Exhibit 99
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Company Contacts: | | Dr. Steven Tsengas, CEO |
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| | | John G. Murchie, VP/Treasurer |
| | | (440) 354-6500 |
For Immediate Release
OurPet’s Releases First Quarter Results
| | • | Profit Margin Increases 12% |
| | • | Introduces Fifty New Products (33% increase) |
| | • | Marketing and Intellectual Property Base Expands |
Fairport Harbor, OH – May 6, 2004: OurPet’s Company (OPCO OTCBB) today reported financial results for its first quarter ended March 31, 2004. Net sales for the first quarter were $1,325,000, an increase of 4% compared to $1,276,000 for the prior year first quarter. Gross profit for the quarter was $369,000 or 28% of net sales compared to $328,000 or 26% of net sales for the prior year quarter. Net income for the quarter was $8,000 compared to a net income of $10,000 in the prior year first quarter.
The following table summarizes financial highlights for the First Quarter:
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| | | 2004
| | 2003
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Net Sales | | $ | 1,324,581 | | $ | 1,276,283 | | +4 | % |
Gross Profit | | | 369,292 | | | 328,448 | | +12 | % |
Income (Loss) From Operations | | | 20,848 | | | 36,335 | | -43 | % |
Net Income (Loss) | | | 7,731 | | | 10,139 | | -24 | % |
Earnings Per Share* | | | 0.00 | | | 0.00 | | — | |
| * | Basic and diluted net income per common share after dividend requirements for preferred stock. |
Dr. Steven Tsengas, President and CEO of OurPet’s stated “We were able to increase our sales in the first quarter through new product introductions, new customer additions and through creative marketing and promotional programs. Our customers have enthusiastically accepted our new products including the Store-N-Feed, Jr., Groovy Sticks, Durapet Bowls, Gourmet Rawhide Bones and Bubble Mouse. The production and shipment of Store-N-Feed, Jr. and Groovy Sticks will begin in the second quarter of this year.”
Dr. Tsengas added “During the quarter our gross profit increased as a result of decreases in our costs for freight out, foreign warehouse, and depreciation on tooling. However, our net income decreased from last year due to increased marketing expenses for promotional displays, coupons and demonstrations and allowances given to our customers for new product introductions. Furthermore, we introduced over fifty new products at the annual American Pet Product Manufacturers Association (APPMA) Trade Show in March 2004. These investments are necessary in order to maintain our position as one of the most innovative companies in the pet industry and to realize future expanded sales and profits.” As of March 31, 2004, OurPet’s has been granted fifteen USA patents and has an additional twenty-five pending. In addition, OurPet’s has obtained fifteen trademarks and has ten additional pending.
OurPet’s designs, produces and markets in the USA and overseas a broad line of innovative, high-quality accessory and consumable pet products. Investors and customers may visitwww.ourpets.comfor more information about the company and its products. The APPMA * survey estimates approximately 64.2 million U.S. households (62% of all households) currently own a pet, with approximately 46% of these households owning more than one pet. The most popular pets are dogs (39% of all households) and cats (34% of all households). The above survey estimates that there are approximately 378 million pets in the United States.
| * | APPMA, 2003/2004 National Pet Owners Survey |
OURPET’S COMPANY AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(unaudited)
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| | | For the Three Months Ended
March 31,
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| | | 2004
| | | 2003
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Net revenue | | $ | 1,324,581 | | | $ | 1,276,283 | |
Less: Costs and expenses | | | | | | | | |
Cost of goods sold | | | 955,289 | | | | 947,835 | |
Selling, general and administrative expenses | | | 348,444 | | | | 292,113 | |
Interest and other income and expense | | | (1 | ) | | | (3 | ) |
Interest expense | | | 13,118 | | | | 26,199 | |
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Net income (loss) | | $ | 7,731 | | | $ | 10,139 | |
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Basic and Diluted Net Income (Loss) Per Common Share After Dividend Requirements For Preferred Stock | | $ | — | | | $ | — | |
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CONSOLIDATED BALANCE SHEETS
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| | | March 31,
2004
| | December 31,
2003
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| | | (unaudited) | | (audited) |
ASSETS | | | | | | |
Cash and equivalents | | $ | 107,188 | | $ | 36,592 |
Receivables, net | | | 581,958 | | | 629,299 |
Inventories | | | 1,616,851 | | | 1,627,000 |
Prepaid expenses | | | 167,751 | | | 147,244 |
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Total current assets | | | 2,473,748 | | | 2,440,135 |
Property and equipment, net | | | 723,232 | | | 661,863 |
Other | | | 115,263 | | | 114,331 |
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Total assets | | $ | 3,312,243 | | $ | 3,216,329 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Short-term borrowings and current maturities of long-term debt | | $ | 721,528 | | $ | 824,370 |
Accounts payable | | | 758,433 | | | 545,736 |
Accrued expenses | | | 86,419 | | | 92,695 |
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Total current liabilities | | | 1,566,380 | | | 1,462,801 |
Long-term debt | | | 87,557 | | | 102,953 |
Stockholders’ Equity | | | 1,658,306 | | | 1,650,575 |
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Total liabilities and stockholders’ equity | | $ | 3,312,243 | | $ | 3,216,329 |
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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.
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