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OPCO CEO Featured in Exclusive DreamTeamNetwork Interview
In a recent interview with DreamTeamNetwork, Dr. Steven Tsengas, chairman and chief executive officer of OurPet’s Company (OTCQX: OPCO), gave some insight into OPCO’s strong start to 2016, as well as its prospects for additional growth moving forward. The primary focus of the interview is OPCO’s record financial results for the first quarter of 2016, which included a double-digit increase in both net revenue and net income from the comparable period of the previous year. When asked about the driving force behind the company’s strong performance, Dr. Tsengas pointed toward OPCO’s continued commitment to innovation in the pet industry.
“We introduced in 2015 quite a lot of new products,” Dr. Tsengas stated in the interview. “Also, the tremendous investment we made in the waste and odor control products finally started showing results, and we had double-digit growth in the cat waste and odor control products… We have over 160 patents, issued or pending… [and] about 75 percent of our sales are derived from proprietary products. This has given us a tremendous advantage in the marketplace in terms of sales growth, as well as profitability.”
To listen to the full interview, visit http://dtn.fm/5z69S
In addition to a massive 64 percent increase in revenues derived from its waste and odor products category, OPCO recorded strong performance in its remaining product segments. The company achieved growth of 10 percent for its toys and accessories segment in the first quarter, as well as nine percent growth for its bowls and feeders product category.
These results highlight OPCO’s rapidly expanding presence on the domestic stage, but the company is also turning its attention toward international growth. In the first quarter, international sales dipped by just over seven percent due to the strength of the U.S. dollar, but Dr. Tsengas presented a promising outlook for OPCO’s international growth in the coming months.
“It’s kind of interesting. I think one of the big positive surprises in 2016 is going to be international sales,” he stated. “In spite of the appreciation of the American dollar, we’ve been putting a lot of emphasis in… South Korea, China and Japan, and the fruits are about to bare in those particular markets. We’ve gained very strong following for our products… Both the OurPet’s and the PetZone brands are becoming quite well-known in the Far East.”
Following the launch of its newest innovation, the Intelligent Pet Care™ product line, at this year’s Global Pet Expo, OPCO reaffirmed its position at the forefront of the global pet industry. Leveraging Bluetooth and Wi-Fi connectivity, the company’s newest product line aims to enhance the connection between humans and pets in a variety of ways while giving pet parent’s the tools necessary to monitor various activities that can be interpreted as indicators of pet health. Reception following the Intelligent Pet Care™ unveiling confirmed the market potential of these cutting-edge products.
“At the Global Pet Expo… we launched the Intelligent Pet Care™ and [garnered] so much interest that we ended up having a special showing and invited magazines, newspapers and all kinds of media,” added Dr. Tsengas.
With a strong start already in the books, OPCO will look to build on its first quarter results while promoting sustainable financial growth for the balance of 2016 and beyond. Dr. Tsengas echoed this optimistic tone to close out the interview.
“The major goal is… to grow at double-digit rates at three- to four-times industry growth, this has been our goal since our founding,” he stated. “Of course, profitability should grow at a faster rate because of economies of scale and absorption… We’re optimistic about 2016. I think we should have a pretty good year.”
For more information, visit the company’s website at www.ourpets.com
OPCO Combining Record Financial Performance with Continued Innovation to Bolster Leadership Position in Pet Industry
Earlier this month, OurPet’s Company (OTCQX: OPCO) made headlines when it reported record financial results for the three months ended March 31, 2016. The company’s first quarter net revenue increased by 10.3 percent from the previous year, totaling $6.17 million. Similarly, OPCO’s net income rose by 24.7 percent over the previous year to a record total of $266,581. These strong results continue to highlight the company’s success in promoting growth through multiple sales channels. OPCO’s sales through e-commerce channels were up 14 percent over the previous year, while sales through food, drug and mass retail channels grew by eight percent.
“These results reflect our continued ability to successfully execute our business strategy,” Dr. Steven Tsengas, Chairman and Chief Executive Officer of OPCO, stated in a news release. “We are pleased that all major product categories showed a strong performance with Waste & Odor up 64%, Toys/Accessories up 10% and Bowls/Feeders up 9%.”
Despite recording a slim year-over-year decrease in gross profit margin due to product mix, OPCO continues to position itself for sustainable growth by focusing on minimizing overhead costs. The company’s selling, general & administrative expenses as a percentage of total sales dropped by a full percent from the first quarter of 2015, while income from operations increased by 16.5 percent to $415,269. In line with its goal of minimizing costs, OPCO also made progress on an initiative to reduce its inventory below $7 million by the end of the year, dropping inventory from $7.91 million at the beginning of the year to $7.44 million at the end of the first quarter.
While this strong financial growth should be enough to catch the attention of prospective shareholders, OPCO has also unveiled its next innovation in the roughly $62.75 billion pet space. At the Global Pet Expo international trade show in Orlando, Florida, the company introduced its new Intelligent Pet Care™ product line, which leverages Bluetooth and wireless connectivity to enhance the bond between pets and pet owners. The SmartScoop® – Intelligent Litter Box, SmartLink™ Feeder – Intelligent Pet Bowl and SmartLink™ Waterer – Intelligent Water Fountain are specially designed to monitor and wirelessly report on various activities that can be interpreted as indicators of pet health, such as elimination behavior, eating and drinking.
Since its founding in 1995, OPCO has remained dedicated to enhancing the bond between pets and pet parents by marketing high quality, innovative products. Look for the company to continue pursuing this goal as it leans on the tremendous experience of its management team and the marketability of its advanced Intelligent Pet Care™ product line. With strong financial growth and a commitment to the advancement of the industry, OPCO is primed to build on its position as a leader in the global pet market moving forward.
For more information, visit the company’s website at www.ourpets.com
OPCO Pitch-Perfect Product Mix Nails Burgeoning Pet Market High-Income Household Demo
American Pet Products Association (APPA) data forecasts that Americans will spend upwards of $62.75 billion on their pets this year (http://dtn.fm/n76B4), with the supplies segment continuing to rank a close third, just behind veterinary care and food, at around 23.8 percent of the pie. With nearly 163 million cats and dogs alone occupying households and hearts throughout this great country, the consolidative forces within the pet supply industry that sparked merger talks between the two biggest players recently, privately-owned (CVC Capital Partners and the Canada Pension Plan Investment Board) PETCO and PetSmart, are quite easy to understand. There is a massive, steadily growing market out there to be tapped and the domestic pet store industry, which has grown to some $18.5 billion in revenues as of this year and which is on track to grow by just over three percent per annum through 2021, has become fiercely contested territory.
The aforementioned merger talks may have collapsed under the pressure of scrutiny from U.S. antitrust regulatory authorities, but that collapse merely set the stage for the $8.7 billion leveraged buyout of PetSmart (again via private equity, this time led by BC Partners). Any savvy investor can smell the opportunity here, especially for what an IBIS World report out earlier this year explained as the hottest segment moving forward: premium products and services. Another recent report, this time by Packaged Facts from late 2015, sees the overall pet industry growing to nearly $92 billion in sales by 2019, and affirms the general consensus about high-income households being a major demographic for pet product brands.
Little surprise then in all of this market momentum that innovative developer of high-quality, super-premium pet toys and accessories, OurPet’s Company (OTCQX: OPCO) has continued to wow investors with its bottom line performance metrics. A combination of ingenious product development/design, guided by a deep management bench of industry veterans, and pitch-perfect product execution when it comes to the interests of its core markets, has collectively buoyed the company’s net income and revenue performance. Amid boisterous consumer activity, as people continue to respond strongly with positive feedback to the company’s newest designs, OPCO’s raw financial performance has climbed to levels surpassing even the company’s own previous YOY records set in Q4 2015 (ended December 31). For Q1 2016 (ended March 31), OPCO posted handsome net revenue gains of 10.3 percent compared to Q1 2015, and a whopping 24.7 percent increase in net income over the same interval.
Primary driving force behind the company’s ever-growing portfolio of lovingly engineered pet products, Dr. Steve Tsengas, was keen to point out the company’s marketing efficacy at the time of the Q1 financials release. Noting in particular how good for business the Q1 kick-off every year of OPCO’s newest offerings was, done via the widely-attended international trade show presented by the APPA and Pet Industry Distributors Association in Orlando, Florida, known as the Global Pet Expo. Dr. Tsengas’s multi-decade quest to bring the power of his vast experience in holistic, integrated and naturopathic health to the development of high-end, signature pet brands, is really starting to pay off for shareholders nowadays. What with the successful introduction this year of the company’s Intelligent Pet Care™ line, featuring BlueTooth® and wireless connectivity, for its SmartScoop® – Intelligent Litter Box, SmartLink™ Feeder – Intelligent Pet Bowl, and SmartLink™ Waterer – Intelligent Water Fountain.
The debut of other products, like the company’s 100% Natural Switchgrass BioChar litter, further enhances its growing brand presence among those key high-income households that every product developer today is trying to court. And OurPet’s Company has a thriving online ecommerce presence, both via its own site and ecommerce giants like Amazon, where the company’s products typically have superb reviews/ratings from customers.
While small physical operators in the industry continue to come under fire from big-box specialty stores, the industry continues to consolidate and more of the retail transactions migrate to digital (with mobile leading the way), a company like OPCO is supremely well-positioned to profit through a tight mix of killer designs that have lasting brand/product appeal. Appeal that is based on robust materials, intelligent engineering, and a deep-seated need to understand the psychology of pets, so that products can be made to enhance the lives of what are for most households just another beloved member of the family.
For more information, visit the company’s website at www.ourpets.com
OPCO Turning to Internet of Things to Enhance Bond between Pets and Pet Parents
Excitement surrounding the Internet of Things (IoT) has been building for nearly a decade, but the time has come for a more connected world to truly take shape. According to a report by Adobe, the amount of Internet-connected things will reach 50 billion by 2020, offering profits and cost savings to the tune of $19 trillion (http://dtn.fm/7tNTM). Among this growth, smart devices within the home, such as thermostats and kitchen appliances, are expected to contribute about $490 billion by 2019, led by established names in the tech sector such as Google (NASDAQ: GOOG), which bought smart thermostat maker Nest in 2014 (http://dtn.fm/2B2lu), and Samsung (OTC: SSNLF), which acquired connected home company SmartThings (http://dtn.fm/4HDe2) later that same year.
Despite the strong performance of IoT in the consumer space, the primary destinations for smart devices are healthcare and manufacturing. By 2025, Adobe estimates that the value of IoT technology in the healthcare industry could exceed $2.5 trillion. While this is big news for players in the healthcare space, it also presents an opportunity for companies with innovative ideas operating in other sectors. One such company is OurPet’s Company (OTCQX: OPCO), a leading designer, producer and marketer of innovative pet products in the U.S. and overseas. Taking its cue from the success of IoT in the healthcare industry, OurPet’s recently introduced a new line of pet products that leverages Bluetooth and wireless connectivity to monitor various activities that can be interpreted as indicators of pet health.
OPCO’s Intelligent Pet Care™ product line includes three products designed to bring pet ownership into the 21st century, including the SmartScoop® – Intelligent Litter Box, the SmartLink™ Feeder – Intelligent Pet Bowl and the SmartLink™ Waterer – Intelligent Water Fountain. With these products, pet owners can monitor pets’ drinking, feeding and elimination behavior directly from their smartphones and other mobile devices. This feedback is critical, because irregularities regarding any of these behaviors can, in some cases, be a sign of potential health issues. In the case of excessive drinking, for example, dogs may be reacting to an accumulation of harmful substances in the body, which can be the result of infections, diabetes or kidney failure (http://dtn.fm/8Aj1F).
The benefits of IoT technology in the healthcare space have been clearly demonstrated by its widespread adoption in recent years. OPCO’s new Intelligent Pet Care™ product line opens the door for the roughly 65 percent of U.S. households that own a pet (http://dtn.fm/PER2o) to follow the healthcare industry’s lead while promoting the enhanced health and wellness of their furry family members.
“The pet industry is continually evolving and it’s our goal to introduce new products every year that improve the health, safety, comfort and enjoyment of pets, which in turn strengthens the bond between pet and pet parent,” Dr. Steven Tsengas, chairman and chief executive officer of OPCO, stated in a news release. “These [Intelligent Pet Care™] products enhance the convenience of pet ownership and the connectivity between pets and pet owners by monitoring various activities that can be interpreted as indicators of pet health, such as drinking, feeding and elimination behavior.”
For more information, visit the company’s website at www.ourpets.com
Yea but where the vol at?
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
OPCO is a Technology Company
We tend to think of technology in terms of gadgetry. If it isn’t as complex as rocket science, then it’s not tech. However, in the well-known Macroeconomics text co-authored by the Nobel Prize-winning economist, Paul Krugman, the point is made that technological progress, the factor most responsible for economic growth, has depended on rather mundane innovations such as the flat-bottomed paper bag (patented in 1870) and the Post-it note (introduced in 1981). Technology is not all about bells and whistles; it’s about ideas. And innovative ideas make up the foundation on which OurPet’s Company (OTCQX: OPCO) was built.
In a recent MissionIR OPCO interview (http://dtn.fm/uZK5M), co-founder Dr. Steve Tsengas remarked that one of the main rationales behind the founding of OurPet’s Company in 1994 was the lack of innovation in the pet industry at that time. In fact, so intent on the knowledge-based aspect of the enterprise were its co-founders, Dr. Steve Tsengas and Dean Tsengas, that they decided to focus on generating new, improved solutions for pet owners and ways of getting product to market rather than manufacturing. So, on the one hand, OurPet’s Company concentrates on innovation and design, and, on the other, on marketing and distributing its product line.
OurPet’s Company began as a one-product company. Its OurPets® Big Dog Feeder® was introduced at a classic pet show in Cleveland, Ohio, in 1994. After sales of $6,500 in three days, the founders realized that their insight of the need for innovation in the industry was right on point. The OurPets® Big Dog Feeder® makes it easier for big dogs to eat by elevating the feeding bowl. It is also a much healthier way for them to eat. Feeding from a bowl at ground level may compromise their physical structure, leading to arthritis at the joints.
Since then, OurPet’s Company has gone from a start-up with one product and annual sales of $100,000 to a publicly-traded company with over a thousand products and annual revenues reaching for $30 million. The company also has a potent IP pipeline of some 30 or so products and an IP portfolio of about 160 patents.
The confluence of ideas that has created such experimental and operational energy at OurPet’s Company is derived from two main streams. First, Dr. Steve Tsengas must confess to being a serial entrepreneur. He has been elected to the National Inventors Hall of Fame, to be a member of which ‘the inventor must have had a U.S. patent that has improved the welfare of humanity and promoted the progress of science and technology’. He has started seven other companies, all, save one, successfully, and has, in the process, accumulated a rich variety of experience and expertise in engineering, electronics, plastics and rubber technologies. Second, his love of pets has driven an academic interest in the pathologies that, unfortunately, accompany their aging. He holds a PhD in naturopathic medicine with a specialty in pet geriatrics and animal behavior. The combination of Dr. Tsengas’s engineering expertise with his knowledge of animal physiology is exploiting market opportunities.
In spite of its successful launch with the relatively low-tech OurPets® Big Dog Feeder®, OurPet’s Company is just as much high-tech. In July 2015, OurPets® Catty Whack® received the Best New Cat Product Showcase Award at the pet supply industry trade show, SuperZoo. OurPets® Catty Whack® is an unpredictable game of hide and seek designed for cats of all ages. Cats love the electronic RealMouse® sound and the erratic movement of the feather keeps the cat guessing as it darts in and out at random. On the top of the Catty Whack® there is a carpeted scratching area where cats can groom their claws on a texture that they find satisfying. The bottom of the toy has non-skid rubber feet, which keeps the toy from sliding. There is also an auto-shut off feature and a replacement feather prey wand is included.
Building on this progress, last month, OurPet’s Company introduced its Intelligent Pet Care™ product line at the Global Pet Expo. Intelligent Pet Care™ products use Bluetooth technology to communicate information to pet owners’ smartphones about their pets. The company also displayed its Whirling Wiggler™ Spinner Toy, new waste management products, and new designs for its bowl and feeder line. With all of this in mind, it’s clear that OurPet’s Company is not high-tech or low-tech. OurPet’s Company is all-tech.
For more information, visit the company’s website at www.ourpets.com
OPCO Thriving in Expanding Pet Care Space
It is the goal at many of today’s forward-thinking companies to drive initiatives that lead to the desired business outcome of environmental sustainability. In the case of OurPet’s Company (OTCQX: OPCO), dogs and cats are included in the business model. The Ohio-based company develops, produces, and markets an array of pet accessories and consumable products designed to draw out our pets’ natural feeding and playing instincts.
Evidence of the company’s commitment to ‘green’ is observed through its line of Pet Zone® EcoPure Naturals® toys, which are made from sustainable or recyclable materials. These toys are the Catnip Fruits Slices, Veggie Assortment, Spider Wand™, Loofah Wand™ and Catnip Carrots, just to name a few products.
