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Ocean BioChem Inc. (OBCI) filed Quarterly Report for the period ended 2011-09-30.
Ocean Biochem Inc. has a market cap of $18.32 million; its shares were traded at around $2.29 with a P/E ratio of 8.48 and P/S ratio of 0.67.
This is the annual revenues and earnings per share of OBCI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of OBCI.
Highlight of Business Operations:
Advertising and promotion decreased to approximately $476,000 during the three months ended September 30, 2011 from $514,000 during the corresponding period in 2010, a decrease of approximately $38,000 or 7.4%. As a percentage of net sales, advertising and promotion expense decreased from 5.7% in the third quarter of 2010 to 4.8% in the third quarter of 2011. The decrease reflects differences in the timing of advertizing expenditures. Advertising expense for all of 2011 is expected to be higher than 2010.Cost of goods sold and gross profit – Cost of goods sold in 2011 increased 15.0%, to approximately $16,002,000 from approximately $13,918,000 in 2010. The increase in cost of goods sold is mostly attributable to the increase in net sales. The Company s gross margin percentage remained relatively stable, increasing by 0.1% in 2011. Principally due to the increase in net sales, gross profit for the first nine months of 2011 increased by $1,180,000, or 15.4%, as compared to gross profit in the corresponding period of 2010.
Advertising and promotion increased to approximately $1,506,000 during the nine months ended September 30, 2011 from $1,201,000 during the same period in 2010, an increase of approximately $305,000 or 25.4%. The increase is due to a radio advertising campaign and increased magazine and newspaper advertising. As a percentage of net sales, advertising and promotion expense increased from 5.6% during the nine months ended September 30, 2010 to 6.1% during the nine months ended September 30, 2011.
Selling and administrative expenses increased by approximately $371,000 or 9.4% to $4,018,000 during the nine months ended September 30, 2011 from $3,647,000 during the corresponding period in 2010. The increase is mostly due to an increase in variable selling expenses, including sales commissions and travel and trade show expenses; higher shipping costs due to higher sales volumes; and increased fuel costs to ship products. As a percentage of net sales, selling and administrative expenses decreased from 16.9% during the first nine months of 2010 to 16.2% during the same period in 2011.
Net cash used by operating activities during the nine months ended September 30, 2011 was approximately $1,903,000 compared to approximately $939,000 for the nine months ended September 30, 2010, principally due to increased working capital needs. During the nine months ended September 30, 2011, inventory increased by approximately $2,967,000 and accounts receivable increased by approximately $3,291,000. The inventory increase related to a strategy of purchasing in anticipation of higher petroleum prices, and higher seasonal sales of winterizing products. The increase in accounts receivable is mostly a result of higher September 2011 sales. The uses of cash were partially offset by net income of approximately $2,133,000, non-cash charges of approximately $1,256,000, and an increase of approximately $1,115,000 in accounts payable and other accrued expenses. The major non-cash charges were stock based compensation of approximately $389,000 and depreciation and amortization of approximately $585,000.
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