PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES SECOND QUARTER FINANCIAL RESULTSEarnings Increase 12% to $0.28 EPS Reorder Sales Increase 11% to $45.8 Million
Pompano Beach, Florida, October 19, 2009 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2009. Net income was $6.3 million, or $0.28 diluted per share, for the quarter ended September 30, 2009, compared to net income of $5.8 million, or $0.25 diluted per share, for the quarter ended September 30, 2008, a 12% increase to EPS. For the six months ended September 30, 2009, net income was $14.3 million or $0.63 diluted per share compared to net income of $12.4 million or $0.53 diluted per share for the six months ended September 30, 2008, an increase to earnings per share of 20%. Net sales for the quarter ended September 30, 2009 were $62.4 million, compared to $59.6 million for the quarter ended September 30, 2008, an increase of 5%. Net sales for the six months ended September 30, 2009 were $139.6 million, compared to $127.9 million for the six months ended September 30, 2008, an increase of 9%. Reorder sales increased by 11%, from $41.4 million to $45.8 million for the quarters ended September 30, 2008 and 2009, respectively. Reorder sales for the six months ended September 30, 2009 were $99.8 million, compared to $87.6 million for the six months ended September 30, 2008, an increase of 14%.
Menderes Akdag, CEO and President, commented: “We are pleased to report a 17% increase to our income from operations for the quarter ended September 30, 2009. We acquired approximately 233,000 new customers in the September quarter. Our costs to acquire a new customer decreased by 8% to $33 for the quarter ended September 30, 2009, compared to $36 for the same period in the prior year. We are pleased to report that our operating expenses as a percent of sales improved by 200 basis points in the September quarter, compared to the same quarter in the prior year. We are also pleased to report that our cash flows from operations increased to $26.1 million for the six months ended September 30, 2009 from $18.7 million for the same period the prior year. Our continuing focus will be on capturing additional market share, increasing reorders with personalized communication and health education content, and improving our customer service levels in fiscal 2010.”
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 (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 10:00 A.M. on October 19, 2009 until November 2, 2009 at 11:59 P.M. To access the replay, call (800) 695-3640 (toll free) or (402) 220-0318, 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, 2009. 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.