OPCO endeavors at designing, developing, producing, and marketing numerous accessory and consumable pet products designed to improve the health, safety, comfort, and enjoyment of pets in locations around the world. The company serves up various dog and cat products; cat and bird feeders; dog and cat toys; cat and dog waste management products; catnip products; natural and nutritional pet supplements; and topical products. The company markets its products under the OurPets® and Pet Zone® brands. Most notably, the company leverages its business model by serving mass retailers, pet superstores, regional pet chains, grocers and pet food manufacturers and distributors. Founded in 1995, OurPet’s is based in Fairport Harbor, Ohio.
For more information, visit the company’s website at www.ourpets.com
OPCO: An Industry Leader in Innovative Products for Pets
The pet industry is constantly changing and calling for companies that can adapt to its advances. At the Ohio-based OurPet’s Company (OTCQX: OPCO), one of management’s main goals is to unveil, every year, new products that improve the health, safety, comfort and enjoyment of pets. OurPet’s has always been an innovator in the pet industry, and, by concentrating on creating products that satisfy a pet’s instinctive needs, the company supports and intensifies the pet and pet parent bond, creating harmony in the home.
OurPet’s research and development team has been working diligently on new offerings over the course of the past year, and the company has been building off of this momentum. Last month, OurPet’s introduced another new product line that has the potential to be among the most innovative in the company’s history. It joined thousands of exhibitors in launching new products at the Global Pet Expo, the pet industry’s largest trade show. Among the products that debuted were OurPet’s:
- Intelligent Pet Care™, industry’s first complete smart-lifestyle product line;
- OurPets® Kitty Potty™, a unique feline waste removal system;
- Flappy®, a new generation of dog toys;
- OurPets® Whirling Wiggler™, a spinning cat toy; and
- Collection of stainless steel pet feeding solutions.
Intelligent Pet Care™
By bringing easy-to-use technology into everyday pet care, the Intelligent Pet Care™ products are changing the face of traditional waste management systems, pet feeders and pet water systems by adding the ability of monitoring pets’ behaviors through a smartphone app.
OurPets® Kitty Potty™
OurPets® Kitty Potty™ is an inventive waste removal system that caters to a cat’s natural elimination instincts and serves as an unprecedented training tool to “potty train” kittens. Felines deposit waste in a hole, strategically placed in the middle of the unit. Surrounding the hole is litter which allows the cat to instinctively cover, but never touch its waste or track bacteria through the home. With its easy, no-touch cleanup, pet owners do not come in contact with waste either.
Flappy® Dog Toys
The company’s new generation of Flappy® toys quench a dog’s instinctive need to carry prey in its mouth. Designed to recreate the hunting experience, the Flappy® toy’s body is made of sturdy material that is still soft enough to be chewed. The distinctive texture of the dental tips and ridges also helps clean the dog’s teeth and massage its gums.
OurPets® Whirling Wiggler™
Designed to indulge a cat’s inner hunter, the Whirling Wiggler Spinner Toy allows cats to stalk and hunt in the safety of the home. The toy’s wire slider lets one change between two flight modes, chase and play. In chase mode (wire slider down), one butterfly flies freely while the other chases closely behind. In play mode (wire slider up), the butterflies fly in sync as they friskily flutter around the base of the toy.
Stainless Steel Feeding Solutions
With each solution catering to a particular set of pet feeding needs, OurPet’s has been updating its line of feeding solutions with new, stylish bowl designs; an adjustable raised feeder; a durable food scoop; and a 3-in-1 vented slow feed insert that fits in top selling bowls.
For more information, visit the company’s website at www.ourpets.com
OPCO is Adapting to Change in the Pet Care Marketplace
The renowned physicist Dr. Stephen Hawking, famously said, “Intelligence is the ability to adapt to change”, an observation that OurPet’s Company (OTCQX: OPCO) lives by. Earlier this year, the company filed its annual report (10-K) for the financial year ended December 31, 2015, which showed that it is responding to a changing market environment with operational efficiencies and new product innovation.
Net revenues for the 12 months ended December 31, 2015, were $23,819,189, an increase of $1,048,627 (4.6 percent) over revenues from the prior year. This growth resulted from increases in both unit sales and margins.
Net income for 2015 reached $1,336,912, increasing by an astounding 74 percent over net income for 2014. This improved performance showed that OurPet’s Company’s management is taking good care of business. Gross profit margin improved to almost 32% from 30% the previous year, and selling, general and administrative expenses actually declined.
OurPet’s Company’s 10-K also showcased the success of its dual-brand strategy, with the OurPets® brand for the “pet specialty” channel and the Pet Zone® brand for the “grocery, drug, mass” channel. In 2015, sales remained about the same in the “grocery, drug, mass” channel and increased in both the “pet specialty” and “e-commerce” channels by 11.8 percent and 6.3 percent, respectively.
The increased sales ran across many customer types, including distributors, national chains, regional chains and e-commerce retailers. The largest growth in revenue in 2015 came from sales to national chain customers, which increased by approximately $586,000, followed by sales to distributors, which grew by approximately $256,000.
International sales in 2015 were about $2,620,000, around 11 percent of total sales, and fell by approximately $300,000 or 10.3 percent, compared to 2014, mostly due to the strengthening of the U.S. dollar.
In 2015, the two largest product categories, comprising 85.9 percent of net sales, were toys and accessories. Both of these categories grew in 2015, with toys and accessories rising by approximately $406,000 (3.6%) and bowls and feeders rising by approximately $938,000 (11.0%). The edibles and consumables category comprised 5.9 percent of sales and decreased by 8.0 percent during 2015, mainly because a value-chain customer discontinued a product. The waste and odor category, which comprised 4.5 percent of sales in 2015, grew by 13.9 percent. The company expects this category to become more important in the coming year, as it has several new products under development, including its new Kitty Potty™ and Switchgrass/Bio Char Natural Litter.
At present, cats trump dogs at OurPet’s Company. The company sells more products for cats (57 percent of total sales) than it does for dogs (41 percent of sales). Another two percent is made up of miscellaneous items. Nevertheless, dog product sales increased at a rate of 11 percent because of higher bowl and feeder sales, as compared to cat product sales, which were up just one percent.
Last month, OurPet’s Company introduced its Intelligent Pet Care™ product line at the Global Pet Expo. Intelligent Pet Care™ products use Bluetooth® technology to communicate information to pet owners’ smartphones about their pets. The company also displayed its Whirling Wiggler™ Spinner Toy, new waste management products, and new designs for its bowl and feeder line.
OurPet’s Company’s intelligent and pro-active approach to the pet care marketplace is a result of its enlightened, well-informed management. The present team is made up of Dr. Steven Tsengas, chairman and chief executive officer; Dean S. Tsengas, chief operating officer, vice president of operations and secretary; Scott R. Mendes, chief financial officer; Kathleen Homyock, vice president of sales and new business development; and Gabriella Chessman, vice president of marketing. Dr. Tsengas is an engineer and inventor who has been elected to the National Inventors Hall of Fame. Under his guidance, OurPet’s Company has developed a portfolio of hundreds of products and nurtured an intellectual property (IP) stockpile of over 160 patents.
For more information, visit the company’s website at www.ourpets.com
OPCO: ‘Green’ Effects & Positive Outlook from APPA President on Pet Industry in 2016
It’s said that green is the new black. According to Packaged Facts, the movement toward sustainable practices in the pet industry has been underway for quite some time, “beginning with recycling efforts, expanding to bio-based/biodegradable materials and now encompassing a variety of initiatives driven by consumer demand.” Ohio-based OurPet’s Company (OTCQX: OPCO) is aware of this. The company develops, produces, and markets various pet accessory and consumable products designed to awaken pets’ natural instincts, be it in feeding, playing, or waste management.
Examples of the company’s ‘green’ commitment include the following cat products, which are made from sustainable or recycled/recyclable materials: Spider Wand™, Loofah Wand™, Catnip Carrots, Catnip Fruits, Veggie Assortment and the remainder of the Pet Zone EcoPure Naturals® line.
Consumers view companies with eco-friendly initiatives positively and are demanding products created with eco-friendly, ‘natural’ ingredients and materials. Experts predict continued growth in the natural category, which includes pet food and pet care products. As reported by Packaged Facts, U.S. retail sales of natural pet products saw a “compound annual growth rate of 15.2 percent” from 2010 to 2014.
Bob Vetere, president and CEO of the American Pet Products Association (APPA), announced at the Global Pet Expo in Orlando, Florida, that overall spending in the pet industry for 2015 came in at a record $60.28 billion. These spending figures are part of APPA’s annual comprehensive report that covers pet spending in the market categories of food, supplies/over-the-counter (OTC) medications, veterinary care, live animal purchases and other services.
Pet services, which include grooming, boarding, walking, training, pet sitting, exercise and yard services for pets, saw the largest growth and more than tripled the growth percentage of any other category. Coming in at an 11.8 percent rise from 2014 to 2015, owners are now spending $5.41 billion on pet-related services.
“The 2016 industry spending forecast is very promising and although spending trends in various market segments ebb and flow, the industry as a whole is continuing to prosper, which is always great news,” said Vetere. “And with increased research on the health benefits of pet ownership, we anticipate even higher industry sales in the years to come.”
For more information, visit the company’s website at www.ourpets.com
OPCO: Millennials’ Robust Growth in Pet Ownership Should Attract Attention
Millennial pet ownership grew 25 percent between 2007 and 2015, while the number of pet owners in the 35-and-older age group increased just 14 percent, according to an article on the MediaPost website (http://dtn.fm/WEq3D). Even more significant, the majority of growth among millennials came from multicultural young adults, thus making Latinos, in particular, a key millennial pet owner segment.
Diversity in a company’s product portfolio is essential to capitalizing on this type of trend. Packaged Facts projects that millennials will be responsible for adding another 2.6 million pet owners between 2015 and 2020. There are 43 million pet owners in the 18- to 34-year-old age group, accounting for 31 percent of all pet owners, according to market research publisher Packaged Facts in the report Millennials as Pet Market Consumers. OurPet’s Company (OTCQX: OPCO) develops, produces and markets various pet accessory and consumable products designed to awaken pets’ natural instincts, be it in feeding, playing or waste management.
While the pet industry has previously been reliant on the spending patterns of pet owners from the baby boomer and gen X generations, millennials are closing the gap. In 2014, households headed by millennial consumers spent almost $11 billion on their pets.
Sold globally through pet specialty retailers; food, drug and mass chains; e-commerce and international channels, OurPet’s Company’s products are marketed under the OurPets®, Pet Zone® and PetTastic® brands with well-known sub-brands such as Play-N-Squeak®, Cosmic Catnip™, Durapet®, SmartScoop® and Flappy®. In total, OurPet’s has an intellectual property portfolio featuring more than 160 individual patents, giving the company sustainable access to the pet products industry for the foreseeable future. Constantly developing and launching new products to satisfy changing business environments is one of the company’s biggest strong suits.
The past year helped confirm the pet industry as one of the most dynamic parts of the U.S. economy. Even when sales haven’t kept up with the growth of recent years, the industry has managed to attract a slew of investments. The pet industry saw the biggest private equity deal of the year, when a group of investors bought PetSmart and took it private, and while one company focused on human products got out of the pet business (The Procter & Gamble Company (NYSE: PG)), another got in (The J. M. Smucker Company (NYSE:SJM)).
OurPet’s Company is well positioned in a dynamic, high-growth market and has the necessary relationships in place to continue its growth cycle and meet whatever demands the millennial, baby boomer, and X-generation segments want to see on store shelves or ecommerce inventory searches.
For more information, visit the company’s website at www.ourpets.com
OPCO Reaches Favorable Settlement in Patent Infringement Case
Before the opening bell, OurPet’s Company (OTCQX: OPCO) announced a patent infringement settlement with Van Ness Plastic Molding Co., Inc. In the previously filed suit, OPCO alleged that Van Ness’ stainless steel, rubber-bottomed bowls infringed upon the company’s 529 utility patent, which covers a feeding dish with rubber on the bottom where the rubber does not extend up a sidewall. According to the news release, the matter was settled favorably to OurPet’s.
“We are pleased with the outcome of this patent infringement case,” Dr. Steve Tsengas, president and chief executive officer of OPCO, stated in this morning’s news release. “In the future, OurPet’s will continue to protect the value of our innovative product lines, and specifically our intellectual property portfolio, which currently includes 160 patents issued or pending.”
The intellectual property in question covers the company’s DuraPet® line, which is the leading line of pet dishes in the pet industry. According to the product’s description on Amazon (NASDAQ: AMZN), the OurPet’s DuraPet® Bowl uses a permanently-bonded rubber ring on the bottom of the bowl to prevent sliding and reduce noise while the pet is eating. The stainless steel bowl is scratch-resistant and crack-proof, and the product is dishwasher-safe for easy cleaning.
Over the years, OPCO has developed an expansive line of innovative pet products, including a strong IP portfolio featuring 160 issued or pending patents in the United States. In addition to its steadfast commitment to driving innovation in the pet industry, the company has committed significant effort to enforcing its patents against copycat competitors. These efforts have helped OPCO maintain a sizable and growing presence in the pet industry, as demonstrated by the company’s latest financial results.
In the fourth quarter of 2015, OPCO recorded $450,592 in net income, an increase of 10 percent from the same period in 2014. Likewise, the company’s 2015 full-year net income was up 74 percent over the results from the prior year, with OPCO continuing to benefit from specific management initiatives that resulted in lower fixed costs, lower production costs and lower general and administrative expenses. Following the successful implementation of its dual branding strategy, by which OPCO markets the OurPet’s brand for the pet specialty channel and the Pet Zone brand for the food, drug and mass retail channels, the company is well-positioned to build on these results and continue its positive momentum throughout the first quarter of 2016 and beyond.
For more information, visit the company’s website at www.ourpets.com
OPCO Continues to Evolve its Infrastructure to Successfully Meet Fiscal Goals and Market Trends
An innovative leader in the pet industry, OurPet’s Company (OTCQX: OPCO) aims to improve the health, safety, and comfort of household pets while ensuring they’re having fun with their owners. The company first stepped into the pet space in 1995, when the industry was pulling in $16 billion in annual sales. According to the American Pet Products Association (APPA), that number is now $65 billion. Cat products alone are increasing by 6% each year. OurPet’s is aiming to capitalize on this trend and climb to $50 million in annual sales in the next five years. To do this, the company has been continuously updating its infrastructure to meet its goals.
First, OurPet’s developed a new branding strategy in 2012 that easily segregates its products into two brands targeting different market segments. The OurPets® Brand is a high-end product brand that caters to pet specialty stores like PetSmart, Petco, and Pet Valu. This line consists of patented one-of-a-kind products such as the Whirling Wiggler™, a butterfly-inspired toy that simulates insect movement for cats, and the Flappy® Chirp-N-Prey™, a squeaky toy that promotes healthy gums and teeth for dogs.
The company’s second product line, PetZone®, markets affordable pet products to food, drug, and mass retailers like Wal-Mart (NYSE: WMT), Kroger (NYSE: KR), and Amazon (NASDAQ: AMZN). Consumers will find products such as toys, feeding solutions, waste management solutions, and accessories at these stores. The PetZone brand boasts “specialty quality products at affordable prices.”
Furthermore, over the past three years, OurPet’s has been expanding its management team into a company stronghold that delivers experience and expert knowledge. For example, the company added Gabriella Chessman as vice president of marketing, Kathleen Peters-Homyock as vice president of sales, Scott Mendes as chief financial officer, and Dean Tsengas as chief operating officer.
Lastly, OurPet’s updated its Enterprise Resource Planning (ERP) system with warehouse logistics. Now it can receive all orders electronically all the way to payment. This change allows for a faster and more efficient ordering process that can promote more revenue along with heightened customer satisfaction.
With constant reevaluation of the company framework, OurPet’s is positioned to maintain its leadership status in the pet industry. By creating 160 individual patents that have no equal, the company stands by its intentions of exceeding the expectations of pets and their owners.
For more information, visit the company’s website at www.ourpets.com
Waste Not, Want Not with OPCO's New Switchgrass Biochar Litter
A technology that dates back two millennia is behind OurPet’s Company’s (OTCQX: OPCO) new Switchgrass Biochar Litter. As Emily Wayne of Oxford University explains in Conquistadors, cannibals and climate change: A brief history of biochar (http://dtn.fm/A4Czi), “In 1870, James Orton, a little-known American geologist and explorer, noticed that alongside the typically grey, acidic soils of the (Amazon) basin there existed large patches of ‘black and very fertile’ soil… Researchers flocked to investigate the mysterious dark earth, or ‘terra preta’ as it is known locally.” On closer examination, the soil appeared to have been modified by early human settlers. It seems the early Amazonians had originated an organic method of fertilizing the soil. These terra preta plots date back to antiquity, the oldest site at 8,000 BCE. It all appeared to have started when these ancient peoples discovered that, by charring organic waste in ovens with a low-oxygen supply, a process known as pyrolysis, charcoal for use as a fuel could be produced. Somehow this carbon found its way into the soil, giving it a characteristically black color due to the high concentration of carbon. Terra preta contains up to 9 percent carbon, compared with 0.5 percent in surrounding soils.
