EXHIBIT 99
FOR IMMEDIATE RELEASE
OurPet’s Company Reports
2007 Third-Quarter and Nine-Months Financial Results
FAIRPORT HARBOR, Ohio – November 6, 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 its third quarter and nine months ended September 30, 2007.
Net revenues for the 2007 third quarter increased 7.7 percent to $2,429,749 from $2,256,020 in the same period a year ago. Gross margin, as a percent of sales for the 2007 third quarter, decreased 4.4 percentage points to 25.0 percent from 29.4 percent in the 2006 third quarter. Net income for the 2007 third quarter decreased to $3,244, compared to $144,470 for the 2006 third quarter. Earnings, before interest, taxes, depreciation and amortization (EBITDA), for the 2007 third quarter, decreased 43.4 percent to $157,627, compared to $278,349 for the 2006 third quarter.
Net revenues for the 2007 nine months increased 19.4 percent to $7,829,931 from $6,559,530 in the same period a year ago. Gross margin, as a percent of sales for the 2007 nine months, increased 0.3 percentage points to 26.9 percent from 26.6 percent in the 2006 nine months. Net income for the 2007 nine months increased 26.9 percent to $290,769, compared to $223,704 for the 2006 nine months. EBITDA for the 2007 nine months, increased 23.0 percent to $758,235, compared to $616,265 for the 2006 nine months.
Dr. Steven Tsengas, President and CEO stated, “While we are disappointed that our third-quarter financial results were not as good as expected, we believe that we are well positioned to profitably grow our business. We are in the midst of one of the biggest launches of the Company’s history and we have experienced some growing pains. In order to successfully launch the SmartScoopTMSelf-Scooping Cat Litter Box, we took a lot of time working with our Chinese manufacturer to make sure the quality of the final product was up to our standards. In doing so, we missed sales opportunities with some of our larger customers to have the SmartScoopTM on their shelves for the fall and winter. In spite of this, the SmartScoopTM launch is going well and we are confident that we will begin to show the results of all of our hard work in the coming quarters.
“I am very confident of the team of associates we have in place to accomplish our business plan. Our other new product categories are being well received especially our ecoPure NaturalsTM brand of natural pet products. We have the best portfolio of brands and products that we have ever had, which are being well received by our customers. In addition, we continue to build our retail customer base. “
Dr. Tsengas concluded, “Our trailing twelve-months revenues and earnings now stand at $10,712,098 and $627,990, respectively. We are optimistic that financial results for the 2007 fourth quarter and full year will compare favorably to the same periods last year. We look forward to communicating our 2007 annual financial results, which should be released in March 2008.”
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 the 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.
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| 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
CONSOLIDATED OPERATING RESULTS
(unaudited)
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| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Net revenue | | $ | 2,429,749 | | | $ | 2,256,020 | | | $ | 7,829,931 | | | $ | 6,559,530 | |
Cost of goods sold | | | 1,823,093 | | | | 1,591,717 | | | | 5,722,949 | | | | 4,813,354 | |
| | | | | | | | | | | | | | | | |
Gross profit on sales | | | 606,656 | | | | 664,303 | | | | 2,106,982 | | | | 1,746,176 | |
Selling, general and administrative expenses | | | 558,806 | | | | 488,217 | | | | 1,694,530 | | | | 1,389,852 | |
| | | | | | | | | | | | | | | | |
Income from operations | | | 47,850 | | | | 176,086 | | | | 412,452 | | | | 356,324 | |
Acquisition consolidation expenses | | | — | | | | — | | | | — | | | | 55,292 | |
Other (expenses), net | | | (1 | ) | | | (15,213 | ) | | | (2,070 | ) | | | (47,396 | ) |
Interest expense | | | 44,607 | | | | 46,829 | | | | 123,753 | | | | 124,724 | |
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Net income | | $ | 3,244 | | | $ | 144,470 | | | $ | 290,769 | | | $ | 223,704 | |
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Basic and Diluted Net Income Per Common Share After Dividend Requirements For Preferred Stock | | $ | — | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.01 | |
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Weighted average number of common and equivalent shares outstanding used to calculate basic and diluted earnings per share | | | 18,166,595 | | | | 15,508,798 | | | | 17,782,896 | | | | 15,471,048 | |
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OURPET’S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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| | | September 30, | | December 31, |
| | | 2007 | | 2006 |
ASSETS | | | | | | |
Cash and equivalents | | $ | 22,262 | | $ | 30,400 |
Receivables, net | | | 1,280,721 | | | 1,160,832 |
Inventories | | | 3,098,059 | | | 2,848,980 |
Prepaid expenses | | | 159,884 | | | 48,231 |
| | | | | | |
Total current assets | | | 4,560,926 | | | 4,088,443 |
Property and equipment, net | | | 2,338,000 | | | 2,058,201 |
Other | | | 331,026 | | | 329,735 |
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Total assets | | $ | 7,229,952 | | $ | 6,476,379 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Short-term borrowings and current maturities of long-term debt | | $ | 1,773,211 | | $ | 1,548,911 |
Accounts payable | | | 1,037,904 | | | 1,020,645 |
Accrued expenses | | | 182,570 | | | 164,973 |
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Total current liabilities | | | 2,993,685 | | | 2,734,529 |
Long-term debt | | | 298,470 | | | 211,132 |
Stockholders’ equity | | | 3,937,797 | | | 3,530,718 |
| | | | | | |
Total liabilities and stockholders’ equity | | $ | 7,229,952 | | $ | 6,476,379 |
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