SOURCE: Ocean Bio-Chem, Inc.

May 12, 2011 07:30 ET

Ocean Bio-Chem, Inc. -- Reports Record First Quarter Net Income and Earnings per Share

FORT LAUDERDALE, FL--(Marketwire - May 12, 2011) - Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today reported record net income of approximately $628,000 for the first quarter of 2011, compared to net income of approximately $394,000 for the first quarter 2010, an increase of approximately 64%. Earnings per share for the first quarter 2011 increased to $.08 per share (basic & diluted) from $.05 per share (basic & diluted) for the comparable first quarter 2010. The Company also reported record first quarter 2011 net sales of approximately $6,733,000 compared to approximately $5,198,000, for the comparable first quarter of 2010, an increase of approximately 30% or $1,535,000.

First Quarter Ended
March 31,
20112010
Net sales$6,732,507$5,197,874
Net income attributable to OBCI$627,709$394,445
Income per share (both basic & diluted)$0.08$0.05
Average shares outstanding
Basic7,853,6137,702,313
Diluted8,176,3228,015,232

Ocean Bio-Chem, Inc. CEO Peter Dornau stated, "Ocean Bio-Chem had a very strong quarter. For the first quarter 2011, the Company had record sales, gross margin dollars and gross margin percents. In addition, the Company had record first quarter operating profits and net income. The record financial results for the first quarter have been accomplished despite the sluggish retail environment. We have continued to increase sales in all of our markets and product groups."

Mr. Dornau continued, "It is important to remember that our record first quarter 2011 sales and income is compared to record results for sales and income the Company reported for the first quarter 2010. The Company's strategic sales and marketing plans have been very successful. In the first quarter 2011 the Company also had record gross profit margin percents. The gross margin percentages increased approximately 4% to 37% from 33% in the first quarter 2010. This is a result of the Company continuing to increase in sales of higher margin products. In addition, with increased production volume in our Kinpak manufacturing facilities, we are able to spread the higher production volume over the fixed component of manufacturing costs, also increasing margins. The increase in gross margins was partially offset by higher costs of petroleum based raw materials. Like many companies, we continue to be challenged by rising raw material costs as a result of higher oil prices, which have begun to impact our margins."

Mr. Dornau concluded, "We are off to an excellent start in 2011 and look forward to another successful year for our shareholders."

About Ocean Bio-Chem
Ocean Bio-Chem, Inc. manufactures and markets a full line of maintenance and care products for marine, automobile, motorcycle, power sports, outdoor power equipment, RV, agriculture, hardware, lawn & garden and OEM's. Products are sold under the Starbrite, StarTron, Sea Safe, Sta-Put, Extend-a-Brush and Nos Guard names, as well as private label brands. The Company trades publicly under NASDAQ Capital Markets, Ticker Symbol: OBCI.

The Company's web sites are: www.oceanbiochem.com, www.starbrite.com and www.startron.com.

Note regarding forward-looking statements
This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements concerning statements that are predictive or express expectations that depend on future events or conditions that involve risks and uncertainties. These forward-looking statements include, among other things, statements that relate to our earnings and growth in profitability, uncertainties with respect to our valuation allowance and our expectations with respect to full year 2011 results, as well as facts and assumptions underlying these expectations. In addition, the results presented in this release are preliminary and unaudited, and may change as the company finalizes its financial statements. Actual results for the first quarter of 2011 and the current fiscal year may differ materially from the preliminary expectations expressed or implied in this release due to various risks, uncertainties or other factors, including those set forth in the Ocean Bio-Chem, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as well as the discussion of critical accounting policies in our Form 10-K for the year ended December 31, 2010. Except as required by applicable law, Ocean Bio-Chem, Inc. assumes no responsibility to update any forward-looking statements as a result of new information, future events or otherwise.

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