EX-99 2 pets050712fm8k_ex99z1.htm EXHIBIT 99.1 United States Securities & Exchange Commission

Exhibit 99.1

PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS FINANCIAL RESULTS FOR FISCAL 2012

Quarterly Net Sales Increased 10% to $55.9 Million

Quarterly New Order Sales Increased 22% to $11.5 Million

Quarterly Online Sales Increased 16% to $42.7 Million


Pompano Beach, Florida, May 7, 2012 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2012.  Net sales for the quarter ended March 31, 2012 were $55.9 million, compared to $50.9 million for the quarter ended March 31, 2011, an increase of 10%.  For the year ended March 31, 2012 net sales were $238.3 million, compared to $231.6 million for the year ended March 31, 2011, an increase of 3%.  Net income for the quarter ended March 31, 2012 was $4.0 million, or $0.20 diluted per share, compared to net income of $4.1 million, or $0.19 diluted per share, for the same quarter the prior year, an increase to earnings per share of 7%.  Net income was $16.7 million, or $0.80 diluted per share, for the year ended March 31, 2012, compared to net income of $20.9 million, or $0.92 diluted per share, for the year ended March 31, 2011, a decrease to earnings per share of 13%.  New order sales for the quarter ended March 31, 2012 were $11.5 million, compared to $9.4 million for the quarter ended March 31, 2011, an increase of 22%.  New order sales for the year ended March 31, 2012 were $51.3 million, compared to $47.3 million for the year ended March 31, 2011, an increase of 8%.  Reorder sales for the quarter ended March 31, 2012 were $44.4 million, compared to $41.5 million for the quarter ended March 31, 2011, an increase of 7%.  Reorder sales for the year ended March 31, 2012 were $187.0 million, compared to $184.3 million for the year ended March 31, 2011, an increase of 1%.  


Menderes Akdag, President and CEO, commented: “We are pleased with the strong new and reorder growth in the quarter.  We acquired approximately 162,000 new customers during the fourth quarter compared to 130,000 during the same period a year ago, an increase of 25%, and for the year ended March 31, 2012, the Company acquired approximately 722,000 customers compared to 645,000 for the year ended March 31, 2011, an increase of 12%.  We are also pleased to report that our online sales increased 16% for the quarter ended March 31, 2012, and 8% for the year ended March 31, 2012.  Moving forward we will continue with an aggressive pricing strategy combined with increased advertising, while expanding our product offerings. During the fiscal year, we increased our quarterly dividends to $0.15 per share, an increase of 20%.  In accordance with our share repurchase program, we repurchased approximately 2.1 million shares paying approximately $23.7 million in fiscal 2012.“


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 (203) 827-7025.  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 07, 2012 until May 21, 2012 at 11:59 P.M.  To access the replay, call (800) 513-1175 (toll free) or (402) 344-6835 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 and cats 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, 2011.  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

(In thousands)

 

 

March 31,

 

March 31,

 

 

2012

 

2011

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

   Cash and cash equivalents

$

46,801

 

49,660 

   Short term investments - available for sale

 

10,347

 

10,116 

   Accounts receivable, less allowance for doubtful

 

 

 

 

      accounts of $5 and $6, respectively

 

1,572

 

1,985 

   Inventories - finished goods

 

26,217

 

25,140 

   Prepaid expenses and other current assets

 

1,241

 

1,036 

   Deferred tax assets

 

1,230

 

1,003 

   Prepaid income taxes

 

199

 

664 

          Total current assets

 

87,607

 

89,604 

 

 

 

 

 

   Long term investments

 

-

 

12,390 

   Property and equipment, net

 

2,597

 

3,433 

   Intangible asset

 

860

 

860 

 

 

 

 

 

Total assets

$

91,064

 

106,287 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

   Accounts payable

$

6,619

 

6,452 

   Accrued expenses and other current liabilities

 

2,772

 

2,509 

          Total current liabilities

 

9,391

 

8,961 

 

 

 

 

 

Deferred tax liabilities

 

492

 

321 

 

 

 

 

 

Total liabilities:

 

9,883

 

9,282 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

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

 

 

 

 

      3 convertible shares issued and outstanding with a

 

 

 

 

      liquidation preference of $4 per share

 

9

 

9 

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

 

 

 

 

      20,338 and 22,331 shares issued and outstanding, respectively

 

20

 

22 

   Retained earnings

 

81,108

 

97,115 

   Accumulated other comprehensive gain (loss)

 

44

 

(141)

 

 

 

 

 

          Total shareholders' equity

 

81,181

 

97,005 

 

 

 

 

 

Total liabilities and shareholders' equity

$

91,064

 

106,287 



Exhibit 99.1 Page 2 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF INCOME

 (In thousands, except for per share amount)

 

 

 

 

 

 

 

 

 

 

 

 Three Months Ended

 

 Year Ended

 

 

 March 31,

 

 March 31,

 

 

2012

 

2011

 

2012

 

