EX-99.1 2 petmed_ex991.htm PRESS RELEASE Press Release


Exhibit 99.1

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

ANNOUNCES SECOND QUARTER FINANCIAL RESULTS

Earnings Increase 12% to $0.28 EPS

Reorder Sales Increase 11% to $45.8 Million

Pompano Beach, Florida, October 19, 2009 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2009.  Net income was $6.3 million, or $0.28 diluted per share, for the quarter ended September 30, 2009, compared to net income of $5.8 million, or $0.25 diluted per share, for the quarter ended September 30, 2008, a 12% increase to EPS.  For the six months ended September 30, 2009, net income was $14.3 million or $0.63 diluted per share compared to net income of $12.4 million or $0.53 diluted per share for the six months ended September 30, 2008, an increase to earnings per share of 20%.  Net sales for the quarter ended September 30, 2009 were $62.4 million, compared to $59.6 million for the quarter ended September 30, 2008, an increase of 5%.  Net sales for the six months ended September 30, 2009 were $139.6 million, compared to $127.9 million for the six months ended September 30, 2008, an increase of 9%.  Reorder sales increased by 11%, from $41.4 million to $45.8 million for the quarters ended September 30, 2008 and 2009, respectively.  Reorder sales for the six months ended September 30, 2009 were $99.8 million, compared to $87.6 million for the six months ended September 30, 2008, an increase of 14%.  


Menderes Akdag, CEO and President, commented: “We are pleased to report a 17% increase to our income from operations for the quarter ended September 30, 2009.  We acquired approximately 233,000 new customers in the September quarter.  Our costs to acquire a new customer decreased by 8% to $33 for the quarter ended September 30, 2009, compared to $36 for the same period in the prior year.  We are pleased to report that our operating expenses as a percent of sales improved by 200 basis points in the September quarter, compared to the same quarter in the prior year.  We are also pleased to report that our cash flows from operations increased to $26.1 million for the six months ended September 30, 2009 from $18.7 million for the same period 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 October 19, 2009 until November 2, 2009 at 11:59 P.M.  To access the replay, call (800) 695-3640 (toll free) or (402) 220-0318, 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

 

 

 

 

 

 

 

September 30,

March 31,

 

 

2009

 

2009

 

 

(UNAUDITED)

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

   Cash and cash equivalents

$

56,188,238 

$

30,126,041 

   Accounts receivable, less allowance for doubtful

 

 

 

 

      accounts of $55,864 and $58,525, respectively

 

2,746,789 

 

2,881,085 

   Inventories - finished goods

 

15,945,945 

 

26,778,096 

   Prepaid expenses and other current assets

 

958,455 

 

753,602 

   Deferred tax assets

 

963,913 

 

724,561 

   Prepaid income taxes

 

1,889,423 

 

361,743 

          Total current assets

 

78,692,763 

 

61,625,128 

 

 

 

 

 

   Long term investments

 

12,312,500 

 

14,430,250 

   Property and equipment, net

 

4,752,041 

 

5,057,561 

   Intangible assets

 

850,000 

 

850,000 

 

 

 

 

 

Total assets

$

96,607,304 

$

81,962,939 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

   Accounts payable

$

5,422,317 

$

4,817,097 

   Accrued expenses and other current liabilities

 

2,306,258 

 

2,177,838 

          Total current liabilities

 

7,728,575 

 

6,994,935 

 

 

 

 

 

   Deferred tax liabilities

 

445,756 

 

- 

 

 

 

 

 

Total liabilities

 

8,174,331 

 

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;

 

      22,835,370 and 22,686,836 shares issued and outstanding, respectively

22,835 

 

22,687 

   Additional paid-in capital

 

1,375,877 

 

- 

   Retained earnings

 

87,212,863 

 

75,156,169 

   Accumulated other comprehensive loss

 

(187,500)

 

(219,750)

 

 

 

 

 

          Total shareholders' equity

 

88,432,973 

 

74,968,004 

 

 

 

 

 

Total liabilities and shareholders' equity

$

96,607,304 

$

81,962,939 



Exhibit 99.1 Page 2 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 Three Months Ended

 

 Six Months Ended

 

 

 September 30,

 

 September 30,

 

 

 2009

 

 2008

 

 2009

 

 2008

 

 

 

 

 

 

 

 

 

 Sales

$

62,447,177 

$

59,569,141 

$

139,615,759 

$

127,935,824 

 Cost of sales

 

38,764,973 

 

36,710,850 

 

86,647,428 

 

79,287,231 

 

 

 

 

 

 

 

 

 

 Gross profit

 

23,682,204 

 

22,858,291 

 

52,968,331 

 

48,648,593 

 

 

 

 

 

 

 

 

 

 Operating expenses:

 

 

 

 

 

 

 

 

      General and administrative

 

5,776,698 

 

