Marine Products Corporation Reports First Quarter 2012 Financial Results
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 March 31, 2012, Marine Products generated net sales of $37,849,000, a 39.4 percent increase, compared to $27,148,000 last year. The increase in net sales was due to a 54.1 percent increase in the number of boats sold, partially offset by an 11.3 percent decrease in the average selling price per boat. Unit sales increased dramatically due to the recent introduction of our Chaparral H2O Sport and Fish & Ski Boats, as well as our value-priced Robalo 180 and 200 outboard sport fishing boats. The sales of these smaller models resulted in the decrease in overall average selling prices during the quarter as compared to the first quarter of 2011.
Gross profit for the quarter was $6,996,000, or 18.5 percent of net sales, compared to a gross profit of $4,460,000, or 16.4 percent of net sales, in the prior year. The increase in gross profit in the first quarter of 2012 compared to the prior year was the result of higher net sales and improved profitability. Gross profit as a percentage of net sales improved due to production efficiencies related to higher production volumes.
Operating income for the quarter was $2,053,000 compared to $604,000 in the first quarter of last year. The Company's operating income improved compared to the prior year due primarily to higher net sales and gross profit. Selling, general and administrative expenses increased 28.2 percent over the prior year due to expenses that vary with sales and profitability, such as incentive compensation and sales commissions, as well as increased advertising costs.
However, these expenses declined from 14.2 percent of net sales in the first quarter of 2011 to 13.1 percent of net sales in the first quarter of this year due to leverage of fixed costs over higher sales volumes. Interest income was approximately the same in the first quarter of 2011 and 2012.
Net income for the quarter ended March 31, 2012 was $1,632,000 compared to $666,000 in the prior year. Earnings per share for the quarter were $0.04 compared to $0.02 per share in the prior year.