Full Press Release Details
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.
| 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 |
| 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 |
| 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 |