FORT LAUDERDALE, Fla.,
March 29, 2019 /PRNewswire/
-- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) announced its full
year and fourth quarter 2018 financial results.
The Company's 2018 net income was approximately $2.8 million, compared to 2017 net income of
$2.6 million, an increase of
approximately $0.2 million or 7.4%.
Earnings per share for 2018 were $0.30 compared to $0.28 for 2017, an increase of 7.1%.
The Company also reported record 2018 net sales of approximately
$41.8 million, compared to
approximately $37.9 million for 2017,
an increase of approximately $3.9
million or 10.2%.
Fourth quarter 2018 net sales were approximately $8.835 million, compared to fourth quarter 2017
net sales of approximately $8.763
million, an increase of approximately $72,000 or 1.0%. Fourth quarter 2018 net loss was
approximately $122,000 compared to
income of approximately $293,000 in
2017, a decrease of approximately $415,000. The fourth quarter performance
reflected lower gross margins due to higher operating costs at the
Company's Kinpak manufacturing and distribution facility in
Montgomery, Alabama, partially
offset by lower advertising and promotion expenses and selling and
administrative expenses. Fourth quarter 2018 net loss per
share was $(0.01) compared to fourth
quarter 2017 net income per share of $0.03.
(In thousands, except
per share data)
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Year
Ended
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Three Months
Ended
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December
31,
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December
31,
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2018
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2017
**
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2018
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2017**
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NET
SALES
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$41,800
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$37,940
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$8,835
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$8,763
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PRE-TAX INCOME
(LOSS)
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$3,586
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$3,677
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$(161)
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$279
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NET
INCOME
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$2,795
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$2,604
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$(122)
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$293
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EPS BASIC &
DILUTED
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$0.30
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$0.28
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$(0.01)
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$0.03
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DIVIDEND DECLARED
PER COMMON SHARE
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$0.06
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$0.06
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-
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-
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Peter Dornau, President and CEO
commented: "The Company's 2018 net sales marked the sixth
consecutive year in which the Company achieved record annual net
sales. Once again, our Star brite® branded and
private label marine products led the way. We experienced increased
sales of our marine products throughout our distribution channels,
including marine specialty retailers, mass merchandisers and online
retailers. Moreover, sports specialty retailers became an
emerging market for our marine products in 2018."
Mr. Dornau continued: "The Company also experienced continued
sales growth of its Star
Tron® enzyme fuel treatment products through a
major mass merchandiser, reflecting expanded product placement
within its stores. In addition, sales of our disinfectant group
products, including our chlorine dioxide-based deodorizers,
disinfectants and sanitizers, continued to increase. Among
the contributors to this increase were sales of our Auto Odor
Eliminator to a national automotive retail chain of approximately
5,000 stores, sales to a distributor of private label disinfectant
and sanitizer products directed both to the agriculture/cultivation
and home/commercial restoration markets, and sales directed to the
pet care market. In 2018, we commenced sales of our
Performacide® disinfectant/deodorizer to Chewy.com, the
largest online retailer specializing in pet products. We also
sold Performacide® products to a national pet retailer,
for use in disinfecting their kennels and examination rooms."
Mr. Dornau continued: "In the fourth quarter of 2018, our Kinpak
manufacturing and distribution facilities incurred increased
operating costs as a result of several factors, including higher
payroll and related costs, reflecting employee overtime
compensation incurred to meet customer demand, as well as higher
operating costs in connection with the expansion of the Kinpak
facilities. A key management objective for 2019 is to reduce
operating costs at these facilities. The full year net income
reflects an approximately $0.2
million reduction in the provision for income taxes
primarily resulting from federal tax legislation enacted in
2017."
Mr. Dornau continued: "We believe that our continued sales
growth in 2018 is, to a considerable extent, attributable to our
increased expenditures on internet, magazine and television
advertising. We intend to continue to focus on advertising efforts
in 2019. Among other things, we intend to introduce an advertising
campaign directed to the recreational vehicle market. We also will
continue to use advertising to support our core products, including
through use of increased consumer education advertising, as well as
"'how-to' videos on YouTube."
Mr. Dornau concluded: "I am pleased to report that our expanded
Kinpak manufacturing and distribution facilities became fully
operational in 2018. We are in the process of completing an
additional bottle filling line at the facility, which should
increase the efficiency of our bottle filling operations, and we
will continue to evaluate our capital equipment needs with a focus
on reducing product costs. Finally, in anticipation of our
expectation that the Company will continue to generate strong sales
in 2019, we have increased inventory levels to reduce the interval
between customer orders and shipment."
As recently announced, the Company has declared a special cash
dividend of $0.05 per share, payable
on April 19, 2019 to common
shareholders of record on April 5,
2019.
**Full year and Fourth Quarter 2017 financial information in
this release has been retroactively adjusted to reflect the change
in accounting for revenue from contracts with customers under
Financial Accounting Standards Board Update ("ASU") 2014-09,
"Revenue from Contracts with Customers" (Topic 606).
The Company adopted ASU 2014-09 on January
1, 2018.)
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. 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 Performacide® and Star
brite® brand names.
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,
continued focus on advertising efforts and types of advertising to
be employed in 2019, increased efficiencies resulting from
completion of a third bottle filling line at Kinpak's facilities
and the expectation that the Company will continue to generate
strong sales in 2019. 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; ineffectiveness of
our advertising and promotional efforts; changes in marketing
strategies; unanticipated delays in, or failure to realize expected
efficiencies as a result of, completion of the third bottle filling
line at our manufacturing and distribution facilities in
Montgomery, Alabama; unanticipated
litigation developments; exposure to market risks relating to
changes in interest rates and foreign exchange rates; 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, 2018.
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.