OurPet's Company Reports Record 2007 First-Quarter Financial Results
Monday April 30, 8:00 am ET
FAIRPORT HARBOR, OH--(MARKET WIRE)--Apr 30, 2007 --
-- First-Quarter Net Income up 107.7% on a 22.6% Increase in Quarterly
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 financial results for the 2007 first quarter ended March 31, 2007.
Net revenues for the 2007 first quarter increased 22.6 percent to $2,583,370 from $2,107,441 in the same period a year ago. Gross margin, as a percent of sales for the 2007 first quarter, was 26.6 percent compared to 26.5 percent in the 2006 first quarter. Net income for the 2007 first quarter increased 107.7 percent to $115,513 compared to $55,619 for the 2006 first quarter. Earnings, before interest, taxes, depreciation and amortization (EBITDA), for the 2007 first quarter, increased 51.0 percent to $269,101, compared to $178,213 for the 2006 first quarter.
Dr. Steven Tsengas, President and CEO, stated, "We are very pleased with how the year has started out. March was our second month of over $1,000,000 in gross revenues in the last five months. The 22.6 percent quarterly sales increase was primarily a result of our existing products, which demonstrates the strength of our brands. We expect to begin shipping our recently introduced new brands of innovative products at the beginning of the third quarter, and anticipate these new products will begin to positively impact our financial results as early as the 2007 fourth quarter.
"While we are happy with our 22.6 percent increase in sales, we are ecstatic about our 107.7 percent increase in net income. Our net margin increased 1.9 percentage points to 4.5 percent from 2.6 percent in the 2006 first quarter. This demonstrates our ability to drive profitable sales and we expect income to continue to increase at a much faster percentage rate than sales."
Dr. Steve concluded, "During the quarter, we strengthened our Board of Directors with the appointment of Dr. Fraser, DVM, we introduced three new brands, signed a 20 year renewable product agreement with our strategic supplier in India, and successfully completed the expansion of our warehouse at our headquarters. We continue to sign on new customers, as we are consistently recognized by the pet industry for our high-quality, innovative pet products, exceptional customer service and on-time delivery. We are excited about our future and expect the seasonally strong second half of the year to show very favorable comparables over the same period 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.
--Financial Results Follow--
OURPET'S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
2007 2006
----------- -----------
Net revenue $ 2,583,370 $ 2,107,441
Cost of goods sold 1,896,505 1,548,078
----------- -----------
Gross profit on sales 686,865 559,363
Selling, general and administrative expenses 534,680 439,458
----------- -----------
Income from operations 152,185 119,905
Acquisition consolidation expenses -- 55,292
Other income and expense, net (2,068) (25,714)
Interest expense 38,740 34,708
----------- -----------
Income before income taxes $ 115,513 $ 55,619
Income tax expense - -
----------- -----------
Net income $ 115,513 $ 55,619
=========== ===========
Basic and Diluted Earnings Per Common Share
After Dividend Requirements For Preferred
Stock:
Net Income $ 0.01 $ -
=========== ===========
Weighted average number of common and equivalent
shares outstanding used to calculate basic
and diluted earnings per share 17,137,861 15,274,199
=========== ===========
OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December
March 31, 31,
2007 2006
----------- -----------
ASSETS
Cash and equivalents $ 59,603 $ 30,400
Receivables, net 1,219,068 1,160,832
Inventories 2,760,558 2,848,980
Prepaid expenses 135,282 48,231
----------- -----------
Total current assets 4,174,511 4,088,443
Property and equipment, net 2,167,834 2,058,201
Other 329,012 329,735
----------- -----------
Total assets $ 6,671,357 $ 6,476,379
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings and current maturities of
long-term debt $ 1,547,570 $ 1,548,911
Accounts payable 1,070,263 1,020,645
Accrued expenses 178,139 164,973
----------- -----------
Total current liabilities 2,795,972 2,734,529
Long-term debt 171,403 211,132
Stockholders' equity 3,703,982 3,530,718
----------- -----------
Total liabilities and stockholders'
equity $ 6,671,357 $ 6,476,379
=========== ===========
Contact:
CONTACT:
OurPet's, Company
Dr. Steven Tsengas
(440) 354-6500 (Ext. 111)
INVESTOR RELATIONS:
SM Berger & Company, Inc.
Andrew Berger
(216) 464-6400
OurPet’s Company
1300 East Street
Fairport Harbor, OH 44077-5573, USA
(800) 565-2695 * Phone (440) 354-6500
Fax (440) 354-9129 * ourpets.com |
