SOURCE: Ocean Bio-Chem Inc.

November 14, 2006 14:27 ET

Ocean Bio-Chem Profit Increase Jumps at Nine Months Ending September 30, 2006

CEO Notifies of Plan to Exercise Conversion Rights on $1.5 Million of Company Debt

FORT LAUDERDALE, FL -- (MARKET WIRE) -- November 14, 2006 -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today reported a profit increase jump in fully diluted Net Earnings for its 3rd Quarter or three month period ending September 30, 2006 of $ .11 per share versus net earnings (loss) of ($ .07) per share for the same period in 2005. Net Sales for the 2006 3rd Quarter were $7,725,089 versus $5,952,831 for the 2005 3rd Quarter, representing a 30% increase of approximately $1,772,000 over the same period in 2005.

For the nine-month period ended September 30, 2006 and comparable period ending September 30, 2005, the Company reported fully diluted Net Earnings of $ .10 per share for 2006 versus Net Earnings (loss) of ($ .23) per share for the comparable nine-month period in 2005. For the nine month period of 2006, Net Sales totaled approximately $16,466,190 for a 20.7% increase or a $2,830,466 difference from $13,635,724 in 2005.

     Three-months ending September 30                 2006         2005
Net Sales                                         $  7,725,089 $ 5,952,831
Net income (loss)                                 $    670,681 $  (418,254)
Earnings per share fully diluted (loss)           $        .11 $      (.07)
Average Shares Outstanding (Diluted weighted)        6,106,214   5,744,767

     Nine-months ending September 30                  2006         2005
Net Sales                                         $16,466,190  $13,635,724
Net income (loss)                                 $  7650,285  $(1,305,697)
Earnings per share fully diluted (loss)           $       .10  $      (.23)
Average Shares Outstanding (Diluted weighted)       6,369,933    5,721,078
Ocean Bio-Chem President and CEO Peter Dornau described the financial progress of the Company to date, "The 3rd Quarter of 2006 was buoyed by our favorable Anti-freeze season as well as largest customer resuming their purchasing, after apparently reaching their inventory goals. Additionally, new customer development and sales price increases passed along to customers to cover increasing costs during the past nine months helped to produce a solid jump in profit. This was reflected in a cost of goods sold decrease to 71% of Net Sales for the nine months ended September 30, 2006 compared to 80% of Net Sales for the nine months ended September 30, 2005. Moreover, our improved margins were boosted not only by sales price increases to customers but also by certain initiatives adopted in our manufacturing processes, and the result of spreading the fixed element of our manufacturing overhead over the higher reported sales levels.

"We are pleased to report that our ongoing efforts to control costs have reduced personnel outlay, principally at Kinpak, lowered consulting fees and other outside services such as professional fees and outsourced data processing services. As a result, we were able trim expenses by approximately $341,900 or 11.7% for the nine months ended September 30, 2006 compared to the nine months ended September 30, 2005. With optimism, we look forward to a favorable 2006 4th Quarter."

Dornau added, "In order to trim interest costs, on November 10, 2006 I notified the Company that I am exercising my conversion rights on the $1.5 million that I loaned to the company and, accordingly, our long-term debt will be reduced and shareholders' equity will be increased by the approximate $1,250,000 net obligation reflected on the September 30, 2006 financial statements.

About Ocean Bio-Chem

Ocean Bio-Chem, Inc. manufactures and markets a full line of maintenance and care products for boats, recreational vehicles, automobiles, motorcycles and aircraft. Products are sold under the Starbrite™ name. The Company trades publicly under NASDAQ SmallCap Symbol: OBCI. The Company's products and facilities are also featured in our website.

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

Contact Information

  • For additional information contact:
    Peter Dornau
    (954) 587-6280
    President and CEO
    Ocean Bio-Chem, Inc.

    James Nikas
    (415) 885-6813
    Financial Relations

    Ocean Bio-Chem, Inc.
    4041 S. W. 47th Avenue
    Fort Lauderdale, FL 33314
    Tel. (954) 587-6280
    Fax. (954) 587-2813