PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES SECOND QUARTER FINANCIAL RESULTS - Earnings Increase 33% to $0.25 Diluted Per Share Net Sales Increase 16% to $59.6 Million Reorder Sales Increase 18%
Pompano Beach, Florida, October 20, 2008 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2008. Net income was $5.8 million or $0.25 diluted per share for the quarter ended September 30, 2008, compared to net income of $4.5 million or $0.18 diluted per share for the quarter ended September 30, 2007, an increase to earnings per share of 33%. For the six months ended September 30, 2008, net income was $12.4 million or $0.53 diluted per share compared to net income of $10.7 million or $0.44 diluted per share for the six months ended September 30, 2007, an increase to earnings per share of 20%. Net sales for the quarter ended September 30, 2008 were $59.6 million, compared to $51.5 million for the quarter ended September 30, 2007, an increase of 16%. Net sales for the six months ended September 30, 2008 were $127.9 million, compared to $110.6 million for the six months ended September 30, 2007, also an increase of 16%.
Menderes Akdag, President and CEO, commented: “We are pleased to report that we had a highly profitable quarter by reducing operating expenses as a percentage of sales by 200 basis points compared to the same quarter last year. Our reorder sales increased by 18%, from $35.0 million to $41.4 million for the quarters ended September 30, 2007 and 2008, respectively, and for the six months ended September 30, 2008 our reorder sales increased by 17%, to $87.6 million, compared to $75.0 million for the six months in the prior year. Our new order sales increased by 11% to $18.2 million for the quarter ended September 30, 2008, compared to $16.5 million for the same quarter the prior year. We are also pleased to report that our net cash from operations increased by 45% to $18.7 million for the six months ended September 30, 2008 from $12.8 million for the same period the prior year. Our continuing focus will be on capturing additional market share, and improving reorders and our customer service levels in fiscal 2009. Additionally, the Company repurchased approximately 90,000 shares of its outstanding common stock for approximately $1.1 million during the second quarter of fiscal 2009.”
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 (210) 234-0009. 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 20, 2008 until November 3, 2008 at 10:59 P.M. To access the replay, call (866) 462-8984 (toll free) or (203) 369-1369, 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, 2008. 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.