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PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS – NET SALES INCREASE 21%
Pompano Beach, Florida, January 22, 2007 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended December 31, 2006. Net sales for the quarter ended December 31, 2006 were $31.4 million, compared to $25.9 million for the quarter ended December 31, 2005, an increase of 21%. Net income was $2.8 million, or $0.11 diluted per share, for the quarter ended December 31, 2006, compared to net income of $2.7 million, or $0.11 diluted per share, for the quarter ended December 31, 2005, an increase to net income of 3%. Net sales for the nine months ended December 31, 2006 were $125.8 million, compared to $108.2 million for the nine months ended December 31, 2005, an increase of 16%. Net income was $10.8 million, or $0.44 diluted per share, for the nine months ended December 31, 2006, compared to net income of $8.9 million, or $0.37 diluted per share, for the nine months ended December 31, 2005, an increase to net income of 21%. Approximately 63% of all sales were placed on the Company’s website for the third quarter, compared to 57% for the same quarter in the prior year.
Menderes Akdag, CEO and President, commented: “We are pleased to report that our retail new order sales increased by 27%, from $7.3 million to $9.2 million for the quarters ended December 31, 2005 and 2006, respectively. We acquired approximately 130,000 new customers for the quarter ended December 31, 2006, compared to 105,000 for the same quarter in the prior year. Retail reorder sales increased by 22%, from $18.1 million to $22.1 million for the quarters ended December 31, 2005 and 2006, respectively, and for the nine months ended December 31, 2006 our retail reorder sales increased by 26% to $84.1 million from $66.7 million for the nine months ended December 31, 2005. We are also pleased to report that net cash provided by operating activities increased by $1.6 million, from $13.5 million for the nine months ended December 31, 2005 to $15.1 million for the nine months ended December 31, 2006.
Our focus in 2007 will be on capturing additional market share and on improving our customer service levels. As previously announced, our new 2007 advertising campaign features America’s Sweetheart Betty White and we are excited about teaming up with her to help educate pet owners on keeping their pets healthy through 1-800-PetMeds where they can purchase their pets’ medications conveniently and at a savings. We invite everyone to preview our new commercial at our website, https://www.1800petmeds.com/videos.asp.”
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 10:00 A.M. on January 22, 2007 until 11:59 P.M. on February 5, 2007. To access the replay, call (866) 454-2124 (toll free) or (203) 369-1243, 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.