PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS FIRST QUARTER FINANCIAL RESULTS - JULY 2012
Pompano Beach, Florida, July 23, 2012 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2012. Net sales for the quarter ended June 30, 2012 were $69.0 million, compared to $73.6 million for the quarter ended June 30, 2011, a decrease of 6%. Net income was $4.0 million, or $0.20 diluted per share, for the quarter ended June 30, 2012, compared to net income of $4.8 million, or $0.22 diluted per share, for the quarter ended June 30, 2011, a 12% decrease to EPS. Reorder sales decreased by 3%, from $56.6 million to $55.1 million for the quarters ended June 30, 2011 and 2012, respectively. The Company acquired approximately 197,000 new customers for the quarter ended June 30, 2012, compared to 226,000 new customers for the quarter ended June 30, 2011. Additionally, our online sales decreased by 3% to $52.8 million for the quarter, compared to $54.1 million for the quarter the prior year, with approximately 77% of our orders being generated from our website during the quarter compared to 73% for the quarter the prior year.
Menderes Akdag, CEO and President, commented: "Although our sales were down due to a decline in average order size, we did see an increase in total orders. During the quarter ended June 30, 2012 our average order size was $73, compared to $80 for the quarter ended June 30, 2011. This reduction can be attributed to customers purchasing smaller quantities, for example a 3-month supply instead of 6 months, additional discounts given, and a change in product mix to lower priced items. In addition, the decrease in sales for the quarter can be attributed to the unavailability of Novartis brands during the quarter, due to the manufacturer's suspended production. The sales in the June quarter might also have been negatively affected by the peak season starting earlier this year due to the warmer weather, which shifted sales to the March quarter. Cash flow from operations increased by 62%, from $8.5 million to $13.8 million for the quarters ended June 30, 2011 and 2012, respectively. To address the decrease in sales for the quarter, we are focusing on advertising efficiency and shifting sales to higher margin items, while continuing to expand our product offerings."
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 23, 2012 until August 6, 2012 at 11:59 P.M. To access the replay, call (888) 673-3565 (toll free) or (402) 220-6428, 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.
For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 954-979-5995.