Form 8-K MARINE PRODUCTS CORP For: Jan 27 – StreetInsider.com

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Exhibit 99

 

Marine
Products Corporation Reports Fourth Quarter 2020 Financial Results

ATLANTA,
January 27, 2021 – Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter and year ended
December 31, 2020. Marine Products is a leading manufacturer of fiberglass boats under three brand names: Chaparral, Robalo and
Vortex. Chaparral’s sterndrive models include SSi and SSX, along with the Chaparral Surf Series. Chaparral’s outboard
offerings include OSX Luxury Sportboats, the 267 SSX OB, SSi outboard models and SunCoast Sportdecks. Robalo builds an array of
outboard sport fishing boats, which include center consoles, dual consoles and Cayman Bay Boat models. Chaparral also offers jet
powered boats under the Vortex brand name.

For
the quarter ended December 31, 2020, Marine Products generated net sales of $71,110,000, a 47.6 percent increase compared to $48,175,000
in the same period of the prior year. The increase in net sales was due to a 27.8 percent increase in the number of units sold
during the quarter as compared to the prior year, a 14.1 percent increase in the average selling price per boat, and an increase
in parts and accessories sales. Unit sales increased among most of our product categories compared to the prior year. Average
selling prices increased due to a favorable model mix which included larger models in most of our product categories.

Gross
profit for the fourth quarter of 2020 was $17,431,000, a 65.7 percent increase compared to $10,522,000 in the same period of the
prior year. Gross margin was 24.5 percent of net sales in the fourth quarter of 2020 compared to 21.8 percent in the fourth quarter
of 2019. Gross margin as a percentage of net sales increased compared to the prior year due to the efficiency benefits of higher
production and a favorable model mix consisting of larger boats.

Operating
profit for the fourth quarter of 2020 was $9,083,000, an increase of $4,905,000 compared to $4,178,000 in the fourth quarter of
last year. Selling, general and administrative expenses were $8,348,000 in the fourth quarter of 2020 compared to $6,344,000 in
the fourth quarter of 2019. Selling, general and administrative expenses increased due to expenses which increase with sales and
profitability, such as sales commissions and incentive compensation. Selling, general and administrative expenses were 11.7 percent
of net sales in the fourth quarter of 2020 compared to 13.2 percent of net sales during the fourth quarter of 2019.

Net
income for the fourth quarter of 2020 was $6,994,000, an increase of $3,452,000 compared to $3,542,000 in the fourth quarter of
2019. Diluted earnings per share were $0.21 in the fourth quarter of 2020 compared to $0.10 in the fourth quarter of 2019. The
effective tax rate for the fourth quarter of 2020 was 23.1 percent, an increase compared to 17.0 percent in the fourth quarter
of 2019.

Net
sales for the 12 months ended December 31, 2020 were $239,825,000, a decrease of 17.9 percent compared to the 12 months ended
December 31, 2019. Net income for the 12 months ended December 31, 2020 was $19,444,000 or $0.57 diluted earnings per share, compared
to net income of $28,239,000, or $0.83 diluted earnings per share in the prior year.

Richard
A. Hubbell, Marine Products’ President and Chief Executive Officer stated, “Our fourth quarter results demonstrate
the continuation of consumers’ renewed interest in recreational boating which began during the second quarter of 2020. We
operated at a higher production rate than usual during a typical fourth quarter, as dealer inventory remained historically low
and order backlog remains high. As we begin 2021, we are encouraged by the continued strong interest by our dealers and retail
customers and we look forward to an exceptionally strong market during the near term. We are also very pleased by our continued
strong market share, and I would like to note that for the 12 months ended on September 30, 2020, our Robalo product line held
the highest market share in the outboard market in its size range. The combination of our Robalo and Chaparral outboard units
held a market share of 6.9 percent of the outboard market.

Page 2
Fourth Quarter 2020 Earnings Press Release

“The
2021 winter boat show season has been cancelled due to the COVID-19 pandemic. This time of year represents a meaningful opportunity
to introduce our new models for the year and to assess demand for the upcoming retail selling season. Since the beginning of the
pandemic, we have been cooperating with our dealers to conduct as much virtual marketing as possible, and we are continuing this
effort in 2021. We believe that these efforts are helping our customers make these important purchasing decisions remotely. As
we plan this year, we are also very aware of potential supply chain constraints and labor shortages resulting both from high demand
and continuing pandemic concerns,” concluded Hubbell.

