Ocean Bio-Chem, Inc. Reports Profitable Third Quarter 2013; All Time Quarterly Record Sales

Ocean Bio-Chem, Inc. Reports Profitable Third Quarter 2013; All Time Quarterly 
Record Sales 
FORT LAUDERDALE, FL -- (Marketwired) -- 11/14/13 --  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, announced today its operating results for the
three and nine months ended September 30, 2013, including all time
quarterly record sales. 
Net sales for the third quarter of 2013 increased to $10.4 million
dollars compared to net sales of $10.3 million dollars in the same
period in 2012. Net income (excluding non cash expenses*) was
approximately $908 thousand dollars for the third quarter of 2013 or
$0.10 per share diluted compared to $993 thousand dollars or $0.12
per share diluted for third quarter 2012.  
For the quarter ended September 30, 2013 net income was approximately
$622 thousand dollars or $0.07 per share diluted, compared to
approximately $771 thousand dollars or $0.09 per share diluted for
the same period in 2012. For the nine months ended September 30,
2013, net income (excluding non-cash expenses*) was approximately
$2.2 million dollars or $0.25 per share diluted, compared to $2.4
million dollars or $0.28 per share. Net income was approximately $1.1
million dollars or $0.13 per share diluted for the nine month period,
compared to approximately $1.5 million dollars or $0.18 per share
diluted for the same period in 2012. 


 
                                                                            
(000's Omitted)                                                             
                             Three Months Ended         Nine Months Ended   
                                September 30,             September 30,     
                              2013         2012         2013         2012   
                          -----------  -----------  -----------  -----------
                                                                            
NET SALES                 $    10,441  $    10,262  $    24,931  $    24,148
PRE-TAX INCOME                    980        1,150        1,743        2,339
NET INCOME                        622          771        1,143        1,498
NON CASH EXPENSES                 286          222        1,021          855
NET INCOME -EXCLUDING                                                       
 NON CASH EXPENSES        $       908  $       993  $     2,164  $     2,353
                                                                            
Shares Basic                8,605,183    8,288,613    8,499,800    8,201,376
Shares Diluted              8,839,244    8,595,506    8,770,158    8,540,777
                                                                            
EPS BASIC                 $      0.07  $      0.09  $      0.13  $      0.18
EPS DILUTED               $      0.07  $      0.09  $      0.13  $      0.18
EPS BASIC-excluding non                                                     
 cash expenses            $      0.11  $      0.12  $      0.25  $      0.29
EPS DILUTED-excluding                                                       
 non cash expenses        $      0.10  $      0.12  $      0.25  $      0.28

 
(*Net income excluding non-cash expenses and diluted and basic
earnings per share excluding non-cash expenses are non-GAAP measures
of performance that management believes may be useful to investors
when used as a supplement to GAAP measures of performance.) 
Greg Dornau, Vice President of Sales & Marketing, stressed that "our
Company set a record for sales in the third quarter. The strong sales
in the third quarter shows the success of our marketing programs for
our enzyme fuel treatment product Star Tron(R) in the automotive
power sports and small engine markets. This segment of business
continues to grow. In addition, we increased sales of our winterizing
products, including antifreeze, to marine customers. Also we added
new customers and increased sales to existing customers in the marine
industry." 
Chief Financial Officer Jeff Barocas on expenses: "The third quarter
was impacted by an unusually high level of legal costs. We are
currently protecting the Company's patents against competitors using
our proprietary technology, which has resulted in unusually high
legal expenses. We also reached a settlement on a labeling issue
during the third quarter. We do not anticipate this high level of
spending to continue in the fourth quarter of this year. Also, the
Company incurred higher sales and marketing expenses during the
current period. These increased expenses were a result of the
Company's enhanced marketing activities in both traditional and newer
markets. Increased expenditures were incurred with higher exhibitor
booth fees for both trade show and sponsored angler tournaments, in
addition to increased travel and related expenses. In additional the
Company increased its consumer awareness programs with increased
spending in consumer rebate programs, as well as other marketing and
branding initiatives. These increased marketing activities are
building the foundation for consumer brand recognition of Star
brite(R) and Star Tron(R) brands for future sales increases."  
"At the end of September 2013, the Company only had $300 thousand
dollars in short term borrowings, which was paid off within 10 days
in October. Our cash position is excellent with a current ratio of
4.2:1 at September 30, 2013," Mr. Barocas concluded. 
Peter Dornau, President & CEO, emphasized that "As we look around the
corner at 2014, the prospects for the Company are excellent. Some of
our recent successes that will be seen in 2014 are the distribution
of our Star Tron(R) products in 500 additional stores of a national
hardware chain, in addition to a major in-store promotion of Star
Tron(R) in another national big box national hardware retailer. We
also have secured several hundred thousand dollars of new products
business for 2014 with our largest marine customer."  
Peter Dornau concluded: "We are also in the final phase of
registration and approval of our new Xtrem-A-Cide P(R) products,
broad-spectrum disinfectants that are approved for use as sanitizers,
virucides, tuberculocides, fungicides, algaecides, slimicides and
deodorizers in both California and New York, the most difficult
states for approval. We are in discussions with several major
distributors for the distribution of Xtrem-A-Cide P(R)  into
industries we currently do not sell. Once we have formalized signed
agreements the Company will issue press releases. Xtrem-A-Cide P(R)
products should be significantly accretive to both sales and income
in 2014. We are optimistic that these programs and others we will
increase shareholders' value in 2014." 
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) Star Tron(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
Symbol: OBCI.  
The Company's web sites are: www.oceanbiochem.com; www.starbrite.com;
www.startron.com; www.nos-guard.com  
Forward-looking Statements: 
Certain statements contained in this Press Release, including without
limitation, our ability to provide required capital to support
inventory levels, the effect of price increases in raw materials that
are petroleum or chemical based or commodity chemicals on our
margins, and the sufficiency of funds provided through operations and
existing sources of financing to satisfy our cash requirements
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," or "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 actual results to be materially
different from those 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 relating to changes in
interest rates, foreign exchange rates, prices for raw materials that
are petroleum or chemical based and other factors. 
Contact: 
Peter Dornau 
CEO and President 
pdornau@starbrite.com 
954-587-6280 
Jeff Barocas
Vice President & CFO
Jbarocas@starbrite.com 
954-587-6280  
Paul Knopick
E & E Communications
pknopick@eandecommunications.com 
940-262-3584 
 
 
Press spacebar to pause and continue. Press esc to stop.