Exhibit 99
| | | | |
| | OurPet’s Company 1300 East Street Fairport Harbor, OH 44077-5573, USA (800) 565-2695 * Phone (440) 354-6500 Fax (440) 354-9129 * www.ourpets.com | | |
FOR IMMEDIATE RELEASE
OurPet’s Company Reports Record 2007 First-Quarter Financial Results
• First-Quarter Net Income up 107.7% on a 22.6% Increase in Quarterly Sales
• Management Optimistic About 2007
FAIRPORT HARBOR, OHIO – April 30, 2007 – OurPet’s Company (OTC BB:OPCO):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.
| | | | |
| CONTACT: | | | | INVESTOR RELATIONS: |
OurPet’s, Company | | -or- | | SM Berger & Company, Inc. |
Dr. Steven Tsengas | | | | Andrew Berger |
(440) 354-6500 (Ext. 111) | | | | (216) 464-6400 |
—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
| | | | | | |
| | | March 31,
2007 | | December 31,
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 |
| | | | | | |
###
