U.S. markets close in 2 hours 38 minutes
  • S&P 500

    3,896.09
    -5.73 (-0.15%)
     
  • Dow 30

    31,564.85
    +29.34 (+0.09%)
     
  • Nasdaq

    13,483.07
    -105.76 (-0.78%)
     
  • Russell 2000

    2,251.20
    -24.12 (-1.06%)
     
  • Crude Oil

    60.79
    +0.15 (+0.25%)
     
  • Gold

    1,733.40
    +10.40 (+0.60%)
     
  • Silver

    26.78
    +0.10 (+0.38%)
     
  • EUR/USD

    1.2089
    +0.0029 (+0.24%)
     
  • 10-Yr Bond

    1.4140
    -0.0320 (-2.21%)
     
  • GBP/USD

    1.3974
    +0.0053 (+0.38%)
     
  • USD/JPY

    106.7420
    +0.0120 (+0.01%)
     
  • BTC-USD

    47,853.49
    -1,002.81 (-2.05%)
     
  • CMC Crypto 200

    959.90
    -26.75 (-2.71%)
     
  • FTSE 100

    6,613.75
    +25.22 (+0.38%)
     
  • Nikkei 225

    29,408.17
    -255.33 (-0.86%)
     

PetMed Express d/b/a 1-800-PetMeds Announces Its Second Fiscal Quarter Financial Results and Its Quarterly Dividend of $0.28 per Share

  • Oops!
    Something went wrong.
    Please try again later.
PetMed Express, Inc.
·8 min read
  • Oops!
    Something went wrong.
    Please try again later.

Diluted EPS $0.42 vs $0.33 per share
Quarterly Reorder Sales Increased 9.6%
Gross Margins Improved Sequentially from 27.8% to 30.5%

DELRAY BEACH, Fla., Oct. 26, 2020 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2020. Net sales for the quarter ended September 30, 2020 were $75.4 million, compared to $69.9 million for the quarter ended September 30, 2019, an increase of 7.9%. Net sales for the six months ended September 30, 2020 were $171.6 million, compared to $149.9 million for the six months ended September 30, 2019, an increase of 14.5%. Net income was $8.4 million, or $0.42 diluted per share, for the quarter ended September 30, 2020, compared to net income of $6.7 million, or $0.33 diluted per share, for the quarter ended September 30, 2019, a 26.2% increase to net income. Net income was $16.2 million, or $0.81 diluted per share, for the six months ended September 30, 2020, compared to net income of $12.0 million, or $0.60 diluted per share, for the six months ended September 30, 2019, a 34.7% increase to net income. Reorder sales increased 9.6%, to $67.8 million for the quarter ended September 30, 2020, compared to $61.9 million for the same quarter in the prior year. Reorder sales increased 14.4%, to $148.2 million for the six months ended September 30, 2020, compared to $129.6 million for the same period in the prior year.

Menderes Akdag, CEO and President, commented: “We were encouraged with the strength of our reorder sales and gross and operating margins during the quarter. Gross margins improved by 270 basis points from 27.8% in the June quarter to 30.5% in the September quarter, and operating margins improved by 400 basis points from 9.8% in the June quarter to 13.9% in the September quarter. The sequential gross margin increase can be attributed to a change in our product mix, with a shift to higher margin prescription medications. The gross margin increase for the three and six months ended September 30, 2020 was also due to the benefit of having direct relationships with all major manufacturers and the enforcement of their minimum advertised price policies. Our average order size increased from $85 to $87 for the quarters ended September 30, 2019 and 2020, respectively. In fiscal 2021, we are focusing on redesigning our website and mobile app to optimize our customers’ digital experience.”

The Board of Directors declared a quarterly dividend of $0.28 per share on the Company’s common stock. The dividend will be payable on November 20, 2020, to shareholders of record at the close of business on November 9, 2020. 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, the Company 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 October 26, 2020 until November 9, 2020 at 11:59 P.M Eastern Time. To access the replay, call (800) 337-8653 (toll free) or (402) 220-9669, and enter passcode 5500.

