ATLANTA, July 26, 2017 /PRNewswire/ -- Marine Products
Corporation (NYSE: MPX) announced its unaudited results for the
quarter ended June 30, 2017.
Marine Products is a leading manufacturer of fiberglass boats under
two brand names: Chaparral and Robalo. Chaparral's sterndrive
models include H2O Sport and Ski & Fish Boats, SSi and SSX
Sportboats, Sunesta Sportdecks and Signature Cruisers. In
addition, Chaparral manufactures SunCoast Sportdeck outboards,
Vortex Jet Boats and the Surf Series of Chaparral SSi and SSX
Sportboats and Sunesta Sportdecks. Robalo builds outboard
sport fishing boats which include center console, dual console,
walkaround cabin and Cayman bay boat models.
For the quarter ended June 30,
2017, Marine Products generated net sales of $71,484,000, a 9.9 percent increase, compared to
$65,066,000 in the same period of the
prior year. The increase in net sales was due to a 3.3
percent increase in unit sales and a 5.1 percent increase in the
average selling price per boat. During the quarter we
generated higher unit sales in our Robalo sport fishing boats and
our Chaparral H2O models. Average selling prices increased
during the quarter due to a favorable model mix within all of our
model lines.
Gross profit for the quarter was $16,287,000, an 18.0 percent increase compared to
gross profit of $13,808,000 in the
same period of the prior year. Gross profit for the second
quarter increased compared to the prior year due to higher net
sales. Gross margin was 22.8 percent in the second quarter of
2017, compared to 21.2 percent in 2016. Gross margin improved
during the second quarter of 2017 as compared to the prior year due
to the increase in average selling prices as well as manufacturing
efficiencies resulting from higher production.
Operating profit for the quarter was $8,722,000, an increase of 29.9 percent, compared
to $6,712,000 in the second quarter
of last year. Selling, general and administrative expenses
were $7,565,000 in the second quarter
of 2017, an increase of 6.6 percent compared to the second quarter
of 2016. Selling, general and administrative expenses
increased compared to the prior year due to expenses that increase
with higher activity levels, as well as increased compensation
expense consistent with improved profitability. Selling,
general and administrative expenses were 10.6 percent of net sales
during the second quarter of 2017, a slight decrease compared to
10.9 percent of net sales during the same period of the prior
year.
Net income for the quarter ended June 30,
2017 was $6,119,000, an
increase of $1,301,000 or 27.0
percent, compared to net income of $4,818,000 for the second quarter of 2016.
Diluted earnings per share were $0.18
in the second quarter of 2017, an increase of $0.05 per share compared to the second quarter of
the prior year. Diluted earnings per share increased due to higher
net income as well as a lower share count resulting from the
Company's open market share repurchases and partial tender offer
conducted during the past year.
Net sales for the six months ended June
30, 2017 were $142,524,000, an
increase of 10.7 percent compared to the first six months of
2016. Net income for the six-month period was $11,380,000 or $0.33 diluted earnings per share, compared to net
income of $8,739,000, or $0.23 diluted earnings per share in the prior
year.
Richard A. Hubbell, Marine
Products' President and Chief Executive Officer stated, "Our second
quarter 2017 financial results reflect the continuation of a strong
2017 retail selling season. Our Robalo outboard sport fishing
boats continued to sell well, especially the Robalo 302 and the
Robalo 242. We also generated strong sales volume within our
Chaparral H2O outboards and our SSi and SSX Surf Series, both of
which were new for 2017.
At the end of the second quarter of 2017, our order backlog was
slightly lower and dealer inventory levels were higher than at this
time last year, as we and our dealers prepare for the remainder of
the 2017 retail selling season," concluded Hubbell.
Marine Products Corporation will hold a conference call today,
July 26, 2017 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 www.marineproductscorp.com. The live conference
call can also be accessed by calling (877) 548-7906 or (719)
457-2647 for international callers and using the conference ID
#9113877. 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, jet drive and
outboard pleasure 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
www.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, our
belief that we are prepared to capitalize on opportunities to
increase our market share and generate superior financial
performance to build long-term shareholder value. 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 possible decreases in the level of consumer
confidence and available funds impacting discretionary spending,
increased interest rates and fuel prices, weather conditions,
changes in consumer preferences, deterioration in the quality of
Marine Products' network of independent boat dealers or
availability of financing of their inventory, and competition from
other boat manufacturers and dealers. 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' Form 10-K, filed with
the Securities and Exchange Commission for the year ending
December 31, 2016.
