PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS - JANUARY 2012
Net Sales Increased 12% to $50.5 Million
Pompano Beach, Florida, January 23, 2012 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended December 31, 2011. Net sales for the quarter ended December 31, 2011 were $50.5 million, compared to $45.1 million for the quarter ended December 31, 2010, an increase of 12%. Net sales for the nine months ended December 31, 2011 were $182.3 million, compared to $180.7 million for the nine months ended December 31, 2010, an increase of 1%. Net income was $3.9 million or $0.19 diluted per share for the quarter ended December 31, 2011, compared to net income of $4.5 million or $0.20 diluted per share for the quarter ended December 31, 2010, a 3% decrease to EPS. For the nine months ended December 31, 2011, net income was $12.7 million or $0.61 diluted per share, compared to net income of $16.7 million or $0.74 diluted per share for the nine months ended December 31, 2010, a decrease to earnings per share of 17%. New order sales increased by 29%, from $7.8 million to $10.1 million for the quarters ended December 31, 2010 and 2011, respectively. New order sales for the nine months ended December 31, 2011 were $39.8 million, compared to $37.9 million for the nine months ended December 31, 2010, an increase of 5%.
Menderes Akdag, President and CEO, commented: "We are pleased to report that we acquired 150,000 new customers in the quarter ended December 31, 2011, compared to 111,000 new customers acquired for the same period in the prior year, a 35% increase. Our advertising cost to acquire a new customer decreased by 11% to $36 for the quarter ended December 31, 2011, compared to $40 for the same period in the prior year. We are also pleased to report that our online sales increased by 19% to $38.7 million for the quarter, compared to $32.4 million for the same quarter the prior year, with approximately 77% of our orders being generated from our website during the quarter, compared to 72% in the same quarter in the prior year. Our reorder sales increased by 8% to $40.5 million for the quarter compared to $37.3 million for the same quarter the prior year. During the quarter, the Company leveraged its operating expenses as a percent of sales, by 92 basis points as compared to the same quarter in the prior year. Going forward, we will continue to advertise aggressively while expanding our product offerings, which include generic pet medications."
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 (210) 234-0009. 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. Eastern Time on January 23, 2012 until February 6, 2012 at 10:59 P.M. Eastern Time. To access the replay, call (888) 562-3875 (toll free) or (203) 369-3173, 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, 2011. 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.