At some point it was realized that such soil yielded more abundant crops for longer periods. Even with the use of chemical fertilizers, crop yields will fall off rapidly after a third consecutive growing season, yet the terra preta soil has retained its fertility for centuries. So, naturally, efforts were made to reproduce the ancient techniques of terra preta production. This has given birth to biological charcoal (biochar), which can be defined simply as charcoal used for agricultural purposes.
Charcoal is able to remove odors very effectively because a quantity of charcoal absorbs many times its volume of noxious gases. Charcoal is a porous form of carbon and so has a very large ‘surface area’ which enhances its powers of absorption. It does a great job of absorbing the ‘rotten egg’ odor that cat waste gives off. This rotten egg gas is actually hydrogen sulfide (H2S), a poisonous, highly flammable, colorless gas that, in high enough concentrations, can cause loss of consciousness. An old story (http://dtn.fm/94Bsh) in Sky News told how a vet in Sweden was hospitalized for three days after being exposed to 20 flatulent cats.
OurPet’s Company continues to demonstrate its technological prowess with Switchgrass Biochar Litter. The company’s CEO, Dr. Steven Tsengas, is an engineer and inventor who has been elected to the National Inventors Hall of Fame. OurPet’s Company’s engineering expertise and open approach to new ideas has been employed, over the years, to develop the company’s portfolio of over 1,000 products. The company also has another 30 or so products in the pipeline and an intellectual property stockpile of over 160 patents. Recently, OurPet’s Company announced a new strategic partnership with the Japanese software developer, Aplix IP Holdings Corporation, a company known for its WirelessIDEA software-based technology for machine to machine (M2M) applications and its JBlend, a Java Micro Edition (Java ME) platform for embedded software, which has been installed in close to three-quarters of a billion devices worldwide.
In a recent earnings release, Dr. Tsengas said, “We remain focused on growth initiatives in all three of our key product categories; feeding and storage, toys and accessories, and waste management and odor control.’. Those of us with hyperosmia are happy to hear that.
For more information, visit the company’s website at www.ourpets.com
OPCO Approaches Its Next Stage of Growth; CEO Interview
OurPet’s Company’s (OTCQX: OPCO) business strategies have contributed substantially to its success, and so has the growth of the pet products industry. The pet products industry is booming. It has grown from around $16 billion in annual sales in 1995, when OurPet’s first entered the industry, to around $65 billion in 2015, according to the American Pet Products Association.
In a February 2016 interview with Thomas Rice, editor of The Bowser Report, Dr. Steve Tsengas, CEO of OurPet’s Company, shared his insights about the future of his company and the pet products industry. “The industry continues to grow, especially cat products, which are increasing about 6% a year,” according to Dr. Tsengas. He also shared that the annual sales number for dog products is increasing at around 2-3%.
OurPet’s specializes in providing easy-to-use feeding and waste management solutions for both dogs and cats. Dr. Tsengas’s life-long interest in holistic health, combined with his love of pets, led him to pursue a PhD in natural health and nutrition. That drive also led him to apply his knowledge and interest to developing pet accessories and consumable products that improve the health, safety, comfort and enjoyment of pets. Dr. Tsengas has had a deep interest in a holistic, integrated approach to health for more than 35 years, and, to date, his unique and novel pet products have been issued dozens of patents.
OurPet’s product design process begins with an analysis of the health, behavioral and lifestyle needs of a pet and its respective pet parent(s). Once the company discovers an innovative way to fulfill those needs, it offers a problem-solving solution to the pet owner(s). Over the years, this approach has resulted in the creation of highly-marketable products that are now being offered to retailers.
These days, OurPet’s is preparing for its next stage of growth. Management hopes that will mean about $50 million in annual revenues five years from now, and, as a result, the team has updated the company’s infrastructure to handle a higher sales volume. As Dr. Tsengas explained, the company has automated its “Enterprise Resource Planning system complete with automatic warehouse logistics” and it is now receiving and processing orders electronically, all the way to payment. At the end of 2015, OurPet’s also finalized a new branding strategy. Now, the company has two brands: The OurPets® brand caters to pet specialty markets like PetSmart and Petco and the Pet Zone® brand caters to mass markets like Walmart. With these marketing and technical initiatives in place, OurPet’s appears poised for long-term growth and success.
For the full interview, visit http://dtn.fm/q3DjP
For more information, visit the company’s website at www.ourpets.com
OPCO Adapting to a Constantly Changing Pet Products Industry with Innovation
Pets have become a major part of family life, not just in the U.S., but also around the world. We give them full names, wrap their Christmas presents, take them to the doctor/vet for regular shots and checkups, have regular exercise routines, and put them through school/training. Expenditures in the U.S. Pet Industry for 2015 were $60.59 billion (estimated), which was a four percent increase from 2014. OurPet’s Company (OTCQX: OPCO) develops, produces and markets various pet accessory and consumable products designed to awaken pets’ natural instincts, be it in feeding, playing or waste management.
Sold globally through pet specialty retailers; food, drug and mass chains; e-commerce; and international channels, the company’s products are marketed under the OurPets®, Pet Zone® and PetTastic® brands, with well-known sub-brands such as Play-N-Squeak®, Cosmic Catnip™, Durapet®, SmartScoop® and Flappy®. In total, OurPet’s has an intellectual property portfolio featuring more than 160 individual patents, giving the company sustainable access to the pet products industry for the foreseeable future.
Adapting to the constantly changing wants and needs of pet owners is essential for companies like OurPet’s to continue to grow and gain market share. Relationships the company has with major retailers, including Wal-Mart (NYSE: WMT), Kroger (NYSE: KR), PetSmart and PetCo, really jump out as well for a company that is here for the long haul and not just a fly by night one hit wonder. Besides the cost of children, pet expenses account for a larger percentage of a family budget than just about any other item(s). OurPet’s research and development department is constantly churning out innovative new products to keep old customers coming back while attracting new ones.
The key to growth is being humble and having the foresight to take an outside look at what is working and, sometimes more importantly, what is not working. OurPet’s has positioned itself as a premier provider of trend setting, avant-garde pet products and accessories by following this simple but effective concept.
For more information, visit the company’s website at www.ourpets.com
OPCO Announces Record Financial Results for Fourth Quarter 2015
Before the opening bell, OurPet’s Company (OTCQX: OPCO) announced its financial results for the fourth quarter of 2015, which included record net revenue and net income. In particular, the company achieved a 10 percent year-over-year increase in net income, recording $450,592 for the three-month period. The company’s net income increased roughly 74 percent over the full 12 months of 2015, as compared to the previous year, bolstered by specific management initiatives that resulted in lower fixed costs, product costs and selling, general and administrative expenses. OPCO’s net revenue also rose slightly, as compared to the fourth quarter of 2014, to a record $6,648,394. For the 2015 full-year, the company’s net revenue was up approximately five percent, despite a challenging retail environment and the negative impact of an increasingly strong dollar on international sales throughout the year.
“Our record results for the 2015 fourth quarter and full-year reflect successful execution of our business strategy,” Dr. Steven Tsengas, president and chief executive officer of OPCO, stated in this morning’s news release. “We remain focused on growth initiatives in all three of our key product categories; feeding and storage, toys and accessories, and waste management and odor control.”
OPCO’s financial performance was powered by strong growth in the e-commerce sales channel. Tsengas highlighted a 27 percent year-over-year increase in e-commerce sales for the quarter, solidifying a six percent rise in the vital channel over the entirety of 2015. This growth went hand-in-hand with the company’s implementation of an innovative dual branding strategy, which includes the OurPet’s brand for the pet specialty channel and the Pet Zone brand for the food, drug and mass retail channel. As OPCO continues to introduce exciting new products to its pipeline that leverage cutting-edge technology to better meet the needs of pets and their owners, Tsengas expects the company’s dual brand strategy to continue to flourish.
“There are additional growth opportunities, particularly with the Pet Zone brand where sales were relatively flat compared to the prior year and we have accordingly increased our initiatives in that sales channel,” Tsengas added. “The company’s improved performance in 2015, especially during the second half of the year, combined with our planned product launches and expanded sales force position us well for 2016.”
Moving forward, OPCO will look to build on this momentum as it continues to increase its share of the growing global pet products industry. As part of these efforts, the company is set to unveil a new, first-of-its-kind line of products at the Global Pet Expo in Orlando, Florida, next month. The Global Pet Expo is the industry’s largest trade show, with last year’s event featuring more than 1,050 exhibitors and 3,000 new product launches.
For more information, visit the company’s website at www.ourpets.com
OPCO is opening up the New World of Pet Intellect with its IQ Toys
Back in 2001, Ms. Gay, a frail 85-year-old, was out walking her dog, Blue, in Florida. She slipped and, falling to the ground, couldn’t get up. It wasn’t long before her plight was noticed by a ‘gator. Alligators in Florida typically measure over eight feet and weigh about 800 lbs. The only thing standing between her and certain death was her little Australian Blue Heeler, weighing in at 24 inches and 50 lbs, which took up a position in the line of the advancing predator. Ms. Gay watched the encounter with terrified, unbelieving eyes as the dog dodged, again and again, the giant jaws that snapped shut as the ‘gator attacked and advanced. Blue continued his rearguard action as he retreated until, spying a breach in the enemy’s defense, he sprang in and ripped one of its eyes out. The reptile turned and fled.
Such remarkable valor and loyalty can only come from a well-developed intelligence and emotional capacity. Dogs are very intuitive and appear to be particularly able to sense our emotional state. Some possess an innate ability to detect the onset of an epileptic seizure, hours before symptoms are experienced. With their keen sense of smell, they can ascertain subtle chemical changes in perspiration that signal distress or malfunction. Diabetes alert dogs can assist sufferers of hypoglycemia, which affects mostly people with type 1 diabetes, because they sense when their owner’s blood sugar is dropping rapidly or is dangerously low. But having a mind has a downside, too. Just like us, cats and dogs can become bored. Just like us, they require mental stimulation. When the Roman poet, Juvenal, prayed for a healthy mind in a healthy body (mens sana in corpore sano), his entreaty might have been for our feline and canine friends as well.
OurPet’s Company (OTCQX: OPCO) has been demonstrating its progressive attitude toward pets by recognizing their mental facets. Its approach has always been based on thoughtful analysis, not only of their physical well-being and safety, but their cognitive expression and emotional equilibrium. For example, it has developed a large (4-inch) IQ Treat Ball® that can be adjusted to suit a dog’s learning grade. The Treat Ball is filled with goodies which can only be obtained if the canine is able to discover the way in. To do so, it must uncover the hatches and apertures on the surface of the ball. It’s motivated to do so by the smell of the treats and their sound as it moves the ball around. Built on the same concept but simpler is the Buster Food Cube. The Buster Food Cube is filled with treats, and a dog must turn it in a way that allows the treats to slip through a small circular hole on one side of the cube. Innovative products like these for dogs, and cats, constitute about 50 percent of OurPet’s Company’s revenues, which were $22.8 million in 2014. 2015 revenues are expected to be reported within the next few weeks.
A press release (http://dtn.fm/Vb98R) announcing the latest market study by the American Pet Products Association (APPA), the 2015–2016 National Pet Owners Survey, estimates that the average amount spent annually on toys for dogs is $47. The survey also reports that there are some 77.8 million pet dogs in the U.S. Putting these two numbers together suggests that the market for dog toys has the potential to reach $3.7 billion if every household with a dog spends the average. A similar computation for feline toys puts the market potential at around $2.4 billion. The APPA study estimated a U.S. pet cat population of 85.8 million and the average annual per cat expenditure at $28.
These are markets that OurPet’s Company is just beginning to scratch. It is marketing its wide variety of premium, innovative, quality toys and accessories specially designed to awaken pets’ natural instincts under the OurPets brand. There’s tremendous room for growth and OurPet’s Company is in gear to increase market share. The company has been growing at an annually compounded rate of over 6%, twice the industry rate. OurPet’s Company’s strategic business plan calls for annual year-over-year sales growth of 15%-20% with targeted net income as a percentage of sales in the 10%-12% range. OurPet’s Company, with its innovative energy, is beginning to look like the Apple (NASDAQ: AAPL) of the pet toy industry.
For more information, visit the company’s website at www.ourpets.com
OPCO Targeting $2.5 Billion Market with New Switchgrass Biochar Litter
According to the American Pet Products Association’s 2015-2016 National Survey (http://dtn.fm/0hCVP), there are roughly 86 million pet cats in the United States, up from about 21.5 million in 1970. Across the nearly 43 million American households that currently own a pet cat, one seemingly nondescript product has become virtually ubiquitous – cat litter. Cat litter originally burst onto the scene nearly 70 years ago, according to a report (http://dtn.fm/h8mJR) by The Washington Post, when a man named Ed Lowe repurposed some excess clay into a cleaner alternative to soil or sand, the standard solutions to feline waste in those days. This clay-based product, which he marketed as Kitty Litter, proved an exceptional choice for absorbing large quantities of waste while simultaneously controlling odors by encapsulating the cat waste. The total U.S. litter market is estimated to be about $2.5 billion with clay litters growing at approximately 3%, while the natural litter market is estimated to be about 10%-15% of the total and growing over 10% annually.
This clumping clay litter was a hit, quickly replacing sand as the standard in feline waste management. The clay clumps formed made waste removal easier and kept the odor physically locked up. Now having a cat in the home became easier, and less “smelly”, than ever before. Although the clay litter was a disrupter for the pet industry, there were some problems associated with it such as adding an estimated two million tons of non-biodegradable litter to the landfills, dust being inhaled by cats and possibly contributing to silicosis in the long run (also known as coal miners disease), a difficulty and inconvenience of transporting the heavy clay from the store to the home, and the realization that clay is a non-sustainable resource.
To try and combat the problems that came with using clay litter, cat owners started using biodegradable, natural litters made from grains such as wheat and corn. These “second generation” litters were sustainable, lighter, and had good odor control. Although these alternate litters were an improvement over clay, they had their limitations. They were more costly and more price variable since the grains were also used for food and fuel. These litters could have traces of fungicides, herbicides, and pesticides from their sources’ plant growth. Lastly, their high starch content could result in mold growth under certain conditions of warmth and moisture.
After years of extensive product development and testing, OurPet’s Company (OTCQX: OPCO) has ushered in the “third generation” of cat litter made from switchgrass and biochar, a non-food alternative to the other corn or wheat based natural cat litters in the marketplace. Switchgrass is a hardy, natural grass native to North America that does not require fertilization or the use of chemicals during plant growth, such as fungicides, herbicides, and pesticides and the toxins associated with them. Switchgrass is biodegradable and has a history of being used for flood control and ornamental purposes, not for feedstock or as a base for fuel. Biochar is made using the pyrolysis process to convert natural pine wood chips to activated, non-marking carbon particles that are highly odor and moisture absorbent. During pyrolysis, the volatile gases are collected and used as clean burning fuel while the CO2 is trapped in the pine wood with minimal CO2 release into the atmosphere.
The OurPet’s Switchgrass Biochar cat litter is biodegradable, all natural, sustainable, price competitive and price stable, 50% lighter than clay litter, and has excellent odor and moisture control with minimal dust and track-ability.
OurPet’s has filed a utility patent for their Switchgrass Biochar litter and plans on marketing it primarily under a private label strategy, with a branded option in certain specific situations. The Switchgrass Biochar litter will be launched at Global Pet Expo 2016, March 16-18. OurPet’s will be at booth #2455.
For more information, visit the company’s website at www.ourpets.com
OPCO Short Sellers Backing Off, Drop by 71%
Short interest in OurPet’s Company (OTCQX: OPCO) has sharply fallen, presumably driven by a host of factors, including word that the specialty pet retailer has several new pet products and strategies on deck. The company’s total short interest was 1,900 shares in February, as reported by FDANewsAlert.com (citing FINRA), a drop of 70.7% from 6,500 shares previously reported. Based on average trading volume of 2,300 shares, the days-to-cover ratio is currently one day.
OPCO Tuesday said it will unveil a new product at next month’s Global Pet Expo, sending shares up nearly 11% to an intraday high of $0.89 on 1,000 traded hands. Earlier in February, the company announced its strategic partnership with Aplix IP Holdings Corp., a software and solutions provider in Japan that will help OPCO further develop its product lines in the $60 billion pet industry.
“We literally searched the world for the strategic partner who shares the same passion as we do and would closely work with us to bring these ideas to reality. We’re fortunate to have found what we were looking for in Aplix of Japan, a world leader in Bluetooth and Wi-Fi design, development and manufacture of related components,” OPCO CEO Dr. Steve Tsengas said in the news release. “OurPet’s and Aplix have invested extensive resources to develop new products fueled by smart technology and we look forward to collaborations that continue this development.”
