-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OOmWZHe8MPlXsDLyuUFgLOgCMDvP9728OPcccaUmltANz/j4FAWbvLQ98bzjwOxO Ou8LBOwKX23g69ucwFoBcQ== 0000350737-96-000009.txt : 19960517 0000350737-96-000009.hdr.sgml : 19960517 ACCESSION NUMBER: 0000350737-96-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960330 FILED AS OF DATE: 19960515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: OCEAN BIO CHEM INC CENTRAL INDEX KEY: 0000350737 STANDARD INDUSTRIAL CLASSIFICATION: SPECIALTY CLEANING, POLISHING AND SANITATION PREPARATIONS [2842] IRS NUMBER: 591564329 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11102 FILM NUMBER: 96565483 BUSINESS ADDRESS: STREET 1: 4041 SW 47TH AVE CITY: FORT LAUDERDALE STATE: FL ZIP: 33314 BUSINESS PHONE: 3055876280 MAIL ADDRESS: STREET 1: 4041 SW 47TH AVE CITY: FT LAUDERDALE STATE: FL ZIP: 33314 FORMER COMPANY: FORMER CONFORMED NAME: STAR BRITE CORP DATE OF NAME CHANGE: 19841204 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [x] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 Commission File No. 2-70197 OCEAN BIO-CHEM, INC. (Exact name of registrant as specified in its charter) Florida 59-1564329 (State of other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Registrant's telephone number, including area code - 305-587-6280 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. $.01 Par Value Common Stock, 10,000,000 shares authorized. 3,512,964 issued and outstanding at March 31, 1996. PART I - Financial Information Item l. Financial Statement OCEAN BIO-CHEM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS MARCH 31, DEC. 31, 1996 1995 Current Assets: Cash $ 88,968 $ 997,309 Trade accounts receivable net of allowance for doubtful accounts of $43,429 at March 31, 1996 and $48,000 at December 31, 1995. 2,054,328 2,006,418 Due from Officers 151,120 154,420 Inventories 2,451,060 2,038,750 Prepaid Expenses 105,315 111,455 Total Current Assets 4,850,791 5,308,352 Property, Plant and Equipment, Net 2,191,622 321,475 Other Assets: Trademarks, trade names and patents, net 460,998 466,746 Due from Affiliated Companies, Net 642,770 632,379 Deposits and other assets 25,080 18,818 Total Other Assets 1,128,848 1,117,943 Total Assets $8,171,261 $6,747,770 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable - trade $ 967,404 $ 485,105 Notes payable - bank 1,820,000 1,990,000 Current portion of long term debt 220,000 7,592 Other Accrued Liabilities 89,362 89,068 Total Current Liabilities 3,096,766 2,571,765 Long term debt, less current portion 770,000 - Shareholders' Equity: Common Stock - $.01 par value, 10,000,000 Shares authorized, 3,512,964 shares issued and outstanding 35,130 35,130 Additional paid-in capital 2,650,754 2,650,754 Foreign Currency Translation Adjustment ( 44,852) ( 78,525) Retained Earnings 1,663,463 1,568,646 Total Shareholders' Equity 4,304,495 4,176,005 Total Liabilities & Shareholders' Equity $8,171,261 $6,747,770
OCEAN BIO-CHEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THREE MONTHS ENDED MARCH 31 1996 1995 Gross Sales $2,487,611 $2,474,411 Allowances 132,969 151,151 Net Sales 2,354,642 2,323,260 Cost of goods sold 1,494,105 1,269,275 Gross Profit 860,537 1,053,985 Cost and expenses: Advertising and promotion 81,270 105,205 Selling and administrative 606,256 546,790 Interest expense 41,370 25,929 Total Cost and Expenses 728,896 677,924 Operating Income 131,641 376,061 Interest Income 3,176 3,895 Income before provision for income taxes 134,817 379,956 Provision for Income taxes 40,000 140,000 Net Income $ 94,817 $ 239,956 Net earnings per common and common equivalent share, diluted $ .03 $ .07
Earnings per share were calculated on the basis of 3,645,925 and 3,563,151 shares of common stock and common stock equivalent outstanding for the quarters ended March 31, 1996 and 1995, respectively. Common stock equivalents consist of options to purchase common stock. The 1995 earnings per share have been adjusted to reflect the 1995 stock dividend. OCEAN BIO-CHEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THREE MONTHS ENDED MARCH 31 1996 1995 Cash flow used by operating activities: Net Income $ 94,817 $ 239,955 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 29,326 21,664 Change in assets and liabilities: (Increase) decrease in accounts receivable ( 47,910) 234,832 Increase in inventory ( 412,310) ( 148,374) (Increase) decrease in prepaid expenses 3,178 ( 71,518) Increase in accounts payable and accrued expenses: 482,594 418,060 Net cash provided by operating activities: 149,695 694,619 Cash used by financing