Gabelli’s holding history shows that he first bought almost a million shares of MPX in the fourth quarter of 2008 at an average price of $5.67, with a 24.9% gain. As of the end of the fourth quarter 2012, his average cost on 1,293,817 shares was $6 per share with an 18% gain.
His holding history:
With a market cap of $268.6 million, Marine Products is one of the top four manufacturers of stern-drive powerboats in the U.S., thanks to its largest subsidiary, Chaparral Boats. With Chaparral Boat’s 11.6% market share of the 18- to 35-foot fiberglass stern-drive class, Marine Products is the third largest manufacturer in this category as of the year end.
The company’s key ratios are a P/E of 37, a P/B of 3.4 and a P/S of 1.7618.
Marine Products is a leading manufacturer of fiberglass boats including stern-drive and inboard pleasure boats by Chaparral, and outboard sport fishing boats by Robalo. The company sells its numerous brands through a network of 131 domestic dealers and 57 international independent authorized dealers.
Two days ago, Marine Products Corporation announced its unaudited results for the quarter ended March 31, 2013: Marine Products generated net sales of $44,283,000, a 17% increase compared to $37,849,000 last year. The increase in net sales was due to a 12.3% increase in the number of boats sold and a 2.9% increase in the average selling price per boat. Unit sales increased due to higher sales of the larger Chaparral boats and value-priced Robalo sport fishing boats. The average selling price per boat increased during the quarter due to higher sales of several of the company’s larger models, the Chaparral 257 and 277 SSX.
Marine’s gross profit for the quarter was $7,112,000, or 16.1% of net sales, compared to gross profit of $6,996,000, or 18.5% of net sales, in the prior year. As a percentage of net sales, gross profit decreased due to increased employment costs and the lower margins generated from the company’s value-priced boats, the sales of which increased during the quarter compared to the prior year. The company’s net income for the quarter ended March 31, 2013 was $1,449,000 compared to net income of $1,632,000 for the first quarter of 2012. Diluted earnings per share were $0.04 in the first quarters of both 2012 and 2013.
Richard A. Hubbell, Marine Products’ CEO stated, “We are in the peak of the 2013 retail selling season and based on activity during the 2013 winter boat shows and recent general macroeconomic indicators, we are moderately optimistic regarding our dealer and retail sales opportunities. Our value-priced Chaparral and Robalo models continue to appeal to our dealers and retail customers. During the first quarter of 2013, however, the majority of our increase in unit sales compared to the prior year was due to improvements in unit sales of the larger models.”
In the engineering world where boat making is at the lower end of precision compared to aerospace manufacturing, Hubbell noted that as the company’s manufacturing processes become more efficient, he believes the company’s profitability should improve. He cited increases in the cost of labor as a negative impact on the company’s recent profitability.
As of April 24, 2013, Mario Gabelli’s GAMCO Investors lists 792 stocks in a portfolio valued at $13.6 billion, with a quarter over quarter turnover at 6%.
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