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:  August 3, 2011
(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 August 3, 2011, OurPet’s Company issued a press release and other financial information regarding its second quarter results.  The press release and other financial information are attached hereto as Exhibit 99.

Item 9.01.              Financial Statements and Exhibits.

(d)            Exhibits.

 
99
OurPet’s Company press release dated August 3, 2011 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:      August 5, 2011 OurPet’s Company
   
   
   
 
By:   /s/ Scott R. Mendes                                       
Scott R. Mendes, Chief Financial
Officer and Treasurer
 
 
 
3

 
                                                                           
EXHIBIT INDEX


Exhibit Number                      Description

 
99
OurPet’s Company press release dated August 3, 2011 and other financial information


 
4

 

 

 
FOR IMMEDIATE RELEASE
 
OurPet’s Company Reports 2011 Second Quarter Results
 
Record Quarterly Net Revenue and Income from Operations
Net income of $0.02 per share versus $0.01 per share in 2010
 
FAIRPORT HARBOR, Ohio – August 03, 2011--OurPet's Company (OTC BB: OPCO)(www.ourpets.com), a leading proprietary pet supply company, today reported record financial results for its second quarter ended June 30, 2011.  These results include those of Cosmic Pet Products (“Cosmic Pet”) which sold certain inventory, equipment and product rights to OurPet’s effective July 29, 2010.
 
Dr. Steven Tsengas, President and CEO, said, “The 16% increase in net revenue for the 2011 second quarter reflects record performance in the midst of a challenging global economic environment.  During the quarter we specifically benefited from increased sales of Cosmic Pet® catnip toy and accessory products, SmartScoop® automatic self cleaning litter box, export sales and promotional products.  SmartScoop was re-launched in May 2011 and is gaining sales momentum highlighted by   “Stanley the Cat” and “Odor Independence Day” themes (www.smartscoop.com).  This past month we successfully launched our new Cosmic Pet and Go Cat Go!!!® lines consisting of approximately 150 new SKU’s.  Based on initial customer response we are very optimistic that these innovatively designed and smartly packaged products will continue to be well received.  Sales of SmartScoop and Cosmic Pet products are expected to provide greater contributions to net revenue and profits during the second half of 2011.”
 
Dr. Tsengas continued, “Despite the uncertain business environment, we continue to strengthen our product portfolio and market position.  We have confidence in our strategic long range business plan and our excellent, dedicated team of associates. In addition to taking aggressive actions to improve efficiencies and reduce costs, we are also increasing our pipeline of new, innovative, proprietary products as we seek new markets, domestic and overseas, and pursue additional strategic acquisitions and joint ventures. The pet industry remains strong in the United States and globally.  In order to sustain our planned growth we successfully negotiated an increase in our bank revolving line of credit which provides us with financial flexibility.  We are confident that our carefully executed growth strategy should produce above average pet industry results during these difficult economic times that are expected to last for the rest of 2011 and lay the foundation for significantly better results in the long run.”

 
 

 

2011 Second Quarter Results

Net revenue increased 16% to a record $5,179,580 for the 2011 second quarter compared to $4,477,863 a year ago.  The 2011 second quarter net revenue particularly benefited from higher sales of Play-N-Squeak® cat toys, Cosmic® Catnip products and promotional sales.

Gross profit increased 16% to $1,584,231 for the 2011 second quarter from $1,367,209 for the same period in 2010.  Gross profit margin increased to 30.6% for the 2011 second quarter compared to 28.1% for the 2011 first quarter and 30.4% for the second quarter last year.

Income from operations increased 30% to $540,155 for the 2011 first quarter from $415,168 for the same period last year, benefiting from improved operating leverage and cost control measures as the company continues to scale-up operations to meet current and anticipated sales demand.  EBITDA increased 25% to $680,604 in the second quarter 2011 from $544,367 in the second quarter 2010.

Income before taxes increased 30% to $503,716 from $387,141 for the same period in 2010.
 
Income tax expense for the 2011 second quarter nearly doubled to $181,587 compared to $94,230 for the same period a year ago.   The Company expects to utilize all operating loss carry forwards during 2011.
 
Net income increased 10% to $322,129 for the three months ended June 30, 2011 from $292,911 for the same quarter last year despite a substantial increase in income tax expense for the 2011 second quarter.  Diluted earnings per share were $0.02 for the second quarter of 2011 compared to $.01 for the 2010 second quarter.

Shareholder’s equity was $5,615,957 at June 30, 2011, an increase of 12% since year-end 2010 and a 27% increase from the same date last year.

2011 First Half Results

Net revenue increased 23% to a record $9,974,764 for the six months ended June 30, 2011 compared to $8,121,796 for the same period a year ago.  Sales for the first half of 2011 benefited from higher sales of Play-N-Squeak® cat toys, Cosmic® Catnip products and promotional sales.

