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OPCO Achieves Record Financial Results in First Quarter of 2016
Before the opening bell, OurPet’s Company (OTCQX: OPCO) highlighted the recent success of its ongoing growth initiatives when it reported record financial results for the first quarter of 2016. The company’s net revenue for the three months ended March 31, 2016, was $6.17 million, an increase of more than 10 percent from the same period of 2015. Similarly, OPCO’s net income for the quarter was up 24.7 percent over the previous year, coming in at a record total of $266,581.
According to Dr. Steven Tsengas, chairman and chief executive officer of OPCO, these results highlight the company’s “continued ability to successfully execute [its] business strategy.” The strength of this business strategy is echoed by the strong performance of OPCO’s e-commerce and retail channels, which led the way with year-over-year growth of 14 percent and 8 percent, respectively. Despite the strength of the U.S. dollar having a negative impact on international sales for the quarter, OPCO was able to achieve strong performance in all of its major product categories, including a 64 percent increase through its waste & odor category, a 10 percent increase through its toys/accessories category and a 9 percent rise through its bowls/feeders category.
Benefitting from a sharp increase in sales, OPCO’s profitability was up almost 25 percent, as compared to 2015. This result can be partially attributed to the company’s focus on tightening cost controls, as illustrated by its one percent decrease in selling, general & administrative expenses as a percentage of total sales. Other financial highlights from the first quarter of 2016 include:
- Income from operations increased 16.5 percent over the previous year to $415,269 due primarily to increased sales
- Inventory declined to roughly $7.44 million from $7.91 million at the beginning of the year as the result of an ongoing initiative to reduce inventory below $7 million by year end
- Gross profit margin declined slightly to 29.7 percent from last year’s 30.3 percent due to product mix
- Earnings per diluted share remained flat at $0.01
In addition to the company’s impressive financial results, Dr. Tsengas used this morning’s news release to highlight OPCO’s presentation at the Global Pet Expo in March.
“One of our highlights every first quarter is the Global Pet Expo international trade show held in Orlando, Florida where we present our new, innovative products to the market,” he stated. “This year we presented our new Intelligent Pet Care™ product line that features BlueTooth® and wireless connectivity for three products: our SmartScoop® – Intelligent Litter Box, our SmartLink™ Feeder – Intelligent Pet Bowl and our SmartLink™ Waterer – Intelligent Water Fountain.”
In line with its goal of fostering a healthy relationship between pets and their owners, OPCO’s Intelligent Pet Care™ product line allows pet owners to easily monitor various activities that could have an inherent link to pet health, such as drinking, feeding and elimination behavior. By incorporating Bluetooth and wireless connectivity technology and enabling transmission of data directly to pet owners’ smartphones and mobile devices, the company is reaffirming its position as an innovator in the pet industry while strategically positioning itself to build on its strong start to 2016.
For more information, visit the company’s website at www.ourpets.com
