FAIRPORT HARBOR, Ohio, Feb. 27, 2017 (GLOBE NEWSWIRE) -- OurPet's Company (OTCQX:OPCO) (www.ourpets.com), a leading proprietary pet supply company, today reported record fourth-quarter revenue of $8.2 million, an increase of 23% compared to revenue of $6.6 million reported in the same period of 2015. Net income for the fourth quarter ended December 31, 2016, increased 172% to $1,227,711 or $0.06 per share, compared to $450,592 or $0.02 per share, for the same period of 2015.
Steve Tsengas, President and CEO stated, “The fourth quarter of 2016 was the best in the history of our Company. We capitalized on a strong pipeline, drove revenues, increased margins, and boosted profits. Performance was strong across channels as well. In the fourth quarter, our Pet Specialty channel revenue grew 30%, and our Food, Drug and Mass (FDM) channel revenue grew 17%, each setting new records. Toys and accessories led our category revenue growth, with quarter-over-quarter growth of 41%. This performance was fueled by increases in electronic cat toys such as the “Catty Whack® and Fly By™ Spinner Toy, as well as our other innovative cat and catnip toys.
“Revenue for the year increased 13.6% led by 14% growth in the Food, Drug and Mass (FDM) retail channel followed by 8% growth in Pet Specialty. E-Commerce sales for the fourth quarter were down 4%, but up 3% for the year compared to prior year’s sales. The E-Commerce channel is an area with tremendous growth potential and we will continue our strategic investments to increase our competitiveness in that channel.”
“Our Gross Profit margin for the 2016 fourth quarter increased to over 35% from 32% in the prior-year period. We also effectively managed our inventory, reducing it by over $900,000 compared to December 31, 2015. By keeping our overhead low, our bottom line reflected the benefits of better fixed cost absorption.
“Our growth coupled with our strong operating discipline resulted in record Earnings per Share, both in the quarter and for the year. In the fourth quarter of 2016, we earned $0.06 per share, compared to $0.02 per share in the year-ago quarter. And for the full year 2016, we earned $0.11 per share, compared to $0.07 per share in the year-ago quarter.”
Dr. Tsengas continued, “Our dual brand strategy has allowed us to offer differentiated products to both the Pet Specialty and the FDM channels. A major Pet Specialty retailer is currently testing the OurPets® brand in hundreds of stores. This opens the opportunity for many of these products to become “in-line” across all stores. Our largest FDM retailer is adding a number of our new cat toy products.”
“In 2016, approximately 10% of our revenues were derived from new products. We believe new products will always be fundamental to our growth strategy, and so innovation is at the core of our corporate identity. We have introduced numerous new products this year and we remain very excited about their potential in the marketplace. These include our Switchgrass Natural Cat Litter™ with BioChar and our Intelligent Pet Care™ (IPC) line that features a family of automatic products with Bluetooth cell phone monitoring of the pet’s health through their use of our SmartScoop® - Intelligent Litter Box, SmartLink™ Feeder and our SmartLink™ Waterer. The new product pipeline continues to be very robust and we have several new electronic cat toys that are scheduled be introduced nationally this spring through As Seen on TV. Lastly, we continue to develop our partnership with Paulee Cleantec Ltd., whereby we plan to commercialize the patented technology for safely and conveniently eliminating pet waste.”
Dr. Tsengas concluded, “In 2016 we achieved our overall strategy of double-digit revenue and net income growth by developing and launching proprietary, innovative products and entering attractive new market segments.” We believe that as we continue to innovate, build retailer relationships, and deliver great products to our customers, we will continue to set records in 2017 and beyond.”
2016 Fourth-Quarter Results
Net revenue increased 23.3% to $8,197,370 for the fourth quarter versus revenues of $6,648,394 for the same period last year. The approximate $1.5 million increase was due to strong sales in both the Pet Specialty and Food, Drug and Mass channels.
