Tell us what you think about the new Article Page. Send us feedback
PetSmart Reports Results for the Second Quarter of 2009
Earnings of $0.31 per Share; Comp Sales Growth of 0.8 Percent; Net Sales Growth of 5.4 Percent; Services Sales Growth of 10.2 Percent
PHOENIX, AZ--(Marketwire - 08/19/09) - PetSmart, Inc. (NASDAQ:PETM - News) today reported net income of $39.0 million, or $0.31 per share, for the second quarter of 2009. That compares with net income of $37.2 million, or $0.30 per share, for the second quarter of 2008.
Net sales for the second quarter of 2009 increased 5.4 percent to $1.31 billion, compared to the second quarter of 2008. The increase in net sales was partially impacted by $8.6 million in unfavorable foreign currency fluctuations. Comparable store sales -- or sales in stores open at least a year -- grew 0.8 percent in the second quarter. Pet services sales were $154.2 million, up 10.2 percent from the second quarter of last year.
"We continue to believe that we are well positioned to lead the pet specialty market given our core business strengths, commitment to fiscal discipline, and our solid leadership team. Our ability to provide pet parents with a uniquely engaged in-store experience, a differentiated assortment of products, services and solutions, and knowledgeable associates, creates an unmatched customer experience," said Bob Moran, Chief Executive Officer and President.
Guidance
"We expect third quarter earnings per share between $0.20 and $0.24 and comparable store sales to be flat," said Chip Molloy, Senior Vice President and Chief Financial Officer. "For the year, we are expecting earnings per share between $1.37 to $1.45 and comparable store sales growth of low single digits."
PetSmart increased cash, cash equivalents and restricted cash to $236 million and had zero borrowings on its credit facility at the end of the quarter. During the second quarter, the company purchased $25 million of PetSmart stock and distributed $3.8 million in dividend payments.
2009 Annual Guidance
-- Total sales growth: Mid-single digits
-- Comparable store sales growth: Low-single digits
-- Services sales growth: Mid- to high-single digits
-- Net interest expense: Approximately $60 million for the fiscal year
-- Income tax rate: 38.5 percent to 39 percent
-- Earnings per share: $1.37 to $1.45 per share
-- Capital expenditures: Between $115 million to $125 million
-- Net new store growth: 40 to 42
-- PetsHotel growth: 20
Conference call information
PetSmart management has scheduled a teleconference for 4:30 p.m. EDT today to discuss results for the second quarter 2009. This teleconference will be webcast live for all investors at www.petm.com or www.streetevents.com. The webcast will be available until the company announces results for the third quarter of 2009. In addition, you can listen to the call live by dialing 866-818-1395 (within the United States and Canada) or 703-639-1379 (for international callers), code 1386766. A phone replay will be available through September 18, 2009, 11:59 p.m. EDT, at 888-266-2081 in the United States and Canada, or at 703-925-2533 for international callers, code 1386766.
About PetSmart
PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company operates more than 1,145 pet stores in the United States and Canada, 156 in-store PetSmart PetsHotel� cat and dog boarding facilities, and is a leading online provider of pet supplies and pet care information (www.petsmart.com). PetSmart provides a broad range of competitively priced pet food and pet products; and offers complete pet training, pet grooming, pet boarding, Doggie Day Camp(SM) pet day care services and pet adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)(3) non-profit animal welfare organization, has funded more than $87 million in grants and programs benefiting animal welfare organizations and, through its in-store pet adoption programs, has helped save the lives of more than 3.6 million pets.
Forward-looking statements
This news release contains forward-looking statements concerning our expectations for future performance, including the statements comprising our 2009 guidance. These "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in general economic conditions; conditions affecting customer transactions and average ticket including, but not limited to, weather conditions or other seasonal events; our ability to compete effectively; disruption of our supply chain; our ability to effectively manage our growth and operations; changes in our cost structure; and changes in the legal or regulatory environment. Undue reliance should not be placed on such forward-looking statements as they speak only as of the date hereof, and we undertake no obligation to update these statements to reflect subsequent events or circumstances except as may be required by law. For additional information on these and other factors that arise when investing in PetSmart, please see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K.
