PetMed Express D/B/A 1-800-PetMeds Announces Its Third Quarter Financial Results
January 21 2014 - 8:00AM
PetMed Express, Inc. (Nasdaq:PETS) today announced its financial
results for the quarter ended December 31, 2013. Net sales for the
quarter ended December 31, 2013 were $50.1 million, compared to
$49.6 million for the quarter ended December 31, 2012, an increase
of 1.0%. Net sales for the nine months ended December 31, 2013 were
$184.8 million, compared to $176.7 million for the nine months
ended December 31, 2012, an increase of 4.6%. Net income was $4.5
million, or $0.23 diluted per share, for the quarter ended December
31, 2013, compared to net income of $4.6 million, or the same $0.23
diluted per share, for the quarter ended December 31, 2012. Net
income was $13.4 million, or $0.67 diluted per share, for the nine
months ended December 31, 2013, compared to net income of $12.6
million, or $0.63 diluted per share, for the nine months ended
December 31, 2012, a 7.2% increase to EPS. Reorder sales increased
by 3.6%, from $40.9 million to $42.4 million for the quarters ended
December 31, 2012 and 2013, respectively. Additionally, the
Company's online sales increased by 2.1% to $39.5 million for the
quarter ended December 31, 2013, compared to $38.7 million for the
same quarter the prior year, with approximately 79% of all orders
being generated from its website during the quarter compared to 78%
for the same quarter the prior year.
Menderes Akdag, CEO and President, commented: "We are pleased
with the increased reorder sales for the quarter. Our sales
increase for the quarter was also highlighted by an increased
average order size - $72 for the quarter ended December 31, 2013
compared to $71 for the same quarter in the prior year. For
the quarter ended December 31, 2013 our operating expenses
decreased by 50 basis points. Going forward we are focusing on
improving our gross profit margins and new order sales."
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 (203) 827-7025. 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 January 21, 2014 until February 4, 2014
at 11:59 P.M. To access the replay, call (800) 860-4709 (toll
free) or (203) 369-3837, 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 and cats 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, 2013. 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 |
(In
thousands) |
|
|
|
|
December 31,
2013 |
March 31, 2013 |
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 25,937 |
$ 18,155 |
Short term investments -
available for sale |
15,516 |
15,490 |
Accounts receivable, less
allowance for doubtful accounts of $6 and $5, respectively |
1,650 |
1,439 |
Inventories - finished
goods |
24,541 |
31,601 |
Prepaid expenses and other
current assets |
1,976 |
1,090 |
Deferred tax assets |
997 |
982 |
Prepaid income taxes |
165 |
-- |
Total current assets |
70,782 |
68,757 |
|
|
|
Noncurrent assets: |
|
|
Prepaid expenses |
1,993 |
1,430 |
Property and equipment,
net |
1,474 |
2,132 |
Intangible assets |
860 |
860 |
Total noncurrent assets |
4,327 |
4,422 |
|
|
|
Total assets |
$ 75,109 |
$ 73,179 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 4,043 |
$ 6,454 |
Accrued expenses and other
current liabilities |
2,194 |
2,381 |
Income taxes payable |
-- |
162 |
Total current liabilities |
6,237 |
8,997 |
|
|
|
Deferred tax liabilities |
99 |
168 |
|
|
|
Total liabilities |
6,336 |
9,165 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
Shareholders' equity: |
|
|
Preferred stock, $.001 par
value, 5,000 shares authorized; 3 convertible shares issued and
outstanding with a liquidation preference of $4 per share |
9 |
9 |
Common stock, $.001 par value,
40,000 shares authorized; 20,190 and 20,109 shares issued and
outstanding, respectively |
20 |
20 |
Additional paid-in capital |