Marine
Products Corporation will hold a conference call today, January 27, 2021, at 8: 00 a.m. Eastern Time to discuss the results for
the fourth 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 (833) 968-2235 or (825) 312-2057
for international callers, and using conference ID number 5458273. 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, Vortex jet drive 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 to generate superior financial performance
to build 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 belief that we will experience an exceptionally strong market during the near term. These statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results, performance or achievements of Marine Products Corporation
to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements.
These risks include the duration of the COVID-19 crisis, its impact on the U.S. and global economy, the efficacy of our virtual
marketing efforts, the potential disruption of our supply chain and the duration of the recent increase in dealer and consumer
demand. 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, 2019 and 10-Q filed with the Securities and Exchange
Commission for the quarter ended March 31, 2020.

Page 3
Fourth Quarter 2020 Earnings Press Release

For information contact:  
 

BEN M. PALMER 
JIM LANDERS

Chief Financial Officer 
Vice President Corporate Services

(404) 321-7910 
(404) 321-2162

[email protected] 
[email protected]

Page 4
Fourth Quarter 2020 Earnings Press Release

MARINE
PRODUCTS CORPORATION AND SUBSIDIARIES

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

Period ended December 31, (Unaudited) 
Fourth Quarter  
Twelve
Months 

  
2020  
2019  
% BETTER
(WORSE)  
2020  
2019  
% BETTER
(WORSE) 

Net Sales 
$71,110  
$48,175  
 47.6% 
$239,825  
$292,136  
 (17.9)%

Cost of Goods Sold 
 53,679  
 37,653  
 (42.6) 
 186,220  
 226,742  
 17.9 

Gross Profit 
 17,431  
 10,522  
 65.7  
 53,605  
 65,394  
 (18.0)

Selling, General and Administrative Expenses 
 8,348  
 6,344  
 (31.6) 
 29,244  
 31,259  
 6.4 

Operating Profit 
 9,083  
 4,178  
 117.4  
 24,361  
 34,135  
 (28.6)

Interest Income 
 9  
 88  
 (89.8) 
 95  
 323  
 (70.6)

Income Before Income Taxes 
 9,092  
 4,266  
 113.1  
 24,456  
 34,458  
 (29.0)

Income Tax Provision 
 2,098  
 724  
 (189.8) 
 5,012  
 6,219  
 19.4 

Net Income 
$6,994  
$3,542  
 97.5% 
$19,444  
$28,239  
 (31.1)%

  
    
    
    
    
    
   

EARNINGS PER SHARE 
    
    
    
    
    
   

Basic 
$0.21  
$0.10  
 110.0% 
$0.57  
$0.83  
 (31.3)%

Diluted 
$0.21  
$0.10  
 110.0% 
$0.57  
$0.83  
 (31.3)%

  
    
    
    
    
    
   

AVERAGE SHARES OUTSTANDING 
    
    
    
    
    
   

Basic 
 33,869  
 33,915  
    
 33,926  
 34,061  
   

Diluted 
 33,869  
 33,915  
    
 33,926  
 34,061  
   

Page 5

Fourth Quarter 2020 Earnings Press Release 

MARINE
PRODUCTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE  SHEETS 
   
  

At December 31, (Unaudited) 
(in thousands) 

  
2020  
2019 

ASSETS 
   
  

Cash and cash equivalents 
$31,573  
$19,804 

Accounts receivable, net 
 4,706  
 6,607 

Inventories 
 42,310  
 41,553 

Income taxes receivable 
 -  
 907 

Prepaid expenses and other current assets 
 1,947  
 2,056 

Total current assets 
 80,536  
 70,927 

Property, plant and equipment, net 
 14,938  
 14,796 

Goodwill 
 3,308  
 3,308 

Other intangibles, net 
 465  
 465 

Pension assets 
 12,397  
 7,597 

Deferred income taxes 
 4,075  
 3,990 

Other assets 
 3,703  
 3,681 

Total assets 
$119,422  
$104,764 

  
    
   

LIABILITIES AND STOCKHOLDERS' EQUITY 
    
   

Accounts payable 
$6,079  
$3,886 

Accrued expenses and other liabilities 
 15,583  
 13,155 

Total current liabilities 
 21,662  
 17,041 

Long-term pension liabilities 
 12,524  
 9,980 

Other long-term liabilities 
 717  
 531 

Total liabilities 
 34,903  
 27,552 

Common stock 
 3,387  
 3,387 

Capital in excess of par value 
 -  
 - 

Retained earnings 
 83,079  
 76,573 

Accumulated other comprehensive loss 
 (1,947) 
 (2,748)

Total stockholders' equity 
 84,519  
 77,212 

Total liabilities and stockholders' equity 
$119,422  
$104,764 

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