Marine Products Corporation Reports 2009 First Quarter Financial Results

ATLANTA, April 29 /PRNewswire-FirstCall/ -- Marine Products Corporation (NYSE:
MPX) announced its unaudited results for the quarter ended March 31, 2009.
Marine Products is a leading manufacturer of fiberglass boats under two brand
names: sterndrive and inboard pleasure boats by Chaparral, including Premiere
Sport Yachts, SSi Wide Techs, SSX Bowriders, Sunesta Wide Techs and Xtremes,
Signature Cruisers, and outboard sport fishing boats by Robalo.

For the quarter ended March 31, 2009, Marine Products generated net sales of
$13,806,000, a 78.9 percent decrease compared to $65,542,000 last year. The
decrease in net sales was due to a decrease of 77.9 percent in the number of
boats sold and additional costs recorded during the quarter of our winter
retail incentive program. Gross loss for the quarter was $58,000, compared to
a gross profit of $13,464,000, or 20.5 percent of net sales, in the prior
year. The gross loss for the quarter was due to very low production levels
and sales to dealers, which resulted in significant production inefficiencies,
as well as the additional costs of retail incentives. Unit sales among all
models declined significantly compared to the prior year, although average
gross selling price per boat was unchanged.

Operating loss for the quarter was $4,757,000, compared to an operating profit
of $5,205,000 in the first quarter last year due to a gross loss partially
offset by lower selling, general and administrative expenses. Selling,
general and administrative expenses in the first quarter of 2009 decreased by
43.1 percent due primarily to the variable nature of many of these expenses as
well as ongoing cost reduction measures.

Net loss for the quarter ended March 31, 2009 was $2,486,000, a decrease
compared to net income of $4,132,000 in the prior year. The net loss was due
to an operating loss and lower interest income, partially offset by an income
tax benefit. Diluted loss per share for the quarter was $0.07, a decrease
compared to $0.11 diluted earnings per share in the prior year.

Richard A. Hubbell, Marine Products' Chief Executive Officer, stated, "Marine
Products' first quarter 2009 results reflect the very difficult environment in
which the recreational boating industry finds itself, as the financial crisis
of the fourth quarter of 2008 caused consumers to halt virtually all large
discretionary purchases. During the first quarter we worked closely with our
dealers to manage their inventory levels and monitor their financial
conditions. We also held discussions with current and potential floorplan
lenders regarding those relationships. We made progress on dealer inventory
reductions during the quarter, and dealer inventories at the end of the
quarter were approximately 11 percent lower than at the end of 2008 and 35
percent lower than the same time last year.

"The winter boat show season was weak overall, with average attendance and
sales down by more than 30 percent. Based on this important indicator as well
as more current indicators from our dealers, we do not anticipate improvement
in our business in the near term. Our strategy is to produce an appropriate
quantity of current-year models in order to meet firm demand and preserve the
value of our brand names, while continuing a prudent amount of new model
development for the 2010 model year. To support this strategy, we are
producing our current-year models at a very low but steady production level.
Also, we recently developed a new retail incentive program to be in effect
during the 2009 spring retail selling season designed to reduce field
inventory further. The execution of these strategies requires that we build
on our strength of strong capitalization as much as possible. With this in
mind, our Board of Directors voted to suspend Marine Products' quarterly
dividend at its regular meeting held yesterday. With our enduring capital
strength and management expertise, we believe that we are uniquely positioned
to increase market share as other competitors do not have our stamina or
ability to produce appealing products."

Marine Products Corporation will hold a conference call today, April 29, 2009
at 8:00 a.m. EDT to discuss the results of the first quarter. Interested
parties may listen in by accessing a live webcast in the investor relations
section of Marine Products' Web site at www.marineproductscorp.com. The live
conference call can also be accessed by calling (866) 864-9123 or (973)
638-3430 and using the access code #92503482.

A replay of the conference call will be available in the investor relations
section of Marine Products' Web site (www.marineproductscorp.com) beginning
approximately two hours after the call. The rebroadcast will also be
available until May 6, 2009 via telephone by calling (800) 642-1687 or (706)
645-9291 and using the access code #92503482.

