Recent Updates
Recently added Catalysts
PETS

Page 4 of 4

Monday, July 23, 2007 4 min read
Key Takeaway: EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS - NET INCOME INCREASES 30% TO RECORD $0.25 EPS Beach, Florida, July 23, 2007 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2007. Net income was $

Full Press Release Details

EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS - NET
INCOME INCREASES 30% TO RECORD $0.25 EPS
Beach, Florida, July 23, 2007 - PetMed Express, Inc. (NASDAQ: PETS) today
announced its financial results for the quarter ended June 30, 2007. Net income
was $6.2 million, or $0.25 diluted per share, for the quarter ended June 30,
2007, compared to net income of $4.8 million, or $0.20 diluted per share, for
the quarter ended June 30, 2006, an increase to net income of 30.2%. A one-time
income tax-related net benefit was recognized in the quarter ended June 30,
2007, resulting in an increase to diluted earnings of one-half of a penny
($0.005) per share. Net sales for the quarter ended June 30, 2007 were $59.0
million, compared to $50.7 million for the quarter ended June 30, 2006, an
increase of 16.5%. Reorder sales increased by 18%, from $33.9 million to $40.0
million for the quarters ended June 30, 2006 and 2007, respectively.
Akdag, CEO and President, commented: "We are pleased to report that our new
order sales increased by 15%, from $16.5 million to $19.0 million for the
quarters ended June 30, 2006 and 2007, respectively. We were also more efficient
with our advertising spending this quarter, with a new customer acquisition
of $36 for the quarter, compared to $40 for the same quarter in the prior year.
We acquired approximately, 236,000 new customers for our first fiscal quarter
compared to 207,000 for the same quarter in the prior year. We are also pleased
to report that our Internet sales increased by 26%, to $37.9 million for the
quarter ended June 30, 2007, compared to $30.1 million for the same quarter
the prior year. Approximately 64% of all sales were placed on the Company's
website for the first fiscal quarter, compared to 59% for the same quarter
the prior year. We will continue to focus on capturing additional market share,
and on improving reorders and our customer service levels in fiscal 2008.
Additionally, the Company repurchased 117,300 shares of its outstanding common
stock for approximately $1,512,000 during the first quarter of fiscal
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, dial (888) 889-4951 (toll free) or (210) 839-8505. Callers will be
required to supply PETMEDS as the passcode. For those unable to participate
the live event, the call will be available for replay from 10 A.M. on July
2007 until August 7, 2007 at 11:59 P.M. To access the replay, call (888)
568-0812 (toll free) or (402) 998-0239, and enter passcode 5500.
in 1996, PetMed Express is America's Largest Pet Pharmacy, delivering
prescription and non-prescription pet medications and other health products
dogs, cats and horses at competitive prices direct to the consumer through
1-800-PetMeds toll free number and on the Internet through its website at
www.1800petmeds.com.
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
PetMed Express Annual Report on Form 10-K for the year ended March 31, 2007.
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.
investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO,
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31,
2007 2007
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 2,000,337 $ 316,470
Temporary investments 45,425,000 39,125,000
Accounts receivable, less allowance for doubtful
accounts of $43,000 and $28,000, respectively 2,106,908 1,369,521
Inventories - finished goods 15,674,851 16,086,207
Prepaid expenses and other current assets 1,211,554 1,071,171
Total current assets 66,418,650 57,968,369
Property and equipment, net 2,118,602 1,990,578
Deferred income taxes 1,136,867 894,540
Intangible asset 365,000 365,000
Total assets $ 70,039,119 $ 61,218,487
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,724,897 $ 5,859,756
Income taxes payable 2,870,262 229,321
Accrued expenses and other current liabilities 2,301,279 1,265,837
Total liabilities 10,896,438 7,354,914
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;
24,383,181 and 24,309,417 shares issued, respectively 24,383 24,309
Additional paid-in capital 15,563,828 15,213,254
Retained earnings 44,800,196 38,617,112
Less treasury stock, at cost; 97,300 and 0 shares, respectively (1,254,624 ) -
Total shareholders' equity 59,142,681 53,863,573
Total liabilities and shareholders' equity $ 70,039,119 $ 61,218,487
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
June 30,
2007 2006
Sales $ 59,027,235 $ 50,673,353
Cost of sales 36,331,851 30,549,028
Gross profit 22,695,384 20,124,325
Operating expenses:
General and administrative 5,615,466 4,448,622
Advertising 8,482,781 8,328,718
Depreciation and amortization 127,934 135,301
Total operating expenses 14,226,181 12,912,641
Income from operations 8,469,203 7,211,684
Other income (expense):
Interest income 392,202 251,167
Other, net 231,656 100,402
Loss on disposal of property and equipment - (1,250 )
Total other income (expense) 623,858 350,319
Income before provision for income taxes 9,093,061 7,562,003
Provision for income taxes 2,909,977 2,811,745
Net income $ 6,183,084 $ 4,750,258
Net income per common share:
Basic $ 0.26 $ 0.20
Dilutive $ 0.25 $ 0.20
Weighted average number of common shares outstanding:
Basic 24,149,321 24,009,276
Dilutive 24,336,100 24,300,946
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
June 30,
2007 2006
Cash flows from operating activities:
Net income $ 6,183,084 $ 4,750,258
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 127,934 135,301
Shared based compensation 359,469 223,146
Deferred income taxes (242,327 ) (34,196 )
Loss on disposal of property and equipment - 1,250
Bad debt expense 24,820 25,129
(Increase) decrease in operating assets
and increase (decrease) in liabilities:
Accounts receivable (762,207 ) (254,963 )
Inventories - finished goods 411,356 1,259,533
Prepaid expenses and other current assets (140,383 ) (106,551 )
Accounts payable (134,859 ) 2,105,911
Income taxes payable 2,640,941 1,657,222
Accrued expenses and other current liabilities 1,035,442 193,702
Net cash provided by operating activities 9,503,270 9,955,742
Cash flows from investing activities:
Net change in temporary investments (6,300,000 ) (10,500,000 )
Purchases of property and equipment (255,958 ) (204,627 )
Net proceeds from the sale of property and equipment - 400
Net cash used in investing activities (6,555,958 ) (10,704,227 )
Cash flows from financing activities:
Purchases of treasury stock (1,512,254 ) -
Proceeds from the exercise of stock options 240,444 301,859
Tax benefit related to stock options exercised 8,365 79,719
Net cash (used in) provided by financing activities (1,263,445 ) 381,578
Net increase (decrease) in cash and cash equivalents 1,683,867 (366,907 )
Cash and cash equivalents, at beginning of period 316,470 366,907
Cash and cash equivalents, at end of period $ 2,000,337 $ -
Supplemental disclosure of cash flow information:
Cash paid for income taxes $ 503,000 $ 1,109,000
Retirement of treasury stock $ 257,630 $ -
Tags: PETS Viatris Investor Conferences Healthcare investor conferences healthcare conferences UBS Global Healthcare
Last updated: Jul 23, 2007