Full Press Release Details
oct22078kcc-ex991.txt
PETMED EXPRESS, INC.
QUARTER ENDED SEPTEMBER 30, 2007
CONFERENCE CALL TRANSCRIPT
OCTOBER 22, 2007 AT 8:30 A.M. ET
Coordinator: Welcome to the PetMed Express, Inc. doing business
as 1-800-PetMeds conference call to review the
financial results for the second fiscal quarter
ended on September 30, 2007. At the request of the
Company this conference is being recorded. Founded
in 1996, 1-800-PetMeds is America's Largest Pet
Pharmacy, delivering prescriptions and non-
prescription pet medications and other health
products for dogs, cats and horses direct to the
consumer. 1-800-PetMeds markets its products
through national television, on-line, direct mail
and print advertising campaigns, which direct
consumers to order by phone or on the Internet, and
aim to increase the recognition of the "1-800-
PetMeds" brand name. 1-800-PetMeds provides an
attractive alternative for obtaining pet medication
in terms of convenience, price, ease of ordering and
rapid home delivery. At this time I'd like turn the
call over to the Company's Chief Financial Officer,
Mr. Bruce Rosenbloom.
B. Rosenbloom: Thank you and good morning. I would like to
welcome everybody here today. Before I turn the
call over to Mendo Akdag, our Chief Executive
Officer and President, I would like to remind
everyone that the first portion of this conference
call will be listen only, until the question and
answer session which will be later in the call.
Also, certain information that will be included in
this press conference may include forward-looking
statements within the meaning of the Private
Securities Litigation Reform Act of 1995 or the
Securities and Exchange Commission that may involve
a number of risks and uncertainties. These
statements are based on our beliefs as well as
assumptions we have used based upon information
currently available to us. Because these statements
reflect our current views concerning future events,
these statements involve risks, uncertainties and
assumptions. Actual future results may vary
significantly based on a number of factors that may
cause the actual results or events to be materially
different from future results, performance or
achievements expressed or implied by these
statements. We have identified various risk factors
associated with our operations in our most recent
annual report and other filings with the Securities
and Exchange Commission. Now let me introduce
today's speaker, Mendo Akdag, the Chief Executive
Officer and President of 1-800-PetMeds.Mendo.
M. Akdag: Thank you, Bruce. Welcome everyone. Thank you for
joining us. Today we will review the highlights of
our financial results. We'll compare our second
fiscal quarter and six months ended on September 30,
2007, to last year's quarter and six months ended on
For the second fiscal quarter ended on September 30,
2007, sales were $51.5 million compared to sales of
$43.8 million for the same period the prior year, an
increase of 18%. For the six months ended on
September 30, 2007, sales were $110.6 million
compared to $94.5 million for the six months the
prior year, an increase of 17%. The increase was
due to increased retail reorders and new orders,
offset by decreased wholesale sales. For the second
fiscal quarter, net income was $4.5 million or $0.18
diluted per share compared to $3.3 million or $0.14
diluted per share for the same quarter the prior
year, an increase to net income of 37%. For the six
months, net income was $10.7 million or $0.44
diluted per share compared to $8.1 million or $0.33
diluted per share a year ago, an increase to net
income of 33%. Retail reorder sales increased by
25% to $35.0 million for the quarter compared to
retail reorder sales of $28.1 million for the same
quarter the prior year. For the six months, the
reorder sales increased by 21% to $75.0 million
compared to $62.0 million for the same period last
year. Retail new order sales increased by 6% to
$16.5 million for the quarter compared to $15.5
million for the same period the prior year. For the
six months, the new order sales increased by 11% to
$35.5 million compared to $32.0 million for the same
period last year. We acquired approximately 222,000
new customers in our second fiscal quarter compared
to 212,000 for the same period the prior year, and
we acquired approximately 458,000 new customers in
the six months compared to 419,000 for the same
Our average retail order was approximately $79 for
the quarter compared to $77 for the same quarter the
prior year, and approximately 65% of our sales were
generated on our website for the quarter compared to
62% for the same period the prior year. Our
Internet sales increased by 23% to $33.7 million for
the quarter compared to Internet sales of $27.4
million for the same quarter the prior year. For
the six months, the Internet sales increased by 24%