Ocean Bio-Chem Reports Third Quarter Ending September 30, 2005
FORT LAUDERDALE, Fla.--Nov. 1, 20055, 2005--Ocean Bio-Chem, Inc. today reported a net loss for its 3rd Quarter or three-month period ending September 30, 2005 of $.07 per share versus a net loss of $.02 per share for the same period in 2004. For the nine-month period ended September 30, 2005 and comparable period ending September 30, 2004, the Company reported a net loss of $.23 per share for 2005 versus a net loss of $.04 per share for 2004. Net Sales for the 2005 3rd Quarter were $5,952,831 versus $5,887,488 for the 2004 3rd Quarter. For the nine-month period of 2005, Net Sales totaled approximately $13,635,724 versus $14,770,636 for the comparable nine month period in 2004.
Three-months ending September 30, 2005 2004
Net Sales $5,952,831 $5,887,488
Net (loss) ($418,254) ($84,049)
Earnings per share (loss) ($.07) ($.02)
Average Shares Outstanding 5,651,260 5,335,816
Nine-months ending September 30, 2005 2004
Net Sales $13,635,724 $14,770,635
Net (loss) ($1,305,698) ($227,424)
Earnings per share (loss) ($.23) ($.04)
Average Shares Outstanding 5,651,260 5,335,816
Company management stated that operations during the first nine months
of 2005 were adversely impacted by four significant challenges:
1) an increasingly unstable commodity market causing increased cost
for petroleum related products,
2) its largest customer adopted a policy of reducing their inventory
levels,
3) the Company's immediate geographic area sustained three separate
major hurricanes and,
4) decreased manufacturing efficiency resulting in higher product
costs.
The foregoing resulted in material losses during each of the three quarters of the current year and the Company anticipates another loss during the fourth quarter. In response to these challenges the Company has devised strategies to provide the required working capital to cover these losses, maintain a sales pricing model that more closely follows pertinent commodity fluctuations and address those areas of manufacturing and other operations that can be improved.
Ocean Bio-Chem CEO and President Peter Dornau reported, "This season's hurricanes caused only minimal direct damages to our facilities and operations, principally power outages and the related down-time. However, the devastation sustained in the geographic areas that were impacted was significant and contributed to a reduction in sales to our retail and distribution customers both in that region and nationally. In addition, the cost of petroleum related products, major components in many of our products, which were already in an increasing cost spiral, became even more unstable. This is clearly a rough patch for the Company and to ensure that we have adequate working capital, I am offering either personally or through affiliates, to advance funds aggregating from $1 million to $1.5 million to the Company in order to sustain working capital during this, what we believe to be, a temporary, period of adjustment. We expect that the terms and other arrangements for this financing will be finalized during the upcoming quarter and, at that time, appropriate public disclosures will be made. We hope to report progress in meeting the challenges that lay ahead and thank you for your patience in these difficult times."
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.