Ocean Bio-Chem Reports First Quarter Results for 2003; Performance Hindered by Weather, War in Iraq and Higher Petroleum Costs
FORT LAUDERDALE, Fla--May 15, 2003--Ocean Bio-Chem, Inc. today reported a net loss of ($.14) per share for the first quarter ending March 31, 2003 versus a profit of $ .01 per share for the comparable first quarter of 2002. The loss coincided with a decrease in net sales of 26.7% or $1,047,000 for the quarter ended March 31, 2003 versus the comparable quarter of the preceding year. Management attributed the decrease in sales chiefly to colder weather in the northern states causing delays in the start of the boating season and a shift in large customer shipments. These factors have returned to normal during the March/April time frame. -0-
Three-months ending March 31 2003 2002
Net Sales $2,870,767 $3,917,976
Net income (loss) (682,058) 56,943
Earnings per share (loss) $(.14) $.01
Average Shares Outstanding (fully diluted) 4,797,716 4,232,370
Ocean Bio-Chem CEO Peter Dornau commented, "The combined elements of weather, uncertainty surrounding the war in Iraq and conservative shifting of customer ordering clearly hindered our performance in the first quarter. Additionally, cost of goods sold increased as a percentage of net sales 88.7% and 74.5% for the quarters ended during 2003 and 2002, respectively. Since many of our products contain petroleum-based raw materials, the impact was even more adverse. To counteract these factors we have increased prices where possible on certain products which will be reflected in the quarter ending June 30, 2003. It should also be noted that subsequent to the first quarter and as a result of the termination of the war in Iraq, petroleum pricing has stabilized and has started drifting lower."
Mr. Dornau continued, "In closing, during March/April and so far into May there has been a positive shift to a more normalized trend in weather and customer orders. Coupled with the ending of the war and more stabilized raw good pricing we see room for an optimistic future outlook."
About Ocean Bio-Chem
Ocean Bio-Chem, Inc. manufactures and markets a full line of maintenance and care products for boats, recreational vehicles, automobiles, motorcycles and aircraft. Products are sold under the Starbrite(TM) name. The Company trades publicly under NASDAQ SmallCap Symbol: OBCI. www.oceanbiochem.com
NOTE: The foregoing is news relating to Ocean Bio-Chem, Inc. (OBCI or "the Company") and contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management, including without limitation the Company's other subsidiaries, are intended to identify such forward-looking statements. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by these forward-looking statements. For more detailed information the reader is referred to the Company's 10-K and other documents filed with the United States Securities and Exchange Commission. This does not constitute an offer to buy or sell securities by GeoMarketing, the Company or its subsidiaries and is meant purely for informational purposes.