OurPet's Company Reports Results for 2013 Second Quarter

           OurPet's Company Reports Results for 2013 Second Quarter

PR Newswire

FAIRPORT HARBOR, Ohio, July 26, 2013

FAIRPORT HARBOR, Ohio, July 26, 2013 /PRNewswire/ --OurPet's Company (OTC BB:
OPCO) (www.ourpets.com), a leading proprietary pet supply company, today
reported second quarter revenue of $4,748,503 for the three months ended June
30, 2013 compared to $4,747,049 for the same period a year ago. Net Income
for the second quarter was $132,765 ($.01/share) compared to $8,322
($.00/share) for the same period a year ago. Revenue for the first six
months of the 2013 year was $9,789,147 compared to $9,943,395 for the same
period a year ago. Net income for the first six months of 2013 was $356,367
($.02/share) compared to $90,186 ($.00/share) for the same period in 2012.

Dr. Steven Tsengas, President and CEO, commented, "Although revenue was flat,
it represents a strong, profitable base without the impact of special
promotions and close out sales. Also, we continue to replace the reduced sales
from a major specialty pet retailer in 2012 whose strategic decision to reduce
its vendor base affected many companies such as OurPet's. Our strategy to
return to double digit revenue growth in the very near future includes
aggressive pursuit of opportunities both in the specialty and increasingly in
the Food Drug & Mass sectors, expansion of our internal sales capabilities and
the launch of many new, innovative, proprietary products." Dr. Tsengas,
added, "We are pleased that our gross profit margin improved to almost 30%
from 24% for the second quarter a year ago. With the combination of price
increases, more profitable product mix, cost controls and the push for revenue
increases, gross profit margin should continue to improve. While our net
income improved significantly over last year's second quarter and year to
date, we will not be satisfied until we drive net income to at least 10% of
net sales."

2013 Second Quarter Results

Net revenue increased $1,454 to $4,748,503 for the 2013 second quarter
compared to $4,747,049 for the same period a year ago. While sales did not
increase significantly, they consisted of higher margin products to more
repeat customers as compared to the same period a year ago.Sales during the
second quarter of 2012 included $202,000 more in "close-out" sales and
$148,000 in a one-time promotional sale that did not take place this quarter.

Cost of goods sold decreased by approximately $266,000 from 2012 to 2013.As
a result, our gross profit on sales increased by 23.4%, or $267,245 from
$1,140,945 in 2012 to $1,408,190 in 2013.

Gross profit margin increased to 29.7% for the 2013 second quarter from 24.0%
for the same period a year ago. The gross profit margin increase of 5.7% was
due to sales of higher margin products slightly offset by higher overhead
expenses.

Income from operations was $259,857 for the 2013 second quarter compared to
$50,947 for the same period last year. This increase was the net result of
the above mentioned increase in gross profit on sales and an increase of
approximately $58,000 in selling, general, and administrative expenses. 

Income before taxes was $212,765 versus $21,339 for the same period in 2012.
The Company recognized income tax expense of $80,000 for the 2013 second
quarter compared to $13,017 expense for the same period a year ago.

Net income was $132,765 for the 2013 second quarter compared to $8,322 for the
same quarter last year. Net income per share was $0.01 for the second quarter
of 2013 compared to $0.00 for the same period a year ago.

2013 First Six Months Results

Net revenue decreased 1.6% to $9,789,147 for the first six months of 2013
compared to $9,943,395 for the same period a year ago. Although sales in
total decreased by approximately $154,000, in-line sales to customers
(excluding close-outs) increased by about $348,000.

Gross profit was $2,864,565 for the first six months of 2013 compared to
$2,511,907 for the same period in 2012. Gross profit margin increased to
29.3% for the first six months of 2013 from 25.3% for the same period a year
ago, mainly due to higher margin sales. 

