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PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES FINANCIAL RESULTS FOR FISCAL 2007 – FOURTH QUARTER SALES INCREASE 24%
Pompano Beach, Florida, May 14, 2007 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2007. Net sales for the year ended March 31, 2007 were $162.2 million, compared to $137.6 million for the year ended March 31, 2006, an increase of 18%. Net income was $14.4 million, or $0.60 diluted per share, for the year ended March 31, 2007, compared to net income of $12.1 million, or $0.50 diluted per share, for the year ended March 31, 2006, an increase to net income of 20%. For the year ended March 31, 2007 the Company incurred $893,000 of stock option compensation expense due to the adoption of “Financial Accounting Standard 123R” on April 1, 2006. The Company acquired approximately 681,000 new customers during the fiscal year compared to 624,000 during the prior year. Approximately 62% of all orders were placed on our website during the fiscal year.
For the quarter ended March 31, 2007, net sales were $36.4 million, compared to $29.4 million for the quarter ended March 31, 2006, an increase of 24%. Net income for the quarter ended March 31, 2007 was $3.6 million, or $0.15 diluted per share, compared to net income of $3.1 million, or $0.13 diluted per share, for the same quarter the prior year, an increase to net income of 15%. The Company acquired approximately 132,000 new customers during the fourth fiscal quarter compared to 94,000 new customers for the same quarter in the prior year.
Mendo Akdag, CEO and President, commented: “We are pleased to report that our retail reorder sales increased 25%, from $88.4 million to $110.5 million, for the years ended March 31, 2006 and 2007, respectively. We are also pleased to report that new order sales increased 40%, from $7.1 million to $9.9 million, for the quarters ended March 31, 2006 and 2007, respectively. Our new advertising campaign featuring America’s Sweetheart Betty White, which started in January 2007, was instrumental in decreasing the advertising cost to acquire a new customer by 17%, from $41 to $34 for the quarters ended March 31, 2006 and 2007, respectively. Additionally, net cash provided by operating activities increased by $6.3 million, from $10.3 million for the year ended March 31, 2006 to $16.6 million for the year ended March 31, 2007, an increase of 61%. Our focus in fiscal 2008 will be on capturing additional market share, and improving reorders and our customer service levels.”
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 (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 A.M. on May 14, 2007 until May 28, 2007 at 11:59 P.M. To access the replay, call (866) 507-3617 (toll free) or (203) 369-1891, 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.