FORT LAUDERDALE, Fla.,
Nov. 14, 2018 /PRNewswire/
-- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) announced today its
financial results for the third quarter and the first nine months
of 2018.
For the three months ended September 30,
2018, the Company reported record net sales of approximately
$13.2 million, compared to net sales
of approximately $11.3 million for
the same period in 2017, an increase of approximately $1.8 million or 16.3%.
For the three months ended September 30,
2018, net income was approximately $1.3 million, compared to net income of
approximately $854,000 for the third
quarter of 2017, an increase of approximately $419,000 or 49.1%. Diluted earnings per
share for the three months ended September
30, 2018 were $0.14, compared
to $0.09 during the same period in
2017, an increase of 55.6%.
The Company also reported record net sales for the nine months
ended September 30, 2018 of
approximately $33.0 million, compared
to net sales of approximately $29.2
million for the same period of 2017, an increase of
13.0%.
For the nine months ended September 30,
2018, net income was approximately $2.9 million, compared to net income of
approximately $2.3 million for the
first nine months of 2017, an increase of approximately
$607,000 or 26.3%. Diluted
earnings per share for the nine months ended September 30, 2018 were $0.31 compared to $0.25 for the same period in 2017, an increase of
24.0%.
(In thousands,
except per share data)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2018
|
2017
|
|
2018
|
2017
|
NET
SALES
|
$13,182
|
$11,335
|
|
$32,965
|
$29,178
|
PRE-TAX
INCOME
|
$1,631
|
$1,259
|
|
$3,748
|
$3,399
|
NET
INCOME
|
$1,272
|
$854
|
|
$2,917
|
$2,310
|
|
|
|
|
|
|
EPS - DILUTED PER
COMMON SHARE
|
$0.14
|
$0.09
|
|
$0.31
|
$0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
COMMON SHARE
|
-
|
-
|
|
$0.06
|
$0.06
|
|
|
|
|
|
|
Peter Dornau, the Company's
President and CEO, commented: "We had a very strong third quarter
in 2018, with record net sales and an almost 50% increase in our
net income. The increase in net income is principally a
result of the Company's increased net sales and the benefit of a
reduced corporate tax rate under the Tax Cuts and Jobs Act. I
am also pleased to report that, for the sixth consecutive year, we
have achieved record sales for the nine month period ended
September 30.
Mr. Dornau continued: "The Company realized strong sales growth
in most of its major markets, including mass merchandisers,
specialty marine/boating and sporting/outdoor retailers, as well as
online retailers and marine distributors. Most of our product
groups experienced robust sales, particularly Star
brite® marine products, Star brite® and
private label winterizing products and Star
Tron® fuel treatment products."
Mr. Dornau continued: "In the third quarter, we had a ribbon
cutting ceremony for our expanded plant and distribution facilities
in Montgomery Alabama, and
commenced operations in our expanded distribution space. The
timing of the expansion enabled the Company to accommodate its
increased sales volume. In addition, as we previously
announced, the Company also acquired assets of Snappy Marine, Inc.
in the third quarter. As a result of the acquisition, we have
added Snappy Teak-NU®, a cleaning product for teak decks
on boats, to our product portfolio. The acquisition should be
accretive to income in 2019.
The Company's financial outlook for the balance of 2018 appears
to be favorable, and we are cautiously optimistic that the Company
will experience continued growth of our business in
2019."
Jeffrey Barocas, Chief Financial
Officer of the Company, commented: "The financial condition of the
Company continues to be strong. At September 30, 2018, the Company had approximately
$4.4 million in cash (including
$1.8 million in unrestricted cash and
$2.6 million restricted to use in
connection with the expansion of our Montgomery, Alabama facilities), and a current
ratio of 3.5 to 1. In addition, during the third quarter of
2018, we entered into a new revolving line of credit agreement,
which positions us well for continued growth."
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 statement that the Snappy Marine asset
acquisition should be accretive to income beginning in 2019, and
statements regarding the favorable financial outlook for the
Company during the remainder of 2018 and continued growth of the
Company's business in 2019 are 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 remaining construction and provision of equipment with respect
to 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,
2017.
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.