WEB NEWS Research
Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($11.51; $109.1M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets announced flat Q2 2021 sales guidance of $15.7 million.
"As experienced in the first quarter of 2021 sales of our chlorine dioxide products (both branded PERFORMACIDE® as well as private label sales) have slowed down compared to the same period in 2020 when COVID-19 was on the rise.
We are quite pleased with the sales results for both the second quarter and six months of 2021. With the boating and RV markets booming, our other core product groups—marine, RV, and homecare—all had strong double-digit sales growth that enabled the Company to achieve these record sales in the six months ending June 30, 2021. As the U.S. begins to return to a new normal, we foresee this strong outdoor recreation home care sales trends continuing."
Research
Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($11.51; $109.1M market cap) , a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets announced Q1 2021 results:
Sales of $13.1 million vs $7.8 million in the prior year
EPS of $0.20 vs $0.07 in the prior year
“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...
...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."
The company pre-announced its revenue for Q1 in mid April. As we stated back then, while this was another strong quarter for the company, it is now heading into tough quarterly comps, as last year’s Q2 brought in $15.7 million on the heels of strong Performacide product sales.
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Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($12.50; $118.5M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets announced record Q1 2021 sales of ~$13.1 million compared to $7.8 million in the prior year.
"We are hopeful that the boating season breaks early. Good weather coupled with an increase in the number of recreational boaters should bode well for a continued strong pace of incoming sales orders."
While this was another strong quarter for the company, it is now heading into tough quarterly comps as last year’s Q2 the company reported $15.7 million on the heels of strong Peformacide product sales.
Research
Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($12.39; $117.2M market cap) , a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets, announced Q4 2020 results: (company pre announced sales date in late January)
Sales of $12.9 million vs $9.7 million in the prior year
EPS of $0.09 vs $0.07 in the prior year
“On almost every level, 2020 was our best year ever financially. Despite the challenges of the pandemic, I am extremely pleased with our team's responsiveness, resilience, and performance.”
Business Outlook
"While we are achieving outstanding growth, and our financial position remains very strong, our market share is still just a ripple in the wave of potential that is Ocean Bio-Chem. Boat sales skyrocketed* last year. And of those new boat owners, 10% are first-time boat owners. We're excited. The industry is experiencing an influx of new blood—a younger generation—all wanting to bring friends and family into the lifestyle. For us, that represents a new and lasting customer that wants the same outstanding results that our products provide our current customers.
We are optimistic about the continued growth of our business and profits as documented by our recent announcements, including our $5 million plant expansion, and an increase of 50% of our quarterly dividend to shareholders to $0.12 per/share annually.
Business remains strong in the first quarter of 2021. Based on our outstanding results in 2020, we anticipate this momentum to build into another strong first quarter 2021."
Research
GBR Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($4,17; $38.4 m market cap) , a cleaning and maintenance product provider, announced Q3 2017 results during the trading day yesterday:
Quotes from management:
“The third quarter sales were adversely affected by Hurricane Harvey and Hurricane Irma, which caused some of our customers in the Houston metropolitan area and in numerous Florida locations to temporarily close retail and warehouse/distribution operations. Moreover, some shipments of our products in these areas were delayed because trucking companies that we utilize to ship our products gave priority to relief efforts in support of victims of the hurricanes. On a positive note, the Company had increased sales of its Odor Star®/Performacide® products in the affected hurricane areas. We believe that demand for these products, increased use in homes and commercial restoration as a result of damage caused by the hurricanes...
...The 84,000-sq. ft. expansion of our manufacturing and distribution facilities in Montgomery, Alabama is expected to be completed in the first quarter of 2018, positioning us well for anticipated increased sales of our Performacide® products in addition to both Star Tron® and Star brite® branded products in 2018 and beyond."
Special Dividend
OBCI ($4.71) announced a special cash dividend of $0.06.
Peter Dornau stated, "This special cash dividend is the third special cash dividend in past four years rewarding our loyal shareholders. We are pleased to issue the special dividend to our shareholders as we continue to generate strong cash flow from our operations."
