SOURCE: The OurPets Co.

The OurPets Co.

May 02, 2016 08:30 ET

OurPet's Company Reports Record 2016 First Quarter Results

FAIRPORT HARBOR, OH--(Marketwired - May 02, 2016) - OurPet's Company (OTCQX: OPCO) (, a leading proprietary pet supply company, today reports record net revenue and record net income for the three months ended March 31, 2016.

First Quarter 2016 net revenue increased 10.3% to $6.17 million compared to $5.59 million for the same period last year. Net income increased 24.7% to a record $266,581 for the 2016 first quarter compared to $213,792 a year ago. Earnings per diluted share were $0.01 for the first quarter of 2016 and 2015.

Dr. Steven Tsengas, Chairman and CEO, comments, "These results reflect our continued ability to successfully execute our business strategy. Our E-Commerce and Food, Drug, Mass retail channels led the way this quarter with year over year sales growth of 14% and 8% respectively. Q1'16 sales in the Pet Specialty market were about the same as Q1'15 sales, though we expect sales growth to improve for the balance of the year. International sales declined about 7.1% due to the strength of the US dollar. We are pleased that all major product categories showed a strong performance with Waste & Odor up 64%, Toys/Accessories up 10% and Bowls/Feeders up 9%."

Dr. Tsengas continues, "Our profitability exceeded that of Q1'15 by almost 25%, though our gross profit margin of 29.7% was slightly below last year's 30.3% due to product mix. S, G & A expenses as a percent of sales declined a full percent from 23.9% to 22.9%, a reflection of our maintaining tight cost controls. Income from operations increased 16.5% to $415,269 for the 2016 first quarter versus $356,313 for the 2015 first quarter mainly due to higher sales as S, G & A expenses increased by only $78,556. Our inventory also declined to approximately $7.44 million from approximately $7.91 million at the beginning of the year, the result of an ongoing initiative to reduce our inventory below $7,000,000 by year end without sacrificing any on-time or fill rate metrics."

Dr. Tsengas concludes, "One of our highlights every first quarter is the Global Pet Expo international trade show held in Orlando, Florida where we present our new, innovative products to the market. This year we presented our new Intelligent Pet Care™ product line that features BlueTooth® and wireless connectivity for three products: our SmartScoop® -- Intelligent Litter Box, our SmartLink™ Feeder - Intelligent Pet Feeder Bowl and our SmartLink™ Waterer - Intelligent Water Fountain. These products enhance the convenience of pet ownership and the connectivity between pets and pet owners by monitoring various activities that can be interpreted as indicators of pet health such as drinking, feeding and elimination behavior. This information is then transmitted to pet owners through their smartphones. We also introduced our 100% Natural Switchgrass BioChar litter, which produced favorable results when tested against the competition. Needless to say, we are really excited about the balance of 2016."

About OurPet's Company

OurPet's Company designs, produces and markets a broad line of innovative, high-quality accessory and consumable pet products in the U.S. and overseas. Investor and customers may visit for more information about our company and its products. OurPet's websites include and

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; 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 currency rates; rising costs for raw materials and sources of supply that may be limited or unavailable from time to time; the timing of orders booked; and the other risks that are described from time to time in OurPet's SEC reports.

    For the Three Months Ended  
    March 31,  
    2016     2015  
Net revenue   $ 6,175,985     $ 5,597,322  
Cost of goods sold     4,344,128       3,902,977  
        Gross profit on sales     1,831,857       1,694,345  
Selling, general and administrative expenses     1,416,588       1,338,032  
      Income from operations     415,269       356,313  
Other (income) and expense, net     (27,006 )     (4,723 )
Interest expense     32,835       24,507  
Income before taxes     409,440       336,529  
Income Tax expense     142,859       122,737  
Net Income   $ 266,581     $ 213,792  
Basic and Diluted Earnings Per Common Share                
  After Dividend Requirements For Preferred Stock:                
    Net Income   $ 0.01     $ 0.01  
Weighted average number of common shares outstanding used to calculate basic earnings per share     17,627,586       17,553,077  
Weighted average number of common and equivalent shares outstanding used to calculate diluted earnings per share     19,458,840       19,267,328  


    March 31,   December 31,
    2016   2015
  Cash and cash equivalents   $ 77,891   $ 100,000
  Receivables, net     3,928,728     4,294,810
  Inventories, net     7,441,353     7,914,613
  Prepaid expenses     763,808     582,676
    Total current assets     12,211,780     12,892,099
LONG TERM ASSETS            
  Property and equipment, net     1,929,585     1,873,260
  Amortizable intangible assets, net     362,654     357,341
  Intangible Assets     461,000     461,000
  Goodwill     67,511     67,511
  Deposits and Other assets     18,003     18,003
      Total long term assets     2,838,753     2,777,115
    Total assets   $ 15,050,533   $ 15,669,214
  Current maturities of long-term debt     263,128     276,890
  Accounts payable     948,614     1,582,849
  Accrued expenses     486,090     571,858
    Total current liabilities     1,697,832     2,431,597
  Long-term debt - less current portion above     817,520     876,248
  Revolving line of credit     3,180,032     3,267,170
  Deferred income taxes     315,203     333,834
      Total long term liabilities     4,312,755     4,477,252
      Total liabilities     6,010,587     6,908,849
Stockholders' Equity     9,039,946     8,760,365
      Total liabilities and stockholders' equity   $ 15,050,533   $ 15,669,214

Contact Information

  • For further information, contact:

    OurPet's Company
    Fairport Harbor, Ohio
    Dr. Steven Tsengas
    (440) 354-6500, x111 (Direct)

    Corporate Communications
    DreamTeam.Network (DTN)
    Austin, Texas
    (512) 758-8877 (Direct)