Our Pets earnings released:
OurPet's Company Reports Record 2006 Third-Quarter and Nine-Months Financial Results
Wednesday October 25, 8:30 am ET
FAIRPORT HARBOR, OH--(MARKET WIRE)--Oct 25, 2006 --
-- Third-Quarter Revenues Up 39.3%
-- Third-Quarter Net Income Up 237.2%
-- Signs Exclusive Licensing Agreement with DockDogs®
-- Management Optimistic About Last Quarter of 2006
OurPet's Company (OTC BB:OPCO.OB - News): a growing designer, developer, producer, and marketer of accessory and consumable pet products, today reported financial results for its third quarter and nine months ended September 30, 2006.
Net revenues for the 2006 third quarter increased 39.3 percent to $2,256,020 from $1,619,413 in the same period a year ago. Gross margin, as a percent of sales for the 2006 third quarter, increased to 29.4 percent from 26.0 percent in the 2005 third quarter. Net income for the 2006 third quarter was $144,470, compared to $42,839 for the same period in 2005, or an improvement of 237.2 percent. Earnings, before interest, taxes, depreciation, and amortization (EBITDA), for the 2006 third quarter increased 125.6 percent to $278,349, compared to $123,375 for the 2005 third quarter.
Revenues for the nine months of 2006 increased 31.8 percent to $6,559,530 from $4,978,373 in the comparable period last year. For the 2006 nine months, gross margin was 26.6 percent compared to 27.1 percent in the 2005 nine months. The gross margin in the nine months of 2006 decreased as a result of lower profitability on certain Pet Zone products and aggressive pricing to penetrate new market segments. Net income for the 2006 nine months was $223,704, from $170,270 for the same period in 2005 -- an improvement of 31.4 percent. EBITDA for the 2006 nine months increased 49.8 percent to $616,265 from $411,322 for the 2005 nine months.
Dr. Steven Tsengas, President and CEO stated, "The Company reported record revenues and earnings for both the 2006 third quarter and nine months. Further, the 2006 year-to-date revenues and earnings are almost equal to what they were for the 2005 full year. The Company's growth over the third-quarter and nine-month period is a result of increased acceptance of our products with consumers, the addition of Pet Zone products, successful marketing efforts, and benefits from our previously disclosed cost reduction initiatives.
"The second half of the year is normally the strongest period of the year and we are pleased to begin the second half with record sales and earnings, which bodes well for our 2006 full-year results. Our financial results tend to fluctuate from quarter-to-quarter, as a result of customer decisions related to promotions and new product roll-outs, and supplier schedule adherence associated with mold completions and product deliveries. We are working hard to increase our customer distribution and with our suppliers to limit these fluctuations.
"We continue to have success penetrating new distribution channels and are pleased to have recently signed an exclusive licensing agreement with DockDogs® -- the governing body for the nation's fastest growing canine sport. DockDogs® events feature dogs running off a dock into a pool of water, competing to see which one can jump the farthest. According to the agreement, OurPet's will become the exclusive provider of a line of licensed DockDogs® pet products, to be sold at all DockDogs® events, as well as online and through retail stores beginning in early 2007. Further, OurPet's will display and promote its own product line through the DockDogs® website www.dockdogs.com and at all of its 2007 events and demos. The initial roll-out of DockDogs® licensed merchandise will include 10-15 SKUs, with a mix of both OurPet's proprietary products and non-proprietary products."
Dr. Tsengas concluded, "This is an exciting time for OurPet's. Our trailing twelve months revenues and earnings now stand at $8,147,564 and $307,672, respectively. Along with our continued aggressive new product development program, we are expanding our infrastructure and investing in additional personnel to position OurPet's for future growth. We are optimistic that financial results for the 2006 fourth quarter and full year will compare favorably to the same periods last year. We look forward to communicating our 2006 annual financial results, which should be released in March 2007."
About OurPet's Company
OurPet's 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 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 U.S. and 60 percent larger than the toy industry.
OURPET'S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net revenue $ 2,256,020 $ 1,619,413 $ 6,559,530 $ 4,978,373
Cost of goods sold 1,591,717 1,199,095 4,813,354 3,628,968
------------ ------------ ------------ ------------
Gross profit
on sales 664,303 420,318 1,746,176 1,349,405
Selling, general
and administrative
expenses 488,217 356,964 1,389,852 1,120,126
------------ ------------ ------------ ------------
Income from
operations 176,086 63,354 356,324 229,279
Acquisition
consolidation
expenses - - (55,292) -
Other income
(expense), net 15,213 (707) 47,396 (6,906)
Interest expense (46,829) (19,808) (124,724) (52,103)
------------ ------------ ------------ ------------
Net income $ 144,470 $ 42,839 $ 223,704 $ 170,270
============ ============ ============ ============
Basic and Diluted
Net Income Per
Common Share
After Dividend
Requirements For
Preferred Stock $ 0.01 $ - $ 0.01 $ 0.01
============ ============ ============ ============
Weighted average
number of common
and equivalent
shares outstanding
used to calculate
basic and diluted
earnings per share 15,508,798 12,053,082 15,471,048 11,887,653
OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2006 2005
----------- -----------
(unaudited)
ASSETS
Cash and equivalents $ 149,902 $ 6,477
Receivables, net 1,100,305 930,772
Inventories 3,192,403 2,060,172
Prepaid expenses 102,477 98,964
----------- -----------
Total current assets 4,545,087 3,096,385
Property and equipment, net 1,945,463 862,719
Other 320,437 218,976
----------- -----------
Total assets $ 6,810,987 $ 4,178,080
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ 1,525,000 $ 1,100,000
Current maturities of long-term debt 172,950 119,185
Accounts payable 1,472,252 867,612
Accrued expenses 136,570 150,687
----------- -----------
Total current liabilities 3,306,772 2,237,484
Long-term debt 310,718 22,843
Stockholders' Equity 3,193,497 1,917,753
----------- -----------
Total liabilities and
stockholders' equity $ 6,810,987 $ 4,178,080
=========== ===========
Contact:
CONTACT:
OurPet's, Company
Dr. Steven Tsengas
(440) 354-6500 (Ext. 111)
INVESTOR RELATIONS:
SM Berger & Company, Inc.
Andrew Berger
(216) 464-6400
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Bruwin - perhaps after the next Q comes out you can assist me in deciphering the bottom line. it looks very promising to me - but like you mentioned in a previous post - their debt is an issue.
Lazarus |
