EXHIBIT 99
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| | 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 2009 Third-Quarter and Nine-Months Financial Results
- Third-Quarter 2009 Sales Highest for any Third-Quarter in history
- Nine Months 2009 Sales Were Another Record
- Management Remains Optimistic About Balance of 2009
FAIRPORT HARBOR, OHIO – October 21 , 2009 – 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 2009 third quarter and nine months ended September 30, 2009.
Net revenues for the 2009 third quarter increased 5.6 percent to a record $3,515,026 from $3,328,024 in the same period a year ago. The 9.1 percent improvement in gross profit was a result of continuous improvement and tight expense control. Gross profit margin for the 2009 third quarter increased 1.0 percentage point to 30.6 percent, from 29.6 percent in the 2008 third quarter. Income from operations for the 2009 third quarter was $232,827 compared to a loss of ($563,871) for the 2008 third quarter, or an improvement of $796,698. Litigation expenses for the 2009 and 2008 third quarters were $63,662 and $809,128, respectively. Net Income for the 2009 third quarter was $183,087, or $0.01 per diluted share, compared to a net loss of ($617,589), or $(0.04) per share, for the same period in 2008. Earnings, before interest, taxes, depreciation and amortization (EBITDA), were a positive $331,255 in the 2009 third quarter, compared to a negative ($449,807) in the 2008 third quarter.
Net revenues for the 2009 nine months increased 13.6% a record to $10,510,737 from $9,248,892 for the same period a year ago. Gross profit increased 19.2% for the 2009 year-to-date period versus a year ago and gross profit margin for the 2009 nine months was 30.1 percent compared to 28.6 percent in the 2008 nine months. Income from operations for the 2009 nine months was $553,182 compared to a loss of ($1,634,996) for the 2008 nine months or an improvement of $2,188,177. Litigation expenses for the 2009 and 2008 nine months were $309,336 and $2,258,341, respectively. Net income for the 2009 nine months was $456,631, or $0.03 per diluted share, compared to a net loss of ($1,778,896), or $(0.12) per share, for the same period in 2008. EBITDA was a positive $931,957 in the 2009 nine months compared to a negative ($1,278,274) in the 2008 nine months.
Dr. Steven Tsengas, President and CEO, stated, “We are pleased about our growth for the 2009 third quarter and nine months. Solid increases in sales were achieved despite a difficult business environment. We generated improved sales to our major accounts, new distributors and international customers. Sales of our Play-N-Squeak and Flappy brand products sales continue to drive sales growth. There has been a significant uptick in new orders recently and we are guardedly optimistic as we enter the fourth quarter holiday season.
“OurPet’s well recognized brands are supported by over 100 product patents issued or pending and over 50 trademarks. We believe our strategy of aggressive innovative, trend setting product development will result in an increasing number of loyal, happy customers and in turn, enhance future revenue, profit growth and shareholder value.”
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 visitwww.ourpets.com, for more information about the Company and its products. The Company’s websites include:www.smartscoop.com,www.ecoPureNaturals.com,www.playsnsqueak.com andwww.flappydogtoys.com.
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:
OurPet’s, Company
Dr. Steven Tsengas
(440) 354-6500 (Ext. 111)
OURPET’S COMPANY AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
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| | | For the Nine Months Ended
September 30, | | | For the Quarter Ended
September 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Net revenue | | $ | 10,510,737 | | | $ | 9,248,892 | | | $ | 3,515,026 | | | $ | 3,328,024 | |
Cost of goods sold | | | 7,351,171 | | | | 6,598,718 | | | | 2,439,172 | | | | 2,341,876 | |
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Gross profit on sales | | | 3,159,566 | | | | 2,650,174 | | | | 1,075,854 | | | | 986,148 | |
Selling, general and administrative expenses | | | 2,297,048 | | | | 2,026,829 | | | | 779,364 | | | | 740,891 | |
Litigation expense | | | 309,336 | | | | 2,258,341 | | | | 63,662 | | | | 809,128 | |
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Income (loss) from operations | | | 553,182 | | | | (1,634,996 | ) | | | 232,827 | | | | (563,871 | ) |
Other income and expense, net | | | (38,226 | ) | | | (812 | ) | | | (506 | ) | | | (1 | ) |
Interest expense | | | 134,778 | | | | 144,712 | | | | 50,247 | | | | 53,719 | |
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Net Income (Loss) | | $ | 456,631 | | | $ | (1,778,896 | ) | | $ | 183,087 | | | $ | (617,589 | ) |
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Basic and diluted net income (loss) per common share after dividend requirements for preferred stock | | $ | 0.03 | | | $ | (0.12 | ) | | $ | 0.01 | | | $ | (0.04 | ) |
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Weighted average number of common and equivalent shares outstanding used to calculate basic and diluted earnings per share | | | 15,374,660 | | | | 15,245,736 | | | | 15,706,693 | | | | 15,246,984 | |
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OURPET’S COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |
| | | September 30,
2009 | | | December 31,
2008 | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | |
Cash and equivalents | | $ | 327,898 | | | $ | 363,573 | | | | | | | | | |
Receivables, net | | | 1,820,969 | | | | 1,420,884 | | | | | | | | | |
Inventories | | | 3,109,147 | | | | 3,303,617 | | | | | | | | | |
Prepaid expenses | | | 196,178 | | | | 73,995 | | | | | | | | | |
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Total current assets | | | 5,454,192 | | | | 5,162,069 | | | | | | | | | |
Property and equipment, net | | | 1,919,197 | | | | 2,076,550 | | | | | | | | | |
Other | | | 384,596 | | | | 339,367 | | | | | | | | | |
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Total assets | | $ | 7,757,985 | | | $ | 7,577,986 | | | | | | | | | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | |
Notes payable | | $ | 1,900,000 | | | $ | 1,900,000 | | | | | | | | | |
Current maturities of long-term debt | | | 724,093 | | | | 144,581 | | | | | | | | | |
Accounts payable | | | 1,053,027 | | | | 1,238,367 | | | | | | | | | |
Accrued expenses | | | 654,115 | | | | 666,051 | | | | | | | | | |
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Total current liabilities | | | 4,331,235 | | | | 3,948,999 | | | | | | | | | |
Long-term debt | | | 787,699 | | | | 1,474,036 | | | | | | | | | |
Stockholders’ Equity | | | 2,639,051 | | | | 2,154,951 | | | | | | | | | |
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Total liabilities and stockholders’ equity | | $ | 7,757,985 | | | $ | 7,577,986 | | | | | | | | | |
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