EXHIBIT 99
Company Contacts:Dr. Steven Tsengas, CEO
or
John G. Murchie, VP/Treasurer
(440) 354-6500
For Immediate Release
OurPet's Releases Third Quarter and Year-To-Date Results
Sales Increase 22%
Gross Profit Increases 27%
Net Income Increases $216,452
- Secures $300,000 Bank Financing
- Plans to expand product Offerings by over 25%
Fairport Harbor, OH -- October 25, 2005: OurPet's Company (OPCO OTCBB) today reported financial results for its third quarter and nine months ended September 30, 2005. For the nine months of 2005 net sales were $4,978,373, an increase of 22% compared to $4,094,704 for the prior year nine months. The income from operations was $229,279 compared to a loss from operations for the prior year of $4,344 for an improvement of $233,623. Net income for the nine months was $170,270 compared to a net loss for the prior year of $46,182 for an improvement of $216,452.
Net sales for the third quarter were $1,619,413, an increase of 6% compared to $1,534,681 for the prior year third quarter. The income from operations was $63,354 compared to the prior year of $55,676 for an improvement of $7,678. Net income for the quarter was $42,839 compared to the prior year of $40,909 for an improvement of $1,930. Incoming orders from retail accounts were affected by the high energy costs, hurricane disruptions and newly implemented inventory reduction programs. "I was pleased that we were able to sustain our revenue and profit growth in spite of these external challenges and while increasing our internal expenditures related to product and market development", said Dr. Tsengas, CEO of OurPet's Company.
"We remain very optimistic about the future of OurPet's and the pet industry and hope to grow our product offerings by over 25 percent in the next six months. To support its new product development, tooling and market launch, OurPet's successfully negotiated and obtained a long term loan of $300,000. These new products and new marketing strategies should allow us to expand future revenues and profits by growing current customer sales as well as obtaining new accounts and entering new market segments" explained Dr. Tsengas.
The following table summarizes financial highlights:
| | Third Quarter | Nine Months |
| | 2005 | 2004 | 2005 | 2004 |
Net Sales | $1,619,413 | $1,534,681 | $4,978,373 | $4,094,704 |
Gross Profit | 420,318 | 423,251 | 1,349,405 | 1,062,022 |
Income (Loss) From Operations | 63,354 | 55,676 | 229,279 | (4,344) |
Net Income (Loss) | 42,839 | 40,909 | 170,270 | (46,182) |
Earnings (Loss) Per Share* | 0.00 | 0.00 | 0.01 | (0.01) |
* Basic and diluted net income per common share after dividend requirements for
preferred stock.
Effective August 1st, OurPet's has completely revised its web site at www.ourpets.comto give improved information to customer and investors about its products, business and financial results. Website visitors can also purchase products through the listed retailers or real-time through an approved E-commerce Site. "We are very excited and proud of our new Website and encourage everyone to visit it," said Dr. Steven Tsengas. Action to identify an Investor Relations firm to improve communications with the investment community continues.
OurPet's designs, produces and markets in the USA and overseas a broad line of innovative, high-quality accessory and consumable pet products. The APPMA * estimates that the pet industry will expand to $35.9 billion in 2005 vs. 17 billion in 1994, making it the seventh largest industry in the USA and 60 percent larger than the toy industry.
* APPMA, 2005/2006 National Pet Owners Survey
OURPET'S COMPANY AND SUBSIDIARIES |
CONSOLIDATED OPERATING RESULTS |
(unaudited) |
| | | | | | | |
| For the Nine Months Ended | | For the Quarter Ended |
| September 30, | | September 30, |
| 2005 2004 | | 2005 2004 |
| | | | | | | |
Net revenue | $4,978,373 | | $4,094,704 | | $1,619,413 | | $1,534,681 |
Less: Costs and expenses | | | | | | | |
Cost of goods sold | 3,628,968 | | 3,032,682 | | 1,199,095 | | 1,111,430 |
Selling, general and administrative expenses | 1,120,126 | | 1,066,366 | | 356,964 | | 367,575 |
Other income and expense | 6,906 | | 2,296 | | 707 | | (1) |
Interest expense | 52,103 | | 39,542 | | 19,808 | | 14,768 |
Net income (loss) | $170,270 | | $(46,182) | | $42,839 | | $40,909 |
| | | | | | | |
Basic and Diluted Net Income (Loss) Per Common | | | | | | |
Share After Dividend Requirements For | | | | | | | |
Preferred Stock | $0.01 | | $(0.01) | | $0 | | $0 |
| | | | | | | |
CONSOLIDATED BALANCE SHEETS | | | | | | | |
| | | | | | | |
| September 30, | | December 31, | | | | |
| 2005 | | 2004 | | | | |
| (unaudited) | | (audited) | | | | |
| | | | | | | |
ASSETS | | | | | | | |
Cash and equivalents | $94,249 | | $28,989 | | | | |
Receivables, net | 872,648 | | 701,033 | | | | |
Inventories | 2,026,895 | | 1,425,652 | | | | |
Prepaid expenses | 118,800 | | 112,752 | | | | |
Total current assets | 3,112,592 | | 2,268,426 | | | | |
Property and equipment, net | 711,385 | | 744,348 | | | | |
Other | 217,406 | | 222,722 | | | | |
| | | | | | | |
Total assets | $4,041,383 | | $3,235,496 | | | | |
| | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | |
Short-term borrowings and current maturities | | | | | | | |
of long-term debt | $1,088,936 | | $711,920 | | | | |
Accounts payable | 946,794 | | 631,534 | | | | |
Accrued expenses | 141,703 | | 93,903 | | | | |
Total current liabilities | 2,177,433 | | 1,437,357 | | | | |
Long-term debt | 30,165 | | 134,624 | | | | |
Stockholders' Equity | 1,833,785 | | 1,663,515 | | | | |
| | | | | | | |
Total liabilities and stockholders' equity | $4,041,383 | | $3,235,496 | | | | |
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 t his 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 res ults 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.
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