Ocean Bio-Chem, Inc. Announces Record Six Month 2021 Financial Results and NMDA Platinum Supplier of the Year Award

Rhea-AI Summary

Ocean Bio-Chem, Inc. (OBCI) reported record financial results for the first half of 2021, with net income reaching approximately $4.5 million, a 10.5% increase from $4.1 million in the same period of 2020. The diluted net income per share rose to $0.48, up 10.1% from $0.43. Net sales for the same period hit about $28.8 million, marking a 22.5% increase from $23.5 million year-over-year. However, the second quarter reported net income of $2.6 million, a 24.7% decline compared to $3.5 million in Q2 2020, with sales of $15.7 million showing little change.

Positive

• Record net income of approximately $4.5 million for the first half of 2021, a 10.5% increase compared to 2020.
• Net sales rose to $28.8 million, representing a 22.5% year-over-year growth.
• Diluted net income per share increased by 10.1% to $0.48.

Negative

• Net income for Q2 2021 decreased by 24.7% to $2.6 million from $3.5 million in Q2 2020.
• Diluted net income per share for Q2 2021 dropped 25% to $0.27 from $0.37 in the same quarter last year.

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)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2021		2020		2021		2020
NET SALES		$15,689		$15,702		$28,820		$23,521
PRE-TAX INCOME		$3,324		$4,366		$5,753		$5,168
NET INCOME		$2,601		$3,452		$4,506		$4,079
EPS - DILUTED		$0.27		$0.36		$0.48		$0.43
DIVIDENDS PER SHARE	-	$0.03		$0.04		$0.06		$0.04

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.

FAQ

What are Ocean Bio-Chem's financial results for the first half of 2021?

Ocean Bio-Chem reported a net income of approximately $4.5 million, a 10.5% increase compared to the same period in 2020, with net sales of about $28.8 million, up 22.5%.

How did Ocean Bio-Chem perform in the second quarter of 2021?

In Q2 2021, Ocean Bio-Chem posted a net income of approximately $2.6 million, a decline of 24.7% compared to $3.5 million in Q2 2020, with net sales around $15.7 million.

What was Ocean Bio-Chem's EPS for the first half of 2021?

The diluted earnings per share (EPS) for the first half of 2021 was approximately $0.48, which is a 10.1% increase from the $0.43 EPS reported for the same period in 2020.