SOURCE: OurPet's Company

OurPet's Company

April 22, 2010 08:40 ET

OurPet's Company Reports Record 2010 First Quarter Results

FAIRPORT HARBOR, OH--(Marketwire - April 22, 2010) - OurPet's Company (OTCBB: OPCO)

--  Net revenues increased to $3.6 million
--  Gross profit up 15% to $1.1 million
--  Net income increased 234% to $262,254

OurPet's Company (OTCBB: OPCO) (www.ourpets.com), a leading proprietary pet supply company today reported record financial results for its first quarter ended March 31, 2010.

Net revenues increased 7.5% to $3,643,933 for the 2010 first quarter from $3,390,379 for the same period a year ago. Net revenues for the same period last year benefited from the launch of a new product.

Gross profit rose 15% to $1,146,399 for the 2010 first quarter from $1,000,068 last year. Gross profit margin increased 2.0 percentage points to 31.5% for the same period a year ago due to higher revenues, positive contributions from increased efficiencies and favorable product mix.

Income from operations increased 141% to $292,054 for first quarter 2010 from $121,001 last year. This was attributable to the solid increase in gross profit, which was partially offset by higher selling, general and administrative expenses related to product development, sales and marketing activities, and also benefited from lower litigation expense.

Net income increased 234% to $262,254 or $.01 per diluted share for the 2010 first quarter from $78,610 or $0.00 per share for the 2009 first quarter. The weighted average number of common and equivalent shares outstanding increased approximately 19% to 18,173,581 for the 2010 first quarter compared to a year ago, principally due to the increase in the common stock price during the quarter ended March 31, 2010.

Dr. Steven Tsengas, President and CEO, stated, "We are pleased with both our first quarter top and bottom line growth in the midst of an economy that is in the early stages of recovery. These record results represent a strong beginning for 2010. Our growth is benefiting from further strengthening within our branded product portfolio and implementation of a multi-pronged strategic growth strategy. As we continue to grow, our focus remains on gaining improved efficiencies through tight control of our costs throughout the company. We continue to execute our long range plan, which targets annual revenue and earnings growth of 20%-25% and a goal of net income between 10%-12% of annual net revenues."

Dr. Tsengas continued, "We anticipate that our performance during the remainder of 2010 will particularly benefit from further implementation of our growth strategy, ongoing attention to costs, and the launch of more than 100 new products during the second half of this year. These products were recently announced at the International Global Pet Exposition and generated favorable feedback from both current and prospective customers. We are excited about 2010 and our outlook for the future."

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. The Company's Websites include: www.smartscoop.com, www.ecopurenaturals.com, www.playnsqueak.com, and www.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.

                    OURPET'S COMPANY AND SUBSIDIARIES
                      CONSOLIDATED OPERATING RESULTS
                                (Unaudited)

                                                For the Three Months Ended
                                                        March 31,
                                                --------------------------
                                                    2010          2009
                                                ------------  ------------

 Net revenue                                    $  3,643,933  $  3,390,379

 Cost of goods sold                                2,497,534     2,390,311
                                                ------------  ------------

    Gross profit on sales                          1,146,399     1,000,068

 Selling, general and administrative expenses        818,536       714,754

 Litigation expense                                   35,809       164,313
                                                ------------  ------------

    Income (loss) from operations                    292,054       121,001

 Other income and expense, net                                         (32)

 Interest expense                                    (29,800)      (42,359)
                                                ------------  ------------
    Net income (loss)                           $    262,254  $     78,610
                                                ============  ============

 Basic and diluted earnings per common share
  after dividend requirements for preferred
  stock:
      Net income (loss)                         $       0.01  $          -
                                                ============  ============

 Weighted average number of common and
  equivalent shares outstanding used to
  calculate basic and diluted earnings per
  share                                           18,173,581    15,313,600
                                                ============  ============







                        CONSOLIDATED BALANCE SHEETS
                                (Unaudited)

                                                   March 31,   December 31,
                                                     2010         2009
                                                  ------------ ------------

 ASSETS
   Cash and equivalents                           $     78,842 $     84,555

   Receivables, net                                  1,984,193    1,881,179

   Inventories                                       3,010,048    2,984,035

   Prepaid expenses                                    256,407       93,130

   Deferred Tax Asset, net                             125,370      125,370
                                                  ------------ ------------
           Total current assets                      5,454,860    5,168,269

   Property and equipment, net                       1,998,297    1,954,805

   Other                                               499,059      475,668
                                                  ------------ ------------

           Total assets                           $  7,952,216 $  7,598,742
                                                  ============ ============

 LIABILITIES AND STOCKHOLDERS' EQUITY
   Short-term borrowings and current maturities
    of long-term debt                             $  1,383,155 $  1,905,589

   Accounts payable                                    958,717    1,046,101

   Accrued expenses                                    309,782      417,199
                                                  ------------ ------------
           Total current liabilities                 2,651,654    3,368,889

   Long-term debt                                    1,186,230    1,254,080

   Stockholders' Equity                              4,114,332    2,975,773
                                                  ------------ ------------

           Total liabilities and stockholders'
            equity                                $  7,952,216 $  7,598,742
                                                  ============ ============

Contact Information

  • CONTACT:
    OurPet's Company
    Dr. Steven Tsengas, CEO
    (440) 354-6500 (Ext. 111)

    INVESTOR RELATIONS:
    Robert A. Lentz and Associates, Inc.
    Robert Lentz
    (614) 876-2000