Marine Products Corp. Reports Operating Results (10-K)
Marine Products Corp. has a market cap of $273.8 million; its shares were traded at around $7.38 with a P/E ratio of 67.2 and P/S ratio of 2.8. Mutual Fund and Other Gurus that owns MPX: Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:The aggregate market value of Marine Products Corporation common stock held by non-affiliates on June 30, 2010, the last business day of the registrant s most recent second fiscal quarter, was $53,642,986 based on the closing price on the New York Stock Exchange on June 30, 2010 of $5.66 per share.
During 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 $5.0 million, with various expiration and cancellation terms of less than one year, for an aggregate repurchase obligation with all financing institutions of approximately $9.4 million as of December 31, 2010. In the event that a dealer defaults under a credit line, the qualified lender may then invoke the manufacturers repurchase obligation with respect to that dealer. In that event, all repurchase agreements of all manufacturers supplying a defaulting dealer are generally invoked regardless of the boat or boats with respect to which the dealer has defaulted. Unlike Marine Products obligation to repurchase boats repossessed by lenders, Marine Products is under no obligation to repurchase boats directly from dealers. Marine Products does not sponsor financing programs to the consumer; any consumer financing promotions for a prospective boat purchaser would be the responsibility of the dealer.
In support of its new product development efforts, Marine Products incurred research and development costs of $489 thousand in 2010, $712 thousand in 2009, and $1.8 million in 2008.
Industry sales of new sterndrive boats in the United States during 2010 totaling 14,922 (source: Info-Link Technologies, Inc.) accounted for approximately 33 percent of the total new fiberglass powerboats sold that were between 18 and 35 feet in hull length. Sales of sterndrive boats had an estimated total retail value of $0.7 billion, or an average retail price per boat of approximately $47,000. Management believes that the five largest states for boat sales at the present time are Florida, Texas, California, North Carolina and New York. Marine Products has dealers in each of these states.
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