FORT LAUDERDALE, Fla.,
Nov. 14, 2017 /PRNewswire/ -- Ocean
Bio-Chem, Inc. (NASDAQ: OBCI) announced today its third quarter
2017 and first nine months of 2017 financial results.
For the nine months ended September 30,
2017, net income was approximately $2.31 million, compared to $1.64 million for the first nine months of 2016,
an increase of approximately $700,000
or 40.5%. Net income for the nine months ended September 30, 2017 constituted the highest first
nine months net income in the Company's history.
Earnings per share for the first nine months of 2017 were
$0.25 compared to $0.18 for the same period in 2016.
The Company also reported record net sales for the nine months
ended September 30, 2017. For
the first nine months of 2017, net sales were $29.95 million, as compared to $27.68 million for the same period of 2016, an
increase of approximately 8.2%.
For the three months ended September 30,
2017, net income was approximately $854,000, compared to approximately $1.53 million for the third quarter of 2016, a
decline of approximately $675,000 or
44%. Earnings per share for the third quarter of 2017 were
$0.09, compared to $0.17 during the same period in 2016.
Net sales for the three months ended September 30, 2017 were approximately
$11.65 million, compared to
approximately $12.21 for the same
period in 2016, a decline of approximately $424,000 or 3.5%
(In thousands,
except per share data)
|
|
|
|
|
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Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
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|
September
30,
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|
|
2017
|
2016
|
|
2017
|
2016
|
|
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NET SALES
|
$11,652
|
$12,207
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|
$29,946
|
$27,682
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|
|
|
|
|
|
|
|
PRE-TAX
INCOME
|
$
1,259
|
$
2,203
|
|
$
3,399
|
$
2,379
|
|
|
|
|
|
|
|
|
NET INCOME
|
$
854
|
$
1,528
|
|
$
2,310
|
$
1,644
|
|
|
|
|
|
|
|
|
EPS - BASIC &
DILUTED
|
$0.09
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$0.17
|
|
$0.25
|
$0.18
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DIVIDENDS PER COMMON
SHARE
|
-
|
-
|
|
$0.06
|
$0.06
|
|
Peter Dornau, the Company's
President and CEO, commented: The third quarter sales were
adversely affected by Hurricane Harvey and Hurricane Irma, which
caused some of our customers in the Houston metropolitan area and in numerous
Florida locations to temporarily
close retail and warehouse/distribution operations. Moreover,
some shipments of our products in these areas were delayed because
trucking companies that we utilize to ship our products gave
priority to relief efforts in support of victims of the hurricanes.
On a positive note, the Company had increased sales of its Odor
Star®/Performacide® products in the affected
hurricane areas. We believe that demand for these products,
increased use in homes and commercial restoration as a result of
damage caused by the hurricanes. The sales of Odor
Star®/Performacide® products offset a portion
of the third quarter 2017 sales decrease. The Company also donated
our chlorine dioxide disinfectant and sanitizer products
(Performacide®) to organizations active in the cleanup
efforts, to kill mold, mildew and odors in houses and
businesses."
Mr. Dornau continued: "Despite the challenges presented by the
hurricanes, we achieved the highest first nine months net sales and
net income in the Company's 44-year history. Our nine month
financial results reflect the strong sales growth of our Star
brite® and Star
Tron® branded products in the marine sector of
our business. Our results also reflect lower operating
expenses during the first nine months of 2017 as compared to the
same period in 2016, principally due to a decline in legal
expenses. During the 2016 period, we incurred legal expenses of
approximately $1.13 million in
connection with a lawsuit that is now concluded."
Mr. Dornau continued: "The combination of higher sales volume,
higher gross profit and lower operating expenses resulted in record
operating income of approximately $3.4
million during the nine months ended September 30, 2017, a 42.1% increase as compared
to the nine months ended September 30,
2016."
Mr. Dornau concluded: "The 84,000-sq. ft. expansion of our
manufacturing and distribution facilities in Montgomery, Alabama is expected to be
completed in the first quarter of 2018, positioning us well for
anticipated increased sales of our Performacide®
products in addition to both Star
Tron® and Star brite® branded products
in 2018 and beyond."
Jeffrey Barocas, Chief Financial
Officer of the Company, commented: "The financial condition of the
Company continues to be strong. At September 30, 2017, the Company had approximately
$4.7 million in cash, $1.3 million for operations and $3.4 million for capital expansion. In the
third quarter of 2017, we completed long term financing derived
from the issuance of a $4.5 million
industrial development bond. Our obligations to fund repayment of
the bond effectively bear an annual interest rate of approximately
3%. In addition, we renewed our revolving line of credit, which
increased from a maximum amount of $4
million to a maximum amount of $6
million. Currently, the Company does not have any
outstanding borrowings under the line of credit. As a result
of these financings, the Company is well positioned for continued
growth. Our current ratio is strong at 4.7:1 at September 30, 2017."
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®, Performacide®,
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'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, the anticipated completion of expansion of our
manufacturing and distribution facilities in Montgomery, Alabama during the first quarter
of 2018 and anticipated increased sales of Star Tron® and Star brite®
branded products 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 delays
in construction of additions to our manufacturing and distribution
facilities in Montgomery, Alabama;
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, 2016.
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.