Founded in 1996, PetMed Express is America’s Largest and Most Trusted 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, 2020. 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, 561-526-4444.


PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for per share data)

September 30,

March 31,

2020

2020

ASSETS

(Unaudited)

Current assets:

Cash and cash equivalents

$

106,344

$

103,762

Accounts receivable, less allowance for doubtful

accounts of $34 and $59, respectively

2,212

3,843

Inventories - finished goods

21,451

17,884

Prepaid expenses and other current assets

2,613

3,529

Total current assets

132,620

129,018

Noncurrent assets:

Property and equipment, net

25,469

25,445

Intangible assets

860

860

Total noncurrent assets

26,329

26,305

Total assets

$

158,949

$

155,323

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

16,058

$

19,658

Accrued expenses and other current liabilities

4,486

4,214

Income taxes payable

618

471

Total current liabilities

21,162

24,343

Deferred tax liabilities

1,378

970

Total liabilities

22,540

25,313

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;

20,272 and 20,166 shares issued and outstanding, respectively

20

20

Additional paid-in capital

5,317

3,804

Retained earnings

131,063

126,177

Total shareholders' equity

136,409

130,010

Total liabilities and shareholders' equity

$

158,949

$

155,323




PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except for per share amounts) (Unaudited)

Three Months Ended

Six Months Ended

September 30,

September 30,

2020

2019

2020

2019

Sales

$

75,436

$

69,936

$

171,640

$

149,924

Cost of sales

52,418

49,934

121,837

108,061

Gross profit

23,018

20,002

49,803

41,863

Operating expenses:

General and administrative

6,809

6,303

14,563

12,811

Advertising

5,131

4,756

14,164

13,380

Depreciation

607

572

1,169

1,140

Total operating expenses

12,547

11,631

29,896

27,331

Income from operations

10,471

8,371

19,907

14,532

Other income:

Interest income, net

66

459

156

1,026

Other, net

338

304

593

561

Total other income

404

763

749

1,587

Income before provision for income taxes

10,875

9,134

20,656

16,119

Provision for income taxes

2,463

2,469

4,476

4,111

Net income

$

8,412

$

6,665

$

16,180

$

12,008

Net income per common share:

Basic

$

0.42

$

0.33

$

0.81

$

0.60

Diluted

$

0.42

$

0.33

$

0.81

$

0.60

Weighted average number of common shares outstanding:

Basic

20,063

19,963

20,024

20,098

Diluted

20,154

19,973

20,098

20,109

Cash dividends declared per common share

$

0.28

$

0.27

$

0.56

$

0.54




PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

Six Months Ended

September 30,

2020

2019

Cash flows from operating activities:

Net income

$

16,180

$

12,008

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation

1,169

1,140

Share based compensation

1,513

1,365

Deferred income taxes

408

274

Bad debt expense

61

64

(Increase) decrease in operating assets

and increase (decrease) in liabilities:

Accounts receivable

1,570

1,012

Inventories - finished goods

(3,567

)

2,309

Prepaid income taxes

-

582

Prepaid expenses and other current assets

916

(1,433

)

Accounts payable

(3,600

)

(1,120

)

Accrued expenses and other current liabilities

391

568

Income taxes payable

147

525

Net cash provided by operating activities

15,188

17,294

Cash flows from investing activities:

Purchases of property and equipment

(1,193

)

(416

)

Net cash used in investing activities

(1,193

)

(416

)

Cash flows from financing activities:

Repurchase and retirement of common stock

-

(11,496

)

Dividends paid

(11,413

)

(11,014

)

Net cash used in financing activities

(11,413

)

(22,510

)

Net increase (decrease) in cash and cash equivalents

2,582

(5,632

)

Cash and cash equivalents, at beginning of period

103,762

100,529

Cash and cash equivalents, at end of period

$

106,344

$

94,897

Supplemental disclosure of cash flow information:

Cash paid for income taxes

$

4,206

$

2,730

Dividends payable in accrued expenses

$

126

$

155