PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES RECORD THIRD QUARTER FINANCIAL RESULTS - SALES INCREASE 25%, NET INCOME INCREASES 37%
Pompano Beach, Florida, January 23, 2006 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended December 31, 2005. Net sales for the quarter ended December 31, 2005 were $25.9 million, compared to $20.8 million for the quarter ended December 31, 2004, an increase of 25%. Net income was $2.7 million, or $0.11 diluted per share, for the quarter ended December 31, 2005, compared to net income of $2.0 million, or $0.08 diluted per share, for the quarter ended December 31, 2004, an increase to net income of 37%. Net sales for the nine months ended December 31, 2005 were $108.2 million, compared to $84.8 million for the nine months ended December 31, 2004, an increase of 28%. Net income for the nine months ended December 31, 2005 was $8.9 million, or $0.37 diluted per share, compared to net income of $5.6 million, or $0.23 diluted per share, for the nine months ended December 31, 2004, an increase to net income of 60%.
The Company acquired approximately 105,000 new customers during the third fiscal quarter compared to 85,000 new customers for the same quarter in the prior year. Approximately 57% of all orders were placed on the Company's website during the third fiscal quarter.
Menderes Akdag, CEO and President, commented: "We are pleased to report that our retail new order sales increased by 26% to $7.3 million for the third fiscal quarter compared to $5.8 million for the same quarter in the prior year. The advertising cost of acquiring a new customer for the third fiscal quarter improved to approximately $30 compared to $31 for the same quarter in the prior year. In addition, our retail reorder sales increased by 25%, from $14.5 million to $18.1 million for the quarters ended December 31, 2004 and 2005, respectively. We are also pleased to report that net cash provided by operating activities increased by $10.0 million, from $3.5 million for the nine months ended December 31, 2004 to $13.5 million for the nine months ended December 31, 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) 234-0010. 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 January 23, 2006 until February 6, 2006 at 5:00 P.M. To access the replay, call (866) 487-7597 (toll free) or (203) 369-1654, 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.