2011

 

 

 (UNAUDITED)

 

 

 

 

 Sales

 $

55,924 

 

50,910 

 

238,250

 

231,642 

 Cost of sales

 

36,957 

 

33,435 

 

158,085

 

147,686 

 

 

 

 

 

 

 

 

 

 Gross profit

 

18,967 

 

17,475 

 

80,165

 

83,956 

 

 

 

 

 

 

 

 

 

 Operating expenses:

 

 

 

 

 

 

 

 

      General and administrative

 

5,411 

 

5,183 

 

22,363

 

22,200 

      Advertising

 

6,916 

 

5,497 

 

30,369

 

27,357 

      Depreciation

 

365 

 

352 

 

1,411

 

1,375 

 Total operating expenses

 

12,692 

 

11,032 

 

54,143

 

50,932 

 

 

 

 

 

 

 

 

 

 Income from operations

 

6,275 

 

6,443 

 

26,022

 

33,024 

 

 

 

 

 

 

 

 

 

 Other income (expense):

 

 

 

 

 

 

 

 

      Interest income, net

 

60 

 

116 

 

288

 

381 

      Other, net

 

(1)

 

(17)

 

61

 

(128)

 Total other income (expense)

 

59 

 

99 

 

349

 

253 

 

 

 

 

 

 

 

 

 

 Income before provision for income taxes

 

6,334 

 

6,542 

 

26,371

 

33,277 

 

 

 

 

 

 

 

 

 

 Provision for income taxes

 

2,341 

 

2,395 

 

9,712

 

12,406 

 

 

 

 

 

 

 

 

 

 Net income

 $

3,993 

 

4,147 

 

16,659

 

20,871 

 

 

 

 

 

 

 

 

 

 Net income per common share:

 

 

 

 

 

 

 

 

       Basic

 $

0.20 

 

0.19 

 

0.81

 

0.93 

       Diluted

 $

0.20 

 

0.19 

 

0.80

 

0.92 

 

 

 

 

 

 

 

 

 

 Weighted average number of common shares outstanding:

 

 

 

 

 

 

       Basic

 

20,086 

 

22,208 

 

20,613

 

22,514 

       Diluted

 

20,176

 

22,309

 

20,708

 

22,643

 

 

 

 

 

 

 

 

 

 Cash dividends declared per common share

 $

0.150

 

0.125

 

0.525

 

0.475




Exhibit 99.1 Page 3 of 4




PETMED EXPRESS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

 Year Ended

 

 

 March 31,

 

 

2012

 

2011

 Cash flows from operating activities:

 

 

 

 

    Net income

 $

16,659 

 

20,871 

    Adjustments to reconcile net income to net cash

 

 

 

 

     provided by operating activities:

 

 

 

 

        Depreciation

 

1,411 

 

1,375 

        Share based compensation

 

2,246 

 

2,171 

        Deferred income taxes

 

(56)

 

348 

        Bad debt expense

 

47 

 

48 

        (Increase) decrease in operating assets

 

 

 

 

           and increase (decrease) in liabilities:

 

 

 

 

             Accounts receivable

 

366 

 

64 

             Inventories - finished goods

 

(1,077)

 

3,924 

             Prepaid income taxes

 

465 

 

(335)

             Prepaid expenses and other current assets

 

(205)

 

(426)

             Accounts payable

 

297 

 

1,964 

             Accrued expenses and other current liabilities

 

238 

 

102 

 Net cash provided by operating activities

 

20,391 

 

30,106 

 

 

 

 

 

 Cash flows from investing activities:

 

 

 

 

    Net change in investments

 

12,344 

 

(10,146)

    Purchases of property and equipment

 

(705)

 

(667)

    Purchases of intangible asset

 

- 

 

(10)

 Net cash provided by (used in) investing activities

 

11,639 

 

(10,823)

 

 

 

 

 

 Cash flows from financing activities:

 

 

 

 

    Dividends paid

 

(10,964)

 

(10,727)

    Purchases of treasury stock

 

(23,685)

 

(12,247)

    Proceeds from the exercise of stock options

 

- 

 

340 

    Tax adjustment related to stock compensation

 

(240)

 

(132)

 Net cash used in financing activities

 

(34,889)

 

(22,766)

 

 

 

 

 

 Net decrease in cash and cash equivalents

 

(2,859)

 

(3,483)

 Cash and cash equivalents, at beginning of year

 

49,660 

 

53,143 

 

 

 

 

 

 Cash and cash equivalents, at end of year

 $

46,801 

 

49,660 

 

 

 

 

 

 Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

    Cash paid for income taxes

 $

9,543 

 

12,578 

 

 

 

 

 

    Retirement of treasury stock

 $

23,685 

 

12,247 

 

 

 

 

 

    Property and equipment purchases in accounts payable

 $

- 

 

130 

 

 

 

 

 

    Dividends payable in accrued expenses

 $

168 

 

143 




Exhibit 99.1 Page 4 of 4