Since July, shares of OPCO have risen nearly 13%, outperforming the S&P500 by 22.7%, most likely given a boost by well-paced and frequent updates on new products, a new communication strategy, executive appointment and strong second-quarter, third-quarter and nine-month 2015 performances.
OPCO currently has more than 160 issued or pending patents and derives more than 75% of its revenue from proprietary products. For the first nine months of 2015, OPCO reported revenues of $17.1 million, an increase of 6% compared to the comparable period of 2015. Gross profit increased 15% to $5.4 million vs. the year prior, while gross profit margin increased 2.5 percentage points to 31.6% for the first nine months of 2015 from 29.1% the prior year. Net income for the first nine months of 2015 increased 146% to $886,319, or $0.04 per share, from $359,935, or $0.02 per share, for the same period in 2014.
Increased market exposure and growing recognition of the company’s firming position in the specialty pet retail market have squeezed out the majority of short sellers looking to profit off a misplaced forecast for a decline in OPCO’s share price.
For more information, visit the company’s website at www.ourpets.com
OPCO Has Strong Foothold in Growing Pet Products Industry
The pet industry has grown exponentially over the past decade with many pet adoption agencies springing up all over the world, the Westminster Dog Show, and products that have increased the general interest in the health and treatment of pets. Every pet we make a commitment to should be taken care of with the love and affection we would expect from our parents. Giving our dogs names, paying for their training and registering their credentials, and designing a specific diet and routine of exercise for them are prime examples of how much we care about our furrier halves. OurPet’s Company (OTCQX: OPCO) develops, produces and markets various pet accessory and consumable products designed to awaken pets’ natural instincts and build the pet/human relationship, be it in feeding, playing or waste management.
Sold globally through pet specialty retailers (PetSmart and PetCo), food, drug and mass chains (Wal-Mart (NYSE: WMT) and Kroger (NYSE: KR)), e-commerce and international channels, the company’s products are marketed under the OurPets®, Pet Zone® and PetTastic® brands, with well-known sub-brands such as Play-N-Squeak®, Cosmic Catnip™, Durapet®, SmartScoop® and Flappy®. In total, OurPet’s has an intellectual property portfolio featuring more than 160 individual patents, giving the company sustainable access to the pet products industry for the foreseeable future.
Nearly 100 million American households own either a dog or cat, and these families are expected to spend $61 billion in 2015 on their pets alone, according to the American Pet Products Association. With the health conscience consumer segment experiencing rapid growth, it is logical to predict that this type of shopper will want to buy the same type of safe, healthy and innovative products for their pets. In the most recent quarter, OurPet’s reported record revenue of $6 million, which was a 7 percent increase from the comparable quarter of 2014. The company also reported a massive 428 percent jump in net income to $410,450, or $0.02 diluted earnings per share, compared to $77,751, or $0.00, for the comparable quarter of 2014.
For more information, visit the company’s website at www.ourpets.com
Innovation is Staple of OPCO's Structure – New Product Debuts Next Month
Since its founding over two decades ago, progressive innovation has fruitfully been OurPet’s Company’s (OTCQX: OPCO) modus operandi. True to its core mission to develop and market high-quality, innovative products designed to improve the health, safety, comfort and enjoyment of pets, OurPet’s is set to unveil a new, first-of-its-kind line of products at the pet industry’s largest tradeshow coming up next month.
The Global Pet Expo in Orlando, Florida, March 16-18, 2016, will feature the newest, most cutting-edge pet products on the market. If last year’s roster (1,051 exhibitors, 3,113 booths, and more than 3,000 new product launches) is any inclination, the 2016 event will provide OurPet’s with considerable exposure and the opportunity to showcase its progress since last year’s event. OurPet’s will be at the Global Pet Expo booth #2455.
“After the OurPets Catty Whack won ‘Best New Cat Product’ at SuperZoo last year, we knew that we had to build off of that momentum,” Gabriella Chessman, VP of marketing at OurPet’s, stated in today’s news release. “Our R&D team has been diligently working over the past year and we are really excited to finally show the world what we have been working on.”
OurPet’s operates under a “two-brand solution” to participate in key niches of the pet care industry: the OurPets brand caters to pet specialty customers and consumers, while the Pet Zone brand focuses on the needs of the food/drug/mass-market channel and shoppers.
With this strategy, OurPet’s offers a wide range of cat and dog products – including feeding solutions, waste management, intelligent pet care and more – all of which keep the company on track for progressive trajectory in the highly lucrative pet care industry.
For more information, visit the company’s website at www.ourpets.com
OPCO's Partnership with Aplix will Catalyze New Innovations in the Pet Tech Space
The recent announcement by OurPet’s Company (OTCQX: OPCO) of a new strategic partnership with the Japanese software developer, Aplix IP Holdings Corp., shows that the Fairport Harbor, Ohio, company is exploring new frontiers in the pet technology market. Just as new digital technologies have expanded and are continuing to expand our capabilities, they are opening up new possibilities for our pets.
There are existing pet tech devices on the market currently, allowing you to stay in complete contact with your pets. One of the most basic pet tech devices is, of course, a GPS tracker. A tracker can substantially reduce the amount of time you spend in a state of anxious insecurity regarding your pet’s whereabouts. Then, if you want to see where your dog goes (and who doesn’t?) there’s a company that makes a harness fitted with a camera. As pet-parents become more comfortable with new technologies for themselves, it’s apparent they will want to extend their application to the pet members of the family.
Social media is not only for pet-parents. You may have your Facebook (NASDAQ: FB) account. Your dog can have a homepage on Pack. Pack allows you or your dog, it’s not clear which, to ‘connect with your pack’. If you have a Twitter (NYSE: TWTR) account, why don’t you get one for your canine? Puppy Tweets is an electronic dog tag that sends messages to your home computer, and then Tweets to you. Welcome to a brave new world!
The technology that may help OurPet’s Company get a paw-hold in these lucrative markets may be the WirelessIDEA platform. Aplix IP Holdings Corp. showcased its WirelessIDEA software-based technology for machine to machine (M2M) applications at the International CTIA Wireless IT & Entertainment trade show in San Diego back in October 2009. WirelessIDEA provides tools that enable rapid development of M2M applications. Aplix is well-known for its JBlend, a Java Micro Edition (Java ME) platform for embedded software, which has been installed in close to three-quarters of a billion devices worldwide.
This sort of innovation is nothing new to OurPet’s Company. The company has a history of developing bright ideas. Its first was the introduction of the Big Dog Feeder, which made it easier for big dogs to eat by elevating the feeding bowl – low tech, but effective. The Big Dog Feeder has, over the years, enjoyed great success, but OurPet’s Company isn’t the sort of outfit to rest on its laurels. Its founder is an enterprising dynamic engineer who has been elected to the National Inventors Hall of Fame. Today, the company actually sells more toys for pets than feeding products. In recent years, OurPet’s Company has been growing at twice the rate of the industry. Since 2010, it has had an annual compounded growth rate of about 6%. That seems very likely to increase as OurPet’s Company gears up in pet tech.
For more information, visit the company’s website at www.ourpets.com
OPCO Partners with Leading Software and Solutions Provider to Drive Innovation in Pet Industry
Earlier today, OurPet’s Company (OTCQX: OPCO) announced a new strategic partnership with Aplix IP Holdings Corp., a leading Japan-based software and solutions provider, designed to help the company enhance the bond between pets and humans through the development of innovative new products fueled by smart technology.
According to the American Pet Products Association, there are approximately 85.5 million domesticated cats and 77.8 million domesticated dogs in the United States, and owners are spending more than ever on their furry family members. Over the past 20 years, the U.S. pet industry has grown from $16 billion to over $60 billion, and additional, sustained growth appears to be on the horizon. OurPet’s is aware of this growth, and the company’s goal, through its partnership with Aplix, is to employ technology related to Bluetooth and Wi-Fi to develop products that improve the relationship between pets and pet owners by providing harmonious, healthy experiences for the animal.
“We literally searched the world for the strategic partner who shares the same passion as we do and would closely work with us to bring these ideas to reality,” Dr. Steve Tsengas, chief executive officer of OurPet’s, stated in the news release. “We’re fortunate to have found what we were looking for in Aplix of Japan, a world leader in Bluetooth and Wi-Fi design, development and manufacture of related components.”
Moving forward, Aplix will work with OurPet’s to help the company advance development of its innovative product line, which targets unmet needs in the expansive pet supply industry. The two partners have already invested “extensive resources” toward the development of new products that implement smart technology, according to Tsengas, and additional collaborations resulting from this strategic partnership are expected to contribute to the development of marketable breakthroughs on a forward path toward commercialization.
OurPet’s has a long history of driving innovation in the pet industry, beginning with its launch in 1995. The company’s intellectual property portfolio currently includes more than 160 issued or pending patents – including proven products such as the Big Dog Feeder® elevated feeders, Play-N-Squeak® cat toys, and SmartScoop® automated litter box. Today, more than 75 percent of OPCO’s revenue is derived from the sale of its proprietary products. By partnering with Aplix, the company is demonstrating a commitment to building on its history of innovation by driving the evolution of the growing pet industry into the future.
“We have experienced rapid growth in sales and profits by means of a simple strategy – listening to pet owners and retailers and applying our extensive knowledge related to pet behavior, geriatrics and nutrition and the extensive engineering technology/manufacturing,” continued Tsengas. “We’re excited to see where this new strategic partnership takes us.”
For more information, visit the company’s website at www.ourpets.com
OPCO Fosters Bonds between Pets and Pet Owners
OurPet’s Company (OTCQX: OPCO) is tapping into the love that pet parents have for their beloved animal companions. The company specializes in providing feeding solutions for every dog, cat and home while making the pet-related waste management process a breeze.
Innovation inspires the product development efforts at OurPet’s. The company strives to develop one-of-a-kind products so that, unlike many of its competitors, it can offer products explicitly designed to nurture a healthy relationship between pets and their parents. Presently, most of the company’s products are patented and unmatched on the market.
OPCO’s unique product design process commences with an examination of the health, behavioral and lifestyle needs of pets and their parents. Once the company discovers innovative ways to fulfill these needs, it is able to offer impactful, problem-solving solutions to pet owners and highly-marketable products to retailers.
The company’s list of offerings features inventive toys that exercise a pet’s senses, as well as accessories, feeding and waste management solutions designed to stimulate a pet’s innate instincts.
OPCO’s operations are guided by thorough safety standards, developed using children’s product testing standards. In order to guarantee quality assurance, these principles are part of every product’s development and ongoing lifecycle. The company’s commitment to customer service is also noteworthy. Its customer service representatives, who assist customers via a toll-free number and e-mail address, cater to a broad set of needs, including general queries, product set-up and usage, and warranty and replacement questions.
OPCO’s business model has contributed significantly to its steady sales growth, but so have the markets in which it operates. In 2013, the pet products and services market was estimated at $71 billion, with forecasts calling for even more industry growth in the next few years. Considering this promise of future growth, OurPet’s seems well-placed for long-term success.
For more information, visit the company’s website at www.ourpets.com
OPCO Featured in The Bowser Report Daily Mover Alert
OurPet’s Company (OTCQX: OPCO) led all companies covered by The Bowser Report on Wednesday when its price per share surged by more than 10 percent. Bowser readers are likely already familiar with OPCO, as the company was featured in the publication’s November issue as its ‘Company of the Month’. In fact, OPCO has been recommended multiple times by Bowser’s panel of investment experts dating all the way back to May 2007.
In yesterday’s Daily Mover Alert, Thomas Rice, editor of The Bowser Report, detailed the specifics of OPCO’s big day by giving his opinion on the company as an option for prospective investors. His take was as follows:
Typical volatility from OPCO, but in a good direction this time. OPCO hit a high of $1 after we recommended the company in November 2015 at $0.90. Since, it has traded closer to $0.80 per share.
OCPO is currently in Category 1 with a Bowser Rating of 10. This is one to purchase if you’re looking to expand your portfolio. The price is right, and the company is doing well fundamentally.
OPCO may have some resistance moving up because of its low investor interest, but if investors take note of its steady growth, this stock could soar. In the meantime, if you have a position or enter a position, stick to the Game Plan!
OPCO’s strong performance in the rapidly expanding pet industry makes it an intriguing investment option moving forward. In 2013, the pet products and services market was valued at $71.3 billion, and additional industry growth is forecast for the coming years. OPCO is in a favorable strategic position to capitalize on this market performance through the use of its proven, two-pronged branding strategy, which includes the OurPets® brand for the pet specialty channel and the PetZone® brand for the food, drug and mass retail channel.
Over the past four years, OPCO has successfully leveraged this defined branding strategy, along with its extensive intellectual property portfolio, to record a 20.8 percent increase in sales while securing placements in nationwide retailers such as Walmart (NYSE: WMT), PetSmart, Petco and Kroger (NYSE: KR). Similarly, the company’s earnings have skyrocketed from $120,674 to $1.1 million since 2011.
The Bowser Report has been covering the most intriguing mini-priced stocks for just under 40 years. Utilizing a proprietary rating system and investing game plan, the report highlights the most promising stocks for long-term investment. Since 1976, The Bowser Report’s effectiveness has attracted tens of thousands of investors to the subscription-only newsletter.
For more information, visit the company’s website at www.ourpets.com
OPCO Wields Success in a Booming Market
Founded in 1995, OurPet’s Company (OTCQX: OPCO) develops and markets innovative products that aim to improve the health, safety, and enjoyment of household pets like dogs, cats, and birds. Pet owners can be confident that the company’s 800 mostly patented products will ignite their furry friend’s natural instinct while providing healthy physical and mental exercise. Estimates proclaim that in 2015 alone, about $77.03 billion was spent on household pets. This makes the pet product industry a huge market that will continue to grow. OurPet’s has a strong foothold in this market and will continue to flourish by developing and marketing inventive pet products. The company will also keep acquiring new brands for even more industry coverage.
With its strong team, OurPet’s can effectively produce and market its proprietary products to consumers. These products aim to strengthen animalistic instinct while improving the health and safety of our favorite pets. For example, the Buster Food Cube dispenses treats in a difficult way, which provides mental stimulation and promotes physical activity. The Hide and Go Squeak cat toy uses play mice that bob up and down randomly while making the patented RealMouse® sound, simulating hunting in the wild. Then for food, the company offers the WonderBowl® which only opens for a pet wearing a specific tag, making it great for multiple pet homes that have pets on a special diet.
Since its start, OurPet’s has been collectively acquiring other brands which help spread the name to a wider audience. In 2006, the company acquired Pet Zone which offers top products like dog houses, wild bird feeders, and waste management products. In 2010, the company obtained Cosmic Pet Products, which is a leader of catnip, cat toys, cat treats, and scratching posts. Other sub-brands include Play-n-Squeak®, Flappy®, and SmartScoop®. To further expand its brand, OurPet’s products are sold through retailers like Walmart (NYSE: WMT), Amazon (NASDAQ: AMZN), Petco, and Petsmart.
To ensure success, the company intends to continue its platform of creating and marketing novel products that pet owners will love. Plus, as the pet market grows, OurPet’s will persist in gaining more brand names to further extend its reach to pet lovers everywhere.
For more information, visit the company’s website at www.ourpets.com
OPCO Provides an Opportunity to Capitalize on the Steady Growth of the Pet Industry
The success of any growing business depends on a wide variety of factors, but few decisions can impact a company’s prospects for growth more than choosing the right industry or market niche in which to operate. In a recent article on Entrepreneur.com, Christina Baldassarre outlined the benefits of one of the most intriguing market sectors for investors on the hunt for long-term plays with huge upside – the pet industry.
There are plenty of distinguishers to keep in mind when studying an industry’s viability. Is it recession-proof? Is it predictable? Is it experiencing consistent growth? When it comes to the pet industry, the answers to these questions are overwhelmingly positive. In the Entrepreneur.com article, the author studied the effects of the recent recession on the pet industry by taking an in-depth look at Google Trends for the search terms ‘dog toys’ and ‘cat toys’ over the past decade. Interest in both phrases maintained a consistent pattern throughout the 10-year period, with searches spiking toward the holiday season each year.
Overall, industry statistics support Google’s (NASDAQ: GOOG, GOOGL) data. Over the past 20 years, the domestic pet market has more than tripled in size, growing from $17 billion in 1994 to just over $60 billion this year, according to the American Pet Products Association. Among these expenditures, just over 25 percent were attributed to veterinary care, leaving nearly three-quarters of the total pet industry divided amongst retailers and service businesses. For companies operating in this space, there’s plenty of room for financial growth. Most retail businesses seek margins of approximately 60 percent or more, but some of the most popular pet toys and bones offer margins in excess of 70 percent.
With an expansive and consistent market and an educated customer base, it’s surprising to find that the pet industry is comparatively sparse when it comes to pure plays. Currently, the industry is extremely fragmented, with hundreds of small, relatively unknown brands jostling for a piece of the growing pie. However, one company, OurPet’s Company (OTCQX: OPCO), has been building a strong presence in the market for nearly two decades.
