Ocean Bio-Chem, Inc. Reports Record Fourth Quarter Sales & Net Income and Full Year 2012 Financial Results

Ocean Bio-Chem, Inc. Reports Record Fourth Quarter Sales & Net Income and Full 
Year 2012 Financial Results 
Net Income Increased 114% in Fourth Quarter 
FORT LAUDERDALE, FL -- (Marketwire) -- 04/01/13 --  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, is pleased to announce today its financial results
for the fourth quarter and full year of 2012.  
The Company reported record net income for the fourth quarter of 2012
of approximately $464 thousand, compared to previous fourth quarter
net income of $217 thousand, an increase of approximately 114%. Basic
and diluted earnings per share were $0.06 per share and $0.05 per
share respectively, compared to $0.03 for both basic and diluted
earnings per share for the comparative 2011 period. The Company also
reported record net sales for the fourth quarter ended December 31,
2012, of approximately $6.9 million compared to approximately $6.8
million for the fourth quarter of 2011. 
The Company reported net income for the full year 2012 of
approximately $2.0 million, compared to net income of $2.4 million
for 2011. Basic and diluted earnings per share were $0.24 per share
and $0.23 per share respectively, compared to $0.30 basic earnings
per share and $0.28 diluted earnings per share for the year 2011. Net
sales for the year 2012 were approximately $31.0 million compared to
approximately $31.7 million for 2011, a decrease of approximately 2%. 


 
                                                                            
                                                                            
(000's Omitted)                                                             
                                           Quarter Ended       Year Ended   
                                            December 31,      December 31,  
                                         ----------------- -----------------
                                           2012     2011     2012     2011  
                                         -------- -------- -------- --------
NET SALES                                $  6,891 $  6,847 $ 31,0
39 $ 31,681
PRE-TAX INCOME                                650 $    376    2,989    3,615
NET INCOME                                    464 $    217    1,962    2,393
NON CASH EXPENSES                             128      107      984    1,363
NET INCOME - excluding non- cash                                            
 expenses                                     592      324    2,946    3,756
                                                                            
EPS BASIC                                    0.06     0.03     0.24     0.30
EPS DILUTED                                  0.05     0.03     0.23     0.28
EPS BASIC-excluding non cash expenses        0.07     0.04     0.36     0.47
EPS DILUTED-excluding non-cash expenses  $   0.07 $   0.04 $   0.34 $   0.45

 
Ocean Bio-Chem President and CEO, Peter Dornau, stated, "We have just
concluded the best fourth quarter in the Company's history. We have
reported record net sales and gross profit dollars and percentages.
The outstanding performance has resulted in the Company's net income
more than doubling from prior years' results. Net income is up 114%
and net income as a percentage of net sales increased from a return
on net sales of 3% in the fourth quarter 2011, to approximately 7% in
the fourth quarter 2012. Net income excluding non-cash items was
approximately $600 thousand for the quarter and approximately $3.0
million for the year 2012. Our strong positive cash flow from
operations continues to strengthen our balance sheet. At December 31,
2012, our current ratio increased to an exceptional 5.3:1. In
addition, the Company had paid off our line of credit with our lender
early in the fourth quarter 2012. At both year end, and currently, we
do not have any outstanding borrowings on our line of credit." 
Mr. Dornau continued, "The reduction in sales for the full year 2012
are mainly attributable to our largest customer implementing an
inventory reduction program of 15%, as we have reported in prior
press releases. They implemented this reduction to increase their
inventory turn ratio and reduce their working capital. They felt with
their improved shipment to stores, that they could keep their stores
in stock with lower overall inventories. They have accomplished that
action and now have returned to normal buying patterns. They have
predicted a 12% increase of sales on our products for 2013. 
"We had greatly increased our advertising and marketing expenditures
in 2012 and also in 2013, to support the sales of our leading
products in newer markets. Naturally these expenditures have reduced
earnings for the year 2012, but we expect excellent returns in the
relatively near future. Our earnings, cash flows and cash position
are very strong and easily support our expansions into newer markets. 
"Our newly EPA approved product, Xtreme-A-Cide P, which kills some of
the most extreme viruses, germs, fungi and algae, will open new
markets in the near future. Some of those markets are hospitals,
hotels rooms, cruise ships, restaurants, doctors' offices,
veterinarian clinics, and shipping containers. Xtreme-A-Cide P uses
CLO2 technology, which is dispensed by our patented pouch delivery
system, a huge cost savings to industries and markets. Older CLO2
systems required expensive machines to produce CLO2 and technical
people to monitor, which is costly and not practical. Our unique
system can be used in minutes by nurses, doctors, and other hospital
personal with no training, therefore providing savings, all the while
killing dangerous germs and viruses. We see the potential of these
new markets dwarfing our current markets in the near future. Like
many major product launches, this takes time and expenditures to
accomplish.  
"We currently have several more products pending for U.S. EPA
approval which we anticipate receiving in mid 2013. These pending
approvals will further expand our CLO2 product lines. We are
currently developing distribution channels into these new markets and
we expect that we will start seeing results in early 2014. 
"All these products are EPA approved and thus require extensive
testing and fees to register with both the federal and state
governmental agencies. These expenditures also contributed to lower
earnings for the year. The good news is that the margins on these
products are significant and will lead to higher earnings in the
future.  
"Our manufacturing facility (Kinpak) has been geared up to handle the
new manufacturing requirements and has plenty of capacity to handle
all new sales. Kinpak is an EPA approved facility and meets all
federal requirements to handle these specialized products." 
Greg Dornau, Executive Vice President of Sales and Marketing,
explained, "StarTron(R) enzymes fuel additives continue their strong
advance into newer markets. StarTron(R) has placement in relatively
every major retailer in marine, hardware, auto, sporting goods, power
sports and outdoor power equipment/agriculture. We continue to expand
our presence in these major national chains with new StarTron(R)
products, as well as other core Star brite(R) products.  
"Now
 that we have secured this retail presence, our goal is to
continue to create awareness and demand for our unique enzyme
technology that helps to cure the damaging effects of ethanol fuels.
We are confident the increased advertising, promotions and new
educational pieces we have in place will drive sales in both the
short and long term. To learn more about StarTron(R) and our unique
enzyme technology go to www.startron.com or find us on Facebook." 
Greg Dornau continued, "We have seen an increase in business activity
in the first quarter 2013, compared to the first quarter 2012 despite
the cold weather in most parts of the United States. The boating
season has got off to a slow start due to the cold weather. However
as we work boat shows around the country, we see very strong interest
and fully anticipate as the weather improves it will translate into
stronger sales for our marine customers. With the strong market
indicators in marine, our largest marine customer should see strong
sales as the weather improves. Additionally we have increased our
marketing/sales staff to service the new markets we have added. These
increased expenses will be offset with sales gains we will make in
these higher margin markets." 
About Ocean Bio-Chem 
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. It manufactures its products in a 300,000
sf facility in Montgomery, Alabama, from which they are distributed
across the globe. 
The Company trades publicly under NASDAQ Capital Markets, Ticker
Symbol: OBCI.  
The Company's web sites are:
 www.oceanbiochem.com,
www.Starbrite.com, www.Startron.com and www.nos-guard.com. 
Forward-looking Statements: 
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.  
Contacts: 
Peter Dornau
President & CEO
954-587-6280
pdoranu@starbrite.com 
Jeff Barocas
CFO
954-587-6280 
jbarocas@starbrite.com  
Paul Knopick
E & E Communications
pknopick@eandecommunications.com
940-262-3584 
 
 
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