Full Press Release Details
form8kjan08-confcallex991.txt
PETMED EXPRESS, INC.
QUARTER ENDED DECEMBER 31, 2007
CONFERENCE CALL TRANSCRIPT
JANUARY 22, 2008 AT 8:30 A.M. ET
Coordinator: Welcome to the PetMed Express Incorporated, doing
business as 1-800-PetMeds conference call to
review the financial results for the third fiscal
quarter ended on December 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 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 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
Bruce Rosenbloom: Thank you. I would like to welcome everybody
here today. Before I turn the call over to Mendo,
our Chief Executive Officer and President, I'd
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 very 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.
Mendo Akdag: Thank you Bruce. Welcome everyone. Thank you for
joining us. Today we'll review the highlights of
our financial results. We'll compare our third
fiscal quarter and nine months, ended on December
31, 2007 to last year's quarter and nine months
ended on December 31, 2006.
For the third fiscal quarter ended on December 31,
2007, sales were $37.3 million, compared to sales
of $31.4 million for the same period the prior
year, an increase of 19%. For the nine months
ended on December 31, 2007, sales were $147.9
million, compared to sales of $125.8 million for
the nine months the prior year, an increase of
18%. The increase was primarily due to increased
retail reorders for the quarter, and increased
retail reorders and new orders for the nine
For the third fiscal quarter net income was $4.4
million, or $0.18 diluted per share, compared to
$2.8 million, or $0.11 diluted per share for the
same quarter the prior year, an increase to net
income of 60%. For the nine months net income was
$15.1 million, or $0.62 diluted per share,
compared to $10.8 million, or $0.44 diluted per
share a year ago, an increase to net income of 40%.
Retail reorder sales increased by 28% to $28.4
million for the quarter, compared to reorder sales
of $22.1 million for the same quarter the prior
year. For the nine months the reorder sales
increased by 23% to $103.4 million, compared to
$84.1 million for the same period a year ago.
Retail new order sales decreased by 3% to $9.0
million for the quarter, compared to $9.2 million
for the same period the prior year. The decrease
in new order sales can directly be attributed
to a 13% reduction in advertising spending
compared to the same quarter last year. For the
nine months the new order sales increased by 8%
to $44.4 million, compared to $41.2 million for
the same period last year.
Mendo Akdag: We acquired approximately 127,000 new customers in
our third fiscal quarter, compared to 130,000 for
the same period the prior year, and we acquired
approximately 585,000 new customers in nine
months, compared to 549,000 for the same period a
year ago. Our average retail order was
approximately $76 for the quarter, compared to $75