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
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We work around really protecting the confidentiality of information, and by doing so we've developed implementations of encryption through a patented process that is known as superencipherment," explained Richard Blech, CEO of Secure Channels Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...