EX-99 2 v311712_ex99.htm EXHIBIT 99

 

 

FOR IMMEDIATE RELEASE

 

OurPet’s Company Reports Record Revenues for 2012 First Quarter

 

FAIRPORT HARBOR, Ohio – May 2, 2012—OurPet's Company (OTC BB: OPCO) (www.ourpets.com), a leading proprietary pet supply company, today reported record quarter revenue of $5,196,345 for the three months ended March 31, 2012. Net Income for the same period was $81,864. Dr. Steven Tsengas, Chairman and CEO, commented, “We are pleased with the sustained revenue increase, in spite of weak economic conditions, and the resumption of profitable operations. First quarter 2012 results were affected in part by transition costs of relocating the Cosmic Pet Operations from Hagerstown, Maryland to Mentor, Ohio and also our new President/COO to Fairport Harbor, Ohio. The Cosmic move should be completed by the end of July 2012. Along with the cost reductions and efficiencies related to the relocation of Cosmic Pet operations to Ohio, it is expected that profitability will continue improving as the year progresses through other actions taken, including reduction of overhead and general administrative personnel, the successful implementation of the ERP system and resultant administrative efficiencies, product cost reductions and selective price increases. During the first quarter 2012, we were successful in reducing inventories by $309,581 and debt by $504,931.”

 

2012 First Quarter Results

Net revenue increased 8.3% to a record $5,196,345 for the 2012 first quarter compared to $4,795,183 from the same period a year ago. The increase of approximately $401,000 first quarter revenue over the same period in 2011 came primarily from increased sales of our SmartScoop® automatic cat litter box, cat toy and catnip products marketed under the Go! Cat Go!®, Play-N-Squeak® and Cosmic Catnip™ brands and exports. During the first quarter 2011 revenue was positively impacted by a $750,000 one-time promotional order while the first quarter 2012 revenue resulted primarily from base business growth.

 

Gross profit was $1,315,012 for the 2012 first quarter versus $1,345,421 for the same period in 2011. Gross profit margin declined to 25.3% for the 2012 first quarter from 28.0% for the same period a year ago, mainly due to continued efforts to reduce inventory, premium air freight charges from overseas to take advantage of a large customer opportunity and one-time costs incurred to begin transitioning the Cosmic Pet operation from Hagerstown, Maryland to Mentor, Ohio.

 

Income from operations was $156,818 for the 2012 first quarter compared to income from operations of $414,121 for the same period last year.

 

Income before taxes was $111,682 versus income before taxes of $363,692 for the same period in 2011. The Company recognized income tax expense of $29,818 for the 2012 first quarter compared to $127,438 expense for the same period a year ago.

 

Net income was $81,864 for the 2012 first quarter compared to $236,254 for the same quarter last year. Net income per share was $0.00 for the first quarter of 2012 compared to $0.01 for the 2011 first quarter. 

 

About OurPet's Company
OurPet's Company designs, produces and markets a broad line of innovative, high-quality accessory and consumable pet products in the U.S. and overseas. Investors and customers may visit www.ourpets.com for more information about the Company and its products. The Company's Websites include: www.smartscoop.com, www.ecopurenaturals.com, www.playnsqueak.com, www.flappydogtoys.com, www.clipnosis.com, www.hideperchandgo.com and www.cosmiccatnip.com.

 

Certain of the matters set forth in this press release are forward-looking and involve a number of
risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and growth in the industry; general economic conditions; addition or loss of significant customers; the loss of key personnel; product development; competition; risks of doing business abroad; foreign government regulations; fluctuations in foreign currency rates; rising costs for raw materials and sources of supply that may be limited or unavailable from time to time; the timing of orders booked; and the other risks that are described from time to time in OurPet's SEC reports.

 

CONTACT: INVESTOR RELATIONS:
OurPet’s Company OurPet’s Company
Dr. Steven Tsengas, CEO Scott R. Mendes, CFO
(440) 354-6500 (Ext. 111) (440) 354-6500 (Ext. 109)

 

 
 

 

OURPET'S COMPANY AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

 

   For the Three Months Ended 
   March 31, 
   2012   2011 
         
Net revenue  $5,196,345   $4,795,183 
Cost of goods sold   3,881,333    3,449,762 
Gross profit on sales   1,315,012    1,345,421 
           
Selling, general and administrative expenses   1,158,194    931,300 
           
Income from operations   156,818    414,121 
           
Other (income) and expense, net   -    4,346 
Interest expense   45,136    46,083 
Income before taxes   111,682    363,692 
           
Income tax expense   29,818    127,438 
Net Income  $81,864   $236,254 
           
Basic and Diluted Net Income (Loss) Per Common Share After Dividend Requirements For Preferred Stock  $0.00   $0.01 
           
Weighted average number of common and equivalent shares outstanding used to calculate basic and diluted earnings per share   16,386,022    19,758,034 

 

 
 

 

OURPET'S COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

   March 31,   December 31, 
   2012   2011 
ASSETS          
Cash and equivalents  $140,577   $364,978 
Receivables, net   2,217,558    2,370,022 
Inventories, net   5,801,737    6,111,318 
Prepaid expenses   221,562    230,525 
Deferred Tax Asset, net   116,459    155,279 
Total current assets   8,497,893    9,232,122 
           
LONG TERM ASSETS          
Property and equipment, net   2,227,631    2,264,864 
Patents, net   286,485    279,623 
Intangible Assets   461,000    461,000 
Goodwill   67,511    67,511 
Deposits and Other assets   53,441    28,228 
 Total long term assets   3,096,068    3,101,226 
           
Total assets  $11,593,961   $12,333,348 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Notes payable  $100,000   $100,000 
Current maturities of long-term debt   662,543    737,923 
Accounts payable   2,120,059    2,496,891 
Accrued expenses   345,416    284,903 
Total current liabilities   3,228,018    3,619,717 
           
LONG TERM LIABILITIES          
Long-term debt - less current portion above   225,211    277,762 
Revolving line of credit   2,708,964    3,085,964 
Deferred income taxes   190,576    199,577 
Total long term liabilities   3,124,751    3,563,303 
           
Total liabilities   6,352,769    7,183,020 
           
Stockholders' Equity   5,241,192    5,150,328 
           
 Total liabilities and stockholders' equity  $11,593,961   $12,333,348