Welcome!

News Feed Item

Ocean Bio-Chem, Inc. Reports Profitable Third Quarter 2012; Sales Up 3.8 Percent

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® 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® StarTron® 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 Symbol: OBCI.

The Company's web sites are: www.oceanbiochem.com, www.starbrite.com and www.startron.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.

Contact:

Peter Dornau
CEO and President
[email protected]

Jeff Barocas
Vice President & CFO
[email protected]
954-587-6280

Paul Knopick
E & E Communications
[email protected]
940.262.3584

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Announcing Poland #DigitalTransformation Pavilion
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...