FORT LAUDERDALE, Fla.,
Nov. 14, 2016 /PRNewswire/ -- Ocean
Bio-Chem, Inc. (NASDAQ: OBCI) announced today its third quarter
2016 financial results.
For the three months ended September 30,
2016, net income was approximately $1.5 million, compared to approximately
$296,000 for the third quarter of
2015, an increase of $1.2
million. Earnings per share for the third quarter of
2016 were $0.17, compared to
$0.03 for the same period in
2015. The third quarter of 2016 net income and earnings per
share amounts constitute quarterly records for the Company.
For the nine months ended September 30,
2016, net income was approximately $1.6 million, compared to $393,000 for the third quarter of 2015, an
increase of approximately $1.3
million. Earnings per share for the nine month period
in 2016 were $0.18 compared to
$0.04 for the same period in
2015.
The Company also reported record net sales for both the three
and nine months ended September 30,
2016. For the third quarter of 2016, net sales were
$12.2 million, compared to
approximately $10.8 million for the
third quarter of 2015, an increase of $1.4
million or 13%. For the nine months ended September 30, 2016, net sales were $27.7 million, compared to $25.6 million for the same period in 2015, an
increase of $2.1 million or
8%.
(In thousands, except
per share data)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
|
|
NET SALES
|
$12,207
|
$10,837
|
|
$27,682
|
$25,578
|
|
|
|
|
|
|
PRE-TAX
INCOME
|
$
2,203
|
$
439
|
|
$
2,379
|
$
583
|
|
|
|
|
|
|
NET INCOME
|
$
1,528
|
$
296
|
|
$
1,644
|
$
393
|
|
|
|
|
|
|
EPS - BASIC &
DILUTED
|
$0.17
|
$0.03
|
|
$0.18
|
$0.04
|
DIVIDENDS PER COMMON
SHARE
|
-
|
-
|
|
$0.06
|
-
|
Peter Dornau, President and CEO
commented: "We have just achieved the best quarterly financial
results in the Company's 43 year history. Our third quarter
financial results reflect our strong sales growth during the
quarter, as well as our solid profit margin percent and dollars.
During the third quarter of 2016, our gross margin increased
to 40% from 33% for the third quarter of 2015. The
combination of increased sales volume along with our increase in
gross margin resulted in record gross profit of $4.9 million, a $1.3
million increase over the third quarter of 2015."
Mr. Dornau continued: "The Company also benefited from lower
operating costs, due principally to lower legal expenses as a
result of the termination of the Company's advertising litigation
against a competitor. The combination of higher sales volume,
higher gross margin and lower operating expenses resulted in record
operating income of approximately $2.2
million for the quarter."
The sales and gross margin improvements were primarily
attributable to increased sales of the Company's more profitable
Star brite® and Star
Tron® branded products to both its retail
customers and wholesale distributors.
Mr. Dornau concluded, "Our marketing and sales strategies are
producing solid financial results. We are cautiously
optimistic that we can continue to achieve favorable results in
future quarters."
Jeffrey Barocas, Chief Financial
Officer of the Company, commented: "The financial condition of the
Company continues to be very strong. At September 30, 2016, the Company had approximately
$1.1 million in cash, $10.2 million in customer accounts receivable and
$9.0 million in inventory. Despite
our increased working capital requirements in the first nine months
of the year, we did not need to incur any borrowings during the
period under our revolving line of credit. Moreover, the
Company's scheduled payments under its term loan related to its
manufacturing operations will be completed in July 2017, at which time all of the Company's
debt service obligations under the term loan will be satisfied.
Therefore, the remaining balance on the term loan is classified as
current on our balance sheet, and only capital leases are
classified as long term debt at this time. Our current ratio
is 4.4:1 at September 30, 2016."
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®,
Outdoor Collection 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 under the Star brite® and
Performacide® brand names.
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,
www.performacide.com
Forward-looking Statements:
Certain statements contained in this Press Release, including
without limitation, our ability to continue to achieve favorable
results in future quarters and the completion of our scheduled
payments under the term loan related to our manufacturing
operations constitute forward-looking statements. 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," 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; unanticipated
litigation developments; 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 Part I, Item 1A ("Risk Factors") in our annual report
on 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
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SOURCE Ocean Bio-Chem, Inc.