UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

Current Report Pursuant to Section 13 or 15(d) of

the Securities Act of 1934

Date of Report: July 24, 2009

(Date of earliest event reported)

 

 

OurPet’s Company

(Exact name of registrant as specified in its charter)

 

 

 

Colorado   000-31279   34-1480558

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(I.R.S. Employer

Identification Number)

1300 East Street, Fairport Harbor, OH 44077

(Address of principal executive offices including zip code)

440-354-6500

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On July 24, 2009, the Company issued a press release and other financial information regarding its second quarter and first half results. The Press release and other financial information are attached hereto as Exhibit 99.

 

Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits
  99 Company press release dated July 24, 2009 and other financial information

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: July 28, 2009   OurPet’s Company
  By:  

/s/ Scott R. Mendes

    Scott R. Mendes
    Chief Financial Officer

 

3

EXHIBIT 99

 

LOGO

  

OurPet’s Company

1300 East Street

Fairport Harbor, OH 44077-5573, USA

(800) 565-2695 * Phone (440) 354-6500

Fax (440) 354-9129 * www.ourpets.com

FOR IMMEDIATE RELEASE

OurPet’s Company Reports 2009 Second-Quarter and First-Half Financial Results

- Second-Quarter 2009 Sales Were Another Quarterly Record

- Management Remains Optimistic About Balance of 2009

FAIRPORT HARBOR, OHIO – July 24, 2009 – OurPet’s Company (OTC BB:OPCO) ( www.ourpets.com ), a growing designer, developer, producer and marketer of accessory and consumable pet products, today reported financial results for its second quarter and first half ended June 30, 2009.

Net revenues for the 2009 second quarter increased 19.6 percent to $3,605,892 from $3,015,604 for the same period a year ago. Gross margin, as a percent of sales for the 2009 second quarter, was 30.1 percent, compared to 26.4 percent in the 2008 second quarter. Income from operations for the 2009 second quarter was $199,384, compared to a loss of ($724,663) for the 2008 second quarter, or an improvement of $924,047. Litigation expenses for the 2009 and 2008 second quarters were $81,360 and $890,091, respectively. Net income for the 2009 second quarter was $194,934, compared to a net loss of ($769,835) for the same period in 2008. Earnings, before interest, taxes, depreciation and amortization (EBITDA), were a positive $356,647 in the 2009 second quarter, compared to a negative ($608,246) in the 2008 second quarter.

Net revenues for the 2009 first half increased 18.1 percent to $6,995,711 from $5,920,868 for the same period a year ago. Gross profit margin, as a percent of sales for the 2009 first half, was 29.8 percent, compared to 28.1 percent in the 2008 first half. Income from operations for the 2009 first half was $320,355, compared to a loss of ($1,071,125) for the 2008 first half, or an improvement of $1,391,479. Litigation expenses for the 2009 and 2008 first halves were $245,674 and $1,449,213, respectively. Net income for the 2009 first half was $273,543, compared to a net loss of ($1,161,307) for the same period in 2008. EBITDA was a positive $600,701 in the 2009 first half, compared to a negative ($828,468) in the 2008 first half.

Dr. Steven Tsengas, President and CEO, stated, “Our record sales for both the 2009 second quarter and first half are a result of increased sales to existing customers and our penetration into pet distributor markets. We are pleased to continue to show strong sales growth despite the very challenging business environment as customers appreciate the value of our innovative products. For the 2009 second quarter, compared to the same period in 2008, our Play-N-Squeak brand products comprised 60 percent of the sales increase, while 25 percent of the increase came from our new Flappy dog toys. For the 2009 first half, compared to the same period in 2008, our new Flappy brand of dog toys comprised 50 percent of the sales increase, while our Play-N-Squeak brand products comprised 43 percent of the sales increase. We are extremely encouraged with how our new Flappy brand has performed since we introduced it earlier this year. In fact, Flappy Dog Toys has been chosen as a 2009 Pet Product News ‘Editor’s Choice’ award winner!

