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
OurPet's Company Reports Results for 2013 Second Quarter
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