Ocean Bio-Chem has announced its full year and fourth quarter 2019 financial results, showing the company’s record net income was about $3.5 million, compared to 2018 net income of $2.8 million, an increase of about $700,000 or 25 percent.
The company also reported record net sales in 2019 of about $42.3 million, compared to about $41.8 million for 2018, an increase of about $500,000.
Fourth quarter 2019 net sales were about $9.7 million, compared to fourth quarter 2018 net sales of about $8.8 million, an increase of about $900,000 or 10 percent. Fourth quarter 2019 net income was about $649,000 compared to a net loss of about $122,000 in 2018, an increase of about $771,000.
“The company’s 2019 net income of approximately $3.5 million is a record for the company,” said Peter Dornau, president and CEO. “It represents an increase of approximately 25 percent over the 2018 net income. Our income increase was primarily a result of increased higher margin sales from the company’s strategic acquisition in 2018 of ‘Snappy Marine,’ a product group of branded teak care products. In addition, the company recorded increased sales growth in our higher margin Star brite-branded marine products. The sales growth of our higher margin products was partially offset by lower margin sales of winterizing products.”
“Our fourth quarter financial performance was extremely strong when compared to the comparative fourth quarter of 2018,” said Jeffrey Barocas, vice president and CFO. “We realized a 10 percent increase in net sales which was led by increased sales to customers in a majority of business sectors we sell in. Just as impressive is the company’s record fourth quarter gross profit increase. The company reported an increase in gross profit of approximately $1 million, a 44 percent increase to approximately $3.3 million. The increase in gross profit in the fourth quarter is result of a combination of improved mix of higher margin sales, in addition to lower manufacturing and distribution costs.”
“We are currently receiving increased orders for our chlorine dioxide product for both branded Performacide product and private labeled products,” said Dornau. “Performacide is EPA-registered disinfectant and sanitizer that is proven to kill previously known strands of human coronavirus, and meets EPA criteria for use against the new, SARS-CoV-2, the cause of COVID-19. Our company is designated as a critical production facility. As such, we are hiring personnel and number of shifts to try and meet overwhelming demand for Performacide. It is too early to determine the effects the COVID-19 virus will have on our Star brite sales of core products.”