PetMed Express D/B/A 1-800-PetMeds Announces Second Quarter Financial Results
Oct 19, 2009 (GlobeNewswire via COMTEX) -- By Staff
Company: PetMed Express, Inc. (PETS)
Earnings Increase 12% to $0.28 EPS
Reorder Sales Increase 11% to $45.8 Million
POMPANO BEACH, Fla., Oct. 19, 2009 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (Nasdaq:PETS) today announced its financial results for the quarter ended September 30, 2009. Net income was $6.3 million, or $0.28 diluted per share, for the quarter ended September 30, 2009, compared to net income of $5.8 million, or $0.25 diluted per share, for the quarter ended September 30, 2008, a 12% increase to EPS. For the six months ended September 30, 2009, net income was $14.3 million or $0.63 diluted per share compared to net income of $12.4 million or $0.53 diluted per share for the six months ended September 30, 2008, an increase to earnings per share of 20%. Net sales for the quarter ended September 30, 2009 were $62.4 million, compared to $59.6 million for the quarter ended September 30, 2008, an increase of 5%. Net sales for the six months ended September 30, 2009 were $139.6 million, compared to $127.9 million for the six months ended September 30, 2008, an increase of 9%. Reorder sales increased by 11%, from $41.4 million to $45.8 million for the quarters ended September 30, 2008 and 2009, respectively. Reorder sales for the six months ended September 30, 2009 were $99.8 million, compared to $87.6 million for the six months ended September 30, 2008, an increase of 14%.
Menderes Akdag, CEO and President, commented: "We are pleased to report a 17% increase to our income from operations for the quarter ended September 30, 2009. We acquired approximately 233,000 new customers in the September quarter. Our costs to acquire a new customer decreased by 8% to $33 for the quarter ended September 30, 2009, compared to $36 for the same period in the prior year. We are pleased to report that our operating expenses as a percent of sales improved by 200 basis points in the September quarter, compared to the same quarter in the prior year. We are also pleased to report that our cash flows from operations increased to $26.1 million for the six months ended September 30, 2009 from $18.7 million for the same period the prior year. Our continuing focus will be on capturing additional market share, increasing reorders with personalized communication and health education content, and improving our customer service levels in fiscal 2010."
This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a conference call to review the quarter's financial results. To access the call, which is open to the public, please dial (888) 455-1758 (toll free) or (210) 234-0009. 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 10:00 A.M. on October 19, 2009 until November 2, 2009 at 11:59 P.M. To access the replay, call (800) 695-3640 (toll free) or (402) 220-0318, 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, cats, and horses 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, 2009. 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
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, March 31,
2009 2009
------------- -------------
(UNAUDITED)
ASSETS
------
Current assets:
Cash and cash equivalents $ 56,188,238 $ 30,126,041
Accounts receivable, less allowance for
doubtful accounts of $55,864 and
$58,525, respectively 2,746,789 2,881,085
Inventories - finished goods 15,945,945 26,778,096
Prepaid expenses and other current
assets 958,455 753,602
Deferred tax assets 963,913 724,561
Prepaid income taxes 1,889,423 361,743
------------- -------------
Total current assets 78,692,763 61,625,128
Long term investments 12,312,500 14,430,250
Property and equipment, net 4,752,041 5,057,561
Intangible assets 850,000 850,000
------------- -------------
Total assets $ 96,607,304 $ 81,962,939
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 5,422,317 $ 4,817,097
Accrued expenses and other current
liabilities 2,306,258 2,177,838
------------- -------------
Total current liabilities 7,728,575 6,994,935
Deferred tax liabilities 445,756 --
------------- -------------
Total liabilities 8,174,331 6,994,935
------------- -------------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value,
5,000,000 shares authorized; 2,500
convertible shares issued and
outstanding with a liquidation
preference of $4 per share 8,898 8,898
Common stock, $.001 par value,
40,000,000 shares authorized;
22,835,370 and 22,686,836 shares issued
and outstanding, respectively 22,835 22,687
Additional paid-in capital 1,375,877 --
Retained earnings 87,212,863 75,156,169
Accumulated other comprehensive loss (187,500) (219,750)
