Welcome!

News Feed Item

The OurPet's Company Reports 2014 First Quarter Results

FAIRPORT HARBOR, Ohio, April 24, 2014 /PRNewswire/ -- The OurPet's Company (OTCBB: OPCO), (www.ourpets.com), a leading proprietary pet supply company, today reported 2014 first quarter  net revenue increased 3.5% to $5,214,471 from $5,040,645 for the same period last year.  In addition to adverse weather conditions, higher than budgeted costs related to entry into the private label-value brand market and increased promotions contributed to a decline in income from operations for the 2014 first quarter versus the prior year.  Net income was $134,427 for the 2014 first quarter compared to $223,601 a year ago.  Earnings per diluted share were $0.01 for the first quarter of 2014 and 2013.

The OurPet's Company Logo.

Dr. Steven Tsengas, Chairman and CEO, commented, "Our results for the 2014 first quarter were below expectations due to factors that had a temporary adverse impact on financial performance.  We remain optimistic that our 2014 full-year results will achieve record net revenue and record earnings per share.  The severe weather conditions we faced during the first three months of 2014 have recently subsided which has also benefited consumer spending, especially by customers at our largest accounts.  We are accelerating plans to implement the company's dual brand growth strategy during the remainder of 2014."

Dr. Tsengas added, "We have made substantial investments in the roll-out of our dual brand strategy, which include increased business and product development plus higher selling and marketing expenses in order to penetrate key markets in the United States and overseas.  Shipments of PetZone® branded products to Food, Mass and Drug customers are expected later this quarter.  We further expanded our presence in this market with the addition of new customers in the recently completed quarter.  Sales of feline waste and odor control products declined compared to the 2013 first quarter due to temporary timing issues related to the launch of the expanded line of SmartScoop® products.  Branded products offered through E-Commerce continued to achieve solid year-over-year sales gains.  Interest from current and prospective customers at last month's Global Pet Expo in new products and the company's dual brand strategy further strengthen the outlook for 2014."        

2014 First Quarter Results

Net revenue increased 3.5% to $5,214,471 for the three months ended March 31, 2014, from $5,040,645 for the same period a year ago.  Sales increases in the Food Drug & Mass and E-Commerce markets were partly offset by decreased sales of Pet Specialty products.

Gross profit increased 6.7% to $1,553,901 for the 2014 first quarter from $1,456,371 a year ago.  This $97,530 increase in gross profit was primarily attributable to higher sales and lower fixed operating costs versus the 2013 first quarter.  Bad weather, promotional sales and some higher than planned costs to enter the private label value market were the principal factors that adversely impacted gross profit for the 2014 first quarter compared to the same period last year.  Gross profit margin increased to 29.8% for the 2014 first quarter from 28.9% for the same quarter a year ago.

Income from operations was $240,936 for the 2014 first quarter versus $304,202 for the 2013 first quarter.  This decrease was due to higher selling, general and administrative (SG&A) expenses, which included costs related to the roll-out of the company's dual brand product strategy.

Income before taxes was $215,527 for the 2014 first quarter versus $304,740 the prior year.

Income tax expense of approximately $81,000 for the 2014 first quarter was similar to the same quarter last year.   The company's book tax rate was 37.6% for the three months ended March 31, 2014, compared to 26.6% for the same period in 2013.

Net Income was $134,427 for the 2014 first quarter versus $233,601 for the same period last year.  Earnings per share were $0.01 for the first quarter of 2014 and 2013.

EBITDA for the first three months of 2014 was $403,761 compared to $508,805 for the same period a year ago.  Depreciation and amortization expense was $152,395 for the 2014 first quarter or $11,425 below the 2013 first quarter.  A reconciliation of EBITDA to GAAP Net Income is provided in an attachment to the summary financial statements.

Investor Conference Call

The OurPet's Company has scheduled an investor conference call for Thursday, April 24, 2014, at 4:30 pm. Eastern Time (ET).  Dr. Steve Tsengas, Chairman and CEO, and Scott Mendes, Chief Financial Officer, will discuss the company's growth strategy and financial results followed by a question and answer session.  To participate in the conference call, individuals should dial (877) 485-3107.  Phone lines will open at 4:20 p.m. ET.  A digital replay of the investor conference call will be available following the call on the company's website: www.ourpets.com/investor/investors.html.

