PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES RECORD FIRST QUARTER FINANCIAL RESULTS - NET INCOME INCREASES 95%
Pompano Beach, Florida, July 25, 2005 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2005. Net income was $3.5 million, or $0.15 diluted per share, for the quarter ended June 30, 2005, compared to net income of $1.8 million, or $0.08 diluted per share, for the quarter ended June 30, 2004, an increase to net income of 95%. Net sales for the quarter ended June 30, 2005 were $43.6 million, compared to $35.3 million for the quarter ended June 30, 2004, an increase of 24%.
The Company acquired approximately 217,000 new customers during the first fiscal quarter compared to 191,000 new customers for the same quarter in the prior year. Approximately 54% of all orders were placed on the Company's website for the first fiscal quarter, compared to 52% for the same quarter in the prior year.
Menderes Akdag, CEO, commented: "We are pleased to report that our retail reorder sales increased by 29%, from $19.9 million to $25.8 million for the quarters ended June 30, 2004 and 2005, respectively. We will continue to focus on reorder sales in fiscal 2006 by initiating more personalized communication with specific relevance to our customers. In addition, our retail new order sales increased by 10% to $16.4 million for the first fiscal quarter compared to $14.9 million for the same quarter in the prior year. The advertising cost of acquiring a new customer for the first fiscal quarter was approximately $35 compared to $41 for the same quarter in the prior year. This 15% improvement in the cost of customer acquisition can be attributed to increased advertising efficiency and more effective advertising creatives. We are also pleased to report that net cash provided by operating activities increased by $6.3 million, from $1.7 million for the quarter ended June 30, 2004 to $8.0 million for the quarter ended June 30, 2005."
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, call (888) 455-1758. 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 25, 2005 until August 8, 2005 at 11:59 P.M. To access the replay, call (800) 964-3941 (toll free), 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, 2005. 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.