SOURCE: Ocean Bio-Chem Inc.

May 12, 2006 11:12 ET

Ocean Bio-Chem Reports Profit for First Quarter 2006

Sets Five-Year Record High for Net Sales

FORT LAUDERDALE, FL -- (MARKET WIRE) -- May 12, 2006 -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today reported net earnings per share of $ .03 for the first quarter ending March 31, 2006 versus a net loss of ($ .10) per share for the comparable first quarter of 2005. Net sales increased 42.4% to approximately $4,409,600 for the quarter ended March 31, 2006 compared to approximately $3,095,800 for the same quarter of the preceding year. Management reported that the rise in net sales between comparable quarters was due primarily to increased orders from its largest customer, West Marine.

Cost of goods sold amounted to approximately $3,060,500 or 69.4% of net sales compared to approximately $2,740,500 or 88.5% of net sales for the quarters ended March 31, 2006 and 2005, respectively. Selling and administrative expenses decreased approximately $182,900 or 18% when comparing the quarters ended March 31, 2006 and 2005.

First Quarter Ending March 31        2006         2005
Net Sales                        $ 4,409,592  $ 3,095,778
Net income (loss)                $   192,840  $  (571,216)
Earnings per share (loss)        $       .03  $      (.10)
Average Shares Outstanding
 (fully diluted)                   5,849,316    5,467,814
Ocean Bio-Chem CEO Peter Dornau expounded, "As disclosed in our Form 10-Q for the quarter ended March 31, 2005, our largest customer, West Marine, publicly announced their adoption of a policy to reduce their overall inventory levels. This policy adversely impacted our revenues for all of 2005. By the close of the first quarter 2006, West Marine had increased their purchases from us significantly over the 2005 first quarter. This increase in revenues was further enhanced by a sales price increase passed along to substantially all customers effective January 2006.

"Our gross margins improved due, in part, to the fixed portion of our manufacturing overhead being absorbed by an increased level of revenues for the first quarter of 2006. The above referenced sales price increase also contributed to this improvement. In addition, we anticipate certain modifications initiated in our manufacturing processes during late 2005 and into 2006 will impact our operating results during the course of 2006.

"We have seen positive growth in our Startron® enzyme fuel additive's sales and accordingly we have strategically placed increased levels of media and print advertising promoting this product. Our financial position at the end first quarter 2006 is vastly improved over the comparable period in 2005 and our first quarter's revenues for 2006 are, in fact, a record high over the past five year's first quarter results."

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.

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
    GeoMarketing, Financial Relations