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(OPCO) Reports Record 2016 First Quarter Results

OurPet’s Company (OTCQX:OPCO) (www.ourpets.com), 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 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 www.ourpets.com for more information about our company and its products. OurPet’s websites include www.petzonebrand.com and www.ourpets.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.

OURPET’S COMPANY AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
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
OURPET’S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2016 2015
ASSETS
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
LIABILITIES AND STOCKHOLDERS’ EQUITY
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 LIABILITIES
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

 

OurPet’s Company
Dr. Steven Tsengas, CEO, 440-354-6500, x111 (Direct)
Fairport Harbor, Ohio
or
Corporate Communications
DreamTeamNetwork (DTN)
Austin, Texas
512-758-8877 (Direct)
www.DreamTeamNetwork.com
Editor@DreamTeamNetwork.com

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