OurPet's Company (OPCO) has reported a 20.76 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $0.50 million, or $0.02 a share in the quarter, compared with $0.41 million, or $0.02 a share for the same period last year.
Revenue during the quarter grew 21.27 percent to $7.26 million from $5.99 million in the previous year period. Gross margin for the quarter expanded 5 basis points over the previous year period to 33.66 percent. Total expenses were 89.06 percent of quarterly revenues, down from 89.16 percent for the same period last year. This has led to an improvement of 10 basis points in operating margin to 10.94 percent.
Operating income for the quarter was $0.79 million, compared with $0.65 million in the previous year period.
“With the resumption of shipments to our major specialty pet retail customer, we were firing on all cylinders this past quarter. The double-digit growth in sales was also driven by a 19% growth in the Food Drug & Mass market segment, as well as initial shipments of our new electronic cat toy, Intelligent Pet Care, and Switchgrass BC cat litter products. With the strong third-quarter sales, we are up almost 10% for the nine months of 2016, more than double the pet industry average,” states Dr. Steven Tsengas, president and chief executive officer of OurPet’s.
Working capital increases marginally
OurPet's Company has recorded an increase in the working capital over the last year. It stood at $10.54 million as at Sep. 30, 2016, up 3.28 percent or $0.33 million from $10.21 million on Sep. 30, 2015. Current ratio was at 5.04 as on Sep. 30, 2016, down from 5.61 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 92 days for the quarter from 205 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 74 days for the quarter compared with 183 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 36 for the same period last year.
Debt comes down
OurPet's Company has recorded a decline in total debt over the last one year. It stood at $3.70 million as on Sep. 30, 2016, down 21.63 percent or $1.02 million from $4.72 million on Sep. 30, 2015. Total debt was 22.94 percent of total assets as on Sep. 30, 2016, compared with 31.08 percent on Sep. 30, 2015. Debt to equity ratio was at 0.38 as on Sep. 30, 2016, down from 0.56 as on Sep. 30, 2015. Interest coverage ratio improved to 32.91 for the quarter from 44.51 for the same period last year.
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