Today before the opening bell, OurPet’s Company reported
record third-quarter revenue of $5.99 million, an increase of 7% from $5.60
million in revenues for the same three-month period a year earlier. Net income
for the quarter increased 428% to $410,450, or $0.02 diluted earnings per
share, compared to $77,751, or $0.00, for the year prior.
Dr. Steven Tsengas, President and CEO, stated, “We are
pleased with our results for the third quarter in which we achieved record net
revenue, gross margins improving to 34%, and net income from operations of
almost 11% of sales. We continue to see strong sales growth in the Pet
Specialty channel driven by our cat toys and bowls/feeder lines. E-commerce
sales rebounded and grew 7% while the Food, Drug, Mass channel slightly
decreased; however, we anticipate improved sales as the conversion to the Pet
Zone brand is completed by year end. Unfortunately, with the strengthening of
the U.S. dollar, international sales have been negatively impacted particularly
in Canada and the United Kingdom.”
Dr. Tsengas added, “We have expanded and strengthened our
relationship with several domestic and international independent sales
representative organizations, and have added another experienced salesperson to
our staff. With the recent and anticipated introduction of a significant number
of new innovative products in all our product categories, we are experiencing
robust sales activity. Our Catty Whack™, winner of the SuperZoo ‘Best New Cat
Product’ award, is beginning to ship and is receiving strong consumer reaction.
We expect to release more information on other major, trend-setting products
over the next six months.
“As we have previously communicated, the last five years
have been challenging for OurPet’s as we have transitioned from a small- to a
medium-sized company poised for accelerated future growth in both revenue and
net income. This required large investments in management/operating
informational systems; strengthening and, where appropriate, adding management
and professional/technical talent; improving warehousing and inventory
management efficiencies; strengthening relationships of strategic domestic and
overseas suppliers; and strengthening our relationship with our banking
resources. We sincerely believe that these improvements will positively impact
revenue and profit results going into the fourth quarter of 2015 and beyond.”
2015 Third Quarter Results
Net revenue increased 7% to $5,986,645 for the 2015 third
quarter versus the same period last year. The $386,000 increase was
attributable to strong sales in the Pet Specialty and Value channels, partially
offset by a decrease in the Food, Drug and Mass channel.
Gross Profit was $2,012,177 for the 2015 third quarter
compared to $1,640,751 the prior year. Gross profit margin increased 4.3
percentage points to 33.6% for the 2015 third quarter from 29.3% for the same
period a year ago due to continuous improvement initiatives, price increases,
and product mix.
Income from operations increased to $649,023 for the 2015
third quarter from $152,768 a year ago. This increase was primarily due to
higher gross profit and also benefited from lower selling, general, and
administrative expenses.
Other income for the 2015 third quarter increased to $14,582
from $6,051 a year ago due to a higher amount of patent infringement
settlements.
Income before taxes was almost five times greater at
$627,686 for the 2015 third quarter compared to $127,666 a year ago.
Income tax expense for the 2015 third quarter increased to
$217,236 from $49,915 a year ago due to the higher income.
Net income increased to $410,450 for the 2015 third quarter
from $77,751 last year. Net income per diluted share increased to $0.02 for the
third quarter of 2015 from $0.00 a year ago.
EBITDA was $825,696 for the 2015 third quarter versus
$323,140 a year ago. A reconciliation of EBITDA to GAAP net income is provided
in an attachment to the summary financial statements.
2015 First Nine Months Results
For the first nine months of 2015, net revenue increased 6%
to $17,170,795. The growth was attributed to strong Pet Specialty sales,
especially in the bowls and feeders category.
Gross profit increased 15% to $5,424,591 for the first nine
months of 2015 versus the prior year. Gross profit margin increased 2.5
percentage points to 31.6% for the first nine months of 2015 from 29.1% the
prior year due to the same factors that benefited the 2015 third quarter
results.
Income from operations increased 143% to $1,427,797 for the
first nine months of 2015, which was attributable to higher gross profit and
lower selling, general, and administrative expenses.
Other income decreased to $40,582 for the first nine months
of 2015 from $77,713 for the same period last year due to a greater amount of
patent infringement settlements in 2014.
Income before taxes increased to $1,383,158 for the first
nine months of 2015 compared to $566,658 for the same period a year ago.
Income tax expense was $496,839 for the first nine months of
2015 compared to $206,723 the prior year.
Net income for the first nine months of 2015 more than
doubled to $886,319 from $359,935 for the same period in 2014. Net income per
share increased to $0.04 for the first nine months of 2015 from $0.02 last
year.
EBITDA increased 72% to $1,984,688 the first nine months of
2015 compared to $1,153,656 the prior year. A reconciliation of EBITDA to GAAP
Net Income is provided in an attachment to the summary financial statements.
The Current Ratio improved to 5.61, reflecting strong
liquidity, while Stockholders’ Equity improved by $904,319 or 12.1% over the
comparable date last year.
For those unfamiliar with OurPet’s Company, the company
develops, produces and markets various pet accessory and consumable products
designed to awaken pets’ natural instincts, be it in feeding, playing or waste
management. Sold globally through pet specialty retailers, food, drug and mass
chains, e-commerce and international channels, the company’s products are
marketed under a the OurPets®, Pet Zone® and PetTastic® brands with well-known
sub-brands such as Play-N-Squeak™, Cosmic Catnip™, Durapet, SmartScoop and
Flappy.
To learn more about OurPet’s Company, visit www.ourpets.com
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