activities: Net payments under line of credit ( 170,000) ( 850,000) Advances to affiliates ( 10,391) ( 42,095) Short term borrowings, net 212,408 ( 7,132) Long term borrowings, net 770,000 - Net cash provided (used) by financing activities: 802,017 ( 899,227) Cash used by investing activities: Purchase property, plant, equipment ( 1,893,726) ( 4,324) Net cash used by investing activities: ( 1,893,726) ( 4,324) Decrease in cash prior to effect of exchange rate on cash ( 942,014) ( 208,932) Effect of exchange rate on cash 33,673 ( 1,686) Decrease in cash ( 908,341) ( 210,618) Cash at beginning of period 997,309 571,411 Cash at end of period $ 88,968 $ 360,793 Supplemental Information Cash used for interest during period $ 34,758 $ 25,061 Cash used for income taxes during period $ - $ 73,651
The company had no cash equivalents at March 31, 1996 and 1995. OCEAN BIO-CHEM, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS l. The information contained in this Report is unaudited, but reflects all adjustments which are, in the opinion of the management, necessary for a fair statement of results of the interim periods, consisting only of normal recurring accruals. The results for such interim periods are not necessarily indicative of results to be expected for the full year. Certain financial statement items for the quarter ended March 31, 1995 have been reclassified to conform to the 1996 presentation. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS Liquidity and Capital Resources The primary sources of the Registrant's liquidity are cash flow from operations and short-term borrowing from a commercial bank. The Registrant has available a $2,900,000 line of credit of which $900,000 has been allocated to purchase the of assets of Kinpak, Inc., a Georgia corporation, which were acquired on February 27, 1996 (the "Acquisition"). In addition to the allocated amount, the Registrant assumed $990,000 of industrial revenue bonds in connection with the acquisition. The line of credit is subject to renewal in April 1997. The Registrant is involved in making sales in the Canadian market and accordingly must deal with fluctuations of the Canadian currency. The Registrant does not engage in currency hedging and deals with such risk as a pricing issue. Results of Operations: Gross Sales increased approximately $13,000 for the quarter ended March 31, 1996 when compared to the same quarter of the preceding year. Cost of Goods Sold increased as a percentage of gross sales when comparing the quarter ended March 31, 1996 with the comparable quarter in 1995. The percentages were 60% and 51.3% for the quarters ended 1996 and 1995, respectively. This was primarily due to a shift in the product sales mix to lower sales of higher margin products. Selling and Administrative expenses increased approximately $59,000 when comparing the quarter ended March 31, 1996 with March 31, 1995. This was primarily due to higher legal fees incurred. Advertising and Promotion decreased approximately $24,000 comparing the three months ended March 31, 1996 with the same period in 1995. This is due to timing differences. Interest Expense increased when comparing the March 31, 1996 quarter to the corresponding quarter in 1995 by approximately $15,000 due to higher loan balances outstanding on the line of credit and interest on the industrial revenue bonds assumed in connection with the acquisition. PART II - Other Information Item l - Legal Proceedings: Not applicable. Item 2 - Changes in Securities: Not applicable Item 3 - Defaults Upon Senior Securities: Not applicable Item 4 - Submission of Matters to Vote of Security Holders: Not applicable Item 5 - Other Matters: Not applicable Item 6 - Exhibits and Reports on Form 8-K (A) Exhibits: Not Applicable (B) Registrant filed an 8K on March 12, 1996 relating to Item 2 and Item 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. OCEAN BIO-CHEM, INC. Date: March 15, 1996 By: /S/ Peter G. Dornau Chairman of the Board and Chief Executive Officer By: /S/ Peter G. Dornau Chief Financial Officer EX-27 2 ART. 5 FDS FOR 1ST QUARTER 10-Q
5 This schedule contains summary financial information extracted from the March 31, 1996 10-Q of Ocean Bio-Chem, Inc. and is qualified in its entirety by reference to such financial statements. 3-MOS DEC-31-1996 MAR-31-1996 88,968 0 2,097,757 43,429 2,451,060 4,850,791 2,191,622 329,206 8,171,261 3,096,766 0 0 0 35,130 4,269,365 8,171,261 2,487,611 2,490,787 1,494,105 687,526 0 0 41,370 134,817 40,000 94,817 0 0 0 94,817 .03 .03
-----END PRIVACY-ENHANCED MESSAGE-----