5,617,034 

 

12,270,058 

 

11,429,248 

      Advertising

 

7,751,821 

 

8,659,586 

 

17,623,630 

 

18,719,709 

      Depreciation and amortization

 

322,478 

 

162,076 

 

644,813 

 

317,628 

 Total operating expenses

 

13,850,997 

 

14,438,696 

 

30,538,501 

 

30,466,585 

 

 

 

 

 

 

 

 

 

 Income from operations

 

9,831,207 

 

8,419,595 

 

22,429,830 

 

18,182,008 

 

 

 

 

 

 

 

 

 

 Other income:

 

 

 

 

 

 

 

 

      Interest income, net

 

57,167 

 

352,403 

 

118,587 

 

661,718 

      Other, net

 

1,082 

 

169,068 

 

2,667 

 

329,451 

 Total other income

 

58,249 

 

521,471 

 

121,254 

 

991,169 

 

 

 

 

 

 

 

 

 

 Income before provision for income taxes

 

9,889,456 

 

8,941,066 

 

22,551,084 

 

19,173,177 

 

 

 

 

 

 

 

 

 

 Provision for income taxes

 

3,624,451 

 

3,119,969 

 

8,211,303 

 

6,730,871 

 

 

 

 

 

 

 

 

 

 Net income

$

6,265,005 

$

5,821,097 

$

14,339,781 

$

12,442,306 

 

 

 

 

 

 

 

 

 

 Net income per common share:

 

 

 

 

 

 

 

 

       Basic

$

0.28 

$

0.25 

$

0.64 

$

0.53 

       Diluted

$

0.28 

$

0.25 

$

0.63 

$

0.53 

 

 

 

 

 

 

 

 

 

 Weighted average number of common shares outstanding:

 

 

 

 

 

 

       Basic

 

22,614,372 

 

23,485,477 

 

22,569,414 

 

23,504,284 

       Diluted

 

22,755,245 

 

23,669,854 

 

22,718,428 

 

23,670,893 

 

 

 

 

 

 

 

 

 

 Cash dividends declared per common share

$

0.10 

$

- 

$

0.10 

$

- 



Exhibit 99.1 Page 3 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

 Six Months Ended

 

 

 September 30,

 

 

2009

 

2008

 Cash flows from operating activities:

 

 

 

 

    Net income

$

14,339,781 

$

12,442,306 

    Adjustments to reconcile net income to net cash

 

 

     provided by operating activities:

 

 

 

 

        Depreciation and amortization

 

644,813 

 

317,628 

        Share based compensation

 

722,353 

 

679,785 

        Deferred income taxes

 

206,404 

 

42,701 

        Bad debt expense

 

47,150 

 

39,288 

        (Increase) decrease in operating assets

 

 

 

 

           and increase (decrease) in liabilities:

 

 

 

 

             Accounts receivable

 

87,146 

 

(494,096)

             Inventories - finished goods

 

10,832,151 

 

3,325,654 

             Prepaid income taxes

 

(1,527,680)

 

(517,967)

             Prepaid expenses and other current assets

(204,853)

 

(723,503)

             Accounts payable

 

849,042 

 

3,541,895 

             Income taxes payable

 

- 

 

(185,243)

             Accrued expenses and other current liabilities

109,032 

 

191,617 

 Net cash provided by operating activities

 

26,105,339 

 

18,660,065 

 

 

 

 

 

 Cash flows from investing activities:

 

 

 

 

    Net change in investments

 

2,150,000 

 

(8,755,000)

    Purchases of property and equipment

 

(583,115)

 

(354,900)

 Net cash provided by (used in) investing activities

1,566,885 

 

(9,109,900)

 

 

 

 

 

 Cash flows from financing activities:

 

 

 

 

    Dividends paid

 

(2,263,699)

 

- 

    Purchases of treasury stock

 

- 

 

(2,191,976)

    Proceeds from the exercise of stock options

476,093 

 

1,230,738 

    Tax benefit related to stock options exercised

177,579 

 

110,379 

 Net cash used in financing activities

 

(1,610,027)

 

(850,859)

 

 

 

 

 

 Net increase in cash and cash equivalents

 

26,062,197 

 

8,699,306 

 Cash and cash equivalents, at beginning of period

30,126,041 

 

20,267,829 

 

 

 

 

 

 Cash and cash equivalents, at end of period

$

56,188,238 

$

28,967,135 

 

 

 

 

 

 Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

    Cash paid for income taxes

$

9,355,000 

$

7,281,000 

 

 

 

 

 

    Retirement of treasury stock

$

- 

$

2,226,253 

 

 

 

 

 

    Property and equipment purchases in accounts payable

$

527,937 

$

- 

 

 

 

 

 

    Dividends payable in accrued expenses

$

19,388 

$

- 



Exhibit 99.1 Page 4 of 4