PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES RECORD SECOND QUARTER FINANCIAL RESULTS - SALES INCREASE 34%, NET INCOME INCREASES 50%
Pompano Beach, Florida, October 24, 2005 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2005. Net sales for the quarter ended September 30, 2005 were $38.7 million, compared to $28.8 million for the quarter ended September 30, 2004, an increase of 34%. Net income was $2.7 million, or $0.11 diluted per share, for the quarter ended September 30, 2005, compared to net income of $1.8 million, or $0.08 diluted per share, for the quarter ended September 30, 2004, an increase to net income of 50%. Net sales for the six months ended September 30, 2005 were $82.3 million, compared to $64.0 million for the six months ended September 30, 2004, an increase of 28%. Net income for the six months ended September 30, 2005 was $6.3 million, or $0.26 diluted per share, compared to net income of $3.6 million, or $0.15 diluted per share, for the six months ended September 30, 2004, an increase to net income of 72%.
The Company acquired approximately 208,000 new customers during the second fiscal quarter compared to 154,000 new customers for the same quarter in the prior year. Approximately 55% of all orders were placed on the Company's website for the second fiscal quarter, compared to 52% for the same quarter in the prior year.
Menderes Akdag, CEO and President, commented: "We are pleased to report that our retail new order sales increased by 35% to $14.7 million for the second fiscal quarter compared to $10.9 million for the same quarter in the prior year. The advertising cost of acquiring a new customer for the second fiscal quarter was approximately $33 compared to $37 for the same quarter in the prior year. This improvement in the cost of customer acquisition can be attributed to increased advertising efficiency with more effective advertising. In addition, our retail reorder sales increased by 33%, from $17.2 million to $22.9 million for the quarters ended September 30, 2004 and 2005, respectively. We are also pleased to report that net cash provided by operating activities increased by $6.1 million, from $6.6 million for the six months ended September 30, 2004 to $12.7 million for the six months ended September 30, 2005."
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, call (888) 455-1758 (toll free) or (210) 234-0007. 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 A.M. on October 24, 2005 until November 7, 2005 at 11:59 P.M. To access the replay, call (866) 422-8142 (toll free) or (203) 369-0830, 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, 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, 2005. 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, 954-979-5995.