Ocean Bio-Chem Announces 2005 Year End Financial Results
FORT LAUDERDALE, Fla.--March 30, 2006--Ocean Bio-Chem, Inc. today reported a loss for the calendar year ending December 31, 2005 of $.32 per share (basic) or a net loss of $1,813,193 versus a net profit of $.03 per share (basic) or $134,554 for the comparable 2004 year. Net sales decreased 18.5% or $4,005,109 to approximately $17,652,000 for the year ended December 31, 2005 compared to approximately $21,657,100 for the year ended December 31, 2004.2005 Highlights:
-- Finalized a revolving credit facility $1.5 million to the Company in order to bolster working capital.
-- 2005 season's hurricanes caused only minimal direct damages to Company facilities and operations.
-- Adopted Kinpak Inc. plan for reduction in material manufacturing costs thereby anticipating improved product margins and operations during 2006.
Year Ended December 31 2005 2004
Gross sales $19,706,469 $24,361,056
Net Sales $17,651,905 $21,657,083
Net income (loss) ($1,813,193) $134,554
Earnings (loss) per share (basic) ($.32) $.03
Earnings (loss) per share (fully diluted) ($.31) $.02
Average shares outstanding (basic) 5,700,774 5,356,316
Average shares outstanding (fully diluted) 5,844,750 5,500,113
Management stated that net sales decreased 18.5% to approximately $17,652,000 for the year ended December 31, 2005 compared to approximately $21,657,100 for the year ended December 31, 2004. Management attributes such decrease significantly to its largest customer adopting a policy of reducing their inventory levels. This has resulted in an approximate $4,294,000 decrease in sales to that customer for the year ended December 31, 2005 compared to 2004.
Peter Dornau explained, "Company operations during the year ended December 31, 2005 were adversely impacted by four significant challenges; an increasingly unstable commodity market causing increased cost for petroleum related products, the announcement by our largest customer (West Marine) that they have adopted a policy of reducing their inventory levels, our immediate geographic area sustaining three separate major hurricanes, and a decrease in our manufacturing efficiency resulting in higher product costs. In response, we have adopted a strategy to provide the required working capital to cover these losses, maintain a pricing model that more closely follows the commodity fluctuations that we are exposed to, and address those areas of our operations that can be improved."
Dornau continued, "Effective during the fourth quarter of 2005, we announced yet another sales price increase. In addition, we have alerted customers who purchase products, which are heavily dependent on this petroleum related issue, that we will be more responsive to commodity pricing and they must be receptive to short-term price swings or accept our refusal to ship at previously established pricing. Further, we have identified several areas that require improvement at our Kinpak Inc. facility and through increased on-site management presence, major personnel changes, and a variety of enhancements, we believe that we will achieve a material reduction in manufacturing cost thereby improving product margins and operations during 2006."
"It appears that West Marine has reached their goals and, during the first quarter of this year has ordered product from us more closely aligned with historical levels. We are pleased to announce that current year's sales to both them and our other customers are significantly ahead of the 2005 levels and that we anticipate reporting a profit for the quarter ending March 31, 2006."
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 Star brite(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.