1,228 |
-- |
Retained earnings |
67,554 |
63,987 |
Accumulated other comprehensive
loss |
(38) |
(2) |
|
|
|
Total shareholders' equity |
68,773 |
64,014 |
|
|
|
Total liabilities and shareholders'
equity |
$ 75,109 |
$ 73,179 |
|
PETMED EXPRESS,
INC. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
(In thousands,
except for per share amounts) (Unaudited) |
|
|
|
|
|
|
Three Months
Ended December 31, |
Nine Months Ended
December 31, |
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Sales |
$ 50,086 |
$ 49,609 |
$ 184,759 |
$ 176,709 |
Cost of sales |
33,197 |
32,397 |
124,605 |
117,823 |
|
|
|
|
|
Gross profit |
16,889 |
17,212 |
60,154 |
58,886 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
General and
administrative |
5,106 |
5,147 |
16,484 |
16,440 |
Advertising |
4,517 |
4,602 |
21,896 |
21,876 |
Depreciation |
219 |
254 |
697 |
831 |
Total operating expenses |
9,842 |
10,003 |
39,077 |
39,147 |
|
|
|
|
|
Income from operations |
7,047 |
7,209 |
21,077 |
19,739 |
|
|
|
|
|
Other income: |
|
|
|
|
Interest income, net |
46 |
141 |
141 |
264 |
Other, net |
(3) |
(3) |
(5) |
(3) |
Total other income |
43 |
138 |
136 |
261 |
|
|
|
|
|
Income before provision for income
taxes |
7,090 |
7,347 |
21,213 |
20,000 |
|
|
|
|
|
Provision for income taxes |
2,549 |
2,770 |
7,767 |
7,437 |
|
|
|
|
|
Net income |
$ 4,541 |
$ 4,577 |
$ 13,446 |
$ 12,563 |
|
|
|
|
|
Net change in unrealized gain (loss) on short
term investments |
9 |
(83) |
(36) |
(58) |
|
|
|
|
|
Comprehensive income |
$ 4,550 |
$ 4,494 |
$ 13,410 |
$ 12,505 |
|
|
|
|
|
Net income per common share: |
|
|
|
|
Basic |
$ 0.23 |
$ 0.23 |
$ 0.68 |
$ 0.63 |
Diluted |
$ 0.23 |
$ 0.23 |
$ 0.67 |
$ 0.63 |
|
|
|
|
|
Weighted average number of common
shares outstanding: |
|
|
|
Basic |
19,925 |
19,808 |
19,892 |
19,963 |
Diluted |
20,079 |
19,923 |
20,042 |
20,077 |
|
|
|
|
|
Cash dividends declared per common
share |
$ 0.17 |
$ 1.15 |
$ 0.49 |
$ 1.45 |
|
PETMED EXPRESS, INC.
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(In thousands)
(Unaudited) |
|
|
Nine Months Ended
December 31, |
|
2013 |
2012 |
Cash flows from operating
activities: |
|
|
Net income |
$ 13,446 |
$ 12,563 |
Adjustments to reconcile net
income to net cash provided by operating activities: |
Depreciation |
697 |
831 |
Share based
compensation |
1,105 |
1,496 |
Deferred income
taxes |
(84) |
(77) |
Bad debt expense |
75 |
37 |
(Increase) decrease in
operating assets and increase (decrease) in liabilities: |
Accounts receivable |
(286) |
791 |
Inventories - finished
goods |
7,060 |
7,498 |
Prepaid income taxes |
(165) |
199 |
Prepaid expenses and other
current assets |
(1,449) |
(337) |
Accounts payable |
(2,411) |
(645) |
Income taxes payable |
(162) |
246 |
Accrued expenses and other
current liabilities |
(152) |
(761) |
Net cash provided by operating
activities |
17,674 |
21,841 |
|
|
|
Cash flows from investing
activities: |
|
|
Net change in
investments |
(62) |
(5,166) |
Purchases of property and
equipment |
(39) |
(529) |
Net cash used in investing
activities |
(101) |
(5,695) |
|
|
|
Cash flows from financing
activities: |
|
|
Dividends paid |
(9,914) |
(28,896) |
Purchases of treasury
stock |
-- |
(3,865) |
Tax adjustment related to
restricted stock |
123 |
(168) |
Net cash used in financing
activities |
(9,791) |
(32,929) |
|
|
|
Net increase in cash and cash
equivalents |
7,782 |
(16,783) |
Cash and cash equivalents, at beginning of
period |
18,155 |
46,801 |
|
|
|
Cash and cash equivalents, at end of
period |
$ 25,937 |
$ 30,018 |
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
Cash paid for income
taxes |
$ 7,776 |
$ 7,237 |
|
|
|
Dividends payable in accrued
expenses |
$ 241 |
$ 351 |
CONTACT: PetMed Express, Inc.
Bruce S. Rosenbloom, CFO
954-979-5995
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