Ocean Bio-Chem, Inc. Reports Record Year Net Sales, Income and Earnings per Share In 2019

FORT LAUDERDALE, Fla., March 30, 2020 /PRNewswire/ -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) announced its full year and fourth quarter 2019 financial results.

The Company's 2019 record net income was approximately $3.5 million, compared to 2018 net income of $2.8 million, an increase of approximately $700,000  or 25%. Earnings per share for 2019 were $0.37 compared to $0.30 for 2018, an increase of 23%.

The Company also reported record  net sales in 2019 of approximately $42.3 million, compared to approximately $41.8 million for 2018, an increase of approximately $500,000.  

Fourth quarter 2019 net sales were approximately $9.7 million, compared to fourth quarter 2018 net sales of approximately $8.8 million, an increase of approximately $900,000 or 10%. Fourth quarter 2019 net income was approximately $649,000 compared to a net loss of approximately $122,000 in 2018, an increase of approximately $771,000. 

Peter Dornau, President and CEO commented: "The Company's 2019 net income of approximately $3.5 million is a record for the Company.  It represents a increase of approximately 25% over the 2018 net income.  Our income increase was primarily a result of increased higher margin sales from the Company's strategic acquisition in 2018 of "Snappy Marine", a product group of branded teak care products.  In addition, the Company recorded increased sales growth in  our higher margin Star brite^® branded marine products.  The sales growth of our higher margin products was partially offset by lower margin sales of winterizing products".

Mr. Dornau continued: "The higher margin sales mix resulted in record gross profit of $15.6 million, an increase of 8.4%, compared to 2018.  The Company also continued sales growth to customers in most market segments it participates in.  This includes increased sales to mass merchandisers, online retailers, big box hardware and marine distributors, and a distributor of private labeled  chlorine dioxide products".

Mr. Barocas Vice President & CFO commented on the fourth quarter financial performance and balance sheet.  "Our fourth quarter financial performance was extremely strong when compared to the comparative fourth quarter of 2018.  We realized a 10% increase in net sales which was led by increased sales to customers in a majority of business sectors we sell in. Just as impressive is the Company's record fourth quarter gross profit increase.  The Company reported an increase in gross profit of approximately $1 million, a 44% increase to approximately $3.3 million.  The increase in gross profit in the fourth quarter is result of a combination of improved mix of higher margin sales, in addition to lower manufacturing and distribution costs".

Mr. Barocas concluded "Our strong financial health continues to strengthen. As a result of the Company's ability to generate cash, the cash in bank including both our operating bank accounts and our restricted cash (earmarked for capital expenditures) at December 31,2019 increased to approximately $8.0 million at December 31, 2019 an increase of approximately $4.3 million from December 31, 2018.  Our ratio of current assets to current liabilities was 9.4:1".

Mr. Dornau concluded:" We are currently receiving increased orders for our chlorine dioxide product for both branded Performacide^® product and private labeled products.  Performacide^® is EPA-registered disinfectant and sanitizer that is proven to kill previously known strands of human Coronavirus, and meets EPA criteria for use against the new, SARS-CoV-2, the cause of COVID-19. Our Company is designated as a critical production facility.  As such, we are hiring  personnel and number of shifts to try and meet overwhelming demand for Performacide^®.  It is too early to determine the effects the COVID-19 virus will have on our Star brite sales of core products". 

About Ocean Bio-Chem, Inc.:

Ocean Bio-Chem, Inc. manufactures, markets and distributes a broad line of appearance and maintenance products for the marine, automotive, power sports, recreational vehicle and outdoor power equipment markets under the Star brite^®, Star Tron^®, Odor Star^® and other brand names within the United States of America and Canada. The Company manufactures, markets and distributes a line of disinfectant, sanitizing and deodorizing products under the Performacide^® and Star brite^® brand names. 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's web sites are: www.oceanbiochem.com, www.starbrite.com; www.startron.com; www.performacide.com.

Forward-looking Statements:

Certain statements contained in this Press Release constitute forward-looking statements, including, without limitation, those relating to our ability to increase manufacturing capacity of  Performacide^® and the effectiveness and utility of Performacide^® in use against SARS-CoV-2, the novel coronavirus that causes COVID-19. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "believe," "may," "will," "expect," "anticipate," "intend," "has the ability" 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 nature of the coronavirus itself; the manner in which our products are used; the highly competitive nature of our industry; prices for raw materials that are petroleum or chemical based and other factors addressed in our annual report on Form 10-K for the year ended December 31, 2019.

Contact:

Peter Dornau
CEO and President
[email protected]
954-587-6280

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

SOURCE Ocean Bio-Chem, Inc.

Related Links

http://www.oceanbiochem.com