Marine Products Corporation Reports Record Fourth Quarter An...| MENAFN.COM

Saturday, 28 January 2023 04:17 GMT

Marine Products Corporation Reports Record Fourth Quarter And Full Year 2022 Financial Results


(MENAFN- PR Newswire)

ATLANTA, Jan. 25, 2023 /PRNewswire/ -- Marine Products Corporation (NYSE: mpx ) announced its unaudited results for the quarter and year ended December 31, 2022.
Marine Products is a leading manufacturer of fiberglass boats under the brand names of Chaparral and Robalo. Chaparral's sterndrive models include SSi and SSX, along with the Chaparral Surf Series.
Chaparral's outboard offerings include OSX Luxury Sportboats and SSi outboard models. Robalo builds an array of outboard sport fishing boats, which include center consoles, dual consoles and Cayman Bay Boat models.

For the quarter ended December 31, 2022, Marine Products generated record quarterly net sales of $108.5 million, a 42 percent increase compared to $76.5 million
in the same quarter of the prior year.
The increase in net sales was due to a 29 percent increase in the number of boats sold during the quarter and a 12 percent increase in the average selling price per boat. Unit sales increased during the quarter primarily due to our success during the quarter in finishing and shipping substantially completed boats from inventory, as supply chain issues continued to improve. Average selling prices increased primarily due to a favorable model mix and price increases to cover increased costs including primarily materials and components. Unit sales increased within all of Chaparral's models as well as many Robalo models.

Gross profit for the fourth quarter of 2022 was $27.3 million compared to $19.2 million in the fourth quarter of the prior year. Gross margin as a percentage of net sales was 25 percent in the fourth quarter of both years. Operating profit for the fourth quarter of 2022 was $14.8 million, an increase of 39 percent compared to operating profit of $10.7 million in the fourth quarter of last year.
Selling, general and administrative expenses were $12.5 million in the fourth quarter of 2022 compared to $8.5 million in the fourth quarter of 2021. These expenses increased due to costs that vary with sales and profitability, such as incentive compensation, sales commissions and warranty expenses. In addition, the Company recorded a $1.2 million pension settlement charge associated with its defined benefit pension plan. Selling, general and administrative expenses were 12 percent of net sales in the fourth quarter of 2022 compared to 11 percent of net sales in the prior year. Net income for the fourth quarter of 2022 was a record $11.9 million, an increase of 40 percent compared to net income of $8.4 million in the fourth quarter of 2021. Earnings before interest, taxes, depreciation and amortization (EBITDA)1 for the fourth quarter of 2022 was $15.3 million, an increase of $4.2 million or 38 percent, compared to the fourth quarter of 2021.

Diluted earnings per share in the fourth quarter of 2022 were $0.35, an increase of 40 percent compared to $0.25 in the fourth quarter of the prior year. The effective tax rate for the fourth quarter of 2022 was 22 percent, a slight increase compared to an effective tax rate of 21 percent for the fourth quarter of the prior year.

Net sales for the twelve months ended December 31, 2022 were a record $381.0 million, an increase of 28 percent compared to the twelve months ended December 31, 2021.
Net income during 2022 was a record $40.3 million or $1.18 diluted earnings per share, compared to net income of $29.0 million or $0.85 diluted earnings per share in 2021.
EBITDA1 for 2022 was $53.7 million compared to $38.2 million in 2021.

'During the fourth quarter our supply chain and transportation issues continued to improve, allowing us to increase boat shipments to satisfy dealer demand for new 2023 models,' stated Ben M. Palmer, Marine Products' President and Chief Executive Officer. 'In fact, our fourth quarter 2022 shipments were the highest of any quarter in 2022 in spite of the seasonal impact of two holidays. In addition to higher unit sales, these positive developments lowered our working capital requirements, which are reflected in lower inventories and a higher cash balance than at the end of the third quarter. While production and transportation challenges continue, we are pleased with the improvement. At the end of the quarter, field inventories began to increase to support our dealers during the upcoming 2023 winter boat show season.

'Indications of attendance and orders from the early boat shows are positive, so we are maintaining a high production schedule and have allocated dealer deliveries through the first quarter. As the retail selling season gets underway, however, we will monitor market indications from the upcoming winter boat shows for any changes in customer demand caused by interest rate increases and economic uncertainty,' concluded Palmer.

Marine Products Corporation will hold a conference call today, January 25, 2023, at 8:00 a.m. Eastern Time to discuss the results for the quarter.
Interested parties may listen in by accessing a live webcast in the investor relations section of Marine Products' website at marineproductscorp.com . Additionally, the live conference call can be accessed by calling (888) 660-6357 or (929) 201-6127 for international callers and using conference ID number 9979064.
A replay will be available in the investor relations section of Marine Products' website beginning approximately two hours after the call.

