Marine Products Corp., the manufacturer of the Chaparral and Robalo boat brands, generated net sales of $116.2 million in the second quarter, a 21 percent increase compared to $95.8 million in Q2 last year. Net income for the second quarter was $14.3 million, or 42 cents per share, an increase of 44 percent compared to net income of $10.0 million, or 29 cents per share, in the second quarter of 2022.

The increase in net sales was said to be due to an 11 percent increase in the number of boats sold during the quarter and a 10 percent increase in the average selling price per boat, as well as an increase in parts and accessories sales. Unit sales increased during the quarter compared to the prior year as the company continued to clear inventory of partially completed units caused by supply chain disruptions. The company said deliveries also helped to satisfy dealers’ inventory needs during the retail selling season. 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 both the Chaparral and Robalo brands.

  • Gross margin as a percentage of net sales was 24.7 percent of sales in the second quarter compared to 24.0 percent in the prior-year comparable period. The increase in gross margin was due to improved operating efficiencies and a favorable model mix.
  • Operating profit for the quarter was $16.5 million, an increase of 26 percent compared to an operating profit of $13.1 million in the second quarter of last year.
  • Selling, general and administrative expenses were $12.2 million in Q2, compared to $9.9 million in the second quarter of 2022. These expenses were 10.5 percent of net sales in the second quarter of 2023 compared to 10.3 percent in the second quarter of 2022. SG&A expenses increased due to costs that vary with sales and profitability, such as incentive compensation, sales commissions and warranty expense.
  • Net interest income of $723 thousand increased significantly compared to the prior year due to a higher cash balance and higher interest yields.
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter was $17.1 million, or 14.7 percent of net sales, an increase of $3.5 million or 26 percent, compared to the second quarter of 2022.

“Second quarter trends remained favorable, although the retail selling season started later than normal due to colder weather in many parts of the country,” stated Ben M. Palmer, Marine Products’ president and CEO. “Dealer inventories remain at the lower end of historical ranges at this time of the year which allow dealers to meet current demand and place orders for 2024 models. Indicators of dealer demand continue to be positive regarding the upcoming model year but there are concerns over consumer sentiment arising from higher interest rates and the possibility of an economic slowdown.

“Our supply chain and logistical issues remain a challenge in specific components but have improved compared to recent years. These improvements allowed us to ship more units than we produced during the quarter and are reflected in our higher unit sales, lower inventory balance, and our strong cash balance at the end of the second quarter,” concluded Palmer.

Photo courtesy Chaparral