UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 30, 2014
OCEAN BIO-CHEM, INC.
(Exact name of registrant as specified in charter)
| Florida | 0-11102 | 59-1564329 | ||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | I.R.S. Employer Identification No.) |
4041 S.W. 47 Avenue, Fort Lauderdale, Florida 33314
(Address of principal executive offices) (Zip Code)
(954) 587-6280
Registrant’s telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| 1 |
Item 2.02. Results of Operations and Financial Condition
On August 14, 2014, Ocean Bio-Chem, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter and six months ended June 30, 2014. A copy of the press release is furnished as Exhibit 99.1 to this Current Report.
The information furnished pursuant to Item 9.01 of this Current Report, including the exhibits furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into future filings by the Company under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, unless the Company expressly sets forth in such future filing that such information is to be considered “filed” or incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The Company is furnishing the following exhibit to this Current Report:
|
Exhibit Number |
Description | |
| 99.1 | Press release, dated August 14, 2014 |
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: August 14, 2014 | By: | /s/ Jeffrey S. Barocas | |
| Jeffrey S. Barocas | |||
| Chief Financial Officer | |||
Exhibit 99.1
August 14, 2014 8:15 AM EST
Ocean Bio-Chem, Inc. Reports Record Second Quarter 2014 Earnings --- Increase of 138%
FORT LAUDERDALE, FL--(PR Newswire - August 14, 2014) - Ocean Bio-Chem, Inc. (NASDAQ: OBCI), a leading manufacturer and distributor of appearance, performance, and maintenance products serving the marine, automotive, power sports, recreational vehicle and outdoor power equipment markets, announced today its financial results for the three and six months ended June 30, 2014.
Net income for the second quarter of 2014 increased 138% to approximately $411,000 or $0.05 per diluted share, compared to approximately $173,000 or $0.02 per diluted share for the second quarter of 2013.
For the six months ended June 30, 2014, net income increased 22% to approximately $634,000 or $0.07 per diluted share, compared to approximately $522,000 or $0.06 per diluted share for the same period in 2013.
| (000's Omitted) | Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| NET SALES | $ | 8,813 | $ | 8,178 | $ | 14,733 | $ | 14,490 | ||||||||
| PRE-TAX INCOME | $ | 572 | $ | 255 | $ | 912 | $ | 763 | ||||||||
| NET INCOME | $ | 411 | $ | 173 | $ | 634 | $ | 522 | ||||||||
| EPS BASIC | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.06 | ||||||||
| EPS DILUTED | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.06 | ||||||||
Ocean Bio-Chem, Inc. President and CEO Peter Dornau stated, "Our second quarter financial performance reflects our commitment to grow both sales and profits. As indicated in our first quarter 2014 financial press release, we were seeing indications of improved sales activity in the second quarter, as the weather around the country improved. The Company’s record second quarter sales, which made up for the shortfall of sales reported for the first quarter of 2014.
In the second quarter of 2014 the Company improved its gross profit as a percentage of net sales to approximately 39% from approximately 36% from the second quarter of 2013. The improved margin is a result of management’s focus on sales of higher margin products to its major customers. Our record second quarter net sales increased approximately 8%, with the gross margin dollars increasing 15%. As a result of the increased gross margin dollars, net income increased 138% in the second quarter of 2014, compared to the second quarter of 2013. It is noteworthy that our second quarter sales have increased for the past three years.
For the six month period the Company also reported record gross margin percentages as well as record gross margin dollars”.
“The Balance Sheet remains strong,” Mr. Dornau said. “At June 30, 2014 the Company’s current ratio was approximately 6:1. Also, the Company did not have any outstanding amount on its revolving line of credit and had a cash balance of approximately $2.7 million after the payment of the special dividend earlier in the second quarter.”
| 1 |
Mr. Dornau concluded: “As we move forward into the second half of the year, we are focused on the continued growth of sales. We have hired a senior sales and marketing executive whose primary responsibility is the commercialization, launch and growth of our new group of products, Performacide®. We fully anticipate having Performacide® in the market place in the fourth quarter of this year. We also have recently initiated several sales and marketing initiatives to increase Ocean Bio-Chem’s marine and other product sales. We are also continuing our strategy of expanding sales in new markets.”
Ocean Bio-Chem, Inc. is principally engaged in the manufacturing, marketing and distribution of a broad line of appearance and maintenance products for boats, recreational vehicles, automobiles, power sports, outdoor power equipment and motorcycle markets under the Star brite® StarTron® and other trademarks within the United States of America and Canada. In addition, the Company produces private label formulations of many of its products for various customers and provides custom blending and packaging services for these and other products. It manufactures its products in a 300,000 sq. ft. facility in Montgomery, Alabama, from which they are distributed across the globe.
The Company trades publicly under NASDAQ Capital Markets, Ticker Symbol: OBCI.
The
Company's web sites are:
www.oceanbiochem.com, www.Starbrite.com, www.Startron.com and www.nos-guard.com
Forward-looking Statements:
Certain statements contained in this Press Release including without limitation expectations as to future sales and operating results, constitute forward-looking statements. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed forward-looking statements. Without limiting the generality of the foregoing, words such as "believe," "may," "will," "expect," "anticipate," "intend," "could" including the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that may affect these results include, but are not limited to, the highly competitive nature of our industry, reliance on certain key customers, changes in consumer demand for marine, recreational vehicle and automotive products, advertising and promotional efforts, exposure to market risks for changes in interest rates and in foreign exchange rates, and other factors.
Contacts:
Peter Dornau
President & CEO
pdornau@starbrite.com
954-587-6280
Jeff
Barocas
Vice President & CFO
Jbarocas@starbrite.com
954-587-6280
Paul
Knopick
E & E Communications
pknopick@eandecommunications.com
940-262-3584
2