PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS THIRD QUARTER FINANCIAL RESULTS
Pompano Beach, Florida, January 24, 2011 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended December 31, 2010. Net sales for the quarter ended December 31, 2010 were $45.1 million, compared to $48.4 million for the quarter ended December 31, 2009, a decrease of 6.7%. Net sales for the nine months ended December 31, 2010 were $180.7 million, compared to $188.0 million for the nine months ended December 31, 2009, a decrease of 3.9%. Net income was $4.5 million, or $0.20 diluted per share, for the quarter ended December 31, 2010, compared to net income of $5.6 million, or $0.25 diluted per share, for the quarter ended December 31, 2009, a 19% decrease to EPS. Net income was $16.7 million, or $0.74 diluted per share, for the nine months ended December 31, 2010, compared to net income of $19.9 million, or $0.88 diluted per share, for the nine months ended December 31, 2009, a 16% decrease to EPS.
Menderes Akdag, President and CEO, commented: "It has been another challenging quarter, due to reduced advertising as a result of tighter television advertising inventory combined with consumers giving greater consideration to price and a softer demand for some of the product categories we offer. Going forward we intend to implement a more aggressive pricing strategy combined with increased advertising, while continuing to expand our product offerings into pet supplies. During the quarter we bought back approximately 66,000 shares of our common stock for $1.0 million, and so far in January we have bought back approximately 101,000 shares of our common stock for $1.6 million. During the quarter we also paid our quarterly dividend of $0.125 per share, an increase of 25% from the prior year. Our cash flows from operations increased to $31.5 million for the nine months ended December 31, 2010 from $28.9 million for the same period the prior year. "
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 January 24, 2011 until February 7, 2011 at 11:59 P.M. To access the replay, call (800) 731-6039 (toll free) or (203) 369-3823, 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.