Ocean Bio-Chem has reported its financial results for the third quarter and the first nine months of 2019.
For the three months ended Sept. 30, net sales were about $12.5 million, compared to net sales of approximately $13 million for the three months ended Sept. 30, 2018, a decrease of about 5.2 percent.
For the three months ended Sept. 30, net income was about $1.1 million, compared to net income of approximately $1.2 million for the three months ended Sept. 30, 2018, resulting in a decrease of 11.6 percent.
For the nine months ended Sept. 30, net sales were about $32.5 million, compared to net sales of $32.9 million for the same period of 2018, a decrease of 1.3 percent.
For the nine months ended Sept. 30, net income was about $2.8 million, compared to net income of $2.9 million for the first nine months of 2018, a decrease of 2.3 percent.
“We believe the decline in third quarter 2019 net sales as compared to the same period in 2018 reflects continued adverse weather conditions in parts of the U.S. and the resulting curtailment of boating activity,” said Peter Dornau, president and CEO of Ocean Bio-Chem. “In addition, the decline was due to competitive pricing pressures as a result of reduced raw materials costs, which resulted in lower average selling prices for our winterizing products. However, as a result of an improved sales mix, the company improved its gross margin as a percentage of sales to 35.2 percent in the third quarter of 2019 from 34.2 percent for the same period in 2018.”
“The financial position of the company continues to be strong,” said Jeffrey Barocas, CFO. “At Sept. 30, the company had approximately $4 million in cash (including $2.1 million in unrestricted cash and $1.9 million restricted to use in connection with the expansion of our Montgomery, Ala., facilities), with a current ratio of 6.5 to 1. At Sept. 30, the company did not have any outstanding balances on its line of credit.”