Income from operations was $564,059 for the first six months of 2013 compared
to income from operations of $207,766 for the same period last year.The
approximately $356,000 increase was primarily due to the improved gross profit
margin as selling, general, and administrative expenses remained fairly
constant.

Income before taxes was $517,506 versus income before taxes of $133,022 for
the same period in 2012.

The Company recognized income tax expense of $161,139 for the first six months
of 2013 compared to $42,836 expense for the same period a year ago.

Net income was $356,367 for the first six months of 2013 compared to $90,186
for the same period last year. Net income per share was $0.02 for the first
six months of 2013 compared to $.00 for the same period in 2012.

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.
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,
www.flappydogtoys.com, www.clipnosis.com, www.petwonderbowl.com, and
www.cosmiccatnip.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 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.

CONTACT:  INVESTOR RELATIONS:
OurPet's Company  OurPet's Company
Dr. Steven Tsengas, CEO    Scott R. Mendes, CFO
(440) 354-6500 (Ext. 111) (440) 354-6500 (Ext.
                                          109)



OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
                     For the Three Months Ended      For the Six Months Ended
                     June 30,                        June 30,
                     2013         2012       2013         2012
Net revenue          $  4,748,503  $  4,747,049  $ 9,789,147  $  
                                                                   9,943,395
Cost of goods sold   3,340,313       3,606,104       6,924,582     7,431,488
 Gross      1,408,190       1,140,945       2,864,565     2,511,907
profit on sales
Selling, general and
administrative       1,148,333       1,089,998       2,300,506     2,304,141
expenses
 Income     259,857         50,947          564,059       207,766
from operations
Other (income) and   -               (8,411)         (40,784)      (8,411)
expense, net
Interest expense     47,092          38,019          87,337        83,155
Income before taxes  212,765         21,339          517,506       133,022
Income Tax expense   80,000          13,017          161,139       42,836
Net Income           $            $          $           $     
                     132,765         8,322           356,367      90,186
Basic and Diluted
Net Income (Loss)
Per Common
 Share After
Dividend
Requirements For
Preferred
 Stock            $         $          $        $     
                     0.01            0.00             0.02          0.00
Weighted average
number of common
and
 equivalent shares
outstanding used to
calculate
 basic and diluted  16,800,244      15,809,023      16,617,410    16,283,166
earnings per share
OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                     June 30,        December 31,
                     2013            2012
ASSETS
 Cash and           $            $   
equivalents          95,278         21,269
 Receivables, net   2,095,877       2,540,640
 Inventories, net   6,066,667       5,665,040
 Prepaid expenses   305,407         190,967
 Deferred Tax      46,919          93,838
Asset, net
 Total      8,610,148       8,511,754
current assets
LONG TERM ASSETS
 Property and       1,860,568       1,996,535
equipment, net
 Patents, net       320,696         296,478
 Intangible Assets  461,000         461,000
 Goodwill           67,511          67,511
 Deposits and Other 18,003          18,003
assets
 Total     2,727,778       2,839,527
long term assets
 Total      $ 11,337,926   $ 11,351,281
assets
LIABILITIES AND
STOCKHOLDERS' EQUITY
 Notes payable      $   100,000  $   
                                     100,000
 Current maturities 545,653         517,531
of long-term debt
 Accounts payable  1,423,375       1,610,752
 Accrued expenses   526,691         484,063
 Total      2,595,719       2,712,346
current liabilities
LONG TERM
LIABILITIES
 Long-term debt -
less current portion 831,778         837,150
above
 Revolving line of  1,838,032       2,259,032
credit
 Deferred income    193,834         196,435
taxes
 Total long 2,863,644       3,292,617
term liabilities
 Total      5,459,363       6,004,963
liabilities
 Stockholders'      5,878,563       5,346,318
Equity
 Total
liabilities and      $ 11,337,926   $ 11,351,281
stockholders' equity

SOURCE OurPet's Company

Website: http://www.ourpets.com