EX-99.1 2 exhibit991.htm Exhibit 99


Exhibit 99.1


PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS

Net Sales Increase 16% to $68.4 Million

New Order Sales Increase 17%

Earnings Increase to $0.28 per share

Pompano Beach, Florida, July 21, 2008 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2008.  Net income was $6.6 million, or $0.28 diluted per share, for the quarter ended June 30, 2008, compared to net income of $6.2 million, or $0.25 diluted per share, for the quarter ended June 30, 2007, a 10% increase to EPS.  Net sales for the quarter ended June 30, 2008 were $68.4 million, compared to $59.0 million for the quarter ended June 30, 2007, an increase of 16%.  New order sales increased by 17%, from $19.0 million to $22.1 million for the quarters ended June 30, 2007 and 2008, respectively.      


Menderes Akdag, CEO and President, commented: “We are pleased to report a 17% increase in new order sales and that we acquired approximately 267,000 new customers in our first fiscal quarter compared to 236,000 for the same quarter in the prior year.  We are also pleased to report that our reorder sales increased by 16%, to $46.2 million for the quarter ended June 30, 2008, compared to $40.0 million for the same quarter in the prior year.  Our continuing focus will be on capturing additional market share, and improving reorders and our customer service levels in fiscal 2009.  Additionally, the Company repurchased approximately 93,000 shares of its outstanding common stock for approximately $1,087,000 during the first quarter of fiscal 2009.”


This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a conference call to review the quarter’s financial results.  To access the call, which is open to the public, please dial (888) 455-1758 (toll free) or (210) 234-0009.  Callers will be required to supply PETMEDS as the passcode.  For those unable to participate in the live event, the call will be available for replay from 10:00 A.M. on July 21, 2008 until August 4, 2008 at 11:59 P.M.  To access the replay, call (866) 491-2943 (toll free) or (203) 369-1729, and enter passcode 5500.


Founded in 1996, PetMed Express is America’s Largest Pet Pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs, cats, and horses at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and on the Internet through its website at www.1800petmeds.com.


This press release may contain “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, that involve a number of risks and uncertainties, including the Company’s ability to meet the objectives included in its business plan.  Important factors that could cause results to differ materially from those indicated by such “forward-looking” statements are set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the PetMed Express Annual Report on Form 10-K for the year ended March 31, 2008.  The Company’s future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company's Form 10-Q and its Annual Report on Form 10-K.


For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 954-979-5995.


###



Exhibit 99.1   Page 1 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

June 30,

 

March 31,

 

 

2008

 

2008

 

 

(UNAUDITED)

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

   Cash and cash equivalents

$

   38,592,784 

$ 

   20,267,829 

   Temporary investments

 

    2,025,000 

 

    4,780,000 

   Accounts receivable, less allowance for doubtful

 

 

 

 

      accounts of $61,930 and $32,040, respectively

 

    3,045,816 

 

    1,575,263 

   Inventories - finished goods

 

   24,753,310 

 

   17,909,549 

   Prepaid expenses and other current assets

 

       987,665 

 

       691,859 

          Total current assets

 

   69,404,575 

 

   45,224,500 

 

 

 

 

 

   Long term investments

 

   14,875,000 

 

   24,740,000 

   Property and equipment, net

 

    1,960,433 

 

    1,903,294 

   Deferred income taxes

 

    1,269,027 

 

    1,221,853 

   Intangible asset

 

       365,000 

 

       365,000 

 

 

 

 

 

Total assets

$

   87,874,035 

$ 

   73,454,647 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

   Accounts payable

$

    8,786,065 

$ 

    4,358,774 

   Income taxes payable

 

    3,585,635 

 

       185,243 

   Accrued expenses and other current liabilities

 

    2,250,042 

 

    1,876,655 

 

 

 

 

 

Total liabilities

 

   14,621,742 

 

    6,420,672 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

   Preferred stock, $.001 par value, 5,000,000 shares authorized;

 

 

 

 

      2,500 convertible shares issued and outstanding with a

 

 

 

 

      liquidation preference of $4 per share

 

           8,898 

 

           8,898 

   Common stock, $.001 par value, 40,000,000 shares authorized;

 

 

 

 

      23,724,240 and 23,734,067 shares issued, respectively

 

         23,724 

 

         23,734 

   Additional paid-in capital

 

    8,517,554 

 

    8,396,277 

   Retained earnings

 

   65,260,552 

 

   58,639,343 

   Less treasury stock, at cost; 44,815 and 3,100 shares, respectively

      (558,435)

 

        (34,277)

 

 

 

 

 

          Total shareholders' equity

 

   73,252,293 

 

