FORT LAUDERDALE, Fla.,
May 17, 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 first-quarter 2021 financial
results.
2021 -First Quarter Highlights:
- Record first quarter net income of $1.9
million, up 204% compared to same period 2020.
- Record first quarter net sales of $13.1
million, up 68% compared to same period 2020.
- Record first quarter net income as a percent of sales - 14.5%
compared to 8.0% in first quarter 2020.
- Cash on hand $11.2 million on
March 31st, 2021, and a
ratio of 6.9:1 of current assets to current liabilities.
- Record basic and diluted earnings per share in the first
quarter of 2021 of $0.20, compared to
$0.07 per share in the first quarter
of 2020.
Financial
Summary
|
|
(In thousands except
per share
data)
|
Quarter
Ended
|
|
March 31,
|
|
2021
|
2020
|
Net sales
|
$
13,131
|
$
7,820
|
Pre-tax
income
|
$
2,428
|
$
802
|
Net income
|
$
1,904
|
$
627
|
|
|
|
Earnings – per common
share,
basic and diluted
|
$
0.20
|
$
0.07
|
Dividends declared
per common share
|
$
0.03
|
$
0.00
|
Company President and Chief Executive Officer, Peter
Dornau, commented, "Fueled by increased interest in
outdoor recreation and being outside—from boat and RV owners to
backyard BBQers—the Company has experienced a lasting, positive
effect from a year filled with hardships. COVID-19, social
distancing, and lockdown measures has helped shift focus back to
family activities and the great outdoors, providing an ideal
backdrop for safe, fun, and socially- distanced recreation. As the
U.S. begins to return to a new normal, we foresee this strong
outdoor recreation trend continuing. Our customers—retail, brick
& mortar, online, big box store, neighborhood hardware, marine
distributors and dealers, RV, to name a few—are all experiencing
increased sales."
Mr. Dornau continued, "One of our biggest challenges in the
first quarter is also one of our Company's strengths. In the first
quarter we faced the challenge of keeping pace with the increased
sales demand—the highest for a first quarter in the Company
history. While other companies have had significant raw material
shortages or production issues, our long-standing relationships
with our supply chain partners and strong manufacturing team
enabled us to keep production flowing with only minimal
disruptions. Our Company has been able to meet most of our
customers' orders on time."
Mr. Dornau continued, "As we expected and predicted, sales of
name-brand PERFORMACIDE® have seen a slowdown. The
product was essential during the height of the pandemic for surface
disinfection in markets ranging from healthcare to home due to our
ability to produce and deliver while others could not.
However, we're excited to see that the private-label version of
PERFORMACIDE® is 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
adoption of legal cannabis spreads across the country we're also
hoping for continued adoption of our product line in this
industry."
Mr. Dornau commented further: "The financial results for the
first quarter 2021 again set many financial records for the
Company. Our net profits for the first quarter 2021 was
$1.9 million, which was greater than
the combined previous three years first quarters' net profits. The
Company also recorded a record net profit return on sales percent
of 14.5%, a significant after-tax return."
Mr. Dornau concluded "Our Company continues to invest in its
future. Our latest CAPEX spending of $5.0
million for the expansion of our manufacturing and
distribution facilities in Montgomery,
AL is progressing on schedule, paving the way for continued
anticipated growth. We foresee a ribbon cutting ceremony in the
first quarter of 2022.
I want to thank all our team members in these very challenging
times for their commitment and hard work in making Ocean Bio-Chem
the success it is."
Star brite and its team, including its CEO, Peter Dornau, were featured once again in an
episode of Sportsman's Adventures with Captain Rick Murphy, fishing in the Bahamas (Season 27, E4). The show aired on
Discovery and Pursuit Channel during the first quarter 2021 and
will continue airing on Fox Sports Sun into Q2.
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® names along with other
brand names within the United States of
America and Canada. The
Company manufactures, markets and distributes a line of
disinfectant, sanitizing and deodorizing products under the
Performacide® and Star brite® brand names. 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; www.performacide.com;
www.nosguard.com.
Forward-looking Statements:
Certain statements
contained in this press release constitute forward-looking
statements, including without limitation those relating to our
continued and anticipated growth. Continued strength of the
recreational boating market, increased sales of private label in
the cannabis market. For this purpose, any statements contained in
this release 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
are subject to known and unknown risks, uncertainties and other
factors that 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 Performacide,
marine, recreational vehicle and automotive products; expenditures
on, and the effectiveness of, our advertising and promotional
efforts; unanticipated litigation developments; exposure to market
risks relating to changes in interest rates, foreign currency
exchange rates and prices for raw materials that are petroleum or
chemical based; adverse changes to unemployment rates, fuel prices
and the economy in general; and other factors addressed in our
annual report on Form 10-K for the year ended December 31, 2020 and in our subsequent
quarterly reports on Form 10-Q.
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.