OurPet's Company Reports Record 2013 Third Quarter Net Revenue and Net Income

OurPet's Company Reports Record 2013 Third Quarter Net Revenue and Net Income

PR Newswire

FAIRPORT HARBOR, Ohio, Oct. 29, 2013

FAIRPORT HARBOR, Ohio, Oct. 29, 2013 /PRNewswire/ --OurPet's Company
(OTCQB:OPCO www.ourpets.com), a leading proprietary pet supply company, today
reported that net revenue increased 34% to $5,737,568 and net income increased
to $339,261 for the three months ended September 30, 2013 compared to a net
loss of $130,097 for the third quarter 2012. Net revenue and net income were
both third quarter records. Gross profit margin increased more than 6
percentage points to 32.2% of net sales compared to the same period last year
and income tax expense was $250,020 in the 2013 third quarter versus an income
tax benefit of $53,869 a year ago. Diluted earnings per share were $0.02 for
the 2013 third quarter versus a loss of $0.01 per share for the same period a
year ago.

Dr. Steven Tsengas, Chairman and CEO, commented, "Our record 2013 third
quarter results reflect solid progress and position us to achieve additional
improvements across our business in the fourth quarter and into next year.
Our long-term growth strategy includes double-digit increases in net revenue
and net income as we continue to execute our plans in multiple sales channels
and with ongoing attention to our operating margins. The net revenue increase
for the most recent quarter was specifically due to solid performance in our
base business and core product lines. Sales in three of our strategic channels
-- grocery, mass retail and pet specialty -- all grew substantially compared
to the same period last year. Our sales are also being complemented by higher
international sales which were up over 42% from the same quarter a year ago."

Dr. Tsengas added, "During the first nine months of 2013, we further
strengthened our balance sheet through substantial reductions in long-term
debt and a solid increase in stockholders' equity. As we look toward 2014,
our performance is expected to be driven through growth in our base business
and further expansion of core product lines including the launch of new
innovative products that will be industry trendsetters."

2013 Third Quarter Results

Net revenue increased $1,467,616 to $5,737,568 for the 2013 third quarter from
the same period a year ago. The year-over-year growth in net revenue was
attributable to substantially higher sales to a majority of the Company's top
customers, especially in the food, drug and mass markets, plus further
diversification in the Company's sales channels. 

Gross profit increased 66% to $1,848,033 for the 2013 third quarter versus a
year ago. Gross profit margin increased to 32.2% for the third quarter from
26.0% for the same period a year ago. These increases benefited from the
higher year-over-year sales gains and improved operating leverage.

Income from operations was $582,047 for the 2013 third quarter versus a loss
from operations of $147,879 for the same period a year ago.

Income before taxes was $589,281 versus a loss of $183,966 for the same period
in 2012.

Income tax expense was $250,020 for the 2013 third quarter compared to a
benefit of $53,869 for the same period a year ago.

Net income was $339,261 for the 2013 third quarter compared to a loss of
$130,097 for the same period last year. Net income per share was $0.02 for the
three months ended September 30, 2013 versus a loss of $0.01 a year ago

2013 First Nine Months Results

Net revenue increased 9% to $15,526,715 for the first nine months of 2013 from
$14,213,342 for the same period a year ago, principally due to greater variety
of customers coupled with improved product mix.

Gross profit increased 30% to $4,712,600 for the first nine months of 2013
versus $3,623,811 a year ago. Gross profit margin increased to 30.4% for the
2013 year-to-date period from 25.5% last year. These increases were
principally due to higher sales and improved operating leverage. 

Income from operations was $1,146,106 for the first nine months of 2013
compared to $59,882 the prior year. 

Income before taxes was $1,106,786 for the nine-month 2013 year-to-date period
versus a loss before taxes of $50,948 in 2012.

Income tax expense was $411,159 for the first nine months of 2013 compared to
an income tax benefit of $11,033 for the same period a year ago.

Net income was $695,627 for the first nine months of 2013 compared to a net
loss of $39,915 for the 2012 year-to-date period. Net income per share was
$0.04 for the nine months ended September 30, 2013 versus a net loss per share
of $0.01 last year.

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.ourpets.com
and www.petzonebrand.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 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 InvestQuest, Inc.
Dr. Steven Tsengas, CEO  Robert Lentz
(440) 354-6500 (Ext. 111)  (614) 876-1900



OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
                      For the Three Months Ended  For the Nine Months Ended
                      September 30,               September 30,
                      2013            2012        2013           2012
Net revenue           $  5,737,568  $          $ 15,526,715  $ 
                                      4,269,952                 14,213,342
Cost of goods sold    3,889,535       3,158,042   10,814,115     10,589,531
 Gross       1,848,033       1,111,910   4,712,600      3,623,811
profit on sales
Selling, general and
administrative        1,265,986       1,259,789   3,566,494      3,563,929
expenses
 Income
(loss) from           582,047         (147,879)   1,146,106      59,882
operations
Other (income) and    (45,875)        68          (86,658)       (8,344)
expense, net
Interest expense      38,641          36,019      125,978        119,174
Income (loss) before  589,281         (183,966)   1,106,786      (50,948)
taxes
Income Tax expense    250,020         (53,869)    411,159        (11,033)
(benefit)
Net Income (loss)     $            $         $           $    
                      339,261        (130,097)  695,627       (39,915)
Basic and Diluted Net Income (Loss)
Per Common
 Share After
Dividend Requirements
For Preferred
 Stock             $         $       $        $      
                       0.02          (0.01)      0.04         (0.01)
Weighted average
number of common and
 equivalent shares
outstanding used to
calculate
 basic and diluted   18,892,362      15,811,250  17,954,937     15,809,771
earnings per share





OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                                           September 30,     December 31,
                                           2013              2012
ASSETS
 Cash and equivalents                     $    161,238  $     21,269
 Receivables, net                         2,934,786         2,540,640
 Inventories, net                         5,618,611         5,665,040
 Prepaid expenses                         407,292           190,967
 Deferred Tax Asset, net                 23,460            93,838
 Total current assets             9,145,387         8,511,754
LONG TERM ASSETS
 Property and equipment, net              1,924,264         1,996,535
 Patents, net                             326,763           296,478
 Intangible Assets                        461,000           461,000
 Goodwill                                 67,511            67,511
 Deposits and Other assets                18,003            18,003
 Total long term assets          2,797,541         2,839,527
 Total assets                     $ 11,942,928     $ 11,351,281
LIABILITIES AND STOCKHOLDERS' EQUITY
 Notes payable                            $    100,000  $    100,000
 Current maturities of long-term debt     471,648           517,531
 Accounts payable                        1,534,058         1,610,752
 Accrued expenses                         723,315           484,063
 Total current liabilities        2,829,021         2,712,346
LONG TERM LIABILITIES
 Long-term debt - less current portion    783,614           837,150
above
 Revolving line of credit                 1,885,032         2,259,032
 Deferred income taxes                    218,438           196,435
 Total long term liabilities      2,887,084         3,292,617
 Total liabilities                5,716,105         6,004,963
 Stockholders' Equity                     6,226,823         5,346,318
 Total liabilities and           $ 11,942,928     $ 11,351,281
stockholders' equity



SOURCE OurPet's Company

Website: http://www.ourpets.com
 
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