EX-99.1 2 petmed_ex99z1.htm PRESS RELEASE PETMED EXPRESS


Exhibit 99.1

PETMED EXPRESS D/B/A 1-800-PETMEDS

ANNOUNCES RECORD FIRST QUARTER FINANCIAL RESULTS

Earnings Increase 27% to $0.36 per share

Net Sales Increase 13% to $77.2 Million

Reorder Sales Increase 17%

Pompano Beach, Florida, July 20, 2009 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2009. Net income was $8.1 million, or $0.36 diluted per share, for the quarter ended June 30, 2009, compared to net income of $6.6 million, or $0.28 diluted per share, for the quarter ended June 30, 2008, a 27% increase to EPS. Net sales for the quarter ended June 30, 2009 were $77.2 million, compared to $68.4 million for the quarter ended June 30, 2008, an increase of 13%. Reorder sales increased by 17%, from $46.2 million to $54.0 million for the quarters ended June 30, 2008 and 2009, respectively. Our online sales increased 18% from $43.7 million to $51.8 million for the quarters ended June 30, 2008 and 2009, respectively.    


Menderes Akdag, CEO and President, commented: “We are pleased to report a 29% increase to our income from operations for the quarter, and a 17% increase in our reorder sales, compared to a 16% increase in reorder sales for the same quarter in the prior year. We acquired approximately 297,000 new customers in our first fiscal quarter compared to 267,000 for the same quarter in the prior year. Our costs to acquire a new customer decreased by 12% to $33 for the quarter ended June 30, 2009, compared to $38 for the same quarter in the prior year. We are also pleased to report that our operating expenses as a percent of sales improved 180 basis points for the quarter, compared to the same quarter in the prior year. Our continuing focus will be on capturing additional market share, increasing reorders with personalized communication and health education content, and improving our customer service levels in fiscal 2010.”


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 20, 2009 until August 3, 2009 at 11:59 P.M. To access the replay, call (800) 388-9075 (toll free) or (203) 369-3665, 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, 2009. 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,

 

 

2009

 

2009

 

 

(UNAUDITED)

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

   Cash and cash equivalents

$

59,503,377 

$

30,126,041 

   Accounts receivable, less allowance for doubtful

 

 

 

 

      accounts of $67,327 and $58,525, respectively

 

3,313,213 

 

2,881,085 

   Inventories - finished goods

 

16,133,770 

 

26,778,096 

   Prepaid expenses and other current assets

 

924,580 

 

753,602 

   Deferred tax assets

 

1,084,237 

 

724,561 

   Prepaid income taxes

 

- 

 

361,743 

          Total current assets

 

80,959,177 

 

61,625,128 

 

 

 

 

 

   Long term investments

 

14,430,250 

 

14,430,250 

   Property and equipment, net

 

4,889,479 

 

5,057,561 

   Intangible assets

 

850,000 

 

850,000 

 

 

 

 

 

Total assets

$

101,128,906 

$

81,962,939 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

   Accounts payable

$

10,123,659 

$

4,817,097 

   Accrued expenses and other current liabilities

 

2,720,893 

 

2,177,838 

   Income taxes payable

 

4,019,300 

 

- 

          Total current liabilities

 

16,863,852 

 

6,994,935 

 

 

 

 

 

   Deferred tax liabilities

 

456,404 

 

- 

 

 

 

 

 

Total liabilities

 

17,320,256 

 

6,994,935 

 

 

 

 

 

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;

 

 

 

 

      22,728,470 and 22,686,836 shares issued and outstanding, respectively

 

22,728 

 

22,687 

   Additional paid-in capital

 

765,829 

 

- 

   Retained earnings

 

83,230,945 

 

75,156,169 

   Accumulated other comprehensive loss

 

(219,750)

 

(219,750)

 

 

 

 

 

          Total shareholders' equity

 

83,808,650 

 

74,968,004 

 

 

 

 

 

Total liabilities and shareholders' equity

$

101,128,906 

$

81,962,939 


Exhibit 99.1 Page 2 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 (UNAUDITED)


 

 

Three Months Ended

 

 

June 30,

 

 