OPCO’s business model centers on marketing products designed to satisfy the mental and physical health, safety and comfort of pets around the world. The company is already a significant player in domestic sales of bowls/feeders; cat and dog toys and accessories; and feline waste management solutions. OPCO’s distribution network includes agreements with some of the most recognizable retail brands in the world – including PetSmart, Kroger (NYSE: KR), Walmart (NYSE: WMT) and Amazon (NASDAQ: AMZN).
With a growing foothold in the third largest consumer market in the country and an expanding portfolio of more than 1,500 SKU’s and 225 patents, OPCO represents an intriguing investment option that a contributor to Seeking Alpha recently referred to as “one of the only non-retail pure pet plays left in the industry.” As the company makes efforts to increase its brand awareness by targeting dedicated shelf space in retail stores, it could be primed to continue building on its past growth while promoting strong, sustainable returns for shareholders.
For more information, visit the company’s website at www.ourpets.com
OPCO Targeting Significant Market Growth with Investment in Distribution and Marketing Infrastructure
Anatole France, who won the Nobel Prize for Literature in 1921, famously said, “Until one has loved an animal, a part of one’s soul remains unawakened.” We know how true that is, because we do love our animals. In Pet Population & Ownership Trends (November 2014), the market research company Packaged Facts reported that about 55% of the U.S. adult population (133 million people) has at least one pet. Dogs are our favorites. There are 45 million households with man’s best friend. Another 30 million or so of us own (or are owned by) a cat. Then, there are the almost 7 million who love fish and the 4 million who fly with the birds and even some 3.5 million who own a reptile.
The American Pet Products Association (APPA) estimates that U.S. pet industry spending will be about $60.59 billion this year. Most of this, some $23.04 billion, will go toward food, of course. The vet will get about one-quarter of that, or $15.73 billion. Another $14.39 billion will go for over-the-counter medicines and supplies. Keeping our pets in a safe place while we go away and grooming services will cost us another $5.24 billion, and getting new pets will involve an investment of $2.19 billion. The industry has grown at an annually compounded rate of 4.6% over the past five years, from $48.35 billion at the end of 2010 to the 2015 estimate of $60.59 billion.
There are a number of factors underpinning this market expansion. First, the industry has been successful in emphasizing the bond we have with our pets. The typical American regards his dog or cat as a member of the family. This has driven sales of top-end products. Second, many upper-income households spend heavily on pet care products, such as toys and other devices that cater to their pet’s mental well-being. Third, the participation of upper-income households in the market has spurred the development of the pet specialty channel, which caters to more esoteric products. Finally, the recognition that pets, like us, need specialized health care has given rise to a burgeoning market.
Despite favorable market conditions, opportunities to invest in this lucrative industry are limited. Most companies in pet care and supplies, save a few, are private. Apart from the big dogs like PetSmart, Inc (NASDAQ: PETM) and Central Garden & Pet (NASDAQ: CENT), there’s very little else on the big exchanges.
There is, however, an oasis in this desert of investment opportunities. OurPet’s Company (OTCQX: OPCO) has been growing much faster than the industry. Since 2010, it has recorded a compound annual growth rate of about 6%. In 2011, it initiated a two-pronged branding strategy. The OurPet’s brand is aimed at the pet aficionado, while the Pet Zone brand is designed for the mass market. This strategy has, undoubtedly, paid off.
The management team is ambitious. In a recent interview, they confessed their objective to double the size of the company. As part of that initiative, they are investing heavily in distribution and marketing infrastructure. Also, they plan to make the waste and odor category a more significant part of OPCO’s business. Spearheading this thrust is the Smart Scoop product line. OPCO’s strategic business plan calls for annual year over year sales growth of 20% with targeted net income as a percentage of sales in the 10% – 12% range. Looks like the guys at OPCO plan to make investors purr.
For more information, visit the company’s website at www.ourpets.com
OPCO Represents a Model for Growth in Sales and Earnings
Small Cap companies represent unique and advantageous opportunities to get in on the ground floor of a company before it turns into the next Twitter (NYSE: TWTR) or Facebook (NASDAQ: FB). With a very small investment during the early growth stages, the return can be life changing. The trick is doing your due diligence and pulling the trigger on winners. Keys to look for are always fundamentals, sales growth and an increase in earnings. OurPet’s Company (OTC: OPCO) has all of the above and has been around since 1995.
In its first year of operation, OurPet’s reported annual sales of $150,000, more than tripled that number the next year to $500,000 and now boasts more than $25 million in annual sales. The company is also profitable and has shown growth in that area as well since 2011. Over that time period, OurPet’s earnings have grown from $120,674 to $1.1 million.
The pet products and services industry, where the company operates, was valued at $71.3 billion in 2013 and is expected to grow even more in the coming years. The company has more than 250 distribution customers, including household names like Wal-Mart (NYSE: WMT), PetSmart (NASDAQ: PETM), Petco and Kroger (NYSE: KR). Relationships like these are essential to sustaining and topping sales and earnings targets in the future.
Innovative and consistent product developments are very important, as well, particularly for companies in the pet products industry. Keeping things fresh and up to date for the ever-changing needs of the consumer is evident with OurPet’s business strategy, as they have about 30 new products in the mill for release during 2016 and beyond.
Consistency and innovation define the OurPet’s brand. Now that its brand is established, it is the company’s mission to gradually increase market share both domestic and internationally. With relationships already in place with world leaders like Wal-Mart, it’s only a matter of time before OurPet’s Company becomes a household name.
For more information, visit the company’s website at www.ourpets.com
OPCO: Smart Pet Products for a Growing Market
Pets are part of the family these days. We register them in the American Kennel Club or the American Kennel Association; buy them insurance and health plans; make monthly appointments at the groomer and veterinarian; and are projected to spend $61 billion in 2015 on our pets in the U.S. alone, according to the American Pet Products Association. OurPet’s Company (OTC: OPCO) is capitalizing on this already prodigious and constantly growing market with its innovative, high quality product line designed to improve the health, comfort, safety, and enjoyment of pets.
The company markets its products through two brands: the OurPets brand caters to pet specialty customers and consumers and the Pet Zone brand focuses on the needs of the food/drug/mass-market channel and shoppers.
In the third quarter, OurPet’s reported record revenue of $6 million, which was a 7 percent increase from the comparable 2014-quarter. The company also reported a massive 428 percent increase in net income to $410,450, or $0.02 diluted earnings per share, compared to $77,751, or $0.00, for the third quarter of 2014.
Growth is key to determining whether a small company is on the right track. In the third quarter press release, Dr. Steven Tsengas, president and CEO, commented, “We have expanded and strengthened our relationship with several domestic and international independent sales representative organizations, and have added another experienced salesperson to our staff.”
Nearly 100 million households own either a dog or cat, according to the American Pet Products Association, and with the health conscience consumer segment experiencing rapid growth, it is logical to predict that this type of shopper will want to buy the same type of safe, healthy and innovative products for their pets. OurPet’s is poised for a breakout year in 2016 after expanding its product line, distribution cycle and adding more talent to its sales team.
For more information, visit the company’s website at www.ourpets.com
OPCO Takes Care of Our Other Furry Family Members
According to the 2015/2016 APPA National Pet Owners Survey, 79.7 million U.S. households own a pet. The survey concluded that 65% of homes have at least one pet while 35% of those have more than one. With so much pet ownership, it’s no wonder that retail pet supply sales are close to $44 billion, showing that the pet industry has barely been affected by the recent economic slump. This gives OPCO the opportunity it needs to progress with an ever-expanding pet supply market. The company focuses on creating supplies for our beloved pets that promote growth, development, and health. Since domesticated dogs and cats are like members of the family, it’s important to maintain their health and vitality. Furthermore, as recent research suggests, pets can provide just as much health and mental benefits as their owners can.
One benefit of having a pet in a household is, surprisingly, a lower rate of allergens. According to an article by James E. Gern in the Journal of Allergy and Clinical Immunology, children exposed to pets early tend to develop healthier immune systems while lowering the likelihood of being allergic to similar allergens.
Another advantage of having a pet is increased physical health. The Centers for Disease Control and Prevention (CDC) and the National Institute of Health (NIH) have stated that owning a pet, specifically a dog, decreases blood pressure, cholesterol, and triglyceride levels, thus minimizing heart attack risks. Dogs can be the equivalent to a personal trainer, taking owners for jogs, walks, bike rides, and more. People who take their dogs for walks are also less likely to be obese.
Owning a pet isn’t just good for the body, it can also be a mood booster. Dogs and cats provide unconditional love while giving their owners a sense of purpose in life. Pets can also combat loneliness by being a constant companion at home. Pets can even improve social skills and confidence by being an icebreaker for potential friends out in the park, an outdoor café, and obedience classes.
OPCO provides tools and supplies to make sure pets get the best care. The correlation between owning a pet and personal wellness is no secret and should be remembered when taking care of our furry companions.
For more information, visit the company’s website at www.ourpets.com
OPCO is a Paragon of Innovation
Ever since it was founded in 1995, OurPet’s Company (OTCQX: OPCO) has been blazing new trails… taking the roads less traveled. It’s driving force and co-founder Dr. Steven Tsengas is an engineer and inventor. He has been elected to the National Inventors Hall of Fame. That engineering expertise and open approach to new ideas has been employed, over the years, to develop OPCO’s stable of over 1,000 products. In addition, the company has another 30 or so products in the pipeline plus an intellectual property stockpile of over 160 patents. This is a company thinking ahead. It is in talks with a Japanese IT firm with the aim of incorporating wireless technology into up-and-coming products.
OurPet’s Company focuses on providing solutions such as mitigating the pathologies of aging pets. Its first product was a Big Dog Feeder that made it easier for big dogs to eat by elevating the feeding bowl. When it was developed in 1995, the idea was novel. For large dogs, eating at ground floor level is not healthy or comfortable. Their physical structure can be compromised leading to arthritis at the joints. The Big Dog Feeder has been a huge success. But over the past twenty years, the company has moved into other areas. Today its largest category of sales, which are on track to cross $23 million, is pet toys. In its 3rd Qtr 10-Q filing, the company gave a breakdown of each category as a percentage of total sales:
• Toys & Accessories – 50%
• Bowls & Feeders – 35%
• Edibles – 7%
• Waste & Odor Products – 5%
• Dog Houses & Health Products – 3%
The company has been growing at twice the rate of the industry. Since 2010, it has had an annual compounded growth rate of about 6%. In 2011, it initiated a two-pronged branding strategy. The OurPets brand is aimed at the pet specialty market, while the Pet Zone brand is designed for the mass market. This strategy has undoubtedly paid off.
The management team is ambitious. In a recent interview they stated their objective to double the size of the company. As part of that strategy, they are investing heavily in distribution and marketing infrastructure. They also plan to make the waste and odor category a more significant part of the company’s business, with their Smart Scoop product line spearheading the drive. The company’s total net revenue has steadily increased:
• 2010 – $17,091,741
• 2011 – $19,667,134
• 2012 – $20,160,751
• 2013 – $21,554,106
• 2014 – $22,770,562
The pet industry has proved to be recession resistant, since pets are dearly loved members of the family. There are an estimated 350 million pets in the U.S. and Canada. About 93 million are cats and 85 million are dogs. The average pet owner spends $1,200 per year for a cat and $1,800 per year for a dog. With OPCO’s remarkably innovative product line-up, that money will surely be spent wisely.
For more information, visit the company’s website at www.ourpets.com
OPCO Offers Two Platforms for Twice the Fun
Being a top dog in the pet industry means more scalability to reach a wider customer base. That’s why OurPet’s Company (OTCQX: OPCO) gives two brand options to its niche customers. The OurPets brand focuses on specialty customers while the Pet Zone Brand centers on food/drug/mass-market channels. Each has its own website where pet owners can get the latest products in safety, health, waste management, and fun.
OurPet’s designs, produces, and markets a variety of innovative, high quality accessory and consumable pet products in the United States and overseas. It began with the Big Dog Feeder product that improves posture and comfort for canines. Most of their award-winning products are patented and boast being the only ones of their kind on the market. Cat owners can get their own consumable Kitty Cat Grass to grow at home or the EZ Scoop Litter Box with Odor Control Spray. Felines can also frolic with the Hide and Go Squeak Interactive Toy. Dogs can have the Buster Food Cube and the WonderBowl for their eating needs. The company’s products aim at bringing out a pet’s natural instincts for a healthier lifestyle.
In 2006, OurPet’s purchased all of the assets of its chief competitor, Pet Zone. The company now has a platform for its own products while integrating those of Pet Zone in another. Pet Zone products and accessories aim at improving the health, vitality, and safety of pets. Its goal is to offer high-end products at affordable rates. Feline friends can purchase the Mini Food-N-Fountain Deluxe or the Purr-Ivacy Place Pop-Up Litter Box Canopy along with many scratchers and toys. Dog owners can buy the Cozy Cottage Dog House, treat dispensers, and other food bowl accessories.
The pet industry has grown from $17 billion in 1994 to $74.23 billion in 2014. That number is expected to increase to $77.03 billion this year alone. During this time, OurPet’s has grown 3-5 times faster than the overall industry and has no plans of slowing down. The company gives investors the opportunity to participate in this expanding market while offering consumers the chance at buying multiple products through multiple brands.
For more information, visit the company’s website at www.ourpets.com
In Robust Year of M&A Deals, OPCO is Worth Tracking
In its 20-year history OurPet’s Company has successfully rafted through its fair share of turbulence and placid waters, and today enjoys a position that evidences its canny ability to foster both innovation and corporate growth in the $71.3 billion pet products and services industry. A quick glance at what’s going on in this booming market shows why the company’s consistent sustainability is of vital importance at this particular moment.
Many experts contend that 2015 is on track to become a record setting year for global M&A activity, with takeover deals tallied in the trillions. A handful of numerous announced mega deals include Shell’s (NYSE: RDS-A) $81.5 billion purchase of British energy supplier BG Group; Charter Communication’s (NASDAQ: CHTR) $79.6 billion buyout of Time Warner Cable (NYSE: TWC); the $62.2 billion merger between Hienz and Kraft Foods – now the Kraft Heinz Company (NASDAQ: KHC); AB inBev’s $121 billion takeover of SAB Miller; and Anthem’s (NYSE: ANTM) $55.2 billion acquisition of Cigna (NYSE: CI), which is just one of many big deals in the healthcare industry this year.
Another M&A deal on deck brings us back to the pet products and services industry. Petco Holdings, which operates about 1,300 stores nationwide, is now in the limelight as two private equity-led suitors gear up to bid more than $4 billion for the No. 2 pet supply chain, reports the New York Post.
According to The Post, this puts Petco for sale at less than 10 times the company’s $480 million annual EBITDA; it’s noteworthy that buyout firm BC Partners paid $8.7 billion, roughly nine times EBITDA, for the better-performing PetSmart (NASDAQ: PETM) last year.
While large-cap deals with billions in the mix certainly dominate the headlines, the M&A activity – along with its strengthening position in the pet-supply industry and the ongoing interest in – reinstates for OurPet’s a beacon of potential as an acquisition target in the future. For the time being, the Petco and PetSmart deals represent the vast opportunities in the growing pet products and services industry.
OurPet’s develops, produces and markets various innovative pet accessory and consumable products. The company has 160 patents/patents pending, which facilitate its entrance into major national retailers, including Petco and PetSmart, Amazon (NASDAQ: AMZN), and many more. You can view the full list here http://www.ourpets.com/where-to-buy-our-products/.
Transitioning from a small-sized to medium-sized company has been no easy feat for OurPet’s though the company has adroitly managed to do so as it builds its offerings of award-winning, innovative products. OurPet’s operates two unique brands to anchor a spot in both the pet specialty and food/drug/mass market channels. The OurPet’s brand caters to pet specialty consumers while the Pet Zone brand focuses on the latter market.
With this business model, the company has steadily increased revenues – recording full-year 2014 sales of $22.7 million, $21.5 million in 2013, $20.1 million in 2012, and $19.6 million in 2011- driven by sales of its innovative pet specialty products. Side Note *Demonstrating an impressive level of transparency for an OTC stock, OurPet’s has posted nine years of well-presented annual reports on its website here: http://www.ourpets.com/upkeep/annual-report/.
The company most recently reported third-quarter results with quarterly revenue of nearly $6.0 million and an increase of 428% in net income to $410,450. Year-to-date, OurPet’s has increased revenue 6% to $17.1 million, and though the company stops short of issuing any full-year guidance, these results potentially putting it on track to maintain its four-year annual sales growth pattern.
OurPet’s key executives recently interviewed with MissionIR (listen to the interview here http://OPCO.MissionIR.com/interview.html) to discuss the company’s operations, how it plans on leveraging its innovations to sustain its growth in the pet products and services industry, existing partnerships around the world, and upcoming announcements with corporations in Japan.