Marine Products Corporation (NYSE: MPX) designs, manufactures and distributes
premium-branded Chaparral sterndrive and inboard pleasure boats; Premiere
Sport Yachts; and Robalo sport fishing boats, and continues to diversify its
product line through product innovation and is prepared to consider strategic
acquisition targets. 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 our
statements that the weak winter boat season as well as more current indicators
from our dealers cause us to conclude that we do not anticipate improvement in
our business in the near term; our strategy to produce an appropriate quantity
of current-year models in order to meet firm demand and preserve the value of
our brand names, while continuing a prudent amount of new model development
for the 2010 model year; our plans to produce current-year models at a very
low but steady production level; our plans for a new retail incentive program
to be in effect during the 2009 spring retail selling season and the ability
of this plan to reduce field inventory further; our belief that our capital
strength and management expertise uniquely positions us to increase market
share as other competitors do not have our stamina or our ability to produce
appealing products; and 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, 2008.

For information contact:
BEN M. PALMER JIM LANDERS
Chief Financial Officer Vice President, Corporate Finance
(404) 321-7910 (404) 321-2162
irdept@marineproductscorp.com jlanders@marineproductscorp.com

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share
data)
-------------------------------------------------------------------------
Periods ended March 31, (Unaudited) First Quarter
-------------------------------------------------------------------------
BETTER
2009 2008 (WORSE)
----- ---- -------

Net Sales $13,806 $65,542 (78.9)%
Cost of Goods Sold 13,864 52,078 73.4
------------------ ------ ------ ----
Gross (Loss) Profit (58) 13,464 NM
Selling, General and Administrative Expenses 4,699 8,259 43.1
-------------------------------------------- ----- ----- ----
Operating (Loss) Income (4,757) 5,205 NM
Interest Income 455 563 (19.2)
--------------- --- --- ------
(Loss) Income Before Income Taxes (4,302) 5,768 NM
Income Tax (Benefit) Provision (1,816) 1,636 NM
------------------------------ ------- ----- --
Net (Loss) Income $(2,486) $4,132 NM%
================= ======= ===== ==

(LOSS) EARNINGS PER SHARE
Basic $(0.07) $0.12 N/M%
====== ==== ===
Diluted $(0.07) $0.11 N/M%
====== ==== ===

AVERAGE SHARES OUTSTANDING
Basic 35,981 35,728
====== ======

Diluted 35,981 36,504
====== ======

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES
-------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
-------------------------------------------------------------------------
At March 31, (Unaudited) (in thousands)
-------------------------------------------------------------------------
2009 2008
---- ----
ASSETS
Cash and cash equivalents $9,427 $8,130
Marketable securities 19,057 10,171
Accounts receivable, net 1,213 4,346
Inventories 19,408 32,412
Income taxes receivable 4,769 725
Deferred income taxes 913 2,843
Prepaid expenses and other current assets 1,218 1,925
----------------------------------------- ----- -----
Total current assets 56,005 60,552
----------------------- ------ ------
Property, plant and equipment, net 14,192 15,622
Goodwill 3,308 3,308
Other intangibles, net 465 465
Marketable securities 27,034 38,798
Deferred income taxes 2,479 1,372
Other assets 4,324 6,647
------------ ----- -----
Total assets $107,807 $126,764
=============== ======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $1,733 $6,967
Accrued expenses and other liabilities 12,508 18,778
-------------------------------------- ------ ------
Total current liabilities 14,241 25,745
Pension liabilities 4,984 5,467
Other long-term liabilities 444 488
--------------------------- --- ---
Total liabilities 19,669 31,700
-------------------- ------ ------
Common stock 3,690 3,644
Capital in excess of par value - -
Retained earnings 85,564 91,184
Accumulated other comprehensive (loss) income (1,116) 236
--------------------------------------------- ------ ---
Total stockholders' equity 88,138 95,064
----------------------------- ------ ------
Total liabilities and stockholders' equity $107,807 $126,764
============================================= ======== ========

SOURCE Marine Products Corporation

Ben M. Palmer, Chief Financial Officer, +1-404-321-7910,
irdept@marineproductscorp.com, or Jim Landers, Vice President, Corporate
Finance, +1-404-321-2162, jlanders@marineproductscorp.com