|
For Immediate Release
OurPet’s
Releases First Quarter Results
·
Sales Increase 4%
·
Profit Margin Increases 12%
·
Introduces Fifty New Products (33%
increase)
·
Marketing and Intellectual Property Base
Expands
Fairport Harbor, OH – May 6, 2004:
OurPet’s Company (OPCO OTCBB) today reported financial
results for its first quarter ended March 31, 2004. Net
sales for the first quarter were $1,325,000, an increase of
4% compared to $1,276,000 for the prior year first quarter.
Gross profit for the quarter was $369,000 or 28% of net
sales compared to $328,000 or 26% of net sales for the prior
year quarter. Net income for the quarter was $8,000
compared to a net income of $10,000 in the prior year first
quarter.
The following table summarizes
financial highlights for the First Quarter:
|
|
2004 |
2003 |
% change |
|
|
|
|
|
|
Net Sales |
$1,324,581 |
$1,276,283 |
+4% |
|
Gross Profit |
369,292 |
328,448 |
+12% |
|
Income (Loss) From Operations |
20,848 |
36,335 |
-43% |
|
Net Income (Loss) |
7,731 |
10,139 |
-24% |
|
Earnings Per Share* |
0.00 |
0.00 |
- |
* Basic and diluted net income per
common share after dividend requirements for preferred
stock.
Dr. Steven Tsengas, President and CEO
of OurPet’s stated “We were able to increase our sales in
the first quarter through new product introductions, new
customer additions and through creative marketing and
promotional programs. Our customers have enthusiastically
accepted our new products including the Store-N-Feed, Jr.,
Groovy Sticks, Durapet Bowls, Gourmet Rawhide Bones and
Bubble Mouse. The production and shipment of Store-N-Feed,
Jr. and Groovy Sticks will begin in the second quarter of
this year.”
Dr. Tsengas added “During the quarter
our gross profit increased as a result of decreases in our
costs for freight out, foreign warehouse, and depreciation
on tooling. However, our net income decreased from last
year due to increased marketing expenses for promotional
displays, coupons and demonstrations and allowances given to
our customers for new product introductions. Furthermore, we
introduced over fifty new products at the annual American
Pet Product Manufacturers Association (APPMA) Trade Show in
March 2004. These investments are necessary in order to
maintain our position as one of the most innovative
companies in the pet industry and to realize future expanded
sales and profits.” As of March 31, 2004, OurPet’s has been
granted fifteen USA patents and has an additional
twenty-five pending. In addition, OurPet’s has obtained
fifteen trademarks and has ten additional pending.
OurPet’s designs, produces and markets
in the USA and overseas a broad line of innovative,
high-quality accessory and consumable pet products.
Investors and customers may visit
www.ourpets.com for more information about the
company and its products. The APPMA * survey estimates
approximately 64.2 million U.S. households (62% of all
households) currently own a pet, with approximately 46% of
these households owning more than one pet. The most popular
pets are dogs (39% of all households) and cats (34% of all
households). The above survey estimates that there are
approximately 378 million pets in the United States.
* APPMA, 2003/2004 National Pet Owners Survey
|
OURPET'S COMPANY AND SUBSIDIARIES |
|
CONSOLIDATED OPERATING RESULTS |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
March 31, |
|
|
|
|
2004 2003 |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
$ 1,324,581 |
|
$ 1,276,283 |
|
|
|
|
|
Less: Costs and expenses |
|
|
|
|
|
|
|
|
Cost of goods sold |
955,289 |
|
947,835 |
|
|
|
|
|
Selling, general and administrative expenses
|
348,444 |
|
292,113 |
|
|
|
|
|
Interest and other income and expense
|
(1) |
|
(3) |
|
|
|
|
|
Interest expense |
13,118 |
|
26,199 |
|
|
|
|
|
Net income (loss) |
$ 7,731 |
|
$ 10,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Net Income (Loss) Per Common
|
|
|
|
|
|
|
|
|
Share After Dividend Requirements For Preferred
|
|
|
|
|
|
|
|
|
Stock |
$ - |
|
$ - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
|
|
2004 |
|
2003 |
|
|
|
|
|
|
(unaudited) |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and equivalents |
$ 107,188 |
|
$ 36,592 |
|
|
|
|
|
Receivables, net |
581,958 |
|
629,299 |
|
|
|
|
|
Inventories |
1,616,851 |
|
1,627,000 |
|
|
|
|
|
Prepaid expenses |
167,751 |
|
147,244 |
|
|
|
|
|
Total current assets |
2,473,748 |
|
2,440,135 |
|
|
|
|
|
Property and equipment, net |
723,232 |
|
661,863 |
|
|
|
|
|
Other |
115,263 |
|
114,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ 3,312,243 |
|
$ 3,216,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Short-term borrowings and current maturities
|
|
|
|
|
|
|
|
|
of long-term debt |
$ 721,528 |
|
$ 824,370 |
|
|
|
|
|
Accounts payable |
758,433 |
|
545,736 |
|
|
|
|
|
Accrued expenses |
86,419 |
|
92,695 |
|
|
|
|
|
Total current liabilities |
1,566,380 |
|
1,462,801 |
|
|
|
|
|
Long-term debt |
87,557 |
|
102,953 |
|
|
|
|
|
Stockholders' Equity |
1,658,306 |
|
1,650,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ 3,312,243 |
|
$ 3,216,329 |
|
|
|
|
This news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements
contain the words "projects," "anticipates," "believes,"
"expects," "intends," "will," "may" and similar words and
expressions. Each such statement is subject to
uncertainties, risks and other factors that could cause
actual results or performance to differ materially from the
results or performance expressed in or implied by such
statements. The forward-looking statements in this news
release that contain projections of the company's expected
financial performance and other projections regarding future
performance are inherently subject to change, given the
nature of projections, and the company's actual performance
may be better or worse than projected. Uncertainties, risks
and other factors that may cause actual results or
performance to differ materially from any results or
performance expressed or implied by forward-looking
statements in this news release include: (1) the company’s
ability to manage its operating expenses and realize
operating efficiencies, (2) the company’s ability to
maintain and grow its sales with existing and new customers,
(3) the company’s ability to retain existing members of its
senior management team and to attract additional management
employees, (4) the company’s ability to manage fluctuations
in the availability and cost of key materials and tools of
production, (5) general economic conditions that might
impact demand for the company’s products, (6) competition
from existing or new participants in the pet products
industry, (7) the company’s ability to design and bring to
market new products on a timely and profitable basis, (8)
challenges to the company’s patents or trademarks on
existing or new products, or (9) the company’s ability to
secure access to sufficient capital on favorable terms to
manage and grow its business. A discussion of other risk
factors that may cause actual results to differ from the
results expressed in or implied by these forward-looking
statements can be found in the company's periodic filings
with the SEC. The company disclaims any duty to provide
updates to the forward-looking statements and projections
made in this news release.
Contacts:
OurPet's Company
Dr. Steven Tsengas or John G. Murchie
440-354-6500 |