Marine Products Corporation (NYSE: mpx ) designs, manufactures and distributes premium-branded Chaparral sterndrive and outboard pleasure boats, and Robalo outboard sport fishing boats. The Company continues to diversify its product lines through product innovation. 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 generate superior financial performance to continue building long-term shareholder value.
For more information on Marine Products Corporation visit our website at 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 that look forward in time or express management's beliefs, expectations or hopes.
In particular, such statements include, without limitation, the statements (i) regarding the unpredictability of our improved production and transportation issues, (ii)
the consistency of indications of orders and demand from the early boat shows compared to the same period in 2022 and (iii) our monitoring of market indications from the upcoming winter boat shows for any changes in customer demand caused by interest rate increases and economic uncertainty. 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' Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the 'SEC') for the year ended December 31, 2021.

For information about Marine Products Corporation or this event, please contact:

Michael L. Schmit
Chief Financial Officer
(404) 321-7910
[email protected]

Jim Landers
Vice President Corporate Services
(404) 321-2162
[email protected]

Appendix A

Marine Products Corporation has used the non-GAAP financial measure of earnings before interest, taxes, depreciation and amortization (EBITDA) in today's earnings release, and anticipates using EBITDA in today's earnings conference call.
EBITDA should not be considered in isolation or as a substitute for operating income, net income or other performance measures prepared in accordance with GAAP.

Marine Products Corporation uses EBITDA as a measure of operating performance because it allows us to compare performance consistently over various periods without regard to changes in our capital structure.

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Set forth below is a reconciliation of EBITDA with Net Income, the most comparable GAAP measure.
This reconciliation also appears on Marine Products Corporation's investor website, which can be found on the Internet at marineproductscorp.com.

1 EBITDA is a financial measure which does not conform to GAAP. Additional disclosure regarding this non-GAAP financial measure and its reconciliation to net income, the nearest GAAP financial measure, is disclosed in Appendix A to this press release.

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES










CONSOLIDATED BALANCE
SHEETS








(in thousands)



DECEMBER 31, 2022



DECEMBER 31, 2021



(Unaudited)




ASSETS






Cash and cash equivalents

$

43,171


$

14,102

Accounts receivable, net


5,340



3,262

Inventories


73,015



73,261

Income taxes receivable


28



10

Prepaid expenses and other current assets


3,444



2,474


Total current assets


124,998



93,109

Property, plant and equipment, net


14,965



14,370

Goodwill


3,308



3,308

Other intangibles, net


465



465

Pension and retirement plans assets


9,881



13,302

Deferred income taxes


6,027



4,392

Other assets


4,071



3,895


Total assets

$

163,715


$

132,841







LIABILITIES AND STOCKHOLDERS' EQUITY






Accounts payable

$

8,250


$

6,771

Accrued expenses and other liabilities


15,340



11,298


Total current liabilities


23,590



18,069

Pension and retirement plans liabilities


14,440



15,564

Other long-term liabilities


1,304



683


Total liabilities


39,334



34,316

Common stock


3,422



3,399

Capital in excess of par value


-



-

Retained earnings


122,954



97,702

Accumulated other comprehensive loss


(1,995)



(2,576)


Total stockholders' equity


124,381



98,525


Total liabilities and stockholders' equity

$

163,715


$

132,841







MARINE PRODUCTS CORPORATION AND SUBSIDIARIES




















CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)







Period ended December 31, (Unaudited)

Fourth Quarter


Twelve Months



2022



2021



2022



2021

Net sales

$

108,509


$

76,537


$

380,995


$

298,014

Cost of goods sold


81,189



57,379



287,278



229,742

Gross profit


27,320



19,158



93,717



68,272

Selling, general and administrative expenses

12,472



8,497



41,921



31,880

Operating profit


14,848



10,661



51,796



36,392

Interest income (expense)


286



(6)



338



16

Income before income taxes


15,134



10,655



52,134



36,408

Income tax provision


3,277



2,207



11,787



7,382

Net income

$

11,857


$

8,448


$

40,347


$

29,026

























EARNINGS PER SHARE













Basic

$

0.35


$

0.25


$

1.18


$

0.85


Diluted

$

0.35


$

0.25


$

1.18


$

0.85













AVERAGE SHARES OUTSTANDING













Basic


34,218



33,992



34,183



33,984


Diluted


34,218



33,992



34,183



33,984













(Unaudited)












Periods ended December 31,


Three Months Ended



Twelve Months Ended

(In thousands)


2022



2021



2022



2021













Reconciliation of Net Income to EBITDA











Net Income

$

11,857


$

8,448


$

40,347


$

29,026

Add:













Income tax provision


3,277



2,207



11,787



7,382


Depreciation and amortization


489



471



1,905



1,816

Less:













Interest income (expense)


286



(6)



338



16

EBITDA

$

15,337


$

11,132


$

53,701


$

38,208













SOURCE Marine Products Corporation

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