FORT LAUDERDALE, FL--(Marketwire -08/14/12)- Ocean Bio-Chem, Inc. (OBCI), a leading manufacturer and distributor of appearance, performance, and maintenance products serving the marine, automotive, power sports, recreational vehicle and outdoor power equipment markets, announced today its operating results for the three and six months ended June 30, 2012. For the quarter ended June 30, 2012, net income was approximately $363,000 or $0.04 per share diluted, as compared to approximately $389,000 or $0.05 per share diluted for the same period in 2011. Net income excluding non cash expenses* was approximately $779,000 for the second quarter 2012 or $0.09 per share diluted. For the six months ended June 30, 2012, net income was approximately $727,000 or $0.09 per share diluted compared to approximately $1.0 million or $0.12 per share diluted for the same period in 2011. Net income excluding non-cash expenses* was approximately $1.4 million for the six months ended June 30, 2012 or $0.16 per share diluted.
(000's Omitted) Three Months Ended Six Months Ended June 30, June 30, NET SALES $ 7,882 $ 8,218 $ 13,886 $ 14,950 PRE-TAX INCOME $ 596 $ 601 $ 1,190 $ 1,632 NET INCOME $ 363 $ 389 $ 727 $ 1,038 NON CASH EXPENSES $ 416 $ 732 $ 633 $ 978 NET INCOME - EXCLUDING NON CASH EXPENSES* $ 779 $ 1,121 $ 1,361 $ 2,016 Shares Basic 8,204,520 7,897,985 8,155,704 7,875,923 Shares Diluted 8,525,806 8,418,591 8,495,465 8,315,186 EPS BASIC $ 0.04 $ 0.05 $ 0.09 $ 0.13 EPS DILUTED $ 0.04 $ 0.05 $ 0.09 $ 0.12 EPS BASIC-excluding non cash expenses* $ 0.09 $ 0.14 $ 0.17 $ 0.26 EPS DILUTED-excluding non cash expenses* $ 0.09 $ 0.13 $ 0.16 $ 0.24 *Net income excluding non-cash expenses and diluted and basic earnings per share excluding non-cash expenses are non-GAAP measures of performance that management believes may be useful to investors when used as a supplement to GAAP measures of performance.
Ocean Bio-Chem, Inc. CEO Peter Dornau stated, "Our sales and marketing programs previously communicated in our first quarter press release, have been very successful. Currently the country's largest automotive chain with over 4,500 stores is promoting StarTron™ with counter displays, in addition to being featured on the outer page of their promotion flyer. We continue to expand our presence and market share in the automotive sector, as automobile and truck consumers become more aware of the problems that ethanol can create in fuel. Also sales in the 'big box' hardware chains are doing very well with our quarter pallet displays. We are continuing our advertising in print, radio and television promoting both brand awareness as well as the attributes of our products."
Mr. Dornau continued, "Second quarter sales were impacted (as previously disclosed) by our largest customer reducing inventories by 15%. All statistics we have reviewed, indicate sales to the consumer (sales out the door), show increased sales, compared to prior year. Once they reach their inventory objectives our sales to them should increase.
"In addition with the worst drought in the US since the 1930's, we saw a decrease use of StarTron™, with lower use of farm and related equipment, as well as decrease use for lawn and garden maintenance with smaller crops and less lawn and garden maintenance.
"We continue to be extremely enthusiastic about our Odorstar product line. We are in the process of additional EPA approvals, for additional new products we plan to market, and by adding new distributors. We firmly believe that Odorstar will be accretive to our sales and income in future reporting periods, as we continue to develop products and markets."
Mr. Dornau concluded, "Ocean Bio-Chem is in the strongest cash position ever. During the first six months of 2012, we generated approximately $1.3 million in cash from operations. At June 30, 2012 our cash balance was $1.1 million dollars and our revolving line of credit was down to only $400 thousand dollars compared to $2.6 million at June 30, 2011. The above factors resulted in increasing our current ratio to an amazing 5:1. In addition long term debt was reduced by over $500 thousand dollars.
"Ocean Bio-Chem is in a very strong financial condition, for the continued growth of all our new product introductions. We have started the second half of the year strong, and optimistic we will have a successful second half of the year."
About 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.