Ocean Bio-Chem, Inc. - Reports First Quarter 2012 Operating Results
FORT LAUDERDALE, FL -- (Marketwire) -- 05/14/12 -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today reported operating results for the first quarter 2012. Net income was approximately $364,000 for the first quarter of 2012 and earnings per share for the first quarter 2012 were $.04 per share (basic & diluted). The Company also reported first quarter 2012 net sales of approximately $6,005,000.
First Quarter Ended March 31, ----------------------------- 2012 2011 -------------- -------------- Net sales $ 6,005,000 $ 6,733,000 Net income $ 364,000 $ 648,000 Earnings per share (both basic & diluted) $ 0.04 $ 0.08 Average shares outstanding Basic 8,106,886 7,853,613 Diluted 8,466,020 8,176,322
Ocean Bio-Chem, Inc. CEO Peter Dornau stated, "We had a slower than anticipated first quarter 2012. External factors contributed to the slower first quarter as our largest customer implemented a program to reduce their warehouse inventory levels by approximately 15%. However, their sales to consumers have actually increased compared to prior year sales. In fact their increased sales depleted their on-hand inventory and today have indicated their intent in placing a significant large order shortly to replenish their inventory shortages as they enter their major selling season. The boating/marine sector remains strong for us. Automotive, motorcycle and specialty markets have also shown excellent sales increases."
Mr. Dornau continued, "In the first quarter we continued to expand our distribution of our StarTron branded products into the automotive sector. We are now plan-o-gramed with our StarTron products in most of the major national and regional automotive chains. In fact, we recently received notification from the country's largest automotive chain that they are expanding distribution of StarTron with counter displays in over 4,400 stores of our products as well as implementing other 'in store' promotions. In addition, we continued to increase sales to the 'big box' hardware stores. Our products have been so successful at one of the 'big box' retailers that they now have quarter pallets of our products in over 1,200 stores. In addition, the largest farm store chain (1,100 stores) is featuring our product in 'focused power panels' and special promotions. The success that we are having with StarTron, is its unique 'enzyme technology.' We have the only 'enzyme technology' product in the market place. All other fuel treatment products are chemical-based and cannot perform the many functions that our products render. Our continued success in adding distribution outlets should be reflected in increased sales and earnings in future quarters. With the increased distribution of our products, we are committed to continued building product awareness to consumers. In the first quarter, we launched advertising programs on several fishing shows and began an advertising program on the SPEED channel targeting the motor sport enthusiasts. In addition, we increased advertising in many magazines in the automotive, motorcycle, power sports and marine magazines to support this expanded distribution. Therefore advertising expenses increased approximately 25% in the first quarter compared to the comparative prior year spending to support our increasing distribution. The combination of higher advertising spending and the lower sales volume were the contributing factors to the lower first quarter income."
Peter Dornau concluded, "With all this positive growth, we expect increased profits and sales in coming quarters of the year."
Ocean Bio-Chem, Inc.: We are principally engaged in the manufacturing, marketing and distribution of a broad line of appearance and maintenance products for boats, recreational vehicles, automobiles, power sports, outdoor power equipment and motorcycle markets under the Star brite® StarTron® and other trademarks within the United States of America and Canada. In addition, we produce private label formulations of many of our products for various customers and provide custom blending and packaging services for these and other products.
The Company trades publicly under NASDAQ Capital Markets, Ticker Symbol: OBCI.
Certain statements contained in this Press Release including without limitation expectations as to future sales and operating results, constitute forward-looking statements. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed forward-looking statements. Without limiting the generality of the foregoing, words such as "believe," "may," "will," "expect," "anticipate," "intend," "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 our actual results, performance or achievements to be materially different from any future results, performance or achievements 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, exposure to market risks for changes in interest rates and in foreign exchange rates, and other factors.