FORT LAUDERDALE, Fla.,
Aug. 16, 2021 /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 record financial results for the first six months of 2021.
Record net income for the first six months of 2021 was
approximately $4.5 million, a 10.5%
increase compared to net income of approximately $4.1 million for the first six months of 2020.
The six-month 2021 diluted net income per share was approximately
$0.48 per share as compared to
diluted net income per share of $0.43
for the six months of 2020, an increase of 10.1%. Net sales for the
six months ended June 30, 2021, were
approximately $28.8 million, an
increase of approximately 22.5% compared to net sales of
approximately $23.5 million for
the first six months of 2020. The second quarter 2021 net income
was approximately $2.6 million compared to net income of
approximately $3.5 million for the
second quarter of 2020, a decrease of 24.7%. Diluted net
income per share was approximately $0.27 per share for the
quarter, as compared to diluted net income per share of
$0.37 per share in the second quarter
of 2020, a decrease of approximately 25%. For the second quarter of
2021, net sales were approximately $15.7 million,
approximately the same for the second quarter of 2020.
(In thousands except
per share data)
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Three Months
Ended
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Six Months
Ended
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June
30,
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June
30,
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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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$15,689
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$15,702
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$28,820
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$23,521
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PRE-TAX
INCOME
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$3,324
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$4,366
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$5,753
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$5,168
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NET INCOME
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$2,601
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$3,452
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$4,506
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$4,079
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EPS - DILUTED
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$0.27
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$0.36
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$0.48
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$0.43
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DIVIDENDS PER
SHARE
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-
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$0.03
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$0.04
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$0.06
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$0.04
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Ocean Bio-Chem Chairman, President, and Chief Executive
Officer, Peter Dornau, commented, "We are pleased to
announce the exceptional financial results for the first six months
of 2021. The record net income for the first half of 2021
of $4.5 million is approximately 29% or $ 1.0 million higher than the full year 2019 net
income, which we use as a barometer for financial performance,
before the COVID-19 pandemic of 2020.
The financial strength in the first six months is due to the
strength of our core marine, RV, and outdoor products—both branded
and private label. Star
Tron®—the #1-selling gas treatment in the
performance chemical category1—leads our individual
product sales and is already outpacing its YTD sales compared to
2020. Looking forward into the third and fourth quarters, in
preparation for winter storage season, Star
Tron® will see a new, broadcast television
campaign on Outdoor Channel and Sportsman Channel targeting new
markets. In addition, Q4 will see the premier of RV There
Yet?—a Star Tron-sponsored RV
travel show debuting on Discovery Channel.
Other high performers are our teak products, which appear to be
maintaining their hold on the outdoor and home care markets even as
more and more people are returning to work. And we can't forget to
mention boating and RV maintenance and appearance products. With
boat sales hitting a 13-year high in 2020, a recent CNBC special
report highlights how this may be a lasting boom for our industry,
partially fueled by boats that are easier to use.2 We
expect our marine maintenance product lines to be a part of the
newfound ease-of-use with this new, younger customer-base.
As expected, these strong sales results were partially offset by
lower sales of PERFORMACIDE®—our line of disinfectant
and sanitization products. With decreasing emphasis on surface
disinfection throughout the country, we foreshadowed this declining
demand and are instead planning a rebrand and repositioning in the
market. Since one of the major selling points of
PERFORMACIDE® is how little storage space it consumes,
we are fine holding onto current inventory—especially with new
Delta-variants of the COVID-19-causing virus spreading and our
recently approved 30-second kill-claim for SARS-CoV-2 coronavirus.
Made in America, we are ready to pivot and ship as the need arises.
As discussed in our first-quarter press release, the
private-label version of PERFORMACIDE® is still
outperforming our projections in the cannabis market. The product
line, along with its counterparts under the OdorStar®
family of products, have become indispensable to cultivators across
the continent, aiding in maintaining optimal air and surface
quality to maximize crop yields, product quality, and profits for
the growers. As the growth of legal cannabis spreads across the
country we're also expecting continued adoption of our product line
in this industry. There are other market initiatives that are
underway, and we anticipate in the fourth quarter to see these
opportunities to be accretive to both sales and profits."
Mr. Dornau concluded, "And we're happy to announce that just
recently at the annual National Marine Distributors Association
(NMDA) S.T.E.P. Conference in Chicago, Star brite for the second year in a
row was awarded Supplier of the Year in the platinum
division. We swept the entire platinum category: Best All Around
Packaging, Marketing Philosophy, and Supply Chain Standards
Efficiency. This honor is a testament to our entire organization's
dedication to perfection in every category. This high level of
performance by our team is the backbone of our company and why many
customers and partners see us an extension of their own company.
These are the long-lasting relationships we pride ourselves in and
what we strive for with every product we ship."
About Ocean Bio-Chem, Inc.:
Ocean Bio-Chem, Inc. is principally engaged in the
manufacturing, marketing and distribution of a broad line of
appearance, maintenance, and performance products for boats,
recreational vehicles (RVs), automobiles, power sports equipment,
outdoor power equipment and motorcycles under the Star
brite®, Star Tron®, Odor
Star®,
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'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, our expectation that our marine maintenance
product lines to be a part of the newfound ease-of-use with this
new, younger customer-base. Also our teak products, appear to
be maintaining their hold on the outdoor and home care markets.
Performacide products are ready to pivot and ship as the need
arises. Additionally, there are other market initiatives that
are underway and we anticipate in the fourth quarter to see these
opportunities to be accretive to both sales and profits. 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; 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, 2019 and in Part II, Item 1A("Risk
Factors") of subsequent quarterly reports on Form 10Q.
Contacts:
Peter Dornau
President & CEO
pdornau@starbrite.com
954-587-6280
Jeff Barocas
Vice President & CFO
Jbarocas@starbrite.com
954-587-6280
1 According to 09/2020 NPD data
2
https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2021/08/06/why-the-boating-industrys-boom-could-carry-on-for-a-long-time.html
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SOURCE Ocean Bio-Chem, Inc.