OurPet's Company Reports Record 2006 First-Quarter Financial Results
First-Quarter Revenues Up 33.8%
First-Quarter Income from Operations Up 74.5%
FAIRPORT HARBOR, Ohio--(BUSINESS WIRE)--May 15, 2006--OurPet's Company (OTCBB:OPCO - News): a growing designer, developer, producer, and marketer of accessory and consumable pet products, today reported financial results for its first quarter ended March 31, 2006.
Net revenues for the 2006 first quarter increased 33.8 percent to $2,107,441 from $1,574,959 in the same period a year ago. The recent Pet Zone acquisition added $371,240 to sales in the 2006 first quarter. Gross margin as a percent of sales for the 2006 first quarter declined slightly to 26.5 percent from 27.2 percent in the 2005 first quarter as a result of lower gross margins on certain Pet Zone products. Net income for the 2006 first quarter increased 5.8 percent to $55,619, from $52,556 in the 2005 first quarter. Earnings, before interest, taxes, depreciation, and amortization (EBITDA), for the 2006 first quarter was $178,213 compared to $136,194 for the 2005 first quarter.
Dr. Steven Tsengas, President and CEO stated, "We are very pleased with our sales and earnings momentum going into the second quarter, even though net revenues for the quarter were negatively impacted by mold delivery delays for our Signature Series Feeder product line. In addition, revenues in the first quarter were also affected by a product launch delay by a major retail customer. We expect sales to accelerate in the second quarter as these delays are now behind us. The Pet Zone acquisition is becoming more integrated into the Company. During the quarter, there was a $55,292 expense for acquisition charges, which going forward is expected to be minimal."
Dr. Tsengas concluded, "We are continuing to work on developing new innovative pet products and believe we will end the year with over 250 products increasing from 150 last year. We are encouraged with how the year is starting out and are optimistic that 2006 will be another record year in terms of revenues and net income."
For investors who would like to be added to OurPet's investor distribution list, please contact andrew@smberger.com .
About OurPet's Company
OurPet's designs, produces and markets a broad line of innovative, high-quality accessory and consumable pet products in the US and overseas. Investors and customers may visit www.ourpets.com for more information about the Company and its products. The American Pet Products Manufacturers' Association APPMA(a) estimates that the pet industry will expand to $35.9 billion in 2005 versus $17.0 billion in 1994, making it the seventh largest industry in the US and 60 percent larger than the toy industry.
(a) APPMA, 2005/2006 National Pet Owners Survey
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements contain the words "projects," "anticipates," "believes," "expects," "intends," "will," "may" and similar words and expressions. Each such statement is subject to uncertainties, risks and other factors that could cause actual results or performance to differ materially from the results or performance expressed in or implied by such statements. The forward-looking statements in this news release that contain projections of the Company's expected financial performance and other projections regarding future performance are inherently subject to change, given the nature of projections, and the Company's actual performance may be better or worse than projected. Uncertainties, risks and other factors that may cause actual results or performance to differ materially from any results or performance expressed or implied by forward-looking statements in this news release include: (1) the Company's ability to manage its operating expenses and realize operating efficiencies, (2) the Company's ability to maintain and grow its sales with existing and new customers, (3) the Company's ability to retain existing members of its senior management team and to attract additional management employees, (4) the Company's ability to manage fluctuations in the availability and cost of key materials and tools of production, (5) general economic conditions that might impact demand for the Company's products, (6) competition from existing or new participants in the pet products industry, (7) the Company's ability to design and bring to market new products on a timely and profitable basis, (8) challenges to the Company's patents or trademarks on existing or new products, or (9) the Company's ability to secure access to sufficient capital on favorable terms to manage and grow its business. A discussion of other risk factors that may cause actual results to differ from the results expressed in or implied by these forward-looking statements can be found in the Company's periodic filings with the SEC. The Company disclaims any duty to provide updates to the forward-looking statements and projections made in this news release.
-- Financial Results Follow--
OURPET'S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
OURPET'S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
2006 2005
------------ ------------
Net revenue $ 2,107,441 $ 1,574,959
Cost of goods sold 1,548,078 1,145,836
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Gross profit on sales 559,363 429,123
Selling, general and administrative expenses 439,458 360,393
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Income from operations 119,905 68,730
Acquisition consolidation expenses (55,292) -
Other income and expense, net 25,714 (1,020)
Interest expense (34,708) (15,154)
------------ ------------
Income before income taxes $ 55,619 $ 52,556
Income tax expense - -
------------ ------------
Net income $ 55,619 $ 52,556
============ ============
Basic and Diluted Earnings Per Common Share
After Dividend Requirements For Preferred
Stock:
Net Income $ - $ -
============ ============
Weighted average number of common and
equivalent shares outstanding used to
calculate basic and diluted earnings
per share 15,274,199 11,787,002
OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2006 2005
------------ ------------
(unaudited) (audited)
ASSETS
Cash and equivalents $ 9,012 $ 6,477
Receivables, net 1,378,490 930,772
Inventories 2,877,040 2,060,172
Prepaid expenses 127,324 98,964
------------ ------------
Total current assets 4,391,866 3,096,385
Property and equipment, net 1,845,651 862,719
Other 261,892 218,976
------------ ------------
Total assets $ 6,499,409 $ 4,178,080
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LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings and current
maturities of long-term debt $ 1,692,672 $ 1,219,185
Accounts payable 1,385,783 867,612
Accrued expenses 145,776 150,687
------------ ------------
Total current liabilities 3,224,231 2,237,484
Long-term debt 249,805 22,843
Stockholders' Equity 3,025,373 1,917,753
------------ ------------
Total liabilities and
stockholders' equity $ 6,499,409 $ 4,178,080
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Contact:
OurPet's, Company
Dr. Steven Tsengas, 440-354-6500
OR
Investor Relations:
SM Berger & Company, Inc.
Andrew Berger, 216-464-6400 |
