EX-99 2 v342536_ex99.htm PRESS RELEASE

 

 

FOR IMMEDIATE RELEASE

 

OurPet’s Company Reports 2013 First Quarter Results

 

FAIRPORT HARBOR, Ohio – April 25, 2013—OurPet's Company (OTC BB: OPCO www.ourpets.com), a leading proprietary pet supply company, today reported first quarter revenue of $5,040,645 for the three months ended March 31, 2013. Net income for the same period was $223,601.

 

Dr. Steven Tsengas, Chairman and CEO, commented, “While we are pleased with a second straight quarter of reporting healthy profitability and improved margins, we are disappointed by the 3% decrease in net revenues from the same period a year ago.” Commented John Silvestri, President/COO, “Although our base business grew in a weak economy, less than hoped for special promotion results and delays in the launch of the new Food, Drug & Mass retail chain sales program negatively affected revenues. We recently obtained the services of a leading marketing firm to expedite implementation and launch of the new FD&M sales program. Gross profit margin increased to about 29% from 26% as we continue to focus on more profitable sales and operating cost reductions.”

 

Dr. Tsengas continued, “We are very excited with our new product development pipeline. Over the next several quarters, we will begin introducing a number of products in our feeder, toys and feline waste management lines, from “on demand selective” feeders, to various new delivery systems for catnip to semi-automatic litter boxes. The initial interest in our “demand selective feeder” (www.petwonderbowl.com) has been very encouraging with sizable orders pending from several large pet specialty retailers with deliveries in the 2nd and 3rd Quarter. They will be marketed under the OurPet’s® brand for the Pet Specialty channel and the PetZone® brand for the FD&M channels. All things considered, we remain guardedly optimistic for the remainder of the year.”

 

2013 First Quarter Results

 

Total net revenue decreased 3.0% to $5,040,645 for the 2013 first quarter compared to $5,196,345 for the same period a year ago. Despite the decrease in total sales, sales excluding “close-out” customers actually improved over the same period by approximately $212,000. Further, sales to largest customer were up by approximately $118,000 resulting from our new “hybrid” bowls.

 

Gross profit on sales increased for the period as a result of achieving better margins and improving control over costs. Gross profit was $1,456,371 for the 2013 first quarter versus $1,370,960 for the same period in 2012. This increase of about $85,000 resulted primarily from fewer close-out sales and reduced payroll expenses. Gross profit margin increased to 28.9% for the first quarter from 26.4% for the same period a year ago.

 

Income from operations was $304,202 for the 2013 first quarter vs. $156,818 for the same period a year ago. This increase was primarily the result of the increase in gross profit on sales and a decrease in promotional and show related expenses.

 

 
 

 

Income before taxes was $304,740 versus $111,682 for the same period in 2012. OurPet’s incurred an income tax expense of $81,139 for the 2013 first quarter compared to $29,818 for the same period a year ago.

 

Net income was $223,601 for the 2013 first quarter compared to $81,864 for the same quarter last year. Earnings per share were $0.01 for the first quarter of 2013 compared to $0.00 for the same period a year ago.

 

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 our company and its products. OurPet’s Websites include: www.smartscoop.com, www.ecopurenaturals.com, www.playnsqueak.com, www.flappydogtoys.com, www.clipnosis.com, www.cosmiccatnip.com and www.petwonderbowl.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 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, 
   2013   2012 
Net revenue  $5,040,645   $5,196,345 
Cost of goods sold   3,584,274    3,825,385 
Gross profit on sales   1,456,371    1,370,960 
           
Selling, general and administrative expenses   1,152,169    1,214,142 
           
Income from operations   304,202    156,818 
           
Other (income) and expense, net   (40,783)   - 
Interest expense   40,245    45,136 
Income before taxes   304,740    111,682 
           
Income Tax expense   81,139    29,818 
Net Income  $223,601   $81,864 
           
           
Basic and Diluted Net Income Per Common Share After Dividend Requirements For Preferred Stock  $0.01   $0.00 
           
Weighted average number of common and equivalent shares outstanding used to calculate basic and diluted earnings per share   17,645,946    16,386,022 

 

 
 

 

OURPET'S COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

   March 31,   December 31, 
   2013   2012 
ASSETS          
Cash and equivalents  $32,427   $21,269 
Receivables, net   2,039,839    2,540,640 
Inventories, net   5,435,069    5,665,040 
Prepaid expenses   290,664    190,967 
Deferred Tax Asset, net   70,379    93,838 
Total current assets   7,868,378    8,511,754 
           
LONG TERM ASSETS          
Property and equipment, net   1,885,725    1,996,535 
Amortizable intangible assets, net   310,352    296,478 
Intangible Assets   461,000    461,000 
Goodwill   67,511    67,511 
Deposits and Other assets   18,003    18,003 
Total long term assets   2,742,591    2,839,527 
           
Total assets  $10,610,969   $11,351,281 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Notes payable  $100,000   $100,000 
Current maturities of long-term debt   518,000    517,531 
Accounts payable   1,326,227    1,610,752 
Accrued expenses   459,122    484,063 
Total current liabilities   2,403,349    2,712,346 
           
LONG TERM LIABILITIES          
Long-term debt - less current portion above   782,514    837,150 
Revolving line of credit   1,665,032    2,259,032 
Deferred income taxes   181,155    196,435 
Total long term liabilities   2,628,701    3,292,617 
           
Total liabilities   5,032,050    6,004,963 
           
Stockholders' Equity   5,578,919    5,346,318 
           
Total liabilities and stockholders' equity  $10,610,969   $11,351,281