PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS THIRD QUARTER FINANCIAL RESULTS AND ITS $0.19 PER SHARE QUARTERLY DIVIDENDThird Quarter New Order Sales Increased 4.4%
Third Quarter Sales Increased 3.8%
Delray Beach, Florida, January 23, 2017 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended December 31, 2016. Net sales for the quarter ended December 31, 2016 were $52.9 million, compared to $50.9 million for the quarter ended December 31, 2015, an increase of 3.8%. Net sales for the nine months ended December 31, 2016 were $186.1 million, compared to $179.3 million for the nine months ended December 31, 2015, an increase of 3.8%. The increase in sales for the quarter ended December 31, 2016 can be attributed to increased new order sales, which increased 4.4%, and reorder sales, which increased 3.7%. Net income for the quarter ended December 31, 2016 was $4.8 million, or $0.24 diluted per share, compared to net income of $4.9 million, or $0.24 diluted per share, for the quarter ended December 31, 2015, a 1.4% decrease to net income. Net income for the nine months ended December 31, 2016 was $16.3 million, or $0.80 diluted per share, compared to net income of $15.1 million, or $0.75 diluted per share, for the nine months ended December 31, 2015, a 7.7% increase to net income. Online sales for the quarter ended December 31, 2016 increased 5.6% to $43.8 million from $41.5 million for the same period the prior year. The Company's online sales for the quarter ended December 31, 2016 were approximately 83% of all sales, compared to 81% for the same quarter the prior year.
Menderes Akdag, CEO and President, commented: "We are pleased to announce that the Company has officially moved to Delray Beach, having completed this transition in December 2016. Despite the transition, we continued to see sales growth in the December quarter where we saw increases in both new order and reorder sales. Our average order size increased to $81 for the quarter ended December 31, 2016, compared to $78 for the same quarter in the prior year. We were also encouraged with our advertising efficiency, as our new customer acquisition costs were reduced to $32 for the quarter ended December 31, 2016 compared to $41 for the same quarter in the prior year. Cash flow from operations was $31.6 million for the nine months ended December 31, 2016, compared to $22.6 million for the nine months ended December 31, 2015, with the majority of the increase due to a reduction in inventory."
The Board of Directors declared a quarterly dividend of $0.19 per share on the Company's common stock. The dividend will be payable on February 17, 2017, to shareholders of record at the close of business on February 6, 2017. 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 January 23, 2017 until February 6, 2017 at 11:59 P.M. To access the replay, call (888) 568-0521 (toll free) or (402) 998-1495 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, 2016. 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.