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PETMED EXPRESS, INC. D/B/A 1-800-PETMEDS ANNOUNCES ITS FINANCIAL RESULTS FOR FISCAL 2015 AND ITS QUARTERLY DIVIDEND RAISED TO $0.18 PER SHAREFourth Quarter Net Income Increased 9.4%
Fourth Quarter Sales Increased 2.8%
Quarterly Dividend Increased 5.9%
Pompano Beach, Florida, May 4, 2015 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2015. Net income for the quarter ended March 31, 2015 was $5.0 million, or $0.25 diluted per share, compared to net income of $4.5 million, or $0.23 diluted per share, for the same quarter the prior year, an increase to net income of 9.4%. Excluding a one-time charge for an IT-related discontinued project in the quarter ended September 30, 2014, net income for the fiscal year ended March 31, 2015 was $18.5 million, or $0.92 diluted per share, compared to net income of $18.0 million, or $0.90 diluted per share, for the fiscal year ended March 31, 2014, an increase to net income of 3.1%. The one-time IT-related discontinued project cost of $1.7 million was expensed in the September quarter. The after tax net impact of this charge was $1.1 million, or $0.05 diluted per share. There are no further charges expected in the future related to this discontinued project. Net sales for the quarter ended March 31, 2015 were $50.0 million, compared to $48.6 million for the quarter ended March 31, 2014, an increase of 2.8%. For the fiscal year ended March 31, 2015 net sales were $229.4 million, compared to $233.4 million for the fiscal year ended March 31, 2014, a decrease of 1.7%. Online sales for the fiscal year ended March 31, 2015 were approximately 80% of all sales, compared to 79% for the prior fiscal year.
Menderes Akdag, President and CEO, commented: "We were able to increase sales for the quarter due to increased reorder sales, and decrease our operational expenses to improve our bottom line results. For the quarter ended March 31, 2015 our operating expenses decreased by about 300 basis points, which can be attributed to a reduction in advertising spending and the leveraging of our general and administrative expenses. Average order value was $81 for the quarter compared to $77 for the prior yearâ€™s same quarter, which was due mainly to a change in product mix to higher priced items and increased doses. Cash flow from operations was $32.0 million for the fiscal year ended March 31, 2015, compared to $13.5 million for the year ended March 31, 2014, with a majority of the increase due to a reduction in inventory. For fiscal 2016 we are focusing on improving our marketing efforts to grow sales and profitability."
The Board of Directors declared an increased quarterly dividend of $0.18 per share on its common stock. The dividend will be payable on May 22, 2015, to shareholders of record at the close of business on May 15, 2015. The Company intends to continue to pay regular quarterly dividends; however the declaration and payment of future dividends is discretionary and will be subject to a determination by the Board of Directors each quarter following its review of the Companyâ€™s financial performance.
This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a conference call to review the year-end financial results. To access the call which is open to the public, dial (888) 455-1758 (toll free) or (203) 827-7025. 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 May 4, 2015 until May 18, 2015 at 11:59 P.M. To access the replay, call (800) 664-4216 (toll free) or (402) 220-0259 and enter passcode 5500.
Founded in 1996, PetMed Express is Americaâ€™s Largest Pet Pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs and cats 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 Companyâ€™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 Managementâ€™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, 2014. The Companyâ€™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.