For information
contact:
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BEN M.
PALMER
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JIM
LANDERS
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Chief Financial
Officer
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Vice President,
Corporate
Finance
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(404)
321-7910
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(404)
321-2162
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irdept@marineproductscorp.com
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jlanders@marineproductscorp.com
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MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands except per
share data)
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Periods ended June
30, (Unaudited)
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Second
Quarter
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Six
Months
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2017
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2016
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% BETTER
(WORSE)
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2017
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2016
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% BETTER
(WORSE)
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Net
Sales
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$
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71,484
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$
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65,066
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9.9
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%
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$
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142,524
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$
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128,731
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10.7
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%
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Cost of Goods
Sold
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55,197
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51,258
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(7.7)
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111,331
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102,235
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(8.9)
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Gross
Profit
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16,287
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13,808
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18.0
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31,193
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26,496
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17.7
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Selling, General and
Administrative Expenses
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7,565
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7,096
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(6.6)
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15,573
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14,139
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(10.1)
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Operating
Profit
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8,722
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6,712
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29.9
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15,620
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12,357
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26.4
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Interest
Income
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57
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151
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(62.3)
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108
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243
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(55.6)
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Income Before Income
Taxes
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8,779
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6,863
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27.9
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15,728
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12,600
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24.8
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Income Tax
Provision
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2,660
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2,045
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(30.1)
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4,348
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3,861
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(12.6)
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Net
Income
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$
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6,119
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$
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4,818
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27.0
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%
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$
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11,380
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$
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8,739
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30.2
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%
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EARNINGS PER
SHARE
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Basic
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$
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0.18
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$
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0.13
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38.5
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%
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$
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0.33
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$
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0.23
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43.5
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%
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Diluted
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$
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0.18
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$
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0.13
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38.5
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%
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$
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0.33
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$
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0.23
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43.5
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%
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AVERAGE SHARES
OUTSTANDING
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Basic
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34,936
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38,363
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34,934
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38,330
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Diluted
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34,936
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38,363
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34,934
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38,330
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MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
BALANCE SHEETS
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At June 30,
(Unaudited)
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(in
thousands)
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2017
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2016
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ASSETS
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Cash and cash
equivalents
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$
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3,834
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$
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296
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Marketable
securities
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4,846
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14,343
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Accounts receivable,
net
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5,207
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4,817
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Inventories
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41,221
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34,592
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Income taxes
receivable
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1,279
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-
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Prepaid expenses and
other current assets
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1,629
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1,791
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Total current
assets
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58,016
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55,839
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Property, plant and
equipment, net
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13,518
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12,753
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Goodwill
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3,308
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3,308
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Other intangibles,
net
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465
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465
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Marketable
securities
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12,941
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33,102
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Deferred income
taxes
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5,169
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3,575
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Other
assets
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9,070
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10,546
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Total
assets
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$
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102,487
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$
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119,588
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Accounts
payable
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$
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10,352
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$
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6,345
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Accrued expenses and
other liabilities
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14,358
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12,446
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Total current
liabilities
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24,710
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18,791
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Long-term pension
liabilities
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6,605
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5,307
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Other long-term
liabilities
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59
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70
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Total
liabilities
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31,374
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24,168
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Common
stock
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3,488
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3,836
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Capital in excess of
par value
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-
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4,774
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Retained
earnings
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69,742
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88,569
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Accumulated other
comprehensive loss
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(2,117)
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(1,759)
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Total
stockholders' equity
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71,113
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95,420
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Total
liabilities and stockholders' equity
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$
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102,487
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$
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119,588
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View original
content:http://www.prnewswire.com/news-releases/marine-products-corporation-reports-second-quarter-2017-financial-results-300493936.html
SOURCE Marine Products Corporation