Full Press Release Details
form8k514-confex991.txt
PETMED EXPRESS, INC.
YEAR ENDED MARCH 31, 2007
CONFERENCE CALL TRANSCRIPT
MAY 14, 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 fourth fiscal quarter and the fiscal
year ended on March 31, 2007. At the request of the
Company, this conference call is being recorded.
Founded in 1996, 1-800-PetMeds is America's Largest
Pet Pharmacy, delivering prescription and
nonprescription pet medications, and other health
products for dogs, cats and horses direct to the
consumer. 1-800-PetMeds markets its products through
national television, online and direct mail
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 medications in terms of convenience,
price, ease of ordering and rapid home delivery. At
this time I would like to turn the call over to the
Company's Chief Financial Officer, Mr. Bruce
Rosenbloom. Sir, go ahead please.
Bruce Rosenbloom: Thank you. 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
Also, certain information that will be included in
this press conference may include forward-looking
statements within the meanings 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, Chief
Executive Officer and President of 1-800-PetMeds.
Mendo Akdag: Thank you, Bruce. Welcome. Thank you for joining us.
Today we'll review the highlights of our financial
results. We'll compare our fourth fiscal quarter and
fiscal year ended on March 31, 2007 to last year's
quarter and fiscal year ended on March 31, 2006.
For the fourth fiscal quarter ended on March 31, 2007
sales were $36.4 million compared to sales of $29.4
million for the same period the prior year, an
increase of 24%. For the fiscal year ended on March
31, 2007 sales were $162.2 million compared to $137.6
million for the prior fiscal year, an increase of 18%.
The increase was primarily due to increased retail
reorders and new orders offset by decreased wholesale
For the fourth fiscal quarter, net income was $3.6
million, or $0.15 cents diluted per share, compared to
$3.1 million, or $0.13 cents diluted per share, for
the same quarter the prior year, an increase to net
income of 15%. For the fiscal year, net income was
$14.4 million, or $0.60 cents diluted per share,
compared to $12.1 million, or $0.50 cents diluted per
share, a year ago, an increase to net income of 20%.
Retail reorder sales increased by 22% to $26.4 million
for the quarter compared to reorder sales of $21.7
million for the same quarter the prior year. For the
fiscal year, the reorder sales increased by 25% to
$110.5 million compared to $88.4 million for the prior
Retail new order sales increased by 40% to $9.9
million for the quarter compared to $7.1 million for
the same period the prior year. For the fiscal year
the new order sales increased by 12% to $51.1 million
compared to $45.5 million for the prior year.
Wholesale sales were approximately $100,000 for the
quarter compared to $600,000 for the same quarter the
prior year. For the fiscal year, wholesale sales were
approximately $600,000 compared to $3.7 million for
the prior year. The decrease was due to our decision
to limit wholesale sales to focus on retail business.
We acquired approximately 132,000 new customers in our
fourth fiscal quarter compared to 94,000 for the same
period the prior year, and we acquired approximately
681,000 new customers in the fiscal year compared to
624,000 for the prior year.
Our average retail order was approximately $81 for the
quarter and $79 for the fiscal year. Approximately
62% of our sales were generated on our website for the
fiscal year compared to 57% for the prior fiscal year.
The seasonality in our business is due to the
proportion of flea, tick and heartworm medications in