FORT LAUDERDALE, Fla.,
March 29, 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 fourth-quarter and full-year 2020
financial results.
2020 Highlights
- Record fourth quarter net sales of $12.9
million, up 32% compared to 2019
- Record fourth quarter net income of $881,000, up 36% compared to 2019
- Record full-year net sales of $55.6
million, up 32% compared to 2019
- Record full-year net income of $9.6
million, up 175% compared to 2019
- Record increase in earnings per basic share of $1.02, up 176% compared to 2019
- Cash on hand increased to $11
million, a ratio of 9.7:1 of current assets to current
liabilities
- National Marine Distributors Association (NMDA) Supplier of the
Year Award
CEO and President Peter Dornau
commented: "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. The 2020 net income of $9.6
million exceeded the previous three years
combined. This increase was primarily a result of higher sales
volume coupled with a increased gross margin percent. The
significant sales growth of $13.3
million, or 31.5%, marks the eighth consecutive year in
which the Company has set a sales record. Coupled with a record
gross margin percentage increase to 42.3% for a full year, this is
an improvement of approximately 5.4% over the 2019 gross-margin
percent of 36.9%."
Mr. Dornau continued, "These record increases are a result of
two major factors: sales of high-margin products and also the mix
of products sold.
First, armed with a strong portfolio of products, we increased
sales in our staple categories—marine and RV—which bring higher
returns per product sold. Second, we also saw steep increases in a
more varied category mix this past year. Of course, our
EPA-registered line of disinfectants took off amid the COVID-19
scare—we realize some of those sales are pandemic-related—but more
long-lasting is the strength of sales in our home care, teak, and
storage offerings, as well as our private label business, all of
which don't show signs of slowing.
Our innovative planning and investment strategy has remained
solid; previous manufacturing expansions and upgrades proved
extremely beneficial in our financial success in 2020. While other
suppliers and manufacturers—dependent on imports and outsourcing of
materials and products—could not meet customer demands, our
made-in-USA, vertical
manufacturing subsidiary, Kinpak, Inc. was well-positioned to ramp
up production. This increase in production resulted in an overall
increase in gross margin for the Company, as the fixed plant
expenses were spread over the higher production volume, delivering
a higher return per product."
Financial Summary
The Company's 2020 full-year record net income was approximately
$9.6 million, compared to
$3.5 million for 2019, an increase of
approximately $6.1 million or 175%.
Earnings per share for 2020 were $1.02 compared to $0.37 for 2019, an increase of approximately
176%.
The Company also reported record net sales for the full year of
2020 of approximately $55.6 million,
compared to approximately $42.3
million for 2019, an increase of approximately $13.3 million or 32%.
Fourth-quarter 2020 net sales were approximately $12.9 million, compared to the fourth quarter of
2019 net sales of approximately $9.7
million, an increase of approximately $3.2 million or 32%. Fourth-quarter 2020 net
income was approximately $881,000
compared to net income of approximately $649,000 in 2019, an increase of approximately
$231,000 or 36%. Earnings per share
for the fourth quarter of 2020 were $0.09 compared to $0.07 for the fourth quarter of 2019, an increase
of appropriately 29%.
On December 31, 2020, the Company
had cash on hand of over $11.0
million and a ratio of 9.7:1 of current assets to current
liabilities.
(In thousands, except
per share data)
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For the Twelve Months
Ended
December 31,
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For the Three Months
Ended December 31,
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2020
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2019
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2020
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2019
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Net sales
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$ 55,561
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$42,259
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$12,879
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$9,731
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Pre-tax
income
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$ 12,232
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$4,495
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$1,111
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$833
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Net income
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$ 9,617
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$3,499
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$881
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$649
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Eps basic &
diluted
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$ 1.02
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$0.37
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$0.09
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$0.07
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|
Dividend declared per
common share
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$0.08
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$0.05
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$.02
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-
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Business Outlook
Mr. Dornau concluded, "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."
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®, Odor Star® and
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.
Forward-looking Statements:
Certain statements contained in this Press Release constitute
forward-looking statements, including, without limitation,
we are optimistic on our continued growth. business remains
strong in the first quarter of 2021. We anticipate another strong
first quarter 2021 of our business and profits as documented by our
recent announcements. 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," "has
the ability" 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 nature of the
coronavirus itself; the manner in which our products are used; the
highly competitive nature of our industry; prices for raw materials
that are petroleum or chemical based and other factors addressed in
our annual report on Form 10-K for the year ended December 31, 2020.
Contact:
Peter Dornau
CEO and President
pdornau@starbrite.com
954-587-6280
Jeff Barocas
Vice President & CFO
jbarocas@starbrite.com
954-587-6280
*
https://www.cnbc.com/2021/03/19/boat-sales-took-off-during-pandemic-dealers-cant-keep-up-with-demand.html
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SOURCE Ocean Bio-Chem, Inc.