Today, OurPetâ€™s Company announced its financial results for the second quarter and first half ended June 30, 2009. Net revenues for the second quarter increased a respectable 19.6 percent to $3,605,892 compared to the same period a year earlier. Gross margin for the quarter was 30.1 percent, compared to 26.4 percent in the 2008 second quarter. Income from operations totaled $199,384, compared to a loss of ($724,663). Net income rose to $194,934, compared to a net loss of ($769,835).
Net revenues for the first half of this year increased 18.1 percent to $6,995,711 compared to the same period in 2008. Gross profit margin was 29.8 percent, compared to 28.1 percent in the 2008 first half. Income from operations totaled $320,355, compared to a loss of ($1,071,125). Net income for the six month period was $273,543, compared to a net loss of ($1,161,307) for the same six months in 2008.
Dr. Steven Tsengas, President and CEO, stated, â€œOur record sales for both the 2009 second quarter and first half are a result of increased sales to existing customers and our penetration into pet distributor markets. We are pleased to continue to show strong sales growth despite the very challenging business environment as customers appreciate the value of our innovative products. For the 2009 second quarter, compared to the same period in 2008, our Play-N-Squeak brand products comprised 60 percent of the sales increase, while 25 percent of the increase came from our new Flappy dog toys. For the 2009 first half, compared to the same period in 2008, our new Flappy brand of dog toys comprised 50 percent of the sales increase, while our Play-N-Squeak brand products comprised 43 percent of the sales increase. We are extremely encouraged with how our new Flappy brand has performed since we introduced it earlier this year. In fact, Flappy Dog Toys has been chosen as a 2009 Pet Product News â€˜Editorâ€™s Choiceâ€™ award winner!
â€œOur earnings for the 2009 second quarter and year to date reflect improved gross profit margins and aggressive cost control, particularly reduced litigation expenses related to our SmartScoop product,â€ he continued. â€œWhile legal appeals progress, our strategy is to continue strengthening our SmartScoopÂ® brand as well as accelerate the growth of the rest of our business. As was previously reported, the US Customs ruled in our favor on May 28, 2009 that the new model SmartScoopÂ® can be freely imported into the United States. We are one of the most innovative companies in the pet industry with over 100 patents issued, or pending, and we will aggressively pursue all legal remedies to protect our valuable intellectual property.â€
â€œWe are optimistic about the number of new trend-setting products that will be rolled out during the next twelve months. We anticipate these exciting new products will have a significant positive impact on revenue and profits in the latter part of 2009 and the first half of 2010. Specifically, we will be making over ten new product introductions in the second half of 2009 to support our various brands, with the focus of these items to capitalize on the strong online consumer demand that occurs during the holidays. We simultaneously continue strengthening our human resources and management systems to support the anticipated company growth. We remain guardedly optimistic that the balance of 2009 will see continued revenue and earnings growth, as we implement our strategic business plan,â€ Dr. Tsengas concluded.