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PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES RECORD FINANCIAL RESULTS FOR FISCAL 2008 – PROFITS INCREASED 39% TO EPS $0.82
Pompano Beach, Florida, May 12, 2008 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2008. Net sales for the year ended March 31, 2008 were $188.3 million, compared to $162.2 million for the year ended March 31, 2007, an increase of 16%. Net income was $20.0 million, or $0.82 diluted per share, for the year ended March 31, 2008, compared to net income of $14.4 million, or $0.60 diluted per share, for the year ended March 31, 2007, an increase to net income of 39%. For the quarter ended March 31, 2008, net sales were $40.4 million, compared to $36.4 million for the quarter ended March 31, 2007, an increase of 11%. Net income for the quarter ended March 31, 2008 was $4.9 million, or $0.20 diluted per share, compared to net income of $3.6 million, or $0.15 diluted per share, for the same quarter the prior year, an increase to net income of 35%. The Company acquired approximately 710,000 new customers during the fiscal year compared to 681,000 during the prior year. Approximately 65% of all orders were placed on its website during the fiscal year, compared to 62% during the prior year.
Mendo Akdag, CEO and President, commented: “We are proud to report high profitability for the year, which can be attributed to strong reorder growth and our success in leveraging operating expenses. Our retail reorder sales increased 22%, from $110.5 million to $134.3 million, for the years ended March 31, 2007 and 2008, respectively. Our operating expenses as a percent of sales improved 200 basis points for the fiscal year ended March 31, 2008 compared to the prior fiscal year. We are pleased to report that our Internet sales increased by 21% to $122.5 million for the year ended March 31, 2008, compared to $100.9 million for the prior fiscal year. During the fiscal year we repurchased approximately 952,000 shares of our outstanding common stock for approximately $11.6 million, pursuant to the Company’s $20.0 million stock buy back plan, averaging approximately $12.19 per share. Our focus in fiscal 2009 will be on capturing additional market share, and improving reorders and our customer service levels. We have agreed to extend our current lease for our corporate headquarters until 2012, and have added another 15,000 square feet, primarily for the extension of our warehouse and pharmacy operations, in order to support our future growth.”
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 (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 A.M. on May 12, 2008 until May 26, 2008 at 11:59 P.M. To access the replay, call (800) 839-1176 (toll free) or (402) 998-1048, 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, 2007. 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.