EX-99.1 2 exhibit991.htm Exhibit 99.1


Exhibit 99.1

PETMED EXPRESS, INC. D/B/A 1-800-PETMEDS

ANNOUNCES RECORD FINANCIAL RESULTS FOR FISCAL 2009

Fourth Quarter Earnings Increase 20% to $0.25 Diluted Per Share

Fourth Quarter Net Sales Increase 19% to $48.1 Million

Fiscal 2009 Earnings Increase 19% to $0.98 Diluted Per Share

Fiscal 2009 Net Sales Increase 17% to $219.4 Million

Pompano Beach, Florida, May 11, 2009 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2009.  Net sales for the year ended March 31, 2009 were $219.4 million, compared to $188.3 million for the year ended March 31, 2008, an increase of 17%.  Net income was $23.0 million, or $0.98 diluted per share, for the year ended March 31, 2009, compared to net income of $20.0 million, or $0.82 diluted per share, for the year ended March 31, 2008, an increase to earnings per share of 19%.  For the quarter ended March 31, 2009, net sales were $48.1 million, compared to $40.4 million for the quarter ended March 31, 2008, an increase of 19%.  Net income for the quarter ended March 31, 2009 was $5.6 million, or $0.25 diluted per share, compared to net income of $4.9 million, or $0.20 diluted per share, for the same quarter the prior year, an increase to earnings per share of 20%.  The Company acquired approximately 142,000 new customers during the quarter ended March 31, 2009, compared to 126,000 for the same quarter the prior year, and approximately 802,000 new customers during fiscal 2009 compared to 710,000 during fiscal 2008.  Approximately 65% of all orders were placed on its website during the fiscal year.


Mendo Akdag, CEO and President, commented: “We are very proud of our financial performance for the year, which was highlighted by a strong fourth quarter.  The results can be attributed to reorder and new order growth and our success in leveraging operating expenses.  Our reorder sales increased 20%, from $31.0 million to $37.2 million, for the quarters ended March 31, 2008 and 2009, respectively.  Our new order growth accelerated to 16% in fiscal 2009 compared to 5% in fiscal 2008.  Our operating expenses as a percent of sales improved by approximately 120 basis points for the year ended March 31, 2009 compared to the same period the prior year.  Reorder sales for the year ended March 31, 2009 were $156.8 million, compared to $134.3 million for the year ended March 31, 2008, an increase of 17%.  New order sales for the year ended March 31, 2009 were $62.5 million, compared to $53.8 million for the year ended March 31, 2008, an increase of 16%.  During the fiscal year we repurchased approximately 1,347,000 shares of our outstanding common stock for approximately $18.4 million, pursuant to the Company’s stock buy back plan, averaging approximately $13.70 per share.  Our continued focus in fiscal 2010 will be on capturing additional market share, and improving reorders and our customer service levels.”


This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a conference call to review the year-end financial results.  To access the call which is open to the public, 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 A.M. on May 11, 2009 until May 25, 2009 at 11:59 P.M.  To access the replay, call (800) 841-6832 (toll free) or (203) 369-3832, 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.


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Exhibit 99.1 Page 1 of 4



PETMED EXPRESS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

 

March 31,

 

 

2009

 

2008

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

   Cash and cash equivalents

$

30,126,041 

$

20,267,829 

   Temporary investments

 

- 

 

4,780,000 

   Accounts receivable, less allowance for doubtful

 

 

 

 

      accounts of $58,525 and $32,040, respectively

 

2,881,085 

 

1,575,263 

   Inventories - finished goods

 

26,778,096 

 

17,909,549 

   Prepaid expenses and other current assets

 

753,602 

 

691,859 

   Deferred income taxes

 

724,561 

 

- 

   Prepaid income taxes

 

361,743 

 

- 

          Total current assets

 

61,625,128 

 

45,224,500 

 

 

 

 

 

   Long term investments

 

14,430,250 

 

24,740,000 

   Property and equipment, net

 

5,057,561 

 

1,903,294 

   Deferred income taxes

 

- 

 

1,221,853 

   Intangible assets

 

850,000 

 

365,000 

 

 

 

 

 

Total assets

$

81,962,939 

$

73,454,647 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

   Accounts payable

$

4,817,097 

$

4,358,774 

   Accrued expenses and other current liabilities

 

2,177,838 

 

1,876,655 

   Income taxes payable

 

- 

 

185,243 

 

 

 

 

 

Total liabilities

 

6,994,935 

 

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;

 

 

 

 

      22,686,836 and 23,734,067 shares issued, respectively

 

22,687 

 

23,734 

   Additional paid-in capital

 

- 

 

8,396,277 

   Retained earnings

 

75,156,169 

 

58,639,343 

   Less treasury stock, at cost; 0 and 3,100 shares, respectively

 

- 

 

(34,277)

   Accumulated other comprehensive loss

 

(219,750)

 

- 

 

 

 

 

 

          Total shareholders' equity

 

74,968,004 

 

67,033,975 

 

 

 

 

 

Total liabilities and shareholders' equity

$

81,962,939 

$

73,454,647 



Exhibit 99.1 Page 2 of 4



PETMED EXPRESS, INC. AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 Year Ended March 31,

 

 Quarter Ended March 31,

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 (UNAUDITED)

 Sales

$

219,412,247 

$

188,336,469 

$

48,070,577 

$ 

40,423,170 

 Cost of sales

 

134,084,680 

 

114,122,433 

 

28,708,877 

 

23,731,798 

 

 

 

 

 

 

 

 

 

 Gross profit

 

85,327,567 

 

74,214,036 

 

19,361,700 

 

16,691,372 

 

 

 

 

 

 

 

 

 

 Operating expenses:

 

 

 

 

 

 

 

 

      General and administrative

 

