Marine Products Corp. (MPX, Financial) filed Quarterly Report for the period ended 2010-06-30.
Marine Products Corp. has a market cap of $235.2 million; its shares were traded at around $6.34 with and P/S ratio of 4.9.
Selling, general and administrative expenses for the three months ended June 30, 2010 were $4.1 million compared to $2.3 million for the comparable period in 2009, an increase of $1.7 million or 73.6 percent. Selling, general and administrative expenses, as a percentage of net sales, decreased due to leverage of fixed costs over higher net sales partially offset by costs that vary with sales and profitability. Warranty expense was 2.0 percent of net sales for the three months ended June 30, 2010 compared to 2.3 percent in the prior year.
Cost of goods sold for the six months ended June 30, 2010 was $46.1 million compared to $26.0 million for the comparable period in 2009, an increase of $20.1 million or 77.3 percent. Cost of goods sold, as a percentage of net sales, decreased primarily as the result of lower retail incentive costs, improved manufacturing cost efficiencies due to significantly higher production volumes and cost leverage with increased sales during the first and second quarters of 2010 compared to the same periods in 2009. Production levels were increased during the first six months of 2010 in response to higher retail demand for new models and lower dealer inventories.
Selling, general and administrative expenses for the six months ended June 30, 2010 were $7.9 million compared to $6.5 million for the comparable period in 2009, an increase of $1.4 million or 22.0 percent. Selling, general and administrative expenses, as a percentage of net sales, decreased due to leverage of fixed costs over higher net sales. Warranty expense was 2.3 percent of net sales for the six months ended June 30, 2010 compared to 3.9 percent in the prior year.
The Company s cash and cash equivalents at June 30, 2010 were $9.0 million. In addition, the aggregate of short-term and long-term marketable securities were $41.1 million at June 30, 2010 compared to $39.4 million at December 31, 2009. The following table sets forth the historical cash flows for the applicable period:
During the third quarter of 2009, an amendment to the current agreement with one of the Company s floor plan lenders was executed with a contractual repurchase limit of $9.0 million effective January 1, 2009 which expired June 30, 2010. Effective July 1, 2010, this agreement was further amended to change the contractual repurchase limit to not exceed 15 percent of the amount of the average net receivables financed by the floor plan lender for dealers during the prior 12 month period. The Company has contractual repurchase agreements with additional lenders with an aggregate maximum repurchase obligation of approximately $2.5 million with expiration dates through June 30, 2011. As of June 30, 2010, the Company has an aggregate remaining repurchase obligation with these financing institutions of approximately $6.0 million.
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Marine Products Corp. has a market cap of $235.2 million; its shares were traded at around $6.34 with and P/S ratio of 4.9.
Highlight of Business Operations:
Cost of goods sold for the three months ended June 30, 2010 was $25.1 million compared to $12.2 million for the comparable period in 2009, an increase of $12.9 million or 106.3 percent. Cost of goods sold, as a percentage of net sales, decreased primarily as the result of significantly lower retail incentive costs, improved manufacturing cost efficiencies due to significantly higher production volumes and cost leverage with increased sales during the second quarter of 2010 compared to the same period of 2009. Production levels were significantly increased in response to higher retail demand for new models and lower dealer inventories.Selling, general and administrative expenses for the three months ended June 30, 2010 were $4.1 million compared to $2.3 million for the comparable period in 2009, an increase of $1.7 million or 73.6 percent. Selling, general and administrative expenses, as a percentage of net sales, decreased due to leverage of fixed costs over higher net sales partially offset by costs that vary with sales and profitability. Warranty expense was 2.0 percent of net sales for the three months ended June 30, 2010 compared to 2.3 percent in the prior year.
Cost of goods sold for the six months ended June 30, 2010 was $46.1 million compared to $26.0 million for the comparable period in 2009, an increase of $20.1 million or 77.3 percent. Cost of goods sold, as a percentage of net sales, decreased primarily as the result of lower retail incentive costs, improved manufacturing cost efficiencies due to significantly higher production volumes and cost leverage with increased sales during the first and second quarters of 2010 compared to the same periods in 2009. Production levels were increased during the first six months of 2010 in response to higher retail demand for new models and lower dealer inventories.
Selling, general and administrative expenses for the six months ended June 30, 2010 were $7.9 million compared to $6.5 million for the comparable period in 2009, an increase of $1.4 million or 22.0 percent. Selling, general and administrative expenses, as a percentage of net sales, decreased due to leverage of fixed costs over higher net sales. Warranty expense was 2.3 percent of net sales for the six months ended June 30, 2010 compared to 3.9 percent in the prior year.
The Company s cash and cash equivalents at June 30, 2010 were $9.0 million. In addition, the aggregate of short-term and long-term marketable securities were $41.1 million at June 30, 2010 compared to $39.4 million at December 31, 2009. The following table sets forth the historical cash flows for the applicable period:
During the third quarter of 2009, an amendment to the current agreement with one of the Company s floor plan lenders was executed with a contractual repurchase limit of $9.0 million effective January 1, 2009 which expired June 30, 2010. Effective July 1, 2010, this agreement was further amended to change the contractual repurchase limit to not exceed 15 percent of the amount of the average net receivables financed by the floor plan lender for dealers during the prior 12 month period. The Company has contractual repurchase agreements with additional lenders with an aggregate maximum repurchase obligation of approximately $2.5 million with expiration dates through June 30, 2011. As of June 30, 2010, the Company has an aggregate remaining repurchase obligation with these financing institutions of approximately $6.0 million.
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