Page 1

MARINE PRODUCTS CORPORATION Marine Products Corporation Reports First Quarter 2021 Financial Results ATLANTA , April 28 , 2021 / PRNewswire / -- Marine Products Corporation ( NYSE : MPX ) announced its unaudited results for the quarter ended March 31 , 2021. 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 . MARINE PRODUCTS For the quarter ended March 31 , 2021 , Marine Products generated net sales of $ 78,375,000 , a 32.6 percent increase compared to $ 59,119,000 in the same period of the prior year . The increase in net sales was due to a 17.9 percent increase in the number of units sold during the quarter as compared to the prior year as well as a 15.5 percent increase in average selling price per boat . Unit sales increased in all of our major product categories . Average selling prices also increased compared to the first quarter of the prior year due to a model mix that included more of our larger boats . Gross profit for the first quarter of 2021 was $ 18,462,000 , a 52.5 percent increase compared to gross profit of $ 12,107,000 in the same period of the prior year . Gross margin as a percentage of net sales increased to 23.6 percent in the first quarter of 2021 compared to 20.5 percent in the first quarter of 2020. Gross margin as a percentage of net sales increased due to manufacturing efficiencies resulting from higher production and a favorable model mix during the first quarter of 2021 as compared to the prior year . Operating profit for the first quarter of 2021 was $ 10,025,000 , an increase of 106.5 percent compared with operating profit of $ 4,854,000 in the first quarter of last year . Selling , general and administrative expenses were $ 8,437,000 in the first quarter of 2021 compared to $ 7,253,000 in the first quarter of 2020. These expenses increased due to costs that vary with sales and profitability , such as incentive compensation and warranty expense , partially offset by marketing cost savings during the quarter . Selling , general and administrative expenses as a percentage of net sales were 10.8 percent in the first quarter of 2021 compared to 12.3 percent of net sales during the first quarter of 2020 . Net income for the first quarter of 2021 was $ 8,097,000 , an increase of $ 3,889,000 , or 92.4 percent , compared with net income of $ 4,208,000 in the first quarter of 2020. Diluted earnings per share were $ 0.24 in the first quarter of 2021 compared to $ 0.12 in the first quarter of 2020. The effective tax rate for the first quarter of 2021 was 19.3 percent , an increase compared to an effective tax rate of 14.4 percent for the first quarter of the prior year . Richard A. Hubbell , Marine Products ' President and Chief Executive Officer stated , " Our first quarter results reflect continued strong interest in recreational boating and the appeal of our products , as dealers continue to report strong retail demand in all of the markets . We generated strong sales across all our product lines . Although most of the winter boat shows were cancelled this year , our virtual and limited in - person marketing and sales efforts have been successful and we are looking forward to a very strong retail selling season , as our order backlog remains at historically high levels . We continue to be pleased by our growing market share . Updated statistics for the 12 months ended December 31 , 2020 indicate that market share in our Robalo product line increased slightly , as did the combination of our Robalo and Chaparral outboard units . Market share within our Chaparral sterndrive models increased as well , and that product line continues to hold the second highest market share in its category . " We are optimistic about the continued strength in the recreational boat market and our near - term financial results . However , like so many manufacturing businesses , we have started to experience supply chain disruptions which will impact our second quarter production and sales growth . We are working closely with our suppliers to understand these disruptions and manage our manufacturing processes , and we are communicating with our dealers and retail customers to manage their expectations and seek the best possible outcomes during this extraordinary time , " concluded Hubbell . Marine Products Corporation will hold a conference call today , April 28 , 2021 , 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 ( https://c212.net/c/link/?t=0&l=en&o=3142623-1&h=3420585602&u=http%3A%2F%2Fwwww.marineproductscorp.com%2F&a=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 6784804. 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 ( https://c212.net/c/link/?t=0&l=en&o=3142623- 1 & h = 1950740311 & u = http % 3A % 2F % 2Fwww.marineproductscorp.com % 2F & a = 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 statement that we are looking forward to a very strong retail selling season ; our optimism about the continued strength in the recreational boat market and our near - term financial results ; and our belief that supply chain disruptions will impact our second quarter production and sales growth . 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 risks related to the supply chain