   67,033,975 

 

 

 

 

 

Total liabilities and shareholders' equity

$

   87,874,035 

$ 

   73,454,647 




Exhibit 99.1   Page 2 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 (UNAUDITED)

 

 

 

 

 

 

 

 Three Months Ended

 

 

 June 30,

 

 

2008

 

 2007

 

 

 

 

 

 Sales

 $

  68,366,683 

 $ 

  59,027,235 

 Cost of sales

 

  42,576,381 

 

  36,331,851 

 

 

 

 

 

 Gross profit

 

  25,790,302 

 

  22,695,384 

 

 

 

 

 

 Operating expenses:

 

 

 

 

      General and administrative

 

    5,812,214 

 

    5,615,466 

      Advertising

 

  10,060,123 

 

    8,482,781 

      Depreciation and amortization

 

       155,552 

 

       127,934 

 Total operating expenses

 

  16,027,889 

 

  14,226,181 

 

 

 

 

 

 Income from operations

 

    9,762,413 

 

    8,469,203 

 

 

 

 

 

 Other income (expense):

 

 

 

 

      Interest income, net

 

       309,315 

 

       392,202 

      Other, net

 

       160,383 

 

       231,656 

 Total other income (expense)

 

       469,698 

 

       623,858 

 

 

 

 

 

 Income before provision for income taxes

 

  10,232,111 

 

    9,093,061 

 

 

 

 

 

 Provision for income taxes

 

    3,610,902 

 

    2,909,977 

 

 

 

 

 

 Net income

 $

    6,621,209 

 $ 

    6,183,084 

 

 

 

 

 

 Net income per common share:

 

 

 

 

       Basic

 $

            0.28 

 $ 

            0.26 

       Diluted

 $

            0.28 

 $ 

            0.25 

 

 

 

 

 

 Weighted average number of common shares outstanding:

 

 

 

 

       Basic

 

  23,523,297 

 

  24,149,321 

       Diluted

 

  23,671,933 

 

  24,336,100 



Exhibit 99.1   Page 3 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

 

 

 

 

 Three Months Ended

 

 

 June 30,

 

 

2008

 

2007

 Cash flows from operating activities:

 

 

 

 

    Net income

 $

    6,621,209 

 $ 

    6,183,084 

    Adjustments to reconcile net income to net cash

 

 

 

 

     provided by operating activities:

 

 

 

 

        Depreciation and amortization

 

       155,552 

 

       127,934 

        Share based compensation

 

       304,041 

 

       359,469 

        Deferred income taxes

 

        (47,174)

 

      (242,327)

        Bad debt expense

 

         43,986 

 

         24,820 

        (Increase) decrease in operating assets

 

 

 

 

           and increase (decrease) in liabilities:

 

 

 

 

             Accounts receivable

 

   (1,514,539)

 

      (762,207)

             Inventories - finished goods

 

   (6,843,761)

 

       411,356 

             Prepaid expenses and other current assets

 

      (295,807)

 

      (140,383)

             Accounts payable

 

    4,427,291 

 

      (134,859)

             Income taxes payable

 

    3,400,392 

 

    2,640,941 

             Accrued expenses and other current liabilities

 

       373,387 

 

    1,035,442 

 Net cash provided by operating activities

 

    6,624,577 

 

    9,503,270 

 

 

 

 

 

 Cash flows from investing activities:

 

 

 

 

    Net change in investments

 

   12,620,000 

 

   (6,300,000)

    Purchases of property and equipment

 

      (212,690)

 

      (255,958)

 Net cash provided by (used in) investing activities

 

   12,407,310 

 

   (6,555,958)

 

 

 

 

 

 Cash flows from financing activities:

 

 

 

 

    Purchases of treasury stock

 

   (1,086,816)

 

   (1,512,254)

    Proceeds from the exercise of stock options

 

       348,200 

 

       240,444 

    Tax benefit related to stock options exercised

 

         31,684 

 

           8,365 

 Net cash used in financing activities

 

      (706,932)

 

   (1,263,445)

 

 

 

 

 

 Net increase in cash and cash equivalents

 

   18,324,955 

 

    1,683,867 

 Cash and cash equivalents, at beginning of period

 

   20,267,829 

 

       316,470 

 

 

 

 

 

 Cash and cash equivalents, at end of period

 $

   38,592,784 

 $ 

    2,000,337 

 

 

 

 

 

 Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

    Cash paid for income taxes

 $

       226,000 

 $ 

       503,000 

 

 

 

 

 

    Retirement of treasury stock

 $

       562,658 

 $ 

       257,630 




Exhibit 99.1   Page 4 of 4