Ocean Bio-Chem, Inc. Reports Record Net Income of $2.4 Million, Approximately a 19% Increase From 2010

Thu Mar 29, 2012 7:30am EDT

* Reuters is not responsible for the content in this press release.

  FORT LAUDERDALE, FL, Mar 29 (MARKET WIRE) -- 
Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today released financial results for
2011. The Company reported record net income for the year ended December
31, 2011 of approximately $2.4 million, compared to previous record net
income of $2.0 million for 2010, an increase of approximately 19%. Basic
and diluted earnings per share were also records of $0.30 per share and
$0.28 per share respectively, compared to $0.26 per share basic and $0.24
diluted earnings per share respectively, for the year 2010. Record net
sales, for the year ended December 31, 2011, were approximately $31.7
million compared to approximately $27.4 million for 2010, an increase of
approximately $4.3 million or 16%.

                                                  (in thousands except per
                                                    share & share data)
                                                  Year Ended December 31,
                                                    2011           2010
                                               -------------- --------------
Net Sales                                      $       31,681 $       27,404

Net Income                                     $        2,393 $        2,018

Earnings per Share - Basic                     $         0.30 $         0.26
Earnings per Share - Diluted                   $         0.28 $         0.24

Wt. Avg. Shares (basic)                             7,953,329      7,789,699
Wt. Avg. Shares (fully-diluted)                     8,395,347      8,443,797


    
Ocean Bio-Chem President and CEO Peter Dornau stated, "Ocean
Bio-Chem, Inc. reported its third consecutive year of record net sales.
For the year 2011, net sales increased to approximately $31.7 million a
16% increase, compared to 2010 sales. The compounded sales growth rate
over the last three years was 13.4%. This double digit compounded growth
rate demonstrates the success of the Company's products in its markets.
We consider this track record exceptional considering the average growth
rate of the economy during this period is in the 1%-2% range. The Company
has continued to have success beyond its core marine markets. In 2011 the
Company recorded increased sales in the automotive, outdoor power
equipment, 'big box' hardware stores, recreational sports and motorcycle
markets. We have also increased sales to marine customers. As a result of
higher sales, gross profit dollars also increased to record levels,
totaling approximately $10.7 million. The gross profit percent should
increase, as the volume through our Kinpak manufacturing subsidiary
increases. During 2011, the Company increased its investment in
advertising and customer promotions. For the year the Company increased
advertising and promotion expenditures to approximately $2.0 million
compared to approximately $1.6 million, an increase of $400 thousand or
20%. The increased advertising was most media types, including
television, radio, social media, magazines, newspapers and consumer
promotion programs. The advertising has contributed to building stronger
brand awareness in addition to increased product recognition, which in
turn has helped the continued growth in sales. Selling and administrative
expense increases were primarily related to sales volume increases
including such expenses as sales commissions, and other selling type
expenses including trade shows and related travel expenses.
Administrative expense remained under control."

    Peter Dornau continued, "The Company's Balance Sheet continued to
strengthen. The Current Assets increased to approximately $13.8 million
from approximately $11.0 million. At the same time total current
liabilities decreased $300 thousand. As a result, the current ratio
increased to 3.8: 1 from 2.8: 1 in the prior year. Also, long term debt
decreased by approximately $600 thousand to $1.9 million. The Return on
Equity for 2011 was approximately 17%."

    Peter Dornau concluded, "In the fourth quarter 2011, the Company had
incurred unusual costs (all expensed in the quarter), as part of the
product formulation and packaging changes, for improved performance of
the Odorstar (chlorine dioxide) products. Without these onetime costs the
Company had a record sales, gross profit and net income for the fourth
quarter. We believe these onetime charges to income will not reoccur in
the future.

    "For the first two months of 2012, the Company has seen some of its
larger customers; slow purchases as they strategically manage lower
inventory levels. However the lower inventory levels at these customers
has not affected outbound sales or in stock levels of the company's
products. We fully expect this condition to rectify itself in the second
quarter, as spring (our prime selling season) appears to have arrived
early. Also due to a warmer winter in the northern states, we had lower
sales, into the recreation vehicle (snow mobile) market. On a positive
note, we continue to have success in increasing sales to new market
segments and many existing customers in the first quarter 2012.
Management remains fully optimistic, that we will have another successful
year in 2012, despite the slow start in the first quarter of 2012."

    About Ocean Bio-Chem
 Ocean Bio-Chem, Inc. manufactures and markets a
full line of maintenance and care products for marine, automobile,
motorcycle, power sports, outdoor power equipment, RV, agriculture,
hardware, lawn & garden and OEMs. Products are sold under the Starbrite,
StarTron, Sea Safe, Sta-Put, Extend-a-Brush and Nos Guard names, as well
as private label brands. 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.

    

Contacts: 

Peter Dornau
President & CEO
954-587-6280
pdornau@starbrite.com

Jeff Barocas
CFO
954-587-6280
jbarocas@starbrite.com 

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