Ocean BioChem Inc. (OBCI, Financial) filed Quarterly Report for the period ended 2009-06-30.
OCEAN BIO-CHEM INC. is principally engaged in the marketing and distribution of a broad line of appearance and maintenance products for automobiles boats motorcycles recreational vehicles and aircraft under the Star Brite name. Ocean BioChem Inc. has a market cap of $9.2 million; its shares were traded at around $1.18 with and P/S ratio of 0.4.
Company\'s primary commercial bank - Regions Bank. Security for the Letter of
Credit is a priority first mortgage on the Kinpak facility and collateral on
Kinpak manufacturing equipment. On February 10, 2009 the Company received
notification that its City of Montgomery, AL Series 1997 and Series 2002
Industrial Revenue Bonds with an approximate balance of $1,105,000 and
$2,720,000, respectively, were tendered by various bondholders. At June 30,
2009, $935,000 and $2,660,000 were outstanding, respectively. There has been no
default on these bonds by the Company. It is the understanding of the Company
that due to the tight credit markets, these bonds were tendered. As a result the
Company has been temporarily obligated to its primary commercial bank until the
credit markets improve sufficiently to remarket these bonds. The interest rate
on the loans during this period was prime rate plus 2%, or approximately 5.25%.
We believe current operations are sufficient to meet these obligations. Interest
expenses on such notes were approximately $87,000 for the six months ending June
30, 2009 and $40,300 for the three months ending June 30, 2009.
Advertising and promotion expenses were approximately $576,000 compared to
$468,000 for the comparative 2008 second quarter. The increase in expense of
approximately $108,000 was a result of increased customer cooperative. and
catalog allowances. In addition, the Company increased its brand awareness,
advertising on TV, radio and print advertising for both trade and consumer
publications.
Interest expense decreased by approximately $38,000 for the quarter ended
June 30, 2009 to $57,000 compared to the corresponding quarter of $95,000 in
2008. The lower interest expense is a result in lower overall interest rates on
the Company\'s revolving line of credit, partially offset by higher interest cost
in the Company\'s IRB\'s which were tended in the first quarter of this year.
18
Advertising and promotion expenses were approximately $898,000 compared to
$670,000 for the comparative 2008 period. The increase in advertising expense of
approximately $228,000 was a result of increased customer cooperative,
promotional, and catalog allowances. We also increased consumer and trade
advertising in TV, radio and print. This year we also initiated advertising
programs on the internet, on both Face Book and Twitter.
Interest expense decreased by approximately $32,000 for the six months
ended June 30, 2009 to $128,000 from $160,000 for the corresponding 2008 period.
The decrease is a result of the lower interest costs on the Company\'s revolving
line of credit partially offset by higher interest costs on the Company\'s IRB
loans which were tendered in February 2009. The interest rate on these
obligations during this period was prime rate plus 2%, or approximately 5.25%.
Net profit for the six months ended June 30, 2009 was approximately
$259,000 compared to a net loss of $224,000 for the comparable period in 2008 an
increase of $483,000 or 216%.
Read the The complete Report
OCEAN BIO-CHEM INC. is principally engaged in the marketing and distribution of a broad line of appearance and maintenance products for automobiles boats motorcycles recreational vehicles and aircraft under the Star Brite name. Ocean BioChem Inc. has a market cap of $9.2 million; its shares were traded at around $1.18 with and P/S ratio of 0.4.
Highlight of Business Operations:
Repayment of the bonds is guaranteed by a Letter of Credit issued by theCompany\'s primary commercial bank - Regions Bank. Security for the Letter of
Credit is a priority first mortgage on the Kinpak facility and collateral on
Kinpak manufacturing equipment. On February 10, 2009 the Company received
notification that its City of Montgomery, AL Series 1997 and Series 2002
Industrial Revenue Bonds with an approximate balance of $1,105,000 and
$2,720,000, respectively, were tendered by various bondholders. At June 30,
2009, $935,000 and $2,660,000 were outstanding, respectively. There has been no
default on these bonds by the Company. It is the understanding of the Company
that due to the tight credit markets, these bonds were tendered. As a result the
Company has been temporarily obligated to its primary commercial bank until the
credit markets improve sufficiently to remarket these bonds. The interest rate
on the loans during this period was prime rate plus 2%, or approximately 5.25%.
We believe current operations are sufficient to meet these obligations. Interest
expenses on such notes were approximately $87,000 for the six months ending June
30, 2009 and $40,300 for the three months ending June 30, 2009.
Advertising and promotion expenses were approximately $576,000 compared to
$468,000 for the comparative 2008 second quarter. The increase in expense of
approximately $108,000 was a result of increased customer cooperative. and
catalog allowances. In addition, the Company increased its brand awareness,
advertising on TV, radio and print advertising for both trade and consumer
publications.
Interest expense decreased by approximately $38,000 for the quarter ended
June 30, 2009 to $57,000 compared to the corresponding quarter of $95,000 in
2008. The lower interest expense is a result in lower overall interest rates on
the Company\'s revolving line of credit, partially offset by higher interest cost
in the Company\'s IRB\'s which were tended in the first quarter of this year.
18
Advertising and promotion expenses were approximately $898,000 compared to
$670,000 for the comparative 2008 period. The increase in advertising expense of
approximately $228,000 was a result of increased customer cooperative,
promotional, and catalog allowances. We also increased consumer and trade
advertising in TV, radio and print. This year we also initiated advertising
programs on the internet, on both Face Book and Twitter.
Interest expense decreased by approximately $32,000 for the six months
ended June 30, 2009 to $128,000 from $160,000 for the corresponding 2008 period.
The decrease is a result of the lower interest costs on the Company\'s revolving
line of credit partially offset by higher interest costs on the Company\'s IRB
loans which were tendered in February 2009. The interest rate on these
obligations during this period was prime rate plus 2%, or approximately 5.25%.
Net profit for the six months ended June 30, 2009 was approximately
$259,000 compared to a net loss of $224,000 for the comparable period in 2008 an
increase of $483,000 or 216%.
Read the The complete Report
