PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS – NET INCOME INCREASES 30% TO RECORD $0.25 EPS
Pompano Beach, Florida, July 23, 2007 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2007. Net income was $6.2 million, or $0.25 diluted per share, for the quarter ended June 30, 2007, compared to net income of $4.8 million, or $0.20 diluted per share, for the quarter ended June 30, 2006, an increase to net income of 30.2%. A one-time income tax-related net benefit was recognized in the quarter ended June 30, 2007, resulting in an increase to diluted earnings of one-half of a penny ($0.005) per share. Net sales for the quarter ended June 30, 2007 were $59.0 million, compared to $50.7 million for the quarter ended June 30, 2006, an increase of 16.5%. Reorder sales increased by 18%, from $33.9 million to $40.0 million for the quarters ended June 30, 2006 and 2007, respectively.
Menderes Akdag, CEO and President, commented: “We are pleased to report that our new order sales increased by 15%, from $16.5 million to $19.0 million for the quarters ended June 30, 2006 and 2007, respectively. We were also more efficient with our advertising spending this quarter, with a new customer acquisition cost of $36 for the quarter, compared to $40 for the same quarter in the prior year. We acquired approximately, 236,000 new customers for our first fiscal quarter compared to 207,000 for the same quarter in the prior year. We are also pleased to report that our Internet sales increased by 26%, to $37.9 million for the quarter ended June 30, 2007, compared to $30.1 million for the same quarter in the prior year. Approximately 64% of all sales were placed on the Company’s website for the first fiscal quarter, compared to 59% for the same quarter in the prior year. We will continue to focus on capturing additional market share, and on improving reorders and our customer service levels in fiscal 2008. Additionally, the Company repurchased 117,300 shares of its outstanding common stock for approximately $1,512,000 during the first quarter of fiscal 2008.”
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) 889-4951 (toll free) or (210) 839-8505. 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 July 23, 2007 until August 7, 2007 at 11:59 P.M. To access the replay, call (888) 568-0812 (toll free) or (402) 998-0239, 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.