Ocean Bio-Chem, Inc. Reports Profitable Third Quarter 2012; Sales Up
FORT LAUDERDALE, FL -- (Marketwire) -- 11/14/12 -- Ocean Bio-Chem,
Inc. (NASDAQ: OBCI), a leading manufacturer and distributor of
appearance, performance, and maintenance products serving the marine,
automotive, power sports, recreational vehicle and outdoor power
equipment markets, announced today that net sales for the three
months ended September 30, 2012 increased approximately 4% to $10.3
million compared to sales of $9.9 million in the same period in 2011.
The Company was profitable for the 15th consecutive quarter,
reporting net income of $770,618 or $0.09 per common share, diluted.
Net income for the three months ended September 30, 2011 totaled $1.1
million or $0.13 per common share, diluted.
"Net sales increased in the third quarter because of our successful
effort to market winterizing products, including antifreeze, to
marine customers, a sector that saw double digit growth in sales
volume," said Ocean Bio-Chem, Inc. CEO Peter Dornau. "In addition, we
continued to see sales growth of our enzyme fuel treatment product
StarTron(R) in the automotive and small engine markets."
"Ocean Bio-Chem made the marketing decision to significantly increase
its advertising and promotion budget by approximately 65 percent in
the third quarter of 2012. While this decreased net income for the
quarter, it goes a long way toward cementing our future success by
moving toward increasing our market share in important new segments
including outdoor power equipment, motorcycling, power sports
equipment, and the automotive market. Our plan is to accomplish the
promotional groundwork now to increase sales in future quarters and
we are already seeing sales improvements," said Gregor M. Dornau,
Vice President - Sales & Marketing.
"In the third quarter we experienced lower gross margins as a percent
of sales, due to our continued reduction in inventories, which led to
lower manufacturing cost absorption," said Jeffrey S. Barocas, CFO.
"We have reduced our inventories by $1.1 million worth of products
over the last 12 months. Major customers no longer want to store
large amounts of inventory but rather are striving toward 'same day'
delivery systems. In addition, there was a higher
mix of lower margin
products in the third quarter."
Barocas continued, "Net income excluding non cash items were
approximately $2.4 million or $0.28 per share diluted. For the three
months ending September 30, 2012 net income excluding non cash items
was approximately $1 million or $0.12 per share."
Net sales for the nine months ended September 30, 2012 totaled $24.1
million, down slightly from net sales of $24.8 million in the same
period in 2011. Net income for the nine months in 2012 totaled $1.5
million, or $0.18 per common share, diluted compared to $2.1 million,
or $0.26 per common share, diluted in 2011. The complete Form 10-Q
filing is available at www.sec.gov.
"At the end of September 2012 the Company had $1.7 million in short
term debt, which we paid off within 20 days in October. We have no
short term debt and our cash position moving forward is excellent,"
the Company's CEO, Peter Dornau said. "Also, results so far indicate
an increase in sales for the fourth quarter. We are cautiously
optimistic that this positive trend will continue through the balance
of 2012," Mr. Dornau said.
About Ocean Bio-Chem, Inc.:
Ocean Bio-Chem, Inc. is principally engaged in the manufacturing,
marketing and distribution of a broad line of appearance and
maintenance products for boats, recreational vehicles, automobiles,
power sports, outdoor power equipment and motorcycle markets under
the Star brite(R) StarTron(R) and other trademarks within the United
States of America and Canada. In addition, the Company produces
private label formulations of many of its products for various
customers and provides custom blending and packaging services for
these and other products.
The Company trades publicly under NASDAQ Capital Markets, Ticker
The Company's web sites are: www.oceanbiochem.com, www.starbrite.com
Certain statements contained in this
Press Release including without limitation expectations as to future
sales and operating results, constitute forward-looking statements.
For this purpose, any statements contained in this report that are
not statements of historical fact may be deemed forward-looking
statements. Without limiting the generality of the foregoing, words
such as "believe," "may," "will," "expect," "anticipate," "intend,"
"could" including the negative or other variations thereof or
comparable terminology are intended to identify forward-looking
statements. These statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Factors that may affect these
results include, but are not limited to, the highly competitive
nature of our industry, reliance on certain key customers, changes in
consumer demand for marine, recreational vehicle and automotive
products, advertising and promotional efforts, exposure to market
risks for changes in interest rates and in foreign exchange rates,
and other factors.
CEO and President
Vice President & CFO
E & E Communications
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