Ocean Bio-Chem Reports Financial Results for 2nd Quarter Ending June 30, 2005
FORT LAUDERDALE, Fla.--Aug. 1, 20055, 2005--Ocean Bio-Chem, Inc. today reported its financial results for the second quarter ended June 30, 2005. Operations for its 2nd Quarter or three-month period ending June 30, 2005 showed a net loss of ($.06) per share versus a profit of $ .01 per share for the same period in 2004. For the six-month period ending June 30, 2005 the Company reported a net loss of ($.16) per share for 2005 versus a net loss of ($.03) per share for the comparable six-month period in 2004. Net sales decreased 15.8% to approximately $4,587,1000 for the three months ended June 30, 2005 compared to net sales of approximately $5,445,600 for the three months ended June 30, 2004.For the six-month period of 2005, Net sales decreased 13.5% to approximately $7,682,900 for the six months ended June 30, 2005 compared to approximately $8,883,100 for the six months ended June 30, 2004. Management attributes the decreased sales mostly to its largest customer adopting a policy of reducing their inventory levels coupled with the unusually cold weather in various regions of our country resulting in the consequential delay in the start of the 2005 recreational boating season.
Three-months ending June 30, 2005 2004
Net Sales $4,587,115 $5,445,561
Net income (loss) $(316,227) $62,166
Earnings per share (loss) $(.06) $.01
Average Shares Outstanding 5,578,815 5,294,818
Six-months ending June 30, 2005 2004
Gross Sales $7,682,893 $8,883,147
Net (loss) $(887,442) $(143,375)
Earnings (loss) per share $(.16) $(.03)
Average Shares Outstanding 5,578,815 5,294,818
Peter Dornau, President and Chief Executive Officer of Ocean Bio-Chem, stated, "Despite our best efforts, natural forces and changes in customer ordering patterns clearly affected sales. Further, cost of goods sold increased to 78.2% of net sales for the six months ended June 30, 2005 compared to 75.9% of net sales for the six months ended June 30, 2004. This change resulted principally during the quarter ended March 31, 2005 and was attributed to increasing materials costs of petroleum related products which are significantly consumed in the production of our products. During May 2005, we announced a substantially "across the board" sales price increase to our customers in the 8% - 10% range effective June 1, 2005. The result of this increase has yet to be fully realized. We anticipate that it will favorably impact the second half of 2005 and we look forward to improved performance in the remainder of the year."
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.