ATLANTA, July 24, 2019 /PRNewswire/ -- Marine Products
Corporation (NYSE: MPX) announced its unaudited results for the
quarter ended June 30, 2019.
Marine Products is a leading manufacturer of fiberglass boats under
three brand names: Chaparral, Robalo and Vortex. Chaparral's
sterndrive models include Signature Cruisers, SSX and SSI
Sportboats, Sunesta Sportdecks and H2O Sport and Ski & Fish
Boats. The Chaparral Surf Series includes select models from
the SSX, SSI, Sunesta and H2O lineups. Chaparral's outboard
offerings include OSX Sport Luxury, SunCoast Sportdecks and select
H2O models. In addition, Chaparral offers jet powered boats with
its Vortex Jet Boats lineup. 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,
2019, Marine Products generated record net sales of
$88,696,000, a 1.9 percent increase
compared to net sales of $87,006,000
in the same period of the prior year. The increase in net
sales was due to a 10.0 percent increase in average selling prices
and an increase in parts and accessories sales, partially offset by
a 7.6 percent decrease in the number of units sold.
Gross profit for the second quarter of 2019 was $20,424,000, a 4.9 percent increase compared to
gross profit of $19,472,000 in the
same period of the prior year. Gross margin as a percentage
of net sales was 23.0 percent in the second quarter of 2019,
compared with 22.4 percent in the second quarter of 2018.
Gross margin as a percentage of net sales improved due to a more
favorable model mix during the second quarter of 2019 as compared
to the same period in 2018.
Operating profit for the second quarter of 2019 was $11,379,000, an increase of 2.0 percent compared
with operating profit of $11,151,000
in the second quarter of last year. Selling, general and
administrative expenses were $9,045,000 in the second quarter of 2019,
compared with $8,321,000 in the
second quarter of 2018. These expenses increased due to expenses
that increase with higher sales and profitability, such as
incentive compensation, as well as higher research and development
expenses that support new product development. Selling,
general and administrative expenses as a percentage of net sales
were 10.2 percent in the second quarter of 2019 compared with 9.6
percent of net sales during the second quarter of 2018.
Net income for the second quarter of 2019 was a record
$9,373,000, an increase of
$383,000, or 4.3 percent, compared
with net income of $8,990,000 in the
second quarter of 2018. Diluted earnings per share was a record
$0.27 in the second quarter of 2019,
an increase of $0.01 compared to
$0.26 diluted earnings per share in
the second quarter of 2018. The effective tax rate for the second
quarter of 2019 was 18.3 percent, a slight decrease compared to an
effective tax rate of 20.0 percent for the second quarter of the
prior year.
Net sales for the six months ended June
30, 2019 were $171,749,000, an
increase of 4.4 percent compared to the first six months of
2018. Net income for the six-month period was $16,842,000 or $0.49 diluted earnings per share, compared to net
income of $16,599,000, or
$0.48 diluted earnings per share in
the prior year.
Richard A. Hubbell, Marine
Products' President and Chief Executive Officer stated, "A
broad-based shift in our model mix during the second quarter drove
average selling prices higher. Sales of our new Chaparral OSX
models contributed to this shift, but higher sales of other
Chaparral and Robalo models contributed to the change in average
selling prices as well. The 2019 retail selling season has been
strong. At the end of the quarter, our dealer inventory was
slightly higher than at this time last year, but lower than at the
end of the first quarter, indicating strong dealer sales to
consumers during the last three months. Also, I am pleased to
report that Marine Products Corporation continues to maintain
industry-leading market share. For the trailing 12 months ended
March 31, 2019, Chaparral's
sterndrive products continued to hold the highest market share in
their size category. Robalo continued to hold the second-highest
market share in its category, and the combination of Robalo and
Chaparral's outboard boats held 6.8 percent of their market for
this period, the highest market share in that category.
"As we reach the end of this season, we look forward to
introducing our 2020 models to our dealer network at our annual
dealer conference next month. We are developing several new models
which we believe will appeal to our dealers and retail customers.
As always when we are planning for a new model year, we will
continue to assess economic conditions and listen to our dealers to
plan our upcoming production. During the second quarter of
2019 we repurchased 65,407 shares of our common stock on the open
market," concluded Hubbell.
