PETS PetMed Express Inc

Florida

000-28827

65-0680967

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(I.R.S. Employer
Identification No.)

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

(d)

Exhibits.

99.1 – Press release dated July 21, 2014

Exhibit No.

Description

99.1

Press release dated July 21, 2014

PETMED EXPRESS, INC.

By:

/s/ Bruce S. Rosenbloom

Name:

Bruce S. Rosenbloom

Title:

Chief Financial Officer

Exhibit 99.1

PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS FIRST QUARTER FINANCIAL RESULTS

AND ITS $0.17 PER SHARE QUARTERLY DIVIDEND

Pompano Beach, Florida, July 21, 2014 - 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.

###

Exhibit 99.1 Page 1 of 4

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

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

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