Gross profit increased 16% to $2,929,304 for the 2011 first half from $2,518,924 for the same period in 2010.  For the first six months of 2011, gross profit margin was 29.4% compared to 30.9% a year ago.  Recently implemented cost control measures are benefiting gross profit and gross profit margin as reflected in the 2011 second quarter results.

Income from operations increased 35% to $950,257 for the 2011 first half from $705,995 for the first six months of 2010.  Income before taxes increased 34% to $867,409 from $648,160 for the same period last year.  EBITDA increased 26% to $1,201,077 for the 2011 first half from $956,819 for the same period in 2010.

Income tax expense for the first six months of 2011 increased 232% to $309,025 compared to $93,003 for the same period a year ago.   The Company expects to utilize all operating loss carry forwards this year.

 
 

 

Net income increased to $588,384 for the six months ended June 30, 2011 from $555,157 for the same period a year ago despite a $216,022 increase in income tax expense in 2011.  Diluted earnings per share were $0.03 for the first half of 2011 compared to $0.03 the prior 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 the Company and its products. The Company's Websites include: www.smartscoop.com , www.ecopurenaturals.com, www.playnsqueak.com, www.flappydogtoys.com, www.clipnosis.com, http://www.hideperchandgo.com and http://www.cosmiccatnip.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 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.
 
CONTACT:
INVESTOR RELATIONS:
OurPet’s Company
Robert A. Lentz and Associates, Inc.
Dr. Steven Tsengas, CEO
Robert Lentz
(440) 354-6500 (Ext. 111)
(614) 876-2000
 
 
 

 

OURPET'S COMPANY AND SUBSIDIARIES
  CONSOLIDATED OPERATING RESULTS

   
For the Six Months Ended
   
For the Quarter Ended
 
   
June 30,
   
June 30,
 
   
2011
   
2010
   
2011
   
2010
 
                         
 Net revenue
  $ 9,974,764     $ 8,121,796     $ 5,179,580     $ 4,477,863  
 Cost of goods sold
    7,045,460       5,602,872       3,595,349       3,110,654  
           Gross profit on sales
    2,929,304       2,518,924       1,584,231       1,367,209  
                                 
 Selling, general and administrative expenses
    1,979,047       1,812,929       1,044,076       952,041  
           Income from operations
    950,257       705,995       540,155       415,168  
 Other (income) and expense, net
    (9,641 )     -       (9,968 )     -  
 Interest expense
    92,489       57,835       46,407       28,027  
 Income before taxes
    867,409       648,160       503,716       387,141  
                                 
 Income Tax expense
    309,025       93,003       181,587       94,230  
 Net Income
  $ 558,384     $ 555,157     $ 322,129     $ 292,911  
                                 
                                 
 Basic and Diluted Net Income (Loss) Per Common
                               
   Share After Dividend Requirements For Preferred
                               
   Stock
  $ 0.03     $ 0.03     $ 0.02     $ 0.01  
                                 
 Weighted average number of common and
                               
   equivalent shares outstanding used to calculate
                               
   basic and diluted earnings per share
    19,460,443       18,263,100       19,119,911       19,054,107  

 
 

 
 
OURPET'S COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

   
June 30,
   
December 31,
 
   
2011
   
2010
 
ASSETS
           
  Cash and equivalents
  $ 68,018     $ 78,673  
  Receivables, net
    3,215,822       2,657,865  
  Inventories
    5,828,948       5,576,129  
  Prepaid expenses
    307,082       210,340  
   Deferred Tax Asset net
    -       55,116  
          Total current assets
    9,419,870       8,578,123  
  Property and equipment, net
    2,521,002       2,260,873  
  Other
    831,268       997,075  
 
               
          Total assets
  $ 12,772,140     $ 11,836,071  
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES
               
  Notes payable
  $ 100,000     $ 100,000  
  Line of Credit
    -       2,528,000  
  Current maturities of long-term debt
    939,917       946,216  
  Accounts payable
    2,121,492       1,926,499  
  Accrued expenses
    499,450       504,504  
  Deferred income taxes-current portion
    26,056       -  
          Total current liabilities
    3,686,915       6,005,219  
                 
 LONG TERM LIABILITIES
               
   Long-term debt less current portion above
    563,325       797,604  
  Revolving Line of Credit
    2,778,000       -  
  Deferred income taxes
    127,943       -  
           Total Long term liabilities
    3,469,268       797,604  
                 
  Stockholders' Equity
    5,615,957       5,033,248  
                 
           Total liabilities and stockholders' equity
  $ 12,772,140     $ 11,836,071