Perhaps most importantly, taking into consideration the robust global M&A environment and current attention on the pet products and services industry, is company co-founder and CEO Dr. Steven Tsengas’ statement that the company plans to “grow double to triple the industry growth.”
Though its brand recognition is lesser than its large-cap peers, OurPet’s is definitely worth putting on your radar as a long and/or short-term investment consideration. For now, keep your eyes on the impending Petco purchase to see what the industry hype is all about and for a glimpse of what the future could hold for OurPet’s.
For more information visit www.ourpets.com
OPCO Named ‘Company of the Month’ in November Issue of The Bowser Report
OurPet’s Company was featured in the November issue of The Bowser Report as the Company of the Month. Regular readers of the report are likely already familiar with OPCO, as the company has been recommended multiple times in the publication dating all the way back to May 2007. Recently, the company has caught the attention of researchers by reporting consistent and sustainable growth, and that performance has Bowser recommending OPCO as an addition to portfolios for the third time in less than a decade.
“OurPet’s, now a three-time recommendation, is the model for steady sales growth,” the report stated. “At current values, OPCO is fairly valued from a price-to-earnings perspective, but with the company’s steady growth potential, it could be a long-term winner.”
Taking a look at the markets in which OPCO operates, this growth potential is further illustrated. In 2013, the pet products and services market was valued at $71.3 billion, and additional industry growth is expected in the coming years. OPCO is capitalizing on these market conditions with a two-pronged branding strategy – including OurPets® for the pet specialty channel and PetZone® for the food, drug and mass retail channels. Through these brands, the company has secured roughly 250 distribution customers, including nationwide retailers such as Walmart (NYSE: WMT), PetSmart (NASDAQ: PETM), Petco and Kroger (NYSE: KR).
In the past four years, OPCO has leveraged its defined branding strategy and extensive intellectual property portfolio to record a 20.8 percent increase in sales. Likewise, the company’s earnings have grown from $120,674 to $1.1 million since 2011. In recent months, OPCO has attempted to build on this performance by increasing the overall visibility of its stock. The company recently joined the OTCQX, the highest tier of the OTC Markets platform, in an effort to continue pushing toward new 52-week highs.
The Bowser Report has been covering the most intriguing mini-priced stocks for just under 40 years. Utilizing a proprietary rating system and investing game plan, the report highlights the most promising stocks for long-term investment. Since 1976, The Bowser Report’s effectiveness has attracted tens of thousands of investors to the subscription-only newsletter.
For more information, visit www.ourpets.com
OPCO Poised For Strong Holiday Sales on Strength of Innovative Designs, Growing Brand Presence & New Product Debuts
With the 2015-2016 National Pet Owners Survey now out from the American Pet Products Association (APPA), we see a healthy climb in pet ownership has taken place during the past two decades, with penetration rising to nearly 65 percent. That’s some 80 million households, over 10 percent of whom are first-time pet owners. Moreover, the majority of those new pet owners are aged 18 to 50 (Millennial and Gen X) and they apparently like to spend more on their pets – whether it’s on gadgets, toys and gifts, or things like trips to the vet. This data represents a primary force vector that is fueling what was seen as a $73 billion pet products and services market last year, according to experts at market research firm Packaged Facts.
Given that the APPA data indicates U.S. households collectively own nearly 86 million cats and 78 million dogs, with a reported annual spend of around $28 and $47 respectively on toys, we have toy markets worth somewhere in the ballpark of $2.4 billion for cats and $3.7 billion for dogs. The comparatively more conservative APPA boil-down from diverse industry sources estimates that some $61 billion will be spent on pets this year in the U.S. and one of the major driving factors continues to be the growing body of scientific data that shows pet ownership is good for human health. In fact, 64 percent of respondents in the APPA data indicated health benefits from pet ownership were important to them.
According to data from the APPA report and non-profit research and education organization HABRI (Human-Animal Bond Research Initiative), there is a growing number of studies detailing the health benefits to humans of the human-animal bond. In fact, 97 percent of the 1,000 doctors polled were convinced that there are valuable health benefits to pet ownership and would recommend it to patients. One of the classic examples here is the University of Minnesota’s Stroke Research Center study that tracked over 4,400 Americans aged 30 to 75 over a decade, finding significantly lower risk of heart attack (40%) and heart disease (30%) among those who owned and played with a cat routinely. Stress relief is just the tip of the iceberg of course and the health benefits of pet ownership range from enhancing social interaction skills (particularly among children with autism and elderly folks with dementia), to boosting immune function.
One leading theory about a big part of the reason the human-animal bond is so good for us, is that playing with pets taps into countless centuries of evolved biochemistry from associating with animals in this way, stimulating our body to (among other things) release oxytocin, a powerful hormone made by the hypothalamus. The hypothalamus actually links the endocrine system to the central nervous system via the pituitary gland where oxytocin is stored, and is the center of the limbic system, or paleomammalian brain, the seat of emotional life and a core driver of memory formation.
In much the same way that we humans are wired to play with pets and enjoy it, cats and dogs are similarly adapted on a cellular level to benefit from playing with us. But deep down inside, the undomesticated wild animal still lives on in our pets, and that is one major reason why OurPet’s Company (OTCQX: OPCO) took home the New Product Showcase Award in the Cat Product Category at this year’s massive SuperZoo industry trade show for retailers organized by the World Pet Association. The company was awash in accolades as its new Catty Whack® hide and seek action game for cats wowed those in attendance. The Catty Whack taps into a feline’s deep-seated need to hunt for prey, brilliantly simulating what is appropriate to the cats natural instincts with a quick little feather wand that darts in and out of a number of holes around the perimeter of the small, circular floor device. This randomized darting is accompanied by timed bursts of audio from the company’s patented electronic RealMouse® sound, resulting in a captivating experience for cats that is also highly entertaining to watch.
With non-skid rubber feet and a carpeted scratching area for cats to get out their punchiness on, the Catty Whack elegantly showcases OPCO’s grasp of both design and animal psychology, marking the latest and greatest in a long string of superb concept executions. Sales are improving for OPCO as conversion to the Pet Zone brand nears completion around the end of the year and the company anticipates a very robust holiday season for its numerous offerings, which are sold nationwide at leading retailers, as well as at etailers like Amazon.com. From high-quality stainless steel bowls with bonded rubber bottoms and elevated feeder stands like the Designer Diner™ and Barking Bistro™, to a full line of litter boxes ranging up to its self-cleaning SmartScoop Automatic Litter Box, OPCO is really the only compelling pure play designer in this market that investors have access to.
With a strong mind to developing tight IP around its mounting portfolio of toys, as well as feeding and waste management solutions, OPCO is looking to take its established ability to innovate and capture market share through compellingly higher value products, and grow the company towards an ever-larger retail presence. An IP book with over 160 individual patents is quite an arsenal for OPCO to have at its command along this journey and this same IP position also forms a highly effective defensive emplacement for the business model against product encroachment by competitors in the retail space.
Record Q3 net revenues reported in November of around $6 million, and net income ($410,450) that was up 428 percent year-over-year, underscore OPCO’s robust sales growth, driven in large part by its cat toys and bowls/feeder lines. The company’s shrewd defense of its core IP is evident from the recent Loving Pets Corporation patent infringement settlement in October (529 utility patent, covering feeding dish with rubber on bottom that does not extend up the sidewall) and the company actually reported nearly $15,000 in other income during Q3, a figure which more than doubled year-over-year on the strength of patent infringement settlements.
Helmed by Dr. Steven Tsengas, a Fellow at the Ohio Academy of Science, as well as the National Inventors Hall of Fame and the American Society of Patent Holders, OurPet’s Company has the visionary muscle to continue to capture market share on the strength of its innovation and design. Dr. Tsengas is a technical savant and serial entrepreneur with over 75 utility and design patents under his belt, as well as the personal founding of over half a dozen successful high tech and consumer product companies since 1976, and he has even helped provide financial and managerial overwatch for several other start-ups besides. The entire OPCO team measures up to the captain of the ship and the latest word out of OPCO is that the company anticipates launching a few new trend-setting products over the next several quarters. Investors should keep an eye out for new product announcements and familiarize themselves with the product lineup to get a better sense of the company’s position.
Take a closer look, visit http://www.ourpets.com
22-Page IR Kit is Now Available Online
http://www.dreamteamnetwork.net/draft/opco-ir-kit/
OPCO Continues its Mission to Teach New Pets Old Tricks
Ever wonder why domesticated animals seem less fierce than their wild counterparts? Dr. Steve Tsengas, the president and CEO of OurPet’s Company (OTCQX: OPCO), says that because our beloved cats and dogs do not experience the harshness of nature with the threat of bigger predators, they remain about 30% smaller than their cousins. They basically stay young forever as immature teenagers; complete with total dependence on their parents and occasional outbursts.
With this in mind, OurPet’s commits to developing and marketing inventive products designed to “awaken a pet’s natural instincts” while nurturing a relationship between pet and owner. For dogs, the company created a line of toys that gives Fido the mental stimulation and physical exercise he needs for healthy growth. For instance, the Buster Food Cube is a plastic ball that owners can fill with delicious treats. The catch? The dog has to figure out how to release those treats by rolling it around and the owner can even increase the difficulty if needed. There’s also the Flappy® Ruffy®, a squeak toy with flaps that simulates the feeling of caught prey to the dog.
Cats have their own feral-awakening toys too. With the Catty Whack™, felines chase a feather wand that moves quickly and randomly while squeaking like a mouse. This toy impersonates prey in the wild. Cats also enjoy the Play-N-Squeak™ toy line which brings out their stalk and chase instinct through a toy that squeaks like a mouse when handled.
Not only does OurPet’s Company develop healthy pet toys, but it also produces feeding, storage, and waste management products that aim to improve pet and owner lifestyles. Even more toys and products are under way that should contribute to the company’s goal of enhancing natural predispositions in domesticated pets and should be announced in 2016.
OurPet’s shows no sign of slowing down and says they are “at the point to support continuous improvement in revenue growth and profitability” which can be seen in the company’s record third quarter revenue numbers.
For more information on OurPet’s Company, visit www.ourpets.com
OPCO Announces 428% Increase in Q3 Profits with Record Revenue
Today before the opening bell, OurPet’s Company reported record third-quarter revenue of $5.99 million, an increase of 7% from $5.60 million in revenues for the same three-month period a year earlier. Net income for the quarter increased 428% to $410,450, or $0.02 diluted earnings per share, compared to $77,751, or $0.00, for the year prior.
Dr. Steven Tsengas, President and CEO, stated, “We are pleased with our results for the third quarter in which we achieved record net revenue, gross margins improving to 34%, and net income from operations of almost 11% of sales. We continue to see strong sales growth in the Pet Specialty channel driven by our cat toys and bowls/feeder lines. E-commerce sales rebounded and grew 7% while the Food, Drug, Mass channel slightly decreased; however, we anticipate improved sales as the conversion to the Pet Zone brand is completed by year end. Unfortunately, with the strengthening of the U.S. dollar, international sales have been negatively impacted particularly in Canada and the United Kingdom.”
Dr. Tsengas added, “We have expanded and strengthened our relationship with several domestic and international independent sales representative organizations, and have added another experienced salesperson to our staff. With the recent and anticipated introduction of a significant number of new innovative products in all our product categories, we are experiencing robust sales activity. Our Catty Whack™, winner of the SuperZoo ‘Best New Cat Product’ award, is beginning to ship and is receiving strong consumer reaction. We expect to release more information on other major, trend-setting products over the next six months.
“As we have previously communicated, the last five years have been challenging for OurPet’s as we have transitioned from a small- to a medium-sized company poised for accelerated future growth in both revenue and net income. This required large investments in management/operating informational systems; strengthening and, where appropriate, adding management and professional/technical talent; improving warehousing and inventory management efficiencies; strengthening relationships of strategic domestic and overseas suppliers; and strengthening our relationship with our banking resources. We sincerely believe that these improvements will positively impact revenue and profit results going into the fourth quarter of 2015 and beyond.”
2015 Third Quarter Results
Net revenue increased 7% to $5,986,645 for the 2015 third quarter versus the same period last year. The $386,000 increase was attributable to strong sales in the Pet Specialty and Value channels, partially offset by a decrease in the Food, Drug and Mass channel.
Gross Profit was $2,012,177 for the 2015 third quarter compared to $1,640,751 the prior year. Gross profit margin increased 4.3 percentage points to 33.6% for the 2015 third quarter from 29.3% for the same period a year ago due to continuous improvement initiatives, price increases, and product mix.
Income from operations increased to $649,023 for the 2015 third quarter from $152,768 a year ago. This increase was primarily due to higher gross profit and also benefited from lower selling, general, and administrative expenses.
Other income for the 2015 third quarter increased to $14,582 from $6,051 a year ago due to a higher amount of patent infringement settlements.
Income before taxes was almost five times greater at $627,686 for the 2015 third quarter compared to $127,666 a year ago.
Income tax expense for the 2015 third quarter increased to $217,236 from $49,915 a year ago due to the higher income.
Net income increased to $410,450 for the 2015 third quarter from $77,751 last year. Net income per diluted share increased to $0.02 for the third quarter of 2015 from $0.00 a year ago.
EBITDA was $825,696 for the 2015 third quarter versus $323,140 a year ago. A reconciliation of EBITDA to GAAP net income is provided in an attachment to the summary financial statements.
2015 First Nine Months Results
For the first nine months of 2015, net revenue increased 6% to $17,170,795. The growth was attributed to strong Pet Specialty sales, especially in the bowls and feeders category.
Gross profit increased 15% to $5,424,591 for the first nine months of 2015 versus the prior year. Gross profit margin increased 2.5 percentage points to 31.6% for the first nine months of 2015 from 29.1% the prior year due to the same factors that benefited the 2015 third quarter results.
Income from operations increased 143% to $1,427,797 for the first nine months of 2015, which was attributable to higher gross profit and lower selling, general, and administrative expenses.
Other income decreased to $40,582 for the first nine months of 2015 from $77,713 for the same period last year due to a greater amount of patent infringement settlements in 2014.
Income before taxes increased to $1,383,158 for the first nine months of 2015 compared to $566,658 for the same period a year ago.
Income tax expense was $496,839 for the first nine months of 2015 compared to $206,723 the prior year.
Net income for the first nine months of 2015 more than doubled to $886,319 from $359,935 for the same period in 2014. Net income per share increased to $0.04 for the first nine months of 2015 from $0.02 last year.
EBITDA increased 72% to $1,984,688 the first nine months of 2015 compared to $1,153,656 the prior year. A reconciliation of EBITDA to GAAP Net Income is provided in an attachment to the summary financial statements.
The Current Ratio improved to 5.61, reflecting strong liquidity, while Stockholders’ Equity improved by $904,319 or 12.1% over the comparable date last year.
For those unfamiliar with OurPet’s Company, the company develops, produces and markets various pet accessory and consumable products designed to awaken pets’ natural instincts, be it in feeding, playing or waste management. Sold globally through pet specialty retailers, food, drug and mass chains, e-commerce and international channels, the company’s products are marketed under a the OurPets®, Pet Zone® and PetTastic® brands with well-known sub-brands such as Play-N-Squeak™, Cosmic Catnip™, Durapet, SmartScoop and Flappy.
To learn more about OurPet’s Company, visit www.ourpets.com
OPCO Executives Conduct Exclusive Interview with MissionIR
MissionIR today announces the online availability of its interview with OurPet’s Company (OTCQX: OPCO) co-founder and Chief Executive Officer Dr. Steven Tsengas, Chief Financial Officer Scott Mendes, as well as Dean Tsengas, co-founder, Vice President and general manager. The full audio interview is available at http://OPCO.MissionIR.com/interview.html.
OurPet’s develops, produces and markets various innovative pet accessory and consumable products. The company has 160 patents/patents pending, which facilitate its entrance into major national retailers. The OurPet’s interview starts off with a brief history of the company’s official launch 20 years ago.
“OurPet’s represented a dream that we had, to have a proprietary company that would be a virtual company … concentrate on product ideation, innovation, and the marketing and distribution of the products, which we felt would provide the highest level of return on investment, profitability, opportunity for growth … OurPet’s represented an opportunity to combine all the electronic and engineering experiences that we had, along with an understanding of the pathologies related to aging by pets and the problems they experience,” says Dr. Tsengas.
Dr. Tsengas discusses the overall pet industry, which at the time of the company’s founding was greatly lacking in innovation. OurPet’s decided to focus on three key segments of the industry — pet toys, feeding and storage, and waste and odor management — and its success in doing so is in the numbers. When OurPet’s launched its first trend-setting product in 1995, it was met with significant consumer response. In its first year of operations OurPet’s recorded $150,000 in annual sales. By the second year the figure jumped to $500,000 and now sits around $25 million.
“Our goal is to grow double to triple the industry growth, so our expectation this year is to grow at a high-digit number with an income of double-digit growth in terms of net income,” adds Dr. Tsengas.
