Star brite parent announces net sales of $64.3 million highest in company history—15.7%
higher than 2020—and net income of $8.4
million
FORT
LAUDERDALE, Fla., March 31,
2022 /PRNewswire/ -- Ocean Bio-Chem, Inc. (NASDAQ:
OBCI), the parent company of Star brite Inc. and Kinpak
Inc.—vertical manufacturer and distributor of performance,
appearance, maintenance, and disinfectant chemicals for the marine,
RV, and outdoor industries, is pleased to announce its fourth
quarter and full year 2021 financial results.
2021 Highlights:
- 2021 was the ninth consecutive year of record net sales
- 2021 record year net sales of $64.3
million, up 15.7% compared to 2020
- 2021 record fourth quarter net sales of $14.0 million, up 8.7% compared to 2020
- 2021 net income of $8.4 million,
compared to $9.6 million in 2020
- Cash on hand increased to $12.7
million, a ratio of 9.1:1 of current assets to current
liabilities
CEO and President, Peter Dornau,
commented: "I am extremely pleased with our team's performance in
2021. After record sales in 2020, the Company continued its sales
growth with another strong double-digit sales increase in 2021. For
the two-year period 2020-2021, the Company increased sales
approximately 52.2% or $22.0 million.
The strong sales growth in 2021 is attributable to sustainable
growth of our core higher margin products, increasing almost 20%
from 2020. This coupled with double-digit sales growth of our
winterizing group of products, including antifreeze—which had
previously been viewed as a commodity product—had increases in both
sales volume and gross margin percentages. Our strength as a
vertically integrated manufacturing operation enabled us to
capitalize in a time of supply chain product shortages, increasing
production to meet customer demand when competitors could not. And
we did it with on-time deliveries. Our 2020 COVID growth of our
chlorine dioxide product group had a substantial decrease in volume
as the COVID pandemic use of disinfectants and sanitizers decreased
partially offsetting the strong gains of our core products.
Net income grew 140% from the pre-COVID base year of 2019,
increasing from $3.5 million to
$8.4 million. The sustained growth of
our core products in the marine, automotive, RV, and outdoor
sectors is the cornerstone of the combined two-year growth of our
Company.
The significant sales growth in 2021 of $8.7 million, or 15.7%, marks the ninth
consecutive year in which the Company has set an annual sales
record.
Because of supply chain shortages and inflation that many
companies are experiencing, the price of raw materials negatively
impacted our cost of goods sold. The higher costs of materials were
exacerbated with higher costs for both inbound shipping containers
of products, the availability of trucks at higher costs, and the
cost of outbound freight for shipments to our customers. These
factors all impacted the higher cost of products and resulting
gross margin percent decreasing by 4.5% for the full year of 2021.
Our business does not enable us to pass through the price increases
to our retail customers and distributors as promptly as we
experience raw material and operating cost increases. In the first
quarter 2022 we have implemented price increases to offset these
costs."
Financial Summary
The Company's 2021 full year net income was approximately
$8.4 million, compared to
$9.6 million for 2020, a decrease of
approximately $1.2 million or 12.6%.
Earnings per share for 2021 were $0.89 compared to $1.02 for 2020, a decrease of approximately
12.7%.
The Company also reported record net sales for the full year of
2021 of approximately $64.3 million,
compared to approximately $55.6
million for 2020, an increase of approximately $8.7 million or 15.7%.
Fourth quarter 2021 net sales were approximately $14.0 million, compared to the fourth quarter of
2020 net sales of approximately $12.9
million, an increase of approximately $1.1 million or 8.7%. Fourth quarter 2021 net
income was approximately $628,000
compared to net income of approximately $881,000 in 2020, a decrease of approximately
$253,000 or 28.7%. Earnings per share
for the fourth quarter of 2021 were $0.07 compared to $0.09 for the fourth quarter of 2020, a decrease
of appropriately 22.2%.
(In thousands, except per share data)
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Three Months
Ended
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Year
Ended
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December
31,
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December
31,
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2021
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2020
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2021
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2020
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NET SALES
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$13,995
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$12,879
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$64,299
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$55,561
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PRE-TAX
INCOME
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$786
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$1,111
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$10,710
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$12,232
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NET INCOME
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$628
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$881
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$8,404
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$9,617
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EPS - BASIC &
DILUTED
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$0.07
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$0.09
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$0.89
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$1.02
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DIVIDENDS PER
SHARE
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$0.03
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$0.02
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$0.12
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$0.08
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Business Outlook
Mr. Dornau commented, "We are continuing to invest in the
Company's future. In the first quarter of 2022 we have completed
the second major plant/distribution expansion in less than five
years. This brings our total manufacturing/distribution facility in
Montgomery AL to 370,000 sq. ft.
on our 23-acre site. Additionally, we are upgrading our
manufacturing capabilities with new state-of-the-art bottling and
blow molding equipment. The capital investment is approximately
$1.2 million. This investment will
increase the production volume of bottles to meet our growing needs
as well as increased quality. With our plant expansion and new
equipment, we are well positioned to meet customer sales in 2022
and beyond.
There are also attractive growth opportunities in our chlorine
dioxide line of products beyond the use to combat COVID. We believe
these opportunities will contribute to increases of sales of our
chlorine dioxide products in 2022.
We continue to be optimistic about the continued growth of both
our core marine business as well as our winterizing business in
2022. The Star Tron line of products is anticipated to grow
throughout the year with the introduction of Star Tron Lubricants
on shelves now at retailers nationwide, and several new products to
be introduced in coming quarters. National advertising and social
media campaigns will follow. With current gas price increases, we
hope to see an increased interest in MPG-enhancing fuel additives
such as Star Tron.
Our winterizing business is starting early this year. We
are already in the procurement of ordering raw materials and
anticipate a strong selling season of winterizing products this
year.
With Star Tron new line extensions, increased prices,
anticipated strong winterizing products selling season and
continued increase in boating and outdoor recreation, we anticipate
2022 to be another successful year. First quarter of 2022 saw Star
brite and Star Tron brands featured in new TV shows, new
advertising campaigns across national networks, and an increased
presence on social media."
As of December 31, 2021, the
Company had cash-on-hand of approximately $12.7 million and a ratio of 9.1:1 of current
assets to current liabilities
With the strength of our balance sheet, cash flow, and optimism
for our future, our Board of Directors voted to increase the
quarterly dividend to shareholders to $0.04 per/share."
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, there
are attractive growth opportunities in our chlorine dioxide line of
products beyond the use to combat COVID, we anticipate a strong
selling season of winterizing products this year. In addition, we
continue to be optimistic about the continued growth of our core
marine business and we anticipate 2022 to be another successful
year. We also have plans for the launch of new higher margin
product line extensions under our flagship Star Tron brand 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 way 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, 2021. variable selling costs
(commissions, travel ect.) increased proportionally to sales
increases. In addition to support the increase in sales we
increased our spending for both online and magazine advertising and
additional sales/marketing personnel. The Company also incurred
higher compensation and benefits costs necessary to retain key
personnel.
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.