Marine Products Corp., the parent of Chaparral and Robalo, reported unaudited net sales of $116.2 million in the second quarter, a 21% increase compared with $95.8 million in the prior-year quarter. The increase in net sales was due to an 11% increase in the number of boats sold during the quarter and 10% increase in the average selling price per boat, according to the company.
“Second quarter trends remained favorable, although the retail selling season started later than normal due to colder weather in many parts of the country,” president and CEO Ben M. Palmer said in a statement. “Dealer inventories remain at the lower end of historical ranges at this time of year, which allows 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 rising from higher interest rates and the possibility of an economic slowdown,” Palmer added.
Palmer said supply chain and logistical issues have improved but remain a challenge.
Gross profit for the second quarter was $28.7 million, compared with $23 million in the same quarter a year ago. Gross margin as a percentage of net sales was 24.7%, compared with 24% in 2022. Operating profit was $16.5 million, an increase of 26%.
Selling, general and administrative expenses were $12.2 million in the quarter against $9.9 million last year. The company said net interest income of $723,000 was a significant increase compared with the prior year due to a higher cash balance and higher interest yields.
Diluted earnings per share for the quarter were 42 cents, an increase of 45% over last year’s 29 cents. Net sales for the six months ended June 30 were $235.1 million, a 36% improvement over the same time period last year.