Follow PetSmart on Twitter www.twitter.com/PetSmartTLC
Find PetSmart on Facebook www.facebook.com/PetSmart
�
PetSmart, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except par value)
Unaudited
August 2, February 1, August 3,
2009 2009 2008
----------- ----------- -----------
Assets
Cash and cash equivalents $ 180,656 $ 126,314 $ 57,904
Restricted cash 55,250 - -
Receivables, net 58,729 48,609 39,621
Merchandise inventories 574,985 584,011 544,609
Deferred income taxes 29,334 28,223 28,895
Prepaid expenses and other
current assets 89,680 87,677 77,262
----------- ----------- -----------
Total current assets 988,634 874,834 748,291
Property and equipment, net 1,262,458 1,302,245 1,318,573
Equity investment in affiliate 28,591 25,938 25,283
Deferred income taxes 84,829 93,128 124,983
Goodwill 41,989 38,645 43,341
Other noncurrent assets 24,257 22,863 28,279
----------- ----------- -----------
Total assets $ 2,430,758 $ 2,357,653 $ 2,288,750
=========== =========== ===========
Liabilities and Stockholders' Equity
Accounts payable and bank
overdraft $ 189,242 $ 194,630 $ 184,281
Accrued payroll bonus and
employee benefits 92,879 88,337 88,580
Accrued occupancy expenses and
deferred rents 60,404 55,642 53,460
Short-term debt - - 32,000
Current maturities of capital
lease obligations 34,930 32,233 30,833
Other current liabilities 130,075 107,315 149,199
----------- ----------- -----------
Total current liabilities 507,530 478,157 538,353
Capital lease obligations 553,960 553,760 546,965
Deferred rents 92,587 92,155 90,572
Other noncurrent liabilities 98,241 89,445 92,344
----------- ----------- -----------
Total liabilities 1,252,318 1,213,517 1,268,234
----------- ----------- -----------
Stockholders' Equity:
Preferred stock; $.0001 par
value - - -
Common stock; $.0001 par value 16 16 16
Additional paid-in capital 1,127,947 1,117,557 1,093,585
Retained earnings 1,005,050 936,100 829,519
Accumulated other
comprehensive income 2,178 (2,714) 4,219
Treasury stock (956,751) (906,823) (906,823)
----------- ----------- -----------
Total stockholders' equity 1,178,440 1,144,136 1,020,516
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 2,430,758 $ 2,357,653 $ 2,288,750
=========== =========== ===========
PetSmart, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share and store data)
(Unaudited)
Thirteen Weeks Ended Thirteen Weeks Ended
------------------------ ------------------------
August 2, August 3,
2009 % of Sales 2008 % of Sales
----------- ----------- ----------- -----------
Merchandise sales $ 1,154,593 88.2% $ 1,101,984 88.7%
Services sales 154,192 11.8% 139,964 11.3%
----------- ----------- ----------- -----------
Net sales 1,308,785 100.0% 1,241,948 100.0%
----------- ----------- ----------- -----------
Cost of merchandise
sales 830,629 63.5% 775,275 62.4%
Cost of services sales 108,744 8.3% 100,267 8.1%
----------- ----------- ----------- -----------
Total cost of sales 939,373 71.8% 875,542 70.5%
----------- ----------- ----------- -----------
Gross profit 369,412 28.2% 366,406 29.5%
Operating, general and
administrative
expenses 295,623 22.6% 291,007 23.4%
----------- ----------- ----------- -----------
Operating income 73,789 5.6% 75,399 6.1%
Interest expense, net (14,970) -1.1% (15,211) -1.2%
----------- ----------- ----------- -----------
Income before income
tax expense and equity
in income from investee 58,819 4.5% 60,188 4.8%
Income tax expense (21,392) -1.6% (24,294) -2.0%
Equity in income from
investee 1,537 0.1% 1,354 0.1%
----------- ----------- ----------- -----------
Net income $ 38,964 3.0% $ 37,248 3.0%
=========== =========== =========== ===========
Earnings per common
share:
Basic $ 0.32 $ 0.30
=========== ===========
Diluted $ 0.31 $ 0.30
=========== ===========
Weighted average shares
outstanding:
Basic 123,474 123,751
Diluted 125,504 126,210
----------- ----------- ----------- -----------
Stores open at
beginning of each
period 1,137 1,043
Stores opened during
each period 10 37
Stores closed during
each period (2) (5)
Stores open at end of
each period 1,145 1,075
----------- ----------- ----------- -----------
Twenty-Six Weeks Ended Twenty-Six Weeks Ended
------------------------ ------------------------
August 2, August 3,
2009 % of Sales 2008 % of Sales
----------- ----------- ----------- -----------
Merchandise sales $ 2,339,348 88.7% $ 2,185,435 89.0%
Services sales 297,011 11.3% 269,444 11.0%
----------- ----------- ----------- -----------
Net sales 2,636,359 100.0% 2,454,879 100.0%
----------- ----------- ----------- -----------
Cost of merchandise
sales 1,678,503 63.7% 1,537,274 62.6%
Cost of services sales 211,192 8.0% 194,831 7.9%
----------- ----------- ----------- -----------
Total cost of sales 1,889,695 71.7% 1,732,105 70.6%
----------- ----------- ----------- -----------
Gross profit 746,664 28.3% 722,774 29.4%
Operating, general and
administrative
expenses 583,006 22.1% 567,106 23.1%
----------- ----------- ----------- -----------
Operating income 163,658 6.2% 155,668 6.3%
Interest expense, net (29,944) -1.1% (28,953) -1.2%
----------- ----------- ----------- -----------
Income before income
tax expense and equity
in income from investee 133,714 5.1% 126,715 5.2%
Income tax expense (51,141) -1.9% (50,193) -2.0%
Equity in income from
investee 2,653 0.1% 1,937 0.1%
----------- ----------- ----------- -----------
Net income $ 85,226 3.2% $ 78,459 3.2%
=========== =========== =========== ===========
Earnings per common
share:
Basic $ 0.69 $ 0.63
=========== ===========
Diluted $ 0.68 $ 0.62
=========== ===========
Weighted average shares
outstanding:
Basic 123,914 124,401
Diluted 126,102 126,814
----------- ----------- ----------- -----------
Stores open at
beginning of each
period 1,112 1,008
Stores opened during
each period 36 72
Stores closed during
each period (3) (5)
Stores open at end of
each period 1,145 1,075
----------- ----------- ----------- -----------
Contact:
CONTACT:
PetSmart Investor Relations
(623) 587-2025
Top Stories
Tech Ticker Recent Posts
Add Alert Copyright © 2009 CCNMatthews. CCNMatthews All rights reserved. All news releases provided by CCNMatthews are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.