Research
OBCI ($2.20) - Ex-GeoBargain OBCI reported Q2 2016 results:
Quotes from management:
"We have started the second half of 2016 with strong sales and orders. We are cautiously optimistic these trends will continue and will result in a very good year."
OBCI has over-promised and under-delivered in the past. However, the improving economy should have a positive effect on their business (Cleaning products for Boats/RV’s etc..).
Comments & Business Outlook
First Quarter 2015 Results
Q1 2015 net sales of $6.0 million vs $5.9 million in the prior year
Q1 2015 EPS of $0.00 vs $0.05 in the prior year
Ocean Bio-Chem President and CEO Peter Dornau stated: "Our first quarter delivered mixed results. We were pleased to see an increase in sales, particularly following a record breaking fourth quarter in 2014. The cold and soggy spring season nationwide delayed the start of the marine selling season. While disappointed with essentially a breakeven in earnings for the first quarter, this was anticipated due to budgeted increases in operating expenses. These higher operating expenses are related to the launch of two major new product lines in 2015. The first is 'The Outdoor Collection' which is a full line of outdoor furniture and patio care products that debuted at the National Hardware Show in Las Vegas this past week. The response from current and prospective customers was extremely positive, citing a major uptick in patio product sales in the U.S. In addition we also launched a full line of recreational vehicle (RV) care products. Many of our current customers have added RV divisions to their portfolios in order to capture market share of this fast growing industry. We are already booking advance sales with these current customers for delivery in the current quarter and presenting the line to new RV customers."
"Also contributing to the increased budgeted operating expenses were additional advertising campaigns and trade shows that are geared to drive sales of Performacide®, new products introductions and core sectors. We look at these expenses as necessary to building the foundation of our new product lines which will lead to increased sales and market shares," Mr. Dornau said.
"With the improvement in weather conditions in most regions of the United States, (approximately three weeks earlier than last year), lower gas prices, new product innovations, our strong product brands and general improvement in the U.S. economy, we have seen encouraging increases in sales in April and are optimistic that our results will be strong for the remainder of 2015."
Mr. Dornau continued, "We are also encouraged by significant progress in our Performacide® product group. In the first quarter 2015, we initiated distribution to two major online retailers. One of our newer distributors has gained product distribution in the National Football League, National Hockey League, and major NCAA colleges to combat MRSA. Performacide® is now distributed by the largest supplier to the prisons. The product is being tested in many other markets such as home restoration companies."
Mr. Dornau concluded, "The Company's financial condition remains strong. We ended the first quarter with a current ratio of over 5:1, with no borrowings on our line of credit."
Comments & Business Outlook
FORT LAUDERDALE, Fla., Jan. 15, 2015 /PRNewswire / -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI), today is pleased to announce all-time record fourth quarter and full year net sales for 2014.
Sales for the fourth quarter of 2014 were approximately $8.7 million compared to $7.8 million in the fourth quarter of 2013, an increase of 12%. For the full year 2014, net sales were approximately $33.9 million compared to $32.7 million in 2013, an increase of approximately 4%.
Peter Dornau, President & CEO commented: "The fourth quarter of 2014 was especially impressive, with the strong growth of our sales, attributable to increases by a broad range of customers. Our customer sales concentration in 2014 was less dependent on any one key customer than in previous years.
"We achieved increased sales growth in the marine, automotive, power sports, motorcycle and outdoor power equipment sectors. The increase in sales was led by double digit growth of sales of our fuel additive product line – StarTron® -- as well as double digit sales growth in our other product groups in the fourth quarter of 2014," Mr. Dornau said.
"The fourth quarter 2014 sales were the fourth consecutive record net sales for the final quarter of the year. In addition, the full year 2014 net sales eclipsed our previous record sales totals accomplished last year. As we continue to increase sales, the percent of operating expenses should decline as a percent of sales," Mr. Dornau concluded.
Comments & Business Outlook
FORT LAUDERDALE, Fla., Dec. 23, 2014 /PRNewswire / -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI), said today in an interview with CEOLIVE.TV that the significant drop in gasoline prices, the Company has seen a recent increase in sales of its products to users of boats and RVs.
