Full Press Release Details
PETMED EXPRESS, INC.
QUARTER ENDED JUNE 30, 2017
CONFERENCE CALL TRANSCRIPT
JULY 24, 2017 AT 8:30 A.M. ET
For the first fiscal quarter ended on June 30, 2017, sales were $79.7 million compared to sales of $72.5 million for the same period the prior year, an increase of 10%. The increase in sales was due to increases in new order and reorder sales. Our average order value was approximately $87 for the quarter compared to $82 for the same quarter last year. For the first fiscal quarter, net income was $9.3 million, or $0.45 diluted per share compared to $6.6 million, or $0.32 diluted per share for the same quarter last year, an increase to net income of 41%. The accelerated increase in net income was mainly due to higher gross profit margins.
New order sales increased by 14% to $15.2 million for the quarter compared to $13.3 million for the same quarter the prior year. Reorder sales increased by 9% to $64.5 million for the quarter compared to reorder sales of $59.2 million for the same quarter last year. We acquired approximately 169,000 new customers in our first fiscal quarter compared to 158,000 for the same period the prior year. Approximately 84% of our sales were generated on our website for the quarter compared to 82% for the same period last year, which resulted in a 12% increase in our online sales for the quarter.
The seasonality in our business is due to the proportion of flea, tick and heartworm medications in our product mix. Spring and summer are considered peak seasons with fall and winter being the off seasons.
For the first fiscal quarter, our gross profit as a percent of sales was 34.5% compared to 31% for the same period a year ago. The shift in sales to higher margin items, the trend we had seen in the March quarter, continued in the June quarter.
Our general and administrative expenses as a percent of sales was down to 7.8% compared to 8.4% for the same period last year. We were able to leverage the G&A with increased sales.
We spent $6.3 million in advertising for the quarter compared to $5.8 million for the same quarter the prior year, an increase of about 9%. The advertising cost of acquiring a customer was approximately the same $37 compared to the same quarter a year ago.
We had $68.5 million in cash and cash equivalents and $23.0 million in inventory with no debt as of June 30, 2017. Net cash from operations for the quarter was $13.9 million compared to $13.1 million for the same period last year.
This ends the financial review. Operator, we are ready to take questions.