Ocean Bio-Chem, Inc. Reports First Quarter Financial Results; Sales Up From
2012 First Quarter
FORT LAUDERDALE, FL -- (Marketwired) -- 05/16/13 -- 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 first quarter of 2013.
Net income was approximately $350,000 and earnings per share were
$0.04 per share (basic & diluted), for the first quarter of 2013. The
Company also reported first quarter 2013 net sales of approximately
$6,312,000, an increase of approximately 5% compared to the first
quarter of 2012. The increase in net sales resulted in an approximate
increase of $100,000 in gross profit in the first quarter of 2013
compared to the first quarter of 2012.
(In thousands except per share data) Quarter Ended
Net sales $ 6,312 $ 6,005
Pre-tax income $ 508 $ 594
Net income $ 349 $ 364
Non cash expenses $ 217 $ 217
Net income excluding non cash expenses $ 566 $ 581
Earnings per share (both basic & diluted) $ 0.04 $ 0.04
Earnings per share excluding non cash expenses (both basic &
diluted) $ 0.07 $ 0.07
Ocean Bio-Chem, Inc. CEO Peter Dornau stated, "We increased sales in
the first quarter of 2013, compared to the first quarter of 2012.
This was accomplished with the rebounding of sales to our largest
customer, as we had previously communicated. We also added a major
3,400 store, automotive parts retailer in the first quarter 2013,
with the placement of our ethanol fuel treatment product Star
Tron(R). In addition we recorded increased sales in the power sports
sector of our business. These successes were partially offset with
slower sales to other marine customers in the Northern and Midwestern
parts of the U.S. that continued to experience winter weather
conditions (including snow), throughout the first quarter of 2013,
which affected the sale of marine products, as boat owners delayed
putting their boats in the water. The boating/marine sector remains
strong for us and we anticipate stronger sales in the second quarter
as the weather improves across the US. Automotive, motorcycle and
specialty markets have also shown excellent sales increases."
Mr. Dornau continued, "In the first quarter we continued to actively
expand the in store promotion 'Keep it Sold.' It is a consumer-based
education program whereby the consumer is introduced to the benefits
of our Star Tron(R) products with a rebate program to the consumer.
In addition we continue to build additional brand recognition and
education of consumers of both our Star Tron(R) and Star Brite(R)
products. We increased our spending in the first quarter in magazine
advertising with full page ads in both Car and Driver and Popular
Mechanics, in addition to advertising in other fishing/boating, power
sports and motorcycle publications. Also in the first quarter we
increased Starbrite(R)/StarTron(R) TV advertising on several national
fishing shows, and we also sponsored fresh water fishing tournaments.
We sponsored two programs on the SPEED channel targeting the motor
sport/truck enthusiasts. We also increased trade show exhibits of our
products targeting potential new customers. As a result advertising
expenses increased approximately 22% in the first quarter compared to
the comparative period in the prior year to support our increasing
"The higher advertising and selling activities offset the increased
gross profit resulting from increased sales. As a result net income
was approximately the same, and earnings per share were $0.04 for
each of the quarters ended March 31, 2013 and 2012, respectively."
"We have the only 'enzyme-based technology' product in the market
place. All other fuel treatment products are chemical-based and
cannot perform the many functions that our products provide. Our
continued success in adding distribution outlets and continued
advertising should be reflected in increased sales and earnings in
future quarters," Mr. Dornau said.
Peter Dornau concluded: "We are continuing to develop the delivery
system and potential new distribution channels for our recently EPA
approval Xtrem-A-Cide P(R) products. As previously announced we
expect Xtrem-A-Cide P(R) add to revenues and profits in early 2014."
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
s.f facility in Montgomery, Alabama, from which they are distributed
across the globe.
The Company trades publicly under NASDAQ Capital Markets, Ticker
The Company's web sites are:
www.Starbrite.com, www.Startron.com and www.nos-guard.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.
President & CEO
E & E Communications
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