OurPet's Company Reports Record 2007 Second-Quarter and First-Half Financial Results
Thursday July 26, 8:30 am ET
FAIRPORT HARBOR, OH--(MARKET WIRE)--Jul 26, 2007 --
-- Second-Quarter Net Income up 628.4% on a 28.3% Increase in Quarterly
Sales
-- First-Half Net Income up 262.9% on a 25.5% Increase in First-Half
Sales
-- Management Optimistic About 2007
OurPet's Company (OTC BB:OPCO.OB - News): a growing designer, developer, producer and marketer of accessory and consumable pet products, today reported record financial results for the 2007 second quarter and first half ended June 30, 2007.
Net revenues for the 2007 second quarter increased 28.3 percent to $2,816,812 from $2,196,069 in the same period a year ago. Gross margin, as a percent of sales for the 2007 second quarter, increased significantly, 5.1 percentage points to 28.9 percent, from 23.8 percent in the 2006 second quarter. Net income for the 2007 second quarter increased 628.4 percent to $172,012, compared to $23,615 for the 2006 second quarter. Earnings, before interest, taxes, depreciation and amortization (EBITDA), for the 2007 second quarter, increased 107.6 percent to $331,507, compared to $159,703 for the 2006 second quarter.
Net revenues for the 2007 first half increased 25.5 percent to $5,400,182 from $4,303,510 in the same period a year ago. Gross margin, as a percent of sales for the 2007 first half, increased 2.7 percentage points to 27.8 percent, from 25.1 percent in the 2006 first half. Net income for the 2007 first half increased 262.9 percent to $287,525, compared to $79,234 for the 2006 first half. EBITDA for the 2007 first half increased 77.7 percent to $600,608, compared to $337,916 for the 2006 first half.
Dr. Steven Tsengas, President and CEO, stated, "We reached many financial and operating milestones during the quarter, including record second quarter sales and net earnings. During the quarter, we successfully completed the move into our new warehouse at our headquarters, greatly enhancing the amount of space we have for inventory and efficient staging, fulfillment, receiving and shipping operations. As a result of this expansion, we closed a warehouse facility operated in Akron, Ohio, which will lower our cost of doing business. Also during the 2007 second quarter, we were successful in expanding our market penetration as we received orders from two major national drugstore chains. This is our first entrance into the drugstore market. Most importantly during the quarter, we became much closer to the launch of the SmartScoop™ automatic cat litter box. We are working closely with our Chinese manufacturer to make sure the launch goes smoothly.
"For the quarter, sales and net earnings continued to improve as a result of the strong growth from our existing product lines mostly to our established customers. As a result, we are well positioned to expand sales and earnings as we enter the seasonally strong second half of the year. During the second half of 2007, we also expect to launch our ecoPure Naturals brand of products. I encourage everyone to go to our new websites featuring SmartScoop™ and ecoPure Naturals. They can be found at smartscoop.com and ecopurenaturals.com."
Dr. Steve concluded, "While we are concentrating very hard on successfully launching our new products, we have begun developing new products for 2008. We are optimistic that during 2008 we will introduce a significant amount of innovative new products focused on promoting pet health, well-being and owner and pet interaction. We remain optimistic that the remainder of 2007 will show very favorable comparisons over the same periods last year."
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.
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 rates; rising costs for raw materials and the unavailability of sources of supply; the timing of orders booked; and the other risks that are described from time to time in OurPet's SEC reports. |
