SOURCE: Ocean Bio-Chem, Inc.

March 28, 2011 07:30 ET

Ocean Bio-Chem, Inc. Reports Record Net Income of Over $2 Million, Approximately a 92% Increase, and Record Basic Earnings per Share of $0.26 per Share

FORT LAUDERDALE, FL--(Marketwire - March 28, 2011) - Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today released financial results for 2010. The Company reported record net income for the year ended December 31, 2010 of approximately $2.0 million, compared to net income of $1.1 million for 2009, an increase of approximately 92%. Basic earnings per share were $0.26 per share compared to $0.14 per share for the year 2009. Diluted earnings per share were $0.24 per share compared to $0.14 per share for the year ended 2009. Record net sales, for the year ended December 31, 2010, were approximately $27.4 million compared to approximately $24.6 million for 2009, an increase of $2.8 million or 11%.

  (in thousands except per share & share data)
   
  Year Ended December 31,
  2010   2009
Net Sales $ 27,404   $ 24,633
           
Net Income $ 2,018   $ 1,054
           
Earnings per Share - Basic $ 0.26   $ 0.14
Earnings per Share - Diluted $ 0.24   $ 0.14
           
Avg. Shares (basic)   7,789,699     7,673,438
Avg. Shares (fully-diluted)   8,443,797     7,697,100

Ocean Bio-Chem President and CEO Peter Dornau stated, "Ocean Bio-Chem, Inc. reported its second consecutive year of record net sales. For the year 2010 net sales increased to approximately $27.4 million or 11.2%, compared to 2009 sales. The Company has continued to be successful in implementing its sales and marketing plans as previously disclosed. We have been successful in continuing to increase sales in marine markets as well as expanding sales in new and newer markets. In addition to the sales increases the Company also reported record gross margin percent of 34.2% and record gross margin dollars of $9.4 million. Our gross profit margin percent increased approximately 2.3%, compared to 2009 gross profit margin percent. The gross margin percent increase is a result of two significant factors; the first is increased sales of higher margin products, the second is due to increased production efficiencies and higher volume at our Kinpak manufacturing subsidiary. In addition, the Company has continued to control its operating expenses. Primarily as a result of the above factors, net income increased approximately 92% to over $2.0 million."

Peter Dornau continued, "The Company's balance sheet also continues to strengthen. The Company was able to fully pay off its borrowings under its revolving line of credit, at year end. The Company has reduced its line of credit borrowings by $2.8 million over the past two years. Shareholders equity also increased to approximately $11.2 million at year end."

Peter Dornau concluded, "In 2010, we completed the joint venture Odorstar Technology, LLC. with unique patented products and delivery system to safely eliminate mold, mildew odors. We have completed EPA registrations of the products in all states (except California), expanded and improved manufacturing operations for the production of the Odorstar products, designed new consumer packaging for an easier, safer use of the product. These expenditures have all been reflected in the Company's 2010 financial statements. The process to EPA registration of Odorstar products in all states has taken longer than anticipated. With the state EPA registrations complete, the Company has started shipping products to its larger customers in the marine market. We are optimistic that the Odorstar products will be accretive to sales in 2011, as we expand distribution in other markets including home care, auto and mold remediation companies. Our joint venture partner has been extremely successful in selling products in his designated markets.

"We have seen an increase in business activity in the first two months of 2011, with gross sales increases of 30% and we are cautiously optimistic we will have another successful year."

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 OEMs. 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: 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, the Company or its subsidiaries and is meant purely for informational purposes. 

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