PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS SECOND QUARTER FINANCIAL RESULTS
Pompano Beach, Florida, October 18, 2010 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2010. Net sales for the quarter ended September 30, 2010 were $61.2 million, compared to $62.4 million for the quarter ended September 30, 2009, a decrease of 1.9%. Net sales for the six months ended September 30, 2010 were $135.6 million, compared to $139.6 million for the quarter ended September 30, 2009, a decrease of 2.9%. Net income was $5.0 million, or $0.22 diluted per share, for the quarter ended September 30, 2010, compared to net income of $6.3 million, or $0.28 diluted per share, for the quarter ended September 30, 2009, a 20% decrease to EPS. Net income was $12.2 million, or $0.54 diluted per share, for the six months ended September 30, 2010, compared to net income of $14.3 million, or $0.63 diluted per share, for the six months ended September 30, 2009, a 15% decrease to EPS. Reorder sales increased by 4.6%, from $45.8 million to $47.9 million for the quarters ended September 30, 2009 and 2010, respectively. Reorder sales for the six months ended September 30, 2010 were $105.5 million, compared to $99.8 million for the six months ended September 30, 2009, an increase of 5.7%.
Menderes Akdag, President and CEO, commented: “It has been another challenging quarter due to our having to pay more to advertise, combined with consumers giving greater consideration to price and reducing their usage of the product categories we offer. Our online sales continued to increase, by 4.1% to $43.9 million for the quarter compared to $42.2 million for the prior quarter, with approximately 72% of our orders being generated from our website during the quarter compared to 67% in the prior quarter. During the quarter we bought back approximately 222,000 shares of our own common shares for $3.5 million, and increased our quarterly dividend, from $0.10 per share to $0.125 per share, an increase of 25%. Our focus in fiscal 2011 continues to be conversion optimization, and the expansion of our product offerings into pet supplies.”
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 18, 2010 until November 1, 2010 at 11:59 P.M. To access the replay, call (800) 839-2280 (toll free) or (203) 369-3641, 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, 2010. 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.