“Our earnings for the 2009 second quarter and year to date reflect improved gross profit margins and aggressive cost control, particularly reduced litigation expenses related to our SmartScoop product. While legal appeals progress, our strategy is to continue strengthening


our SmartScoop ® brand as well as accelerate the growth of the rest of our business. As was previously reported, the US Customs ruled in our favor on May 28, 2009 that the new model SmartScoop ® can be freely imported into the United States. We are one of the most innovative companies in the pet industry with over 100 patents issued, or pending, and we will aggressively pursue all legal remedies to protect our valuable intellectual property.

“We are optimistic about the number of new trend-setting products that will be rolled out during the next twelve months. We anticipate these exciting new products will have a significant positive impact on revenue and profits in the latter part of 2009 and the first half of 2010. Specifically, we will be making over ten new product introductions in the second half of 2009 to support our various brands, with the focus of these items to capitalize on the strong online consumer demand that occurs during the holidays. We simultaneously continue strengthening our human resources and management systems to support the anticipated company growth. We remain guardedly optimistic that the balance of 2009 will see continued revenue and earnings growth, as we implement our strategic business plan.”

About OurPet’s Company

OurPet's 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 the Company and its products. The Company’s websites include: www.smartscoop.com , www.ecopurenaturals.com , www.playnsqueak.com , and www.flappydogtoys.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 and 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 rates; rising costs for raw materials and the unavailability of sources of supply; the timing of orders booked; and the other risks that are described from time to time in OurPet’s SEC reports.

 

CONTACT:

          INVESTOR RELATIONS:

OurPet’s Company

    -or-       SM Berger & Company, Inc.
Dr. Steven Tsengas           Andrew Berger
(440) 354-6500 (Ext. 111)           (216) 464-6400

—Financial Results Attached—


OURPET’S COMPANY AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

 

     For the Six Months Ended
June 30,
    For the Quarter Ended
June 30,
 
     2009     2008     2009     2008  

Net revenue

   $ 6,995,711      $ 5,920,868      $ 3,605,892      $ 3,015,604   

Cost of goods sold

     4,911,998        4,256,842        2,521,688        2,218,441   
                                

Gross profit on sales

     2,083,713        1,664,026        1,084,205        797,163   

Selling, general and administrative expenses

     1,517,684        1,285,938        803,461        631,735   

Litigation expense

     245,674        1,449,213        81,360        890,091   
                                

Income (loss) from operations

     320,355        (1,071,125     199,384        (724,663

Other income and expense, net

     (37,720     (811     (37,722     (1,028

Interest expense

     84,531        90,993        42,172        46,200   
                                

Net Income (Loss)

     273,543        (1,161,307     194,934        (769,835

Basic and diluted net income (loss) per common share after dividend requirements for preferred stock

   $ 0.02      $ (0.08   $ 0.01      $ (0.05
                                

Weighted average number of common and equivalent shares outstanding used to calculate basic and diluted earnings per share

     15,984,780        15,245,105        16,005,237        15,246,226   
                                

OURPET’S COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

  

  

     June 30,
2009
    December 31,
2008
             

ASSETS

        

Cash and equivalents

   $ 372,970      $ 363,573       

Receivables, net

     1,765,208        1,420,884       

Inventories

     3,389,102        3,303,617       

Prepaid expenses

     169,647        73,995       
                    

Total current assets

     5,696,926        5,162,069       

Property and equipment, net

     1,945,230        2,076,550       

Other

     337,255        339,367       
                    

Total assets

   $ 7,979,412      $ 7,577,986       
                    

LIABILITIES AND STOCKHOLDERS’ EQUITY

        

Notes payable

   $ 1,900,000      $ 1,900,000       

Current maturities of long-term debt

     750,251        144,581       

Accounts payable

     1,409,002        1,238,367       

Accrued expenses

     675,625        666,051       
                    

Total current liabilities

     4,734,878        3,948,999       

Long-term debt

     797,725        1,474,036       

Stockholders’ Equity

     2,446,808        2,154,951       
                    

Total liabilities and stockholders’ equity

   $ 7,979,412      $ 7,577,986