the third quarter of last year due to increased net sales and gross profit, partially offset by higher selling, general and administrative expenses. Selling, general and administrative expenses increased due to increases in expenses that vary with sales and profitability, such as incentive compensation, sales commissions and warranty expense.
Net income for the quarter ended September 30, 2012 was $2,110,000 compared to net income of $1,200,000 in the prior year. Diluted earnings per share for the quarter were $0.06 compared to $0.03 per share in the prior year.