21,604,654 

 

20,367,392 

 

5,156,223 

 

4,865,084 

      Advertising

 

28,707,386 

 

25,261,042 

 

5,087,784 

 

4,536,021 

      Depreciation and amortization

 

814,542 

 

589,990 

 

311,265 

 

154,956 

 Total operating expenses

 

51,126,582 

 

46,218,424 

 

10,555,272 

 

9,556,061 

 

 

 

 

 

 

 

 

 

 Income from operations

 

34,200,985 

 

27,995,612 

 

8,806,428 

 

7,135,311 

 

 

 

 

 

 

 

 

 

 Other income (expense):

 

 

 

 

 

 

 

 

      Interest income, net

 

1,056,077 

 

1,771,653 

 

97,342 

 

443,962 

      Other, net

 

408,149 

 

643,880 

 

106,314 

 

108,534 

      Loss on disposal of property and equipment

(8,565)

 

- 

 

(8,565)

 

- 

 Total other income (expense)

 

1,455,661 

 

2,415,533 

 

195,091 

 

552,496 

 

 

 

 

 

 

 

 

 

 Income before provision for income taxes

 

35,656,646 

 

30,411,145 

 

9,001,519 

 

7,687,807 

 

 

 

 

 

 

 

 

 

 Provision for income taxes

 

12,680,235 

 

10,388,914 

 

3,352,182 

 

2,784,368 

 

 

 

 

 

 

 

 

 

 Net income

$

22,976,411 

$

20,022,231 

$

5,649,337 

$ 

4,903,439 

 

 

 

 

 

 

 

 

 

 Net income per common share:

 

 

 

 

 

 

 

 

       Basic

$

0.99 

$

0.83 

$

0.25 

$ 

0.21 

       Diluted

$

0.98 

$

0.82 

$

0.25 

$ 

0.20 

 

 

 

 

 

 

 

 

 

 Weighted average number of common shares outstanding:

 

 

 

 

 

 

       Basic

 

23,305,726 

 

24,088,258 

 

22,874,087 

 

23,823,046 

       Diluted

 

23,482,177 

 

24,299,364 

 

23,006,722 

 

24,007,498 





Exhibit 99.1 Page 3 of 4



PETMED EXPRESS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 Year Ended March 31,

 

 

2009

 

2008

 

2007

 Cash flows from operating activities:

 

 

 

 

 

 

    Net income

$

22,976,411 

$

20,022,231 

$

14,443,502 

    Adjustments to reconcile net income to net cash

 

 

 

 

 

 

     provided by operating activities:

 

 

 

 

 

 

        Depreciation and amortization

 

814,542 

 

589,990 

 

530,440 

        Share based compensation

 

1,464,225 

 

1,679,600 

 

1,095,740 

        Deferred income taxes

 

497,292 

 

(327,313)

 

(100,538)

        Loss on disposal of property and equipment

 

8,565 

 

- 

 

1,250 

        Bad debt expense

 

73,981 

 

40,823 

 

29,554 

        (Increase) decrease in operating assets

 

 

 

 

 

 

           and increase (decrease) in liabilities:

 

 

 

 

 

 

             Accounts receivable

 

(1,379,803)

 

(246,565)

 

(243,294)

             Inventories - finished goods

 

(8,868,547)

 

(1,823,342)

 

(1,088,532)

             Prepaid income taxes

 

(361,743)

 

- 

 

- 

             Prepaid expenses and other current assets

 

(61,743)

 

379,312 

 

(488,133)

             Other assets

 

- 

 

- 

 

14,167 

             Accounts payable

 

(313,436)

 

(1,500,982)

 

2,806,803 

             Income taxes payable

 

(185,243)

 

(44,078)

 

(728,997)

             Accrued expenses and other current liabilities

 

301,183 

 

610,818 

 

292,478 

 Net cash provided by operating activities

 

14,965,684 

 

19,380,494 

 

16,564,440 

 

 

 

 

 

 

 

 Cash flows from investing activities:

 

 

 

 

 

 

    Net change in investments

 

14,870,000 

 

9,605,000 

 

(16,275,000)

    Purchases of property and equipment

 

(3,207,615)

 

(502,706)

 

(1,025,079)

    Purchase of intangible asset

 

(485,000)

 

- 

 

- 

    Net proceeds from the sale of property and equipment

 

2,000 

 

- 

 

400 

 Net cash provided by (used in) investing activities

 

11,179,385 

 

9,102,294 

 

(17,299,679)

 

 

 

 

 

 

 

 Cash flows from financing activities:

 

 

 

 

 

 

    Purchases of treasury stock

 

(18,447,539)

 

(11,600,721)

 

- 

    Proceeds from the exercise of stock options

 

1,892,847 

 

2,784,987 

 

442,084 

    Tax benefit related to stock options exercised

 

267,835 

 

284,305 

 

242,718 

 Net cash (used in) provided by financing activities

 

(16,286,857)

 

(8,531,429)

 

684,802 

 

 

 

 

 

 

 

 Net increase (decrease) in cash and cash equivalents

 

9,858,212 

 

19,951,359 

 

(50,437)

 Cash and cash equivalents, at beginning of year

 

20,267,829 

 

316,470 

 

366,907 

 

 

 

 

 

 

 

 Cash and cash equivalents, at end of year

$

30,126,041 

$

20,267,829 

$

316,470 

 

 

 

 

 

 

 

 Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

    Cash paid for income taxes

$

16,462,095 

$

10,331,000 

$

9,344,063 

 

 

 

 

 

 

 

    Retirement of treasury stock

$

18,481,816 

$

11,566,444 

$

- 

 

 

 

 

 

 

 

    Property and equipment purchases in accounts payable

$

771,759 

$

- 

$

- 




Exhibit 99.1 Page 4 of 4