FORT LAUDERDALE, Fla.,
May 16, 2016 /PRNewswire/ -- Ocean
Bio-Chem, Inc. (NASDAQ: OBCI) announced today its financial results
for the first quarter of 2016, including first quarter net sales of
$6.75 million, a record for the first
quarter and $748,000 or 12.5
percent higher than sales of approximately $6 million in the
same period in 2015.
Ocean Bio-Chem reported a net loss of $541,000 for the first quarter of 2016, compared
to a net loss of approximately $16,000 for the same quarter in 2015. Basic
and diluted loss per share was $0.06
for the first quarter of 2016, compared to $0.00 per share for the first quarter 2015.
|
(In thousands except
per share data)
|
Quarter
Ended
|
|
March 31,
|
|
2016
|
2015
|
|
Net sales
|
$ 6,750
|
$ 6,002
|
|
Pre-tax loss
|
$ (826)
|
$ (23)
|
|
Net loss
|
$ (540)
|
$ (16)
|
|
|
|
|
Loss per common
share (both basic &
diluted)
|
$ (0.06)
|
$ 0.00
|
|
Dividends declared
per common share
|
$ 0.06
|
$ 0.00
|
Ocean Bio-Chem President and CEO
Peter Dornau stated: "Our
first quarter operating performance was overshadowed by the
litigation costs relating to false advertising claims made by a
competitor in the fuel treatment sector. As we have
previously announced, a jury found that Ocean Bio-Chem's
subsidiary, Star brite, did not engage in false advertising.
It was important for the Company to protect our intellectual
property."
"In the first quarter of 2016 the Company incurred approximately
$1.1 million in legal fees and
expenses. Excluding the unusually high legal expenses, Ocean
Bio-Chem's first quarter 2016 pretax income is approximately
$259,000 compared to pretax income in
2015's first quarter of $35,000. This amplifies the strength of our
Star brite® and Star
Tron® brands and products," Mr. Dornau said.
Mr. Dornau continued: "Our strong sales in the first
quarter 2016 were led by increases in the marine sector to one of
our larger customers. Also, in the first quarter we saw a
growth in sales and gross margins as the Company improved the mix
of products sold at higher margins. We anticipate improvement
in gross margin percentages for the balance of 2016."
"We continue to make progress in our Performacide®
product group. In the first quarter 2016, revenue increases
were driven by strong sales of product into the home restoration
market, through one of our major distributors. Additionally
we secured new distribution agreements into markets we were not in
as a result of attending national trade shows in the first quarter
2016. Performacide® is a hospital grade
disinfectant and the answer to huge problems of contamination in
the health care, food and other sectors," Ocean Bio-Chem's
President and CEO said.
Mr. Dornau concluded: "The Company's financial condition
remains strong. Ocean Bio-Chem for the second time since 2014 paid
a special dividend on April 26, 2016
of $0.06 per share to shareholders of
record as of April 12, 2016. We
ended the first quarter with a current cash ratio of more than 4:1,
with no borrowings on our line of credit."
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®, Star Tron® and other brand names
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
also manufactures, markets and distributes a line of disinfectant,
sanitizing and deodorizing products.
The Company's web sites are: www.oceanbiochem.com,
www.starbrite.com www.startron.com, and
www.performacide.com
Forward-looking Statements:
Certain statements contained in this press release, including
without limitation our anticipation of strong results for the
remainder of 2016, including improved gross margin percents,
constitute forward-looking statements. For this purpose,
any statements contained in this press release 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 addressed in the Company's Form 10-K for
the year ended December 31, 2015.
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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ocean-bio-chem-inc-reports-2016-first-quarter-financial-results-300268975.html
SOURCE Ocean Bio-Chem, Inc.