ATLANTA, January 29, 2014 – Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter and year ended December 31, 2013. Marine Products is a leading manufacturer of fiberglass boats under two brand names: sterndrive and inboard pleasure boats by Chaparral, including H2O Sport and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta Sportdecks, Xtreme Towboats, Signature Cruisers, and Robalo outboard sport fishing boats.

For the quarter ended December 31, 2013, Marine Products generated net sales of $39,534,000, a 15.8 percent increase compared to $34,152,000 in the same period the prior year. The increase in net sales was due to an increase of 8.0 percent in the number of units sold and a 6.3 percent increase in the average selling price per boat, as well as higher parts and accessories sales. Unit sales and average selling prices of our Robalo sport fishing boats increased significantly. Average selling prices of several of our Chaparral models increased as well, due to a favorable model mix that included a greater number of large Chaparral SSX Sportboats and Sunesta Sportdecks.

Gross profit for the quarter was $8,207,000, or 20.8 percent of net sales, a 48.2 percent increase compared to gross profit of $5,538,000, or 16.2 percent of net sales, in the same period the prior year. As a percentage of net sales, gross profit increased due to lower materials costs during the quarter and a favorable model mix. In contrast to the quarter’s positive model mix, our model mix in the fourth quarter of 2012 contained a higher percentage of value-priced Chaparral H2O models, which generate lower gross profit margins.

Operating profit for the quarter increased by 177.4 percent to $3,260,000 compared to $1,175,000 in the fourth quarter of last year due to higher gross profit, partially offset by higher selling, general and administrative expenses. Selling, general and administrative expenses increased by 13.4 percent to $4,947,000 in the fourth quarter of 2013 compared to $4,363,000 last year. These expenses increased due to expenses which vary with sales and profitability, such as incentive compensation and sales commissions. As a percentage of net sales, these expenses decreased slightly during the fourth quarter of 2013 compared to the fourth quarter of 2012. Interest income was $114,000 during the fourth quarter of 2013, a decline of 58.1 percent compared to $272,000 during the fourth quarter of 2012. Interest income decreased during the quarter primarily due to a lower average marketable securities balance during the fourth quarter of 2013 compared to the prior year.

Net income for the quarter ended December 31, 2013 was $2,408,000, compared to net income of $1,064,000 for the fourth quarter of 2012. Diluted earnings per share were $0.06 in the fourth quarter of 2013 compared to $0.03 in the fourth quarter of last year.

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 related to our belief that our higher level of dealer inventories is appropriate given our belief that consumer demand will be stronger in the upcoming retail selling season; our belief that the interest level of boat show attendees is higher than last year; our belief that dealer and consumer interest in our 2014 models remains strong; our belief that interest in our new Vortex jet boat continues to be strong and our plans to introduce three jet boat models during the 2014 retail selling season; our belief that our leading market share is the result of our enduring ability to provide our customers with high-quality, stylish products throughout economic cycles; and our preparedness to capitalize on opportunities to increase 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, 2012.