Gross profit for the fourth quarter 2016 increased 36.7% to $2,905,429 compared to $2,124,922 for the prior year’s comparable period. Gross profit margin increased to 35.4% from 32.0% for the same quarter in 2015.
Net income increased 172.5% to $1,227,711 compared to $450,592 for the fourth quarter of 2015. Net income per diluted share increased to $0.06 compared to $0.02 a year ago, based on weighted average shares of 20,187,339 for the current quarter compared to a weighted average of 19,377,512 shares for the same period a year ago.
2016 Full Year Results
Net revenue for the full 2016 year increased 13.6% to $27,070,160 versus revenues of $23,819,189 reported for the same period last year. The year-over-year increase was due to strong sales in both the Food, Drug, and Mass (FDM) and Pet Specialty channels.
Gross profit increased 16% to $8,752,599 for the full 2016 year versus $7,549,513 for the prior year.
Net income for the 2016 year increased 60.4% to $2,144,593 compared to $1,336,912 for the previous year. Net income per diluted share for 2016 increased to $0.11 from $0.07 last year based on weighted average shares of 20,134,777 in 2016 compared to 19,262,742 weighted average shares in 2015.
During 2016, we reduced total debt by $2,089,555 or 30% while the current ratio improved to 7.35 from 5.30 from the previous year.
About OurPet’s Company
OurPet’s Company designs, produces and markets a broad line of innovative, high-quality accessory and consumable pet products in the U.S. and overseas. Investors and customers may visit www.ourpets.com for more information about our company and its products. OurPet’s websites include www.petzonebrand.com and www.ourpets.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 filings with the Securities and Exchange Commission. For further information, contact:
Dr. Steven Tsengas, CEO
(440) 354-6500, x111
Alpha IR Group
Chris Donovan or Steve Calk
|OURPET'S COMPANY AND SUBSIDIARIES|
|CONSOLIDATED OPERATING RESULTS|
|For the Years Ended||For the Quarter Ended|
|December 31,||December 31,|
|Cost of goods sold||18,317,561||16,269,676||5,291,941||4,523,472|
|Gross profit on sales||8,752,599||7,549,513||2,905,429||2,124,922|
|Selling, general and administrative expenses||6,069,145||5,389,897||1,658,909||1,393,106|
|Income from operations||2,683,454||2,159,616||1,246,520||731,816|
|Other (income) and expense, net||(101,786||)||(43,623||)||(43,193||)||(3,041||)|
|Income before taxes||2,675,649||2,087,504||1,264,327||704,343|
|Income tax expense||531,056||750,592||36,616||253,751|
|Basic and Diluted Net Income Per Common|
|Share After Dividend Requirements For Preferred|
|Weighted average number of common shares|
|outstanding used to calculate|
|basic earnings per share||17,688,999||17,569,744||17,760,685||17,604,342|
|Weighted average number of common and|
|equivalent shares outstanding used to calculate|
|diluted earnings per share||20,134,777||19,262,742||20,187,339||19,377,512|
|OURPET'S COMPANY AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|Cash and equivalents||$||152,979||$||100,000|
|Total current assets||12,690,704||12,892,099|
|LONG TERM ASSETS|
|Property and equipment, net||2,000,906||1,873,260|
|Amortizable Intangible Assets, net||404,273||357,341|
|Deposits and Other assets||73,524||1,675|
|Total long term assets||3,023,542||2,777,115|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Current maturities of long-term debt||$||228,941||$||276,890|
|Other Accrued expenses||713,531||571,858|
|Total current liabilities||1,727,372||2,431,597|
|LONG TERM LIABILITIES|
|Long-term debt - less current portion above||645,203||876,248|
|Revolving line of credit||2,083,966||3,267,170|
|Deferred income taxes||362,753||333,834|
|Total long term liabilities||3,091,922||4,477,252|
|Total liabilities and stockholders' equity||$||15,714,246||$||15,669,214|