Star brite Inc. Parent Company Reports First Quarter Net
Sales of $12.7 Million and Net Income
of $1.3 Million
FORT
LAUDERDALE, Fla., May 16, 2022
/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 first-quarter 2022 financial
results.
2022 -First Quarter Highlights:
- First quarter net sales of $12.7
million
- First quarter net income of $1.3
million,
- First quarter net income as a percent of sales – 10.2%
- Cash on hand $10.2 million at
March 31st, 2022, with a
ratio of 7.4:1 of current assets to current liabilities.
- Earnings per share in the first quarter of 2022 of $0.14.
Financial Summary
(In thousands except per share data)
|
Quarter
Ended
|
|
March 31,
|
|
2022
|
|
2021
|
Net sales
|
$ 12,737
|
|
$ 13,131
|
Pre-tax
income
|
$
1,633
|
|
$
2,428
|
Net income
|
$
1,299
|
|
$
1,904
|
Earnings – per common
share
|
$
0.14
|
|
$
0.20
|
Dividends declared per
common share
|
$
0.04
|
|
$
0.03
|
Company President and Chief Executive Officer, Peter
Dornau, commented, "We are coming off the second best
first quarter sales and net profits in the Company's history. The
business growth as COVID is going away has continued to increase at
higher levels compared to both COVID and pre-COVID periods.
The first quarter income, like many companies was significantly
impacted by supply chain issues coupled with the continued effect
of inflation on both raw materials and operating costs. Many
of the Company's raw material and packaging are petroleum based and
had cost increase significantly. Transportation costs also
increased for both inbound raw materials and out bound freight to
customers.
The Company as previously announced implemented price increases
which were effective in the first quarter of 2022. As these
price increases take effect, we should see margin
improvements. These factors and a change in sales mix of
products impacted our gross profit percent by 3.8%. Despite these
challenges, the Company has continued to meet our customers' orders
on time."
"Our cash flow remains strong. The Board of Directors
voted in the first quarter 2022, to increase annual dividends for
our shareholders from $0.12 to
$0.16 per share. Our newest
$5.0 million warehouse addition in
Montgomery AL. is operational, and
we are progressing with new blow molding bottling equipment that
will increase our production of bottles by 50%. We anticipate
this project to be operational later in 2022. We have also
increased our investment in inventories in support of winter
selling season, starting early to insure continued product supply
to our customers. Additionally, we strategically increased
inventories on many key raw materials to avoid near term price
increases."
Mr. Dornau concluded "We are optimistic that 2022 will be
another successful year as the influx of new boaters and RVs'
continue.
We have continued to increase our brand presence and product
offerings in all categories we do business in. The outdoor
category continues to grow, and we are taking advantage with new
products and strong deliveries of existing products.
These are just a sample of sales growth strategies should
translate into increases in sales in profits in the balance of 2022
and beyond."
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 and margin improvements as a
result of price increases , also sales growth strategies should
translate into increases in sales in profits in the balance of 2022
and beyond". . 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, 2021 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.