PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS - NET INCOME INCREASES 34% TO RECORD $0.20 EPS
Pompano Beach, Florida, July 24, 2006 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2006. Net income was $4.8 million, or $0.20 diluted per share, for the quarter ended June 30, 2006, compared to net income of $3.5 million, or $0.15 diluted per share, for the quarter ended June 30, 2005, an increase to net income of 34%. Net sales for the quarter ended June 30, 2006 were $50.7 million, compared to $43.6 million for the quarter ended June 30, 2005, an increase of 16%. Approximately 59% of all sales were placed on the Company's website for the first fiscal quarter, compared to 54% for the same quarter in the prior year.
Menderes Akdag, CEO and President, commented: "We are pleased to report that our retail reorder sales increased by 32%, from $25.8 million to $33.9 million for the quarters ended June 30, 2005 and 2006, respectively. We will continue to focus on reorder sales in fiscal 2007 by initiating more relevant personalized communication and health education content to build value for our customers and assist them in choosing the right products for their pets. Earlier in the year we made a strategic business decision to focus more on retail customers, and to limit wholesale sales. Our retail sales, excluding wholesale sales, increased by 19%, compared to an increase of 21% for the same quarter in the prior year. We are also pleased to report that net cash provided by operating activities increased by $1.8 million, from $8.0 million for the quarter ended June 30, 2005 to $9.8 million for the quarter ended June 30, 2006."
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, dial (888) 455-1758 (toll free) or (312) 470-7365. 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 July 24, 2006 until August 8, 2006 at 11:59 P.M. To access the replay, call (866) 419-5472 (toll free) or (203) 369-0770, 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, 2006. 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.