"The drop in gasoline prices means that boats and RVs are more affordable to use. We have expanded our sales and marketing departments to take advantage of prospects for 2015," said Ocean Bio-Chem. Inc. President and CEO Peter Dornau in an interview with CEOLIVE.TV. The entire interview can be viewed at http://youtu.be/QKhf7veWLl4 .
In the interview, Mr. Dornau spoke about the new product Performacide, and its EPA approval as an effective disinfectant, sanitizer, fungicide and general-purpose antimicrobial and surface cleaner on hard surfaces. Various applications include medical laboratories, hospitals first responder's facilities and equipment, veterinary hospitals as well as food processing and cruise ships industries. Mr. Dornau concluded there are many more approved applications and opportunities for Performicide which we will market either directly or indirectly thru distributors.
"Ocean Bio-Chem has an extremely strong balance sheet and minimal debt. We are also in a strong cash position, as we look to expand sales in all of our products," Mr. Dornau said.
Ocean Bio-Chem, Inc. is 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, 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. It manufactures its products in a 300,000 square foot facility in Montgomery, Alabama, from which they are distributed across the globe.
Comments & Business Outlook
Third Quarter 2014 Results
For the three months ended September 30, 2014, net income increased by $281,000, or 45%, to approximately $903,000 or $0.10 per diluted share, compared to approximately $622,000 or $0.07 per diluted share for the same period in 2013.
The Company also reported record net sales for the nine months ended September 30, 2014 of $25.2 million dollars compared to $24.9 million for the comparative period of 2013.
Peter Dornau, President & CEO, commented that "We have just concluded a very successful quarter. For the third quarter we reported record gross profit, as a result of an increase in our gross profit percentage by approximately 4 percent, increasing from 30.5% in the third quarter of 2013 to 34.4% for the third quarter of 2014. The increase in gross profit percentage is a result of an improved sales mix of higher margin products, in addition to price increases and improved efficiencies at our manufacturing facilities."
"Performacide® was well received at the recent ISSA show in Orlando, Florida with commitments from several key distributors for initial product shipments scheduled in the fourth quarter of 2014," Mr. Dornau said. "There is also interest by application equipment manufacturers for the use of chlorine dioxide in conjunction with their devices, along with cobranding opportunities."
"Because Performacide® is on the EPA list of products meeting the Center for Disease Control's criteria for disinfecting in hospitals for Ebola, there are opportunities developing in the health care channel for additional distribution. We have also just launched our new web site: www.performacide.com . We invite shareholders to see our exciting range of new products.
"As previously announced, Ocean Bio-Chem, Inc. is providing a donation of Performacide® to help fight the Ebola outbreak in Liberia. Assistance with the donation was arranged by two non-profit organizations, 'Friends of Liberia' and 'Mission Harvest America, Inc.' which are transporting the product with other essential aid items. The Performacide® product is going to the Ministry of Health and Social Welfare to be disbursed to aid workers for use in hospitals and medical facilities around the country. The patented Performacide® pouch system is very light weight and easy to transport and only needs to be added to water at the point of use," Mr. Dornau concluded.
Greg Dornau, Executive Vice President of Sales & Marketing, stressed that "our Company had record net sales in the nine months ending September 30, 2014. The strong sales during these nine months are a testimonial to our successful marketing programs."
"For the nine months, we continued to increase sales of our enzyme fuel treatment product Star Tron® in the marine, automotive, power sports and small engine markets. In addition, we increased sales to our core marine customers. We expect continued sales growth to existing customers by launching several exciting new products in 2015. Additionally, in early 2015, we are planning new channels of distribution identified as segments for additional sales growth for the Company," Mr. Greg Dornau said.
Chief Financial Officer Jeff Barocas commented that "the financial condition of the Company is very strong. For the first time in the Company's history, it was not necessary to utilize our credit facility to finance our seasonal working capital requirements. It has been over a year since the Company utilized its credit facility. In fact, at the end of September the Company had more than $1.8 million of cash on hand. In addition the Company decreased its total liabilities by over $760,000 from September 30, 2013. Our current ratio is 4.6:1 at September 30, 2014."
