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
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...