Ocean BioChem Inc. (NASDAQ:OBCI) filed Quarterly Report for the period ended 2010-09-30.
Ocean Biochem Inc. has a market cap of $17.1 million; its shares were traded at around $2.17 with a P/E ratio of 10.3 and P/S ratio of 0.7.
Highlight of Business Operations:Advertising and promotion expenses were approximately $514,000 compared to $380,000 for the comparative 2009 third quarter. The increase in expenses of approximately $134,000 is a result of timing of advertising expenditures. It is anticipated that the full year 2010 advertising expenditures will be comparable to 2009 s full year advertising expenditures.
Interest expense decreased by approximately $8,000 for the quarter ended September 30, 2010 to $33,000 compared to the corresponding quarter of $41,000 in 2009. The lower interest expense is a result of both reduced debt levels and lower overall average lower interest rates on the Company s borrowings. Specifically lower interest rates attributable to the Company remarketing its Industrial Revenue Bonds in the first quarter of this year and the reduction of the interest rate by ¼ % in the Company s line of credit facility.
Advertising and promotion expenses were approximately $1,201,000 compared to $1,279,000 for the comparative 2009 period. The decrease in advertising expenses of approximately $78,000 is the timing of advertising and promotion of the Company s products. As referenced above in the quarterly management discussion and analysis, the full year expenditures are not anticipated to be lower than the full year prior years advertising expenditures.
Selling and administrative expenses increased approximately $396,000 to $3,647,000 from $3,251,000, for comparative periods. Variable selling expenses increased in relationship with the increased sales. These expenses include sales commissions and freight to customers. In addition, the administrative expense increase mainly resulted from an increase in non-cash stock based compensation, and the payment of performance bonuses. The Company also incurred one time organization expenditures for the joint venture of OST completed for the 9 months of $67,000.
Interest expense decreased by approximately $69,000 for the nine months ended September 30, 2010 to $101,000 from $170,000 for the corresponding 2009 period. The lower interest expense is a result of both reduced debt levels and lower overall average borrowings on the Company s line of credit, in conjunction with lower interest rates on the Company s IRB s which remarketed in the first quarter of this year.
Net profit for the nine months ended September 30, 2010 was approximately $1,557,000 compared to $831,000 for the comparable period in 2009 an increase of $726,000 or 87.4%.
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