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): August 10, 2020
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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.01 par value | OBCI | The NASADQ Stock Market |
Item 2.02. Results of Operations and Financial Condition
On August 10, 2020, Ocean Bio-Chem, Inc. (the “Company”) issued a press release announcing financial results for the second quarter ended June 30, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Current Report.
The information furnished pursuant to Item 2.02 of this Current Report, including the exhibit 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 No. | Description | |
99.1 | Press Release, dated August 10, 2020 |
1
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 10, 2020 | By: | /s/ Jeffrey S. Barocas |
Jeffrey S. Barocas | ||
Chief Financial Officer |
2
EXHIBIT 99.1
Ocean Bio-Chem, Inc. Reports Record Income and Sales
>Record Second Quarter 2020 - Net Income of $ 3.5 million an increase of 242%
Diluted EPS of $0.36 compared to $0.11 § 227% increase
> Record Six Month 2020 - Net income of $4.1 million an increase of 136%
Diluted EPS of $0.43 compared to $0.18 § 138% increase
FORT LAUDERDALE, FL, August 10, 2020) – Ocean Bio-Chem, Inc. (NASDAQ: OBCI) announced today its record financial results for the second quarter and first six months of 2020.
Record second quarter 2020 net income was approximately $3.5 million compared to net income of approximately $1.0 million for the second quarter of 2019, an increase of 242.0%. Diluted net income per share was approximately $0.36 per share for the quarter, as compared to diluted net income per share of $0.11 per share in the second quarter of 2019, an increase of approximately 227.3%. For the second quarter of 2020, record net sales were approximately $15.7 million, compared to net sales of approximately $10.9 million in the second quarter of 2019, an increase of $4.8 million or 43.5%.
Record net income for the first six months of 2020 was approximately $4.1 million, a 136.5% increase compared to net income of approximately $1.7 million for the first six months of 2019. The six-month 2020 diluted net income per share was approximately $0.43 per share as compared to diluted net income per share of $0.18 for the six months of 2019, an increase of 138.9%. Net sales for the six months ended June 30, 2020 were approximately $23.5 million, an increase of approximately 17.5% compared to net sales of approximately $20.0 million for the first six months of 2019.
(In thousands except per share data)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
NET SALES | $ | 15,702 | $ | 10,945 | $ | 23,521 | $ | 20,026 | ||||||||
PRE-TAX INCOME | $ | 4,366 | $ | 1,294 | $ | 5,168 | $ | 2,219 | ||||||||
NET INCOME | $ | 3,452 | $ | 1,010 | $ | 4,079 | $ | 1,725 | ||||||||
EPS - DILUTED | $ | 0.36 | $ | 0.11 | $ | 0.43 | $ | 0.18 | ||||||||
DIVIDENDS PER SHARE | $ | 0.04 | $ | 0.00 | $ | 0.04 | $ | 0.05 |
Ocean Bio-Chem Chairman, President and Chief Executive Officer Peter Dornau commented: “We are pleased to announce the exceptional financial results for both the second quarter and first six months of 2020. The net income for the second quarter of 2020 of $3.45 million, almost equals the full year 2019 net income. The 2019 net income of $3.50 million was a record for the Company. The financial results for the second quarter was primarily accomplished with increased sales volume and improved gross profit percent. The Company’s gross profit percent increased to 49.1% compared to 41.3% in the same period of 2019, as a result of two major factors: First we had higher sales volume coupled with a more profitable sales mix of products. We had higher gross margin sales, in both our branded core marine products and Performacide® products positively affected the overall gross profit percent. In addition, with increased sales/production volume, the manufacturing overhead expenses were spread over the increased volume of production. Our operating income margin percent increased to 28.1% in the second quarter of 2020 compared 12.1% in the second quarter of 2019”.
Mr. Dornau concluded: “In our view the six-month financial results does not fully reflect the current financial strength of the Company. We believe that COVID-19 had a negative impact in first quarter of 2020 on the Company’s net sales because of the stay-at-home and shelter-in-place orders. The results of the second quarter are more indicative of the Company’s current financial performance. In addition, as announced last week, Performacide® production will potentially increase 33% with the additional production line. Even with the new production line we are still backordered on Performacide® product. In addition, we currently are in the development phase of designing a high-speed line in an effort to meet current and anticipated demands of Performacide®. We believe the positive sales trends of the second quarter of 2020, will continue in the third quarter of 2020, but we can provide no assurance in this regard”.
2
About Ocean Bio-Chem, Inc.:
Ocean Bio-Chem, Inc. is principally engaged in the manufacture, marketing and distribution of a broad line of appearance and maintenance products for boats, recreational vehicles (RV’s), automobiles, power sports equipment, outdoor power equipment and motorcycles under the Star brite®, Star Tron®, Odor Star®, Performacide, Outdoor Collection and other brand names 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. The Company also manufactures, markets and distributes a line of disinfectant, sanitizing and deodorizing products under the Star brite® and Performacide® brand names.
The Company's web sites are: www.oceanbiochem.com, www.Starbrite.com, www.Startron.com and www.Performacide.com
Forward-looking Statements:
Certain statements contained in this Press Release, including without limitation, our estimated financial performance and sales for the third quarter of 2020, increased production of Performacide®, continued strong order pace , continued improvement in gross margin percent and dollars, and increase in production capacity constitute forward-looking statements. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "believe," "may," "will," "expect," "anticipate," "intend," or "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 actual results to be materially different from those 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 relating to changes in interest rates, foreign exchange rates, prices for raw materials that are petroleum or chemical based and other factors addressed in Part I, Item 1A (“Risk Factors”) in our annual report on Form 10-K for the year ended December 31, 2019 and in Part II, Item 1A(“Risk Factors”) of subsequent quarterly reports on Form 10Q.
Contacts:
Peter Dornau
President & CEO
pdornau@starbrite.com
954-587-6280
Jeff Barocas
Vice President & CFO
Jbarocas@starbrite.com
954-587-6280
3