Marine Products Corporation will hold a conference call today,
July 24, 2019, at 8:00 a.m. Eastern Time to discuss the results for
the second quarter. Interested parties may listen in by
accessing a live webcast in the investor relations section of
Marine Products' website at www.marineproductscorp.com.
Additionally, the live conference call can be accessed by calling
(800) 263-0877 or (323) 794-2094 for international callers, and
using conference ID number 8639980. 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,
statements regarding our belief that the models that we are
developing for the 2020 model year will appeal to our dealers and
retail customers, and our ability to capitalize on opportunities to
increase our market share, generate superior financial performance
and 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 the strength
of the 2019 retail selling season, the level of demand for our
smaller products, 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, continued weakness in
the sterndrive recreational boat market, 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' Annual Report on Form
10-K, filed with the U.S. Securities and Exchange Commission (the
"SEC") for the year ended December 31,
2018 and in Marine Products' Quarterly Report on Form 10-Q,
filed with the SEC for the quarter ended March 31, 2019.
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
|
jlanders@marineproductscorp.com
|
MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands except per share
data)
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Period ended June 30,
(Unaudited)
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Second
Quarter
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Six
Months
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2019
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2018
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% BETTER
(WORSE)
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2019
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2018
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% BETTER
(WORSE)
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Net
Sales
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$
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88,696
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$
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87,006
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1.9
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%
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$
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171,749
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$
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164,542
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4.4
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%
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Cost of Goods
Sold
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68,272
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67,534
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(1.1)
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132,626
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127,419
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(4.1)
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Gross
Profit
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20,424
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19,472
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4.9
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39,123
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37,123
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5.4
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Selling, General and
Administrative Expenses
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9,045
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8,321
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(8.7)
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18,876
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16,939
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(11.4)
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Operating
Profit
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11,379
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11,151
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2.0
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20,247
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20,184
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0.3
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Interest
Income
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95
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85
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11.8
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152
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118
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28.8
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Income Before Income
Taxes
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11,474
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11,236
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2.1
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20,399
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20,302
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0.5
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Income Tax
Provision
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2,101
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2,246
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6.5
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3,557
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3,703
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3.9
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Net
Income
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$
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9,373
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$
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8,990
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4.3
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%
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$
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16,842
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$
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16,599
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1.5
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%
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EARNINGS PER
SHARE
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Basic
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$
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0.27
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$
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0.26
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3.8
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%
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$
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0.49
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$
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0.48
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2.1
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%
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Diluted
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$
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0.27
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$
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0.26
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3.8
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%
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$
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0.49
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$
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0.48
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2.1
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%
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AVERAGE SHARES
OUTSTANDING
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Basic
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34,090
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34,561
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34,166
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34,584
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Diluted
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34,090
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34,561
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34,166
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34,584
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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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2019
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2018
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ASSETS
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Cash and cash
equivalents
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$
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12,967
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$
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9,505
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Marketable
securities
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-
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5,996
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Accounts receivable,
net
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14,752
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8,522
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Inventories
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50,904
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44,931
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Income taxes
receivable
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122
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217
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Prepaid expenses and
other current assets
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1,389
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1,493
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Total current
assets
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80,134
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70,664
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Property, plant and
equipment, net
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15,244
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14,090
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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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-
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12,356
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Deferred income
taxes
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3,688
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3,376
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Other
assets
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11,015
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10,674
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Total
assets
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$
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113,854
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$
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114,933
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Accounts
payable
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$
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9,265
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$
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14,606
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Accrued expenses and
other liabilities
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16,199
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15,729
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Total current
liabilities
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25,464
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30,335
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Long-term pension
liabilities
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8,770
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7,084
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Other long-term
liabilities
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544
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343
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Total
liabilities
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34,778
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37,762
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Common
stock
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3,404
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3,455
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Capital in excess of
par value
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-
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-
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Retained
earnings
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78,220
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75,646
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Accumulated other
comprehensive loss
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(2,548)
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(1,930)
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Total
stockholders' equity
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79,076
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77,171
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Total
liabilities and stockholders' equity
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$
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113,854
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$
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114,933
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View original
content:http://www.prnewswire.com/news-releases/marine-products-corporation-reports-second-quarter-2019-financial-results-300889883.html
SOURCE Marine Products Corporation