In conjunction with this goal, CFO Mendes describes the company’s recently announced transition into a social media-driven awareness campaign to better communication with new investors and existing shareholders.
“We had taken a pretty traditional approach to IR … but we had not been seeing the trading activity that we felt the company deserved. So we decided to modernize our IR approach by getting into a more social media campaign … and get the OurPet’s story out,” he says.
The interview then touches on the company’s management team and the type of milestones it takes to become a high-growth corporation.
“One of the major jobs was, again, to develop and have the infrastructure to have seamless growth in the future, rather than a bumpy one … we feel we are at the point to support continuous improvement in revenue growth and profitability. One of the biggest things we had to accomplish was the branding of our company … that phase has been pretty well completed. In terms of product development, we have about 30 products in the mill at any one point in time. A lot of these products have been completed this past year increasingly will be launched in 2016 and beyond,” explains Dr. Tsengas.
On the operational side, OurPet’s has successfully established key partners around the world, which co-founder Dean Tsengas further details.
“It’s pretty diverse, as far as what the company’s offerings are and in order to focus on developing, design, marketing, distribution into the marketplace, what we’ve done is formed strategic partnerships with our key suppliers, both domestic and overseas … we’ve formed very close collaborative relationships with both our customers and our suppliers during the product development stage all the way through finished product and the full launch into the marketplace. This is what’s been the key toward our success, along with the key people in our company,” he says.
In conclusion, Dr. Tsengas flags upcoming company announcements with Japanese companies, and discusses the pet industry’s growth over the last 20 and how OurPet’s will continue to participate in the industry as a trend-setting leader.
For more information, visit www.ourpets.com
OPCO Continues to Grow Presence in the Pet Products Marketplace by Introducing New Products
OurPet’s Company develops, produces and markets various accessories and consumable pet products designed to awaken pets’ natural instincts. Sold globally, the company’s products are marketed under the brand names – OurPets® for the Pet Specialty channel, Pet Zone® for food, drug and mass chains and Petastic® for the value channel. The Company’s sub-brands Play-N-Squeak™, Cosmic Catnip™, Go! Cat! Go!®, Durapet ™, SmartScoop™ and Flappy™ have become well known in the pet industry.In total, OurPet’s has an intellectual property portfolio featuring more than 160 individual patents, giving the company sustainable access to the pet products industry for the foreseeable future.
In recent years, the U.S. pet products and services market has experienced strong growth, with total sales accounting for approximately $73 billion in 2014, according to a report by Packaged Facts. In 2015, this strong performance is expected to continue, building on the recent rise in related ecommerce purchases, as well as an uptick in dog and cat ownership throughout the country. In order to capitalize on this market performance, OurPet’s has continued to expand its product line in recent months by introducing both the Catty Whack® and the Zoom Plume™ products at the Las Vegas SuperZoo convention for pet retailers earlier this year.
“We are very excited about our new line-up of products,” Steven Tsengas, chairman and chief executive officer of OurPet’s, stated in a news release. “Our goal is to create products that work in tandem with pets’ natural instincts to ensure their emotional, mental and physical health while always helping to increase the bond between pets and their parents.”
In the first quarter of 2015, OurPet’s successfully leveraged the strong performance of the pet products and services market to record financial results. The company’s net revenue for the period was just under $5.6 million, which was a 7.3 percent year-over-year increase. Additionally, OurPet’s achieved a 59 percent year-over-year increase in net income, recording more than $213,000 for the quarter.
“We achieved solid results for the first three months of 2015, which included… the second highest first quarter income in four years,” continued Tsengas.
OurPet’s, through its innovative and extensive line of popular pet products, is in a favorable strategic position to continue building upon its recent market growth. For prospective shareholders, this positioning makes the company an intriguing investment opportunity in the months to come. Look for OurPet’s to capitalize on steady market performance while providing an opportunity for the company to realize strong investor returns in the future.
For more information, visit www.ourpets.com
OPCO Hailed as the Last Pure Play in the Pet Industry by Seeking Alpha
OurPet’s Company was recently highlighted in an article by investment research platform Seeking Alpha. The overview studied the company’s position in the rapidly expanding pet market, as well as its prospects for sustainable growth in the future.
OPCO has had great success in recent years focusing on products designed to satisfy the mental and physical health, safety and comfort of pets around the world. The company has established strong sales channels through which to promote additional growth. OPCO sells its products through some of the biggest retail names in the world – including pet specialty retailers such as Petco and Petsmart (NASDAQ: PETM), as well as more diversified sales channels like Kroger (NYSE: KR), Wal-Mart (NYSE: WMT) and Amazon (NASDAQ: AMZN).
Bolstering the company’s success in these retail channels is the performance of the pet market. In 2013, the U.S. pet industry was the country’s third largest consumer market, accounting for approximately $60 billion in total revenue. Despite its size, analysts insist that there is still plenty of room for improvement. In total, about 68 percent of U.S. households own a pet, and research indicates that the majority of pet owners are willing to spend a significant amount of their income on their pets. As a result, the forecast CAGR for the market is between four and five percent through 2018, giving OPCO a strong foundation upon which to promote sustainable growth.
Moving forward, OPCO is in a favorable position to expand its ecommerce sales. In 2014, ecommerce already accounted for 10 percent of the company’s total sales, but a number of factors suggest that these sales figures could rapidly expand in the coming years. OPCO is currently the number one rated company in their product category on Amazon, which has helped it dramatically improve its results through the ecommerce giant. In 2014, the company’s ecommerce sales grew by nearly 40 percent, as compared to the previous year, with a 67 percent sales bump on Amazon leading the way. Following this performance, OPCO’s management team has highlighted ecommerce as one of their primary strategic initiatives for achieving sales and growth targets in the future.
As one of the only pure plays left in the pet industry, OPCO is one of the only ways investors can participate in the industry’s rapid growth. This position gives the company a noteworthy advantage in promoting additional growth while making it an extremely appealing acquisition target. In the months to come, OPCO’s efforts to establish improved brand awareness will likely play a key role in its ability to continue expanding its market share. For prospective shareholders, these efforts could translate into an opportunity to realize strong returns sooner rather than later.
To view the full Seeking Alpha article, visit http://www.seekingalpha.com/article/3508856-ourpets-company-the-last-pure-play-in-the-pet-industry
For more information, visit www.ourpets.com
Future Outlook
Barring the impact from any major factors beyond its control, OurPet’s strategic business plan calls for annual year over year sales growth of 20% with targeted net income as a % of sales is in the 10%-12% range.
Although past growth has been “organic” or internal, OurPet’s is positioned to pursue growth though strategic acquisitions offering marketing or technology competitive advantages. This optimistic outlook is based on the continued healthy growth of the pet industry, the rapid growth of the company’s key customers such as Walmart, Petsmart, Amazon, and Petco, OurPet’s aggressive development and marketing of proprietary products, the expansion within its current marketing base, penetration into new market segments and the future contributions of OurPet’s experienced, highly motivated team.
There are very limited opportunities for the individual investor to participate in the rapidly growing pet industry because most of the companies in this industry are privately held. PetsMart (retailer) (PETM), Central Garden & Pet (pet products distributor) (CENT) and OurPet’s (OPCO) (proprietary product manufacturer/marketer) represent most of the limited investment vehicles available to the individual investor.OurPet’s began trading in December 2001 under the symbol “OPCO” (OTC BB).
Management Team
Dr. Steven Tsengas - Chairman, Pres, CEO, Director
Dr. Steven Tsengas has personally founded more than half a dozen high-tech and consumer product companies since 1976. He has also provided financial and managerial assistance to several successful entrepreneurial start-ups. Dr. Tsengas received his BS in Industrial Engineering from the State of New York University at Buffalo, his MS in Business from the University of Rochester, W. Simon Graduate School of Management, and his Ph.D. degree in Natural Health from Clayton College of Natural Health. He holds numerous patents, has taught and lectured at various colleges and was elected to the National Inventors Hall of Fame. He is a member of the American Society of Patent Holders and is active in various professional, community and technical associations including the Ohio Venture Association, American Naturopathic Medical Association, Lakeland Community College Students in Free Enterprise (SIFE) advisor and National SIFE Competition Judge, Lake County Development Council Trustee and Chairman of the Economic Forum Committee and Workforce Investment Board Member. Dr. Steve's most recent achievement is being named a 2010 Fellow of the Ohio Academy of Science, the leading organization in Ohio to foster curiosity, discovery, and innovation and to unite all who value education, science, engineering, technology, or their applications for the benefit of society.
Dean S. Tsengas - VP/GM/Corp. Sec
Dean S. Tsengas earned his Bachelor of Science in Industrial Engineering Degree from the University of Toledo, and has completed several graduate level courses in marketing and organizational behavior at Cleveland State University. He has attended numerous business and technical seminars such as Strategic Long Range Business Planning, Dale Carnegie, Taguchi Techniques, MRPII, ISO 9000, Bazic 8 Training, etc. From 1986-1994, Tsengas was employed by Taylor Molding Systems, Inc. and Dowty Silcofab USA, Inc. (custom molding of precision elastomeric products) and Arrow International (gaming products) in various positions including quality assurance manager, industrial/plant engineer, manager of application engineering and customer support specialist. Since 1994, as vice president of OurPet's Company, Tsengas has played a key role in the launch of the pet-products venture and has held various engineering, marketing and operational responsibilities. Under his managerial guidance OurPet's has developed extensive supply chain management, warehouse and QA capabilities. Tsengas is active in several professional and technical organizations.
Scott R. Mendes - CFO/Treasurer
Scott R. Mendes received both his MBA in Accounting and Finance (1979) and his undergraduate degree in English (1976) from Vanderbilt University in Nashville, Tennessee, where he was awarded the Faculty Award for Distinguished Achievement. Mendes has been CFO of OurPet's since February 2, 2009. Prior to his joining OurPet's, Mendes was corporate controller for Safeguard Properties, Inc. for 12 years where he was instrumental to that business' ability to manage a sustained growth rate of 30% year-over-year. His experience includes establishing accounting and information systems; all treasury functions, including cash management, banking relations, budgeting and financial analysis; and building and managing an operational infrastructure capable of handling rapid growth. Mendes also has a blend of manufacturing and entrepreneurial background as a part owner of a consumer electronics firm.
Gabriella DeSantis - VP of Marketing
Gabriella DeSantis earned her B.S. in Business Administration and Marketing/Advertising from Long Island University and her MBA in Marketing Management and Corporate Finance from Pace University in New York. Gabriella joined The OurPet's Co. in 2012 with over 20 years of new product development experience. Most recently, she was Marketing Director for United Pet Group, where she led the Nature's Miracle brand team, and Senior Marketing Manager for Health Care Products, Inc., where she successfully managed marketing strategies, resulting in significant and measurable growth. Her additional expertise includes building targeted, market-driven strategies that appeal to consumer behavior and forging key alliances that result in profitable relationships. Gabriella leverages strong analytical and decisive leadership to instill an atmosphere of innovation and a keen focus on operational excellence.
Kathleen Homyock - VP of Sales
Kathleen Homyock graduated with an MBA in Finance from Cleveland State University and a bachelor's degree in Marketing from Baldwin-Wallace University. A recent addition to OurPet's senior executive team, Kathleen's multi-level experience spans from startup and entrepreneurial organization to multi-national Fortune 500 firms leading cross-functional teams with initiatives to build, manage and/or recapture industry leadership positions. She is an accomplished leader with more than 30 years of demonstrated success in business development, strategic planning, marketing, brand building and relationship management. While with Loctite Corporation, she penetrated the Wholesale Club channel as a new business initiative with sole sales responsibility for DURO® brand super glue and Permatex® automotive repair products. Revenue grew more than 29% in 24 months. She also managed media relations and investor conferences in the banking/capital markets sector (investment banking, M&A, equity research, sales and trading) resulting in positive coverage and deepened C-level client relationships.
The Pet Industry
According to the 2015/2016 APPA National Pet Owners Survey, published by the American Pet Products Manufacturers Association, Inc., in 2014, approximately 79.7 million U.S. households reported owning a pet with an estimated pet population of 77.8 million dogs and 85.8 million cats.
In 2014, total pet industry expenditures reached $74.23 billion, and $77.03 billion is projected for 2015. The pet industry is and has been one of only a handful of industries not significantly impacted by economic recessions. Additional statistics revealed in the APPA 2014/2015 Survey:
• 2014 U.S. retail sales of pet supplies were $43.8 billion.
• Increasingly, pets are considered to be members of the family and a growing and valuable source for companionship, relaxation and stress relief, etc. Approximately 65 percent of U.S. households own a pet and of those, 32 percent own more than one.
In general, there is strong competition for the "retail shelf space" especially as related to non-proprietary, commodity pet products. Over 80% of OurPet's products are proprietary with patents or patent pending status. OurPet's generally avoids non-proprietary, commodity products where price is the major consideration and copying is common. OurPet's products are perceived as innovative, quality, upscale products selling at affordable prices.
Pet Industry Fast Facts
•Third largest consumer market ($73.45 billion in 2014)
•Projected total U.S. retail sales of expected to grow to approximately $87 billion by 2018
•Forecasted compound annual growth rate of 4% through 2018
•65% of households own a pet totaling 82.5 million pet owners
•Dogs owned by 44% and cats by 35% of households
•Average annual spending on non-food pet products: $1,049 for dogs, $846 for cats
•Recession resistant
Pet Accessories and Treats Category
•Represents 19% of U.S. Pet Industry annual sales
•Annual category sales of approximately $14 billion
•Forecasted compound annual growth rate of 8%-10% through 2017
•Pets are living longer –40% are "seniors"
OPCO Continues its Rise to Prominence
A recent report from one of the leading market research firms today, Packaged Facts – which has been at the forefront of consumer packaged goods, food and beverage, as well as demographic sector analysis now for over five decades – clearly indicates the strength of the U.S. pet products and services market, which did sales last year of around $73 billion. This is a huge pie for any company to carve into and grab a slice. The report’s trend lines show increased pet ownership rates, higher ecommerce spending on pets, and a population of pets that are living longer, just like their owners. These trends appear intact for the foreseeable future and it seems like everywhere you go on this planet, people just love their pets.
While the pet industry is considered to be resistant to recession, it is better to simply think of the industry today as being driven by family-oriented household spending, and therefore core to spending habits. Most pet owners consider their pets to be a regular member of the family and will go well out of their way to care for a pet, spending a great deal of money for the well-being, as well as overall happiness, of that family member.
Little wonder then that, even by the American Pet Products Association’s (APPA) more conservative estimates, based on their own compilation of various market research, the supplies segment of what they tallied as a $58 billion market last year was around $13.75 billion. With 45 million U.S. households currently owning dogs and 30 million households owning cats, any way one slices up the data, the numbers look good. The Packaged Facts report was keen to emphasize a 38 percent jump last year in the number of pet owners shopping online too, with heavy ecommerce hitters like Amazon.com (NASDAQ: AMZN) making it easier than ever to streamline product flow to end markets.
In an industry largely dominated on the services side by players like big box retail outfit PetSmart (NASDAQ: PETM) – which provides services like grooming and pet training, in addition to miles of aisles of pet products – the pet supply market is saturated with cookie-cutter tropes. Only a handful of companies are dedicated to creating defining brands and are capable of successfully cultivating what is essential to connecting with consumers in the pet products space: constant innovation and a tight feedback loop with the end users. A strong brand in this game is essential for success, but a company has to really make that connection with consumers through the products, winning them over to the superior style, design, continuity, and affordability of the brand.
One look at the latest product from rapidly developing proprietary pet supply company, OurPet’s Co. (OTCQX: OPCO), and it is plain to see that this operation really lives up to the vision of its founder, Dr. Steve Tsengas. Intelligent applications to toy design and product engineering, driven by deep insights into cat and dog biology, as well as psychology, have continually defined OPCO as a rising star within the industry.
Launched in May this year, the company’s new Catty Whack® electronic toy for cats was scientifically developed to stimulate the natural hunting instincts of our feline friends, using an erratic feather wand that darts in and out of six different holes and an enticing audio queue. Feeding the animal’s instinctual desires, as well as providing therapeutic mental diversion that is also good exercise, directly addresses the needs of the animal to make them calmer and well-adjusted to domestic life. Only three months after the product’s debut, the Catty Whack managed to take home the New Product Showcase Award for best new cat product at the pet supply industry’s major conference, SuperZoo 2015. The Catty Whack, featuring the company’s electronic RealMouse® sound and erratic movement technology, was voted “Best New Cat Product” in the New Product Showcase by pet industry retailers themselves, illustrating how captivating the design, quality, and overall execution truly is. The company wheeled out a bevy of new products at SuperZoo 2015 in Las Vegas this year, with toys and feeding solutions at the heart of the OPCO booth.