About OurPet's Company

The OurPet's Company designs, produces and markets a broad line of innovative, trend-setting pet products and accessories in the United States and overseas. The OurPet's Company has an extensive intellectual property portfolio of with over 225 patents, which are either issued or in pending status. 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.  For further information, contact:

CONTACTS 

INVESTOR RELATIONS

OurPet's Company

InvestQuest, Inc.

Dr. Steven Tsengas, CEO

Robert Lentz

(440) 343-6500, x111

(614) 876-1900

 

OURPET'S COMPANY AND SUBSIDIARIES

 CONSOLIDATED OPERATING RESULTS




For the Three Months Ended


March 31,


2014                      2013





Net revenue

$   5,214,471


$   5,040,645

Cost of goods sold

3,660,570


3,584,274

          Gross profit on sales

1,553,901


1,456,371





Selling, general and administrative expenses

1,312,965


1,152,169





          Income from operations

240,936


304,202





Other income

(10,430)


(40,783)

Interest expense

35,839


40,245

Income before taxes

215,527


304,740





Income Tax expense

81,100


81,139

Net Income

$      134,427


$      223,601









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

16,695,076


15,883,560

    basic earnings per share








Weighted average number of common and




   equivalent shares outstanding used to

18,297,349


17,645,946

   calculate diluted earnings per share
































OURPET'S COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




March 31,


December 31,


2014


2013

ASSETS




  Cash and equivalents

$        91,650


$        57,975

  Receivables, net

2,650,309


2,811,139

  Inventories, net

6,922,298


5,876,724

  Prepaid expenses

534,591


397,268

          Total current assets

10,198,848


9,143,106





 LONG TERM ASSETS




  Property and equipment, net

1,990,727


1,891,209

  Amortizable intangible assets, net

362,373


370,850

  Intangible Assets

461,000


461,000

  Goodwill

67,511


67,511

  Deposits and Other assets

18,003


18,003

           Total long term assets

2,899,614


2,808,573





          Total assets

$ 13,098,462


$ 11,951,679





LIABILITIES AND STOCKHOLDERS' EQUITY




  Notes payable

$      100,000


$      100,000

  Current maturities of long-term debt

312,049


397,575

  Accounts payable 

2,097,738


1,169,925

  Accrued expenses

507,438


861,010

          Total current liabilities

3,017,225


2,528,510





LONG TERM LIABILITIES




  Long-term debt - less current portion above

670,378


721,389

  Revolving line of credit

2,415,032


1,833,032

  Deferred income taxes

232,427


245,775

          Total long term liabilities

3,317,837


2,800,196





          Total liabilities

6,335,062


5,328,706





  Stockholders' Equity

6,763,400


6,622,973





           Total liabilities and stockholders' equity

$ 13,098,462


$ 11,951,679

 


OurPet's Company
EBITDA - Q1'14 vs. Q1'13


EBITDA

Q1'14

Q1'13




Net Income

$  134,427

$  223,601

Interest expense

$    35,839

40,245

Tax Expense

$    81,100

81,139

Depreciation

$  133,685

152,189

Amortization

$    18,710

11,631

    Total EBITDA

$  403,761

$  508,805




Stock Options expense

$      3,000

$      6,000

Warrants expense

$      3,000

$      3,000

    Total Adjusted EBITDA

$  409,761

$  517,805




The above  table reconciles the Company's disclosure of Net Income per GAAP with the non GAAP financial measure EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization.)   As the investment community has often requested the EBITDA calculation to help them evaluate performance,  Management has chosen to provide this disclosure.   Although EBITDA is widely used in the investment community as a benchmark to reflect operating performance, financing capability and liquidity, it is not regarded as a measure of operating performance and liquidity under generally accepted accounting principles ("GAAP").  It also does not represent cash flows from operating activities.  In addition, the Company's EBITDA may not be comparable to similar indicators provided by other companies. The Presentation of this additional information is not meant to be considered in isolation or as a substitute for net income (loss), or any component thereof, in accordance with GAAP.

 

Logo - http://photos.prnewswire.com/prnh/20140402/CL96977LOGO

 

SOURCE OurPet's Company

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.