2009

 

2008

 

 

 

 

 

 Sales

$

77,168,582 

$

68,366,683 

 Cost of sales

 

47,882,455 

 

42,576,381 

 

 

 

 

 

 Gross profit

 

29,286,127 

 

25,790,302 

 

 

 

 

 

 Operating expenses:

 

 

 

 

      General and administrative

 

6,493,360 

 

5,812,214 

      Advertising

 

9,871,809 

 

10,060,123 

      Depreciation and amortization

 

322,335 

 

155,552 

 Total operating expenses

 

16,687,504 

 

16,027,889 

 

 

 

 

 

 Income from operations

 

12,598,623 

 

9,762,413 

 

 

 

 

 

 Other income:

 

 

 

 

      Interest income, net

 

61,420 

 

309,315 

      Other, net

 

1,585 

 

160,383 

 Total other income

 

63,005 

 

469,698 

 

 

 

 

 

 Income before provision for income taxes

 

12,661,628 

 

10,232,111 

 

 

 

 

 

 Provision for income taxes

 

4,586,852 

 

3,610,902 

 

 

 

 

 

 Net income

$

8,074,776 

$

6,621,209 

 

 

 

 

 

 Net income per common share:

 

 

 

 

       Basic

$

0.36 

$

0.28 

       Diluted

$

0.36 

$

0.28 

 

 

 

 

 

 Weighted average number of common shares outstanding:

 

 

 

 

       Basic

 

22,523,962 

 

23,523,297 

       Diluted

 

22,681,612 

 

23,671,933 



Exhibit 99.1 Page 3 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


 

 

Three Months Ended

 

 

June 30,

 

 

2009

 

2008

 Cash flows from operating activities:

 

 

 

 

    Net income

$

8,074,776 

$

6,621,209 

    Adjustments to reconcile net income to net cash

 

 

 

 

     provided by operating activities:

 

 

 

 

        Depreciation and amortization

 

322,335 

 

155,552 

        Share based compensation

 

337,027 

 

304,041 

        Deferred income taxes

 

96,728 

 

(47,174)

        Bad debt expense

 

23,378 

 

43,986 

        (Increase) decrease in operating assets

 

 

 

 

           and increase (decrease) in liabilities:

 

 

 

 

             Accounts receivable

 

(455,506)

 

(1,514,539)

             Inventories - finished goods

 

10,644,326 

 

(6,843,761)

             Prepaid income taxes

 

361,743 

 

- 

             Prepaid expenses and other current assets

 

(170,978)

 

(295,807)

             Accounts payable

 

5,460,799 

 

4,427,291 

             Income taxes payable

 

4,019,300 

 

3,400,392 

             Accrued expenses and other current liabilities

 

543,055 

 

373,387 

 Net cash provided by operating activities

 

29,256,983 

 

6,624,577 

 

 

 

 

 

 Cash flows from investing activities:

 

 

 

 

    Net change in investments

 

- 

 

12,620,000 

    Purchases of property and equipment

 

(308,492)

 

(212,690)

 Net cash (used in) provided by investing activities

 

(308,492)

 

12,407,310 

 

 

 

 

 

 Cash flows from financing activities:

 

 

 

 

    Purchases of treasury stock

 

- 

 

(1,086,816)

    Proceeds from the exercise of stock options

 

319,763 

 

348,200 

    Tax benefit related to stock options exercised

 

109,082 

 

31,684 

 Net cash provided by (used in) financing activities

 

428,845 

 

(706,932)

 

 

 

 

 

 Net increase in cash and cash equivalents

 

29,377,336 

 

18,324,955 

 Cash and cash equivalents, at beginning of period

 

30,126,041 

 

20,267,829 

 

 

 

 

 

 Cash and cash equivalents, at end of period

$

59,503,377 

$

38,592,784 

 

 

 

 

 

 Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

    Cash paid for income taxes

$

- 

$

226,000 

 

 

 

 

 

    Retirement of treasury stock

$

- 

$

562,658 

 

 

 

 

 

    Property and equipment purchases in accounts payable

$

617,522 

$

- 



Exhibit 99.1 Page 4 of 4