Full Press Release Details
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.
| 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 |
| 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 |
| 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 | $ | - | $ | - |