PetMed Express D/B/A 1-800-PetMeds Announces Its First Quarter Financial Results and Its $0.17 Per Share Quarterly Dividend
July 21 2014 - 8:00AM
PetMed Express, Inc. (Nasdaq:PETS) today announced its financial
results for the quarter ended June 30, 2014. Net income was $5.0
million, or $0.25 diluted per share, for the quarter ended June 30,
2014, compared to net income of $4.8 million, or $0.24 diluted per
share, for the quarter ended June 30, 2013, a 4.6% increase to net
income. Net sales for the quarter ended June 30, 2014 were $72.5
million, compared to $74.2 million for the quarter ended June 30,
2013, a decrease of 2.2%. The Company's online sales for the
quarter ended June 30, 2014 were approximately 80% of all sales,
compared to 79% for the same quarter the prior year.
Menderes Akdag, CEO and President, commented: "We were able to
increase our gross margins for the second consecutive quarter and
decrease our operational expenses to improve our bottom line
results for the quarter ended June 30, 2014. For the quarter ended
June 30, 2014 our gross profit increased by 40 basis points, which
can be attributed to a cost reduction in certain brands. For the
quarter ended June 30, 2014 our operational expenses decreased by
30 basis points, mainly due to a reduction in advertising spending.
Despite our sales decrease for the quarter we were able to increase
our average order size to $78 for the quarter ended June 30, 2014,
compared to $77 for the same quarter in the prior year. For the
remainder of Fiscal 2015 we are focusing on improving our marketing
efforts to increase sales."
The Board of Directors declared a quarterly dividend of $0.17
per share on the Company's common stock. The dividend will be
payable on August 15, 2014, to shareholders of record at the close
of business on August 4, 2014. The Company intends to continue
to pay regular quarterly dividends; however the declaration and
payment of future dividends is discretionary and will be subject to
a determination by the Board of Directors each quarter following
its review of the Company's financial performance.
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 July 21, 2014 until August 4, 2014 at
11:59 P.M. To access the replay, call (866) 509-3896 (toll
free) or (203) 369-1915, 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, 2014. 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) |
|
|
|
|
June 30, |
March 31, |
|
2014 |
2014 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 29,141 |
$ 18,305 |
Short term investments - available for
sale |
15,567 |
15,539 |
Accounts receivable, less allowance for
doubtful accounts of $6 and $7, respectively |
1,598 |
1,761 |
Inventories - finished goods |
32,887 |
35,727 |
Prepaid expenses and other current
assets |
1,516 |
1,761 |
Deferred tax assets |
1,087 |
1,062 |
Prepaid income taxes |
-- |
54 |
Total current assets |
81,796 |
74,209 |
|
|
|
Noncurrent assets: |
|
|
Prepaid expenses |
2,214 |
1,996 |
Property and equipment, net |
1,153 |
1,310 |
Intangible assets |
860 |
860 |
|
|
|
Total assets |
$ 86,023 |
$ 78,375 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 8,589 |
$ 5,768 |
Accrued expenses and other current
liabilities |
2,406 |
2,325 |
Income taxes payable |
2,889 |
-- |
Total current liabilities |
13,884 |
8,093 |
|
|
|
Deferred tax liabilities |
-- |
65 |
|
|
|
Total liabilities: |
13,884 |
8,158 |
|
|
|
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; 20,189 and 21,190 shares issued and outstanding,
respectively |
20 |
20 |
Additional paid-in capital |
1,950 |
1,578 |
Retained earnings |
70,189 |
68,647 |
Accumulated other comprehensive loss |
(29) |
(37) |
|
|
|
Total shareholders' equity |
72,139 |
70,217 |
|
|
|
Total liabilities and shareholders'
equity |
$ 86,023 |
$ 78,375 |
|
|
PETMED EXPRESS,
INC. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
(In thousands,
except for per share amounts) (Unaudited) |
|
|
|
|
Three Months
Ended |
|
June
30, |
|
2014 |
2013 |
|
|
|
Sales |
$ 72,541 |
$ 74,194 |
Cost of sales |
48,769 |
50,181 |
|
|
|
Gross profit |
23,772 |
24,013 |
|
|
|
Operating expenses: |
|
|
General and
administrative |
5,875 |
5,873 |
Advertising |
9,896 |
10,395 |
Depreciation |
163 |
248 |
Total operating expenses |
15,934 |
16,516 |
|
|
|
Income from operations |
7,838 |
7,497 |
|
|
|
Other income (expense): |
|
|
Interest income, net |
44 |
47 |
Other, net |
9 |
(2) |
Total other income |
53 |
45 |
|
|
|
Income before provision for income
taxes |
7,891 |
7,542 |
|
|
|
Provision for income taxes |
2,918 |
2,787 |
|
|
|
Net income |
$ 4,973 |
$ 4,755 |
|
|
|
Net change in unrealized gain (loss) on
short term investments |
8 |
(46) |
|
|
|
Comprehensive income |
$ 4,981 |
$ 4,709 |
|
|
|
Net income per common share: |
|
|
Basic |
$ 0.25 |
$ 0.24 |
Diluted |
$ 0.25 |
$ 0.24 |
|
|
|
Weighted average number of common
shares outstanding: |
|
|
Basic |
19,961 |
19,848 |
Diluted |
20,092 |
20,004 |
|
|
|
Cash dividends declared per common
share |
$ 0.17 |
$ 0.15 |
|
|
PETMED EXPRESS, INC.
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(In thousands)
(Unaudited) |
|
|
Three Months
Ended |
|
June
30, |
|
2014 |
2013 |
Cash flows from operating
activities: |
|
|
Net income |
$ 4,973 |
$ 4,755 |
Adjustments to reconcile net income to
net cash provided by operating activities: |
|
|
Depreciation |
163 |
248 |
Share based compensation |
373 |
362 |
Deferred income taxes |
(90) |
35 |
Bad debt expense |
17 |
24 |
(Increase) decrease in operating
assets and increase (decrease) in liabilities: |
|
|
Accounts receivable |
146 |
(1,112) |
Inventories - finished goods |
2,840 |
10,025 |
Prepaid income taxes |
54 |
-- |
Prepaid expenses and other current
assets |
27 |
(609) |
Accounts payable |
2,821 |
3,818 |
Income taxes payable |
2,889 |
2,474 |
Accrued expenses and other current
liabilities |
44 |
(175) |
Net cash provided by operating
activities |
14,257 |
19,845 |
|
|
|
Cash flows from investing
activities: |
|
|
Net change in investments |
(20) |
(21) |
Purchases of property and
equipment |
(6) |
(4) |
Net cash used in investing
activities |
(26) |
(25) |
|
|
|
Cash flows from financing
activities: |
|
|
Dividends paid |
(3,395) |
(2,977) |
Net cash used in financing
activities |
(3,395) |
(2,977) |
|
|
|
Net increase in cash and cash
equivalents |
10,836 |
16,843 |
Cash and cash equivalents, at beginning of
period |
18,305 |
18,155 |
|
|
|
Cash and cash equivalents, at end of
period |
$ 29,141 |
$ 34,998 |
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
Cash paid for income taxes |
$ 66 |
$ 279 |
|
|
|
Dividends payable in accrued
expenses |
$ 300 |
$ 315 |
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