------------- -------------
Total shareholders' equity 88,432,973 74,968,004
------------- -------------
Total liabilities and shareholders'
equity $ 96,607,304 $ 81,962,939
============= =============
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
September 30, September 30,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Sales $ 62,447,177 $ 59,569,141 $139,615,759 $127,935,824
Cost of sales 38,764,973 36,710,850 86,647,428 79,287,231
------------ ------------ ------------ ------------
Gross profit 23,682,204 22,858,291 52,968,331 48,648,593
------------ ------------ ------------ ------------
Operating
expenses:
General and
administrative 5,776,698 5,617,034 12,270,058 11,429,248
Advertising 7,751,821 8,659,586 17,623,630 18,719,709
Depreciation and
amortization 322,478 162,076 644,813 317,628
------------ ------------ ------------ ------------
Total operating
expenses 13,850,997 14,438,696 30,538,501 30,466,585
------------ ------------ ------------ ------------
Income from
operations 9,831,207 8,419,595 22,429,830 18,182,008
------------ ------------ ------------ ------------
Other income:
Interest income,
net 57,167 352,403 118,587 661,718
Other, net 1,082 169,068 2,667 329,451
------------ ------------ ------------ ------------
Total other income 58,249 521,471 121,254 991,169
------------ ------------ ------------ ------------
Income before
provision for
income taxes 9,889,456 8,941,066 22,551,084 19,173,177
Provision for
income taxes 3,624,451 3,119,969 8,211,303 6,730,871
------------ ------------ ------------ ------------
Net income $ 6,265,005 $ 5,821,097 $ 14,339,781 $ 12,442,306
============ ============ ============ ============
Net income per
common share:
Basic $ 0.28 $ 0.25 $ 0.64 $ 0.53
============ ============ ============ ============
Diluted $ 0.28 $ 0.25 $ 0.63 $ 0.53
============ ============ ============ ============
Weighted average
number of common
shares
outstanding:
Basic 22,614,372 23,485,477 22,569,414 23,504,284
============ ============ ============ ============
Diluted 22,755,245 23,669,854 22,718,428 23,670,893
============ ============ ============ ============
Cash dividends
declared per
common share $ 0.10 $ -- $ 0.10 $ --
============ ============ ============ ============
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
September 30,
2009 2008
------------- -------------
Cash flows from operating activities:
Net income $ 14,339,781 $ 12,442,306
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 644,813 317,628
Share based compensation 722,353 679,785
Deferred income taxes 206,404 42,701
Bad debt expense 47,150 39,288
(Increase) decrease in operating
assets and increase (decrease) in
liabilities:
Accounts receivable 87,146 (494,096)
Inventories - finished goods 10,832,151 3,325,654
Prepaid income taxes (1,527,680) (517,967)
Prepaid expenses and other current
assets (204,853) (723,503)
Accounts payable 849,042 3,541,895
Income taxes payable -- (185,243)
Accrued expenses and other current
liabilities 109,032 191,617
------------- -------------
Net cash provided by operating activities 26,105,339 18,660,065
------------- -------------
Cash flows from investing activities:
Net change in investments 2,150,000 (8,755,000)
Purchases of property and equipment (583,115) (354,900)
------------- -------------
Net cash provided by (used in) investing
activities 1,566,885 (9,109,900)
------------- -------------
Cash flows from financing activities:
Dividends paid (2,263,699) --
Purchases of treasury stock -- (2,191,976)
Proceeds from the exercise of stock
options 476,093 1,230,738
Tax benefit related to stock options
exercised 177,579 110,379
------------- -------------
Net cash used in financing activities (1,610,027) (850,859)
------------- -------------
Net increase in cash and cash equivalents 26,062,197 8,699,306
Cash and cash equivalents, at beginning
of period 30,126,041 20,267,829
------------- -------------
Cash and cash equivalents, at end of
period $ 56,188,238 $ 28,967,135
============= =============
Supplemental disclosure of cash flow
information:
Cash paid for income taxes $ 9,355,000 $ 7,281,000
============= =============
Retirement of treasury stock $ -- $ 2,226,253
============= =============
Property and equipment purchases in
accounts payable $ 527,937 $ --
============= =============
Dividends payable in accrued expenses $ 19,388 $ --
============= =============
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: PetMed Express, Inc.
CONTACT: PetMed Express, Inc. 954-979-5995
Copyright (C) 2009 GlobeNewswire. All rights reserved
News Provided by COMTEX
Company: PetMed Express, Inc. (PETS)
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