The Catty Whack stole the show though, and this one product is a perfect example of the wide array of trend-setting and highly unique ideas available via OPCO’s OurPets® and Pet Zone® portfolios. This dual-brand portfolio is respectively set up in order to provide a tailored experience for the company’s pet specialty trade customers on the one hand, and those in the mass-market, as well as food and drug channels on the other. The company creates an entire range of products designed to promote the comfort and enjoyment, as well as the health and safety of pets. From accessories and toys to well-designed feeders and bowls, OPCO even makes a constantly evolving selection of pet waste management solutions. Many of the company’s highly unique products are one-of-a-kind market entrants and nearly every offering from OPCO is protected by the company’s growing IP library of over 160 issued and pending patents.
Record Q2 revenues reported by OPCO in early August were no surprise to investors who have been following the company closely. And while quarterly net revenues were up only four percent compared to last year, net income shot through the roof, pulling in a 77 percent gain on strong receptivity in pet specialty end markets, primarily due to the company’s recently introduced bowl designs, as well as new cat toys and accessories.
The PetZone brand is also doing quite well in the mass market, food and drug channels, and a significant uptick in overall profit margins for the quarter was further enhanced by noticeably lower SG&A expenses. These guys run a tight ship it seems and the company even touted an upcoming rollout for a series of three new and proprietary feline waste management products early in 2016, which shows just how aggressively the company is delivering on consumer response to its brands of pet products.
Dr. Tsengas pointed out in the company‘s August 3 earnings conference call that ecommerce was picking up incredible amounts of steam for OPCO, and the segment currently represents about as much as 10 percent of the company’s footprint, which spans direct-mail catalog and internet, as well as leading pet specialty retailers and food, drug, and mass merchandisers. A strong relationship with ecommerce juggernaut Amazon.com doesn’t hurt of course and the company’s imminent expansion from Amazon Canada and Amazon US, with the upcoming Amazon UK opening, will set OPCO up very nicely for maximum product throughput capability. Already tapped for Amazon Japan and India, the sky is the limit for the company’s international brands of pet products, and because the language of design is universal, consumer resonance barriers to entry will be at a minimum.
OurPet’s Co. has honed its design process down to creating holistic products that unify the behavioral, lifestyle, and health needs of both pets and their owners. The result is truly astounding, with products so clever that consumers can’t say no. An example of this is the WonderBowl™ selective feeder, which uses a small infrared tag on the pet’s collar in combination with a properly positioned and unit-based sensor to open the transparent lid for feeding. This brilliant design helps keeps food fresh, ensures that only the correct pet eats from the correct dish, and also keeps anything from getting into the food. The product directly addresses an unmet need that can often be a big problem in multi-pet households and demonstrates how OPCO beautifully addresses that underserved demographic with an elegant solution.
Whether it is coming up with new toys to help stimulate a pet’s mind and therefore contribute to preventing unwanted behaviors, or creating gorgeous designer dog bowls in durable stainless steel, OurPet’s Company is constantly rifling great products out to a loyal user base. It is this kind of forward thinking in product design that is capturing the most sought after consumer dollar demographics in the pet supply space and OPCO is proving itself to be quite the dynamo, churning out creative solutions to underserved or unmet needs in the market.
For more information visit www.ourpets.com and www.petzonebrand.com
Growth Strategy
Barring the impact from any major factors beyond its control, OurPet's strategic business plan calls for annual year over year sales growth of 20% with targeted net income as a % of sales is in the 10%-12% range.
Although past growth has been "organic" or internal, OurPet's is positioned to pursue growth though strategic acquisitions offering marketing or technology competitive advantages. This optimistic outlook is based on the continued healthy growth of the pet industry; the rapid growth of the company's key customers such as Walmart, Petsmart, Amazon and Petco; OurPet's aggressive development and marketing of proprietary products; the expansion within its current marketing base; penetration into new market segments; and the future contributions of OurPet's experienced, highly motivated team.
There are very limited opportunities for the individual investor to participate in the rapidly growing pet industry because most of the companies in this industry are privately held. PetsMart (retailer) (PETM), Central Garden & Pet (pet products distributor) (CENT) and OurPet's (OPCO) (proprietary product manufacturer/marketer) represent most of the limited investment vehicles available to the individual investor.
OurPet's strategy to successfully execute its business plan is anchored to keen focus on the following on high growth categories in non-food pet products, including:
• Feline waste and odor control solutions ($250 million/year category)
• Interactive cat and dog toys and accessories ($1 billion/year category)
• Healthy feeding/storage systems ($100 million/year category)
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OurPet's Company (OPCO) develops, produces and markets various pet accessory and consumable products designed to awaken pets' natural instincts, be it in feeding, playing or waste management. Sold globally through pet specialty retailers, food, drug and mass chains, e-commerce and international channels, the company's products are marketed under the OurPets®, Pet Zone® and PetTastic® brands with well-known sub-brands such as Play-N-Squeak™, Cosmic Catnip™, Durapet™, SmartScoop® and Flappy®. In total, OurPet's has an intellectual property portfolio featuring more than 160 individual patents, giving the company sustainable access to the pet products industry for the foreseeable future.
In recent years, the U.S. pet products and services market has experienced strong growth, with total sales accounting for approximately $73 billion in 2014, according to a report by Packaged Facts. In 2015, this strong performance is expected to continue, building on the recent rise in related ecommerce purchases, as well as an uptick in dog and cat ownership throughout the country. In order to capitalize on this market performance, OurPet's maintains an ongoing new product development program to continually keep an evolutionary and revolutionary new product pipeline feeding its offerings. In July 2015, OurPet's introduced many new products at the national Super Zoo trade show in Las Vegas such as the Catty Whack®, Designer Diner™/Barking Bistro™ and the Zoom Plume™.
The company's capitalization strategy is guided by a management team of experienced industry professionals dedicated to further strengthening its product portfolio through aggressive development of innovative products. Management has a proven track-record of leveraging deep knowledge in the innovation, technology, distribution and pet markets to successfully push through adverse market conditions to achieve increases in revenue, margins and net income.
Investment Highlights
OurPet's Products
Innovation inspires every OurPet's product. From toys and waste management to feline and canine feeding solutions, each item is carefully designed and crafted with a cat or dog's unique instinctual needs in mind. OurPet's examines what pets really want and need to thrive – and listens to what pet parents are asking for: to bring the most unique, inspired, and innovative products to the marketplace. Several examples of OurPet's products in key segments are as follows:
Toys for Cats, Catnip and Tuna
OurPet's cat toys are more than just toys … They're tools to enrich and reward the cat, awaken their natural instincts, and bring them closer to their human parents. From Play-N-Squeak™ toys that stimulate hunting instinct to Cosmic Catnip™ products that encourage healthy play and grooming to Go! Cat Go!® toys designed to stimulate all the senses, OurPet's cat toys provide a full range of tools to keep your cat happy and healthy and solidify the pet/parent bond.
OurPet's catnip is the result of many years of research, processing, and commitment to quality. This premium, aromatic herb is 100% natural, proudly North-American-grown, and scientifically formulated to be the strongest, most potent catnip ever produced. OurPet's tuna products are made from the highest-quality, human-grade tuna available. Tuna flakes and topping provide essential nutrients cats need, including protein and Omega-3 fatty acids, which may aid your cat's skin, coat, joints, and immune system.
Catty Whack - Won "Best New Cat Product" at the July 2015 SuperZoo national trade show. Fast-moving feather wand randomly changes direction while patented electronic RealMouse® sound creates the allure of a real hunt for prey and stimulates cat's natural instincts. | |
Compressed Catnip Twinkle Ball - Premium North-American-grown catnip combined with natural cork. This toy includes the patented RealMouse® technology, an electronic module that makes a realistic squeaking sound when batted. The Twinkle Ball also features LED lights that twinkle while your cat plays. | |
Hide and Go Squeak Interactive Toy - Random motion drives cats wild with genuine electronic RealMouse® sound. Great visual stimulation and exercise! | |
Catnip Polybag - Genuine OurPets premium, North-American-grown catnip fragrant herb inspires lively play. To be sprinkled on toys or scratchers to encourage use. | |
Kitty Cat Grass – Quickly grow nutritious grasses cats eat; fiber rich barley, oats and wheat. |
Cat Feeding Solutions & Waste Management
OurPet's cat bowls and dishes are heavy-duty weight and feature a patented, permanently-bonded rubber ring to prevent skidding and sliding. Cat dishes feature lower profiles to make it easier for cats to dine. For multi-pet households and cats on special diets, the scientifically-developed WonderBowl™ offers a technologically advanced household feeding solution.
WonderBowl™ Selective Feeder - Perfect for multi-pet homes. Keeps food fresh and prevents kids and unwanted pets from getting into pet`s food. Uses 'D' batteries (not included); adapters and additional tags sold separately. | |
WonderBowl™ Selective Feeder-Collar Tag - Exclusive tag for the WonderBowl™ Selective Feeder - Attaches to pet's collar; includes battery. |
Toys for Dogs
OurPet's takes play seriously. More than just toys, each product is made to satisfy dogs' deep-rooted instincts with toys like Flappy Ruffy that encourage sporting behaviors such as fetch, retrieval and lively at-home play. Smarter Toys encourage dogs to think and work for their food, stimulating their minds and maintaining health. With OurPet's dog toys, any dog can learn new tricks!
Two sizes available: large and small Easy to clean Durable and built to last | |
For healthy play and exercise, easy to fill with your dog's favorite treats and promotes physical and mental alertness |
Canine Feeding Solutions & Waste Management
With an extensive line of bowls and feeders, OurPet's offers a feeding solution for every breed and personality. OurPet's bowls are made of high-quality, heavy-duty stainless steel with a patented, permanently-bonded rubber ring on the base that prevents sliding, skidding, and noise. OurPet's raised feeders give dogs a more comfortable feeding position, reducing stress on joints and bones and promoting healthy digestion.
Take the hassle out of everyday dog waste cleanup with OurPet's line of Canine Waste Management products. With solutions for the backyard, walks, and on-the-go, OurPet's waste management makes pick-up easy, hands-free, and hassle-free. A variety of solutions are available to fit any pet parent's busy lifestyle.
Hygienic and easy to clean, collapsible for easy storage, stylish elevated dining for your dog. | |
Tilted design makes feeding easy. Permanent, bonded rubber ring prevents skidding; made of hygienic and dishwasher-safe stainless steel. | |
No mess – just toss the bag! Perfect for walks. No more touching waste! |
Distribution
The Pet Industry
According to the 2015/2016 APPA National Pet Owners Survey, published by the American Pet Products Manufacturers Association, Inc., in 2014, approximately 79.7 million U.S. households reported owning a pet with an estimated pet population of 77.8 million dogs and 85.8 million cats.
In 2014, total pet industry expenditures reached $74.23 billion, and $77.03 billion is projected for 2015. The pet industry is and has been one of only a handful of industries not significantly impacted by economic recessions. Additional statistics revealed in the APPA 2014/2015 Survey:
In general, there is strong competition for the "retail shelf space" especially as related to non-proprietary, commodity pet products. Over 80% of OurPet's products are proprietary with patents or patent pending status. OurPet's generally avoids non-proprietary, commodity products where price is the major consideration and copying is common. OurPet's products are perceived as innovative, quality, upscale products selling at affordable prices.
Pet Industry Fast Facts
Pet Accessories and Treats Category
Growth Strategy
Barring the impact from any major factors beyond its control, OurPet's strategic business plan calls for annual year over year sales growth of 20% with targeted net income as a % of sales is in the 10%-12% range.
Although past growth has been "organic" or internal, OurPet's is positioned to pursue growth though strategic acquisitions offering marketing or technology competitive advantages. This optimistic outlook is based on the continued healthy growth of the pet industry; the rapid growth of the company's key customers such as Walmart, Petsmart, Amazon and Petco; OurPet's aggressive development and marketing of proprietary products; the expansion within its current marketing base; penetration into new market segments; and the future contributions of OurPet's experienced, highly motivated team.
There are very limited opportunities for the individual investor to participate in the rapidly growing pet industry because most of the companies in this industry are privately held. PetsMart (retailer) (PETM), Central Garden & Pet (pet products distributor) (CENT) and OurPet's (OPCO) (proprietary product manufacturer/marketer) represent most of the limited investment vehicles available to the individual investor.
OurPet's strategy to successfully execute its business plan is anchored to keen focus on the following on high growth categories in non-food pet products, including:
Management
Dr. Steven Tsengas - Chairman, Pres, CEO, Director Dr. Steven Tsengas has personally founded more than half a dozen high-tech and consumer product companies since 1976. He has also provided financial and managerial assistance to several successful entrepreneurial start-ups. Dr. Tsengas received his BS in Industrial Engineering from the State of New York University at Buffalo, his MS in Business from the University of Rochester, W. Simon Graduate School of Management, and his Ph.D. degree in Natural Health from Clayton College of Natural Health. He holds numerous patents, has taught and lectured at various colleges and was elected to the National Inventors Hall of Fame. He is a member of the American Society of Patent Holders and is active in various professional, community and technical associations including the Ohio Venture Association, American Naturopathic Medical Association, Lakeland Community College Students in Free Enterprise (SIFE) advisor and National SIFE Competition Judge, Lake County Development Council Trustee and Chairman of the Economic Forum Committee and Workforce Investment Board Member. Dr. Steve's most recent achievement is being named a 2010 Fellow of the Ohio Academy of Science, the leading organization in Ohio to foster curiosity, discovery, and innovation and to unite all who value education, science, engineering, technology, or their applications for the benefit of society.
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Dean S. Tsengas - VP/GM/Corp. Sec Dean S. Tsengas earned his Bachelor of Science in Industrial Engineering Degree from the University of Toledo, and has completed several graduate level courses in marketing and organizational behavior at Cleveland State University. He has attended numerous business and technical seminars such as Strategic Long Range Business Planning, Dale Carnegie, Taguchi Techniques, MRPII, ISO 9000, Bazic 8 Training, etc. From 1986-1994, Tsengas was employed by Taylor Molding Systems, Inc. and Dowty Silcofab USA, Inc. (custom molding of precision elastomeric products) and Arrow International (gaming products) in various positions including quality assurance manager, industrial/plant engineer, manager of application engineering and customer support specialist. Since 1994, as vice president of OurPet's Company, Tsengas has played a key role in the launch of the pet-products venture and has held various engineering, marketing and operational responsibilities. Under his managerial guidance OurPet's has developed extensive supply chain management, warehouse and QA capabilities. Tsengas is active in several professional and technical organizations.
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Scott R. Mendes - CFO/Treasurer Scott R. Mendes received both his MBA in Accounting and Finance (1979) and his undergraduate degree in English (1976) from Vanderbilt University in Nashville, Tennessee, where he was awarded the Faculty Award for Distinguished Achievement. Mendes has been CFO of OurPet's since February 2, 2009. Prior to his joining OurPet's, Mendes was corporate controller for Safeguard Properties, Inc. for 12 years where he was instrumental to that business' ability to manage a sustained growth rate of 30% year-over-year. His experience includes establishing accounting and information systems; all treasury functions, including cash management, banking relations, budgeting and financial analysis; and building and managing an operational infrastructure capable of handling rapid growth. Mendes also has a blend of manufacturing and entrepreneurial background as a part owner of a consumer electronics firm.
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Gabriella DeSantis - VP of Marketing Gabriella DeSantis earned her B.S. in Business Administration and Marketing/Advertising from Long Island University and her MBA in Marketing Management and Corporate Finance from Pace University in New York. Gabriella joined The OurPet's Co. in 2012 with over 20 years of new product development experience. Most recently, she was Marketing Director for United Pet Group, where she led the Nature's Miracle brand team, and Senior Marketing Manager for Health Care Products, Inc., where she successfully managed marketing strategies, resulting in significant and measurable growth. Her additional expertise includes building targeted, market-driven strategies that appeal to consumer behavior and forging key alliances that result in profitable relationships. Gabriella leverages strong analytical and decisive leadership to instill an atmosphere of innovation and a keen focus on operational excellence.
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Kathleen Homyock - VP of Sales Kathleen Homyock graduated with an MBA in Finance from Cleveland State University and a bachelor's degree in Marketing from Baldwin-Wallace University. A recent addition to OurPet's senior executive team, Kathleen's multi-level experience spans from startup and entrepreneurial organization to multi-national Fortune 500 firms leading cross-functional teams with initiatives to build, manage and/or recapture industry leadership positions. She is an accomplished leader with more than 30 years of demonstrated success in business development, strategic planning, marketing, brand building and relationship management. While with Loctite Corporation, she penetrated the Wholesale Club channel as a new business initiative with sole sales responsibility for DURO® brand super glue and Permatex® automotive repair products. Revenue grew more than 29% in 24 months. She also managed media relations and investor conferences in the banking/capital markets sector (investment banking, M&A, equity research, sales and trading) resulting in positive coverage and deepened C-level client relationships.
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OurPet's Company 1300 East Street Fairport Harbor, OH 44077 Phone: 440-354-6500 Phone: 800-565-2695 www.OurPets.com |
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