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PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS SECOND QUARTER FINANCIAL RESULTS AND ITS $0.17 PER SHARE QUARTERLY DIVIDEND
Pompano Beach, Florida, October 20, 2014 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2014. Net sales for the quarter ended September 30, 2014 were $57.6 million, compared to $60.5 million for the quarter ended September 30, 2013, a decrease of 4.8%. Net sales for the six months ended September 30, 2014 were $130.1 million, compared to $134.7 million for the quarter ended September 30, 2013, a decrease of 3.4%. Excluding a one-time charge for an IT-related discontinued project, net income was $3.8 million, or $0.19 diluted per share, for the quarter ended September 30, 2014, compared to net income of $4.2 million, or $0.21 diluted per share, for the quarter ended September 30, 2013, and net income was $8.8 million, or $0.44 diluted per share, for the six months ended September 30, 2014, compared to net income of $8.9 million, or $0.44 diluted per share, for the six months ended September 30, 2013. 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 was no impact to the Companyâ€™s cash flow and no further charges are expected in the future related to this discontinued project. The Companyâ€™s online sales for the quarter ended September 30, 2014 were approximately 80% of all sales, compared to 79% for the same quarter the prior year.
Menderes Akdag, CEO and President, commented: "While navigating through a shortened flea and tick season, we were able to maintain increased gross profit margins and an increased average order size. For the quarter ended September 30, 2014 our gross profit increased 23 basis points, which can be attributed to a shift in sales to higher margin items. Our average order size increased to $75 for the quarter ended September 30, 2014, compared to $73 for the same quarter in the prior year. Cash from operations was $23.6 million for the quarter ended September 30, 2014, compared to $24.4 million for the quarter ended September 30, 2013. For the remainder of Fiscal 2015 we are focusing on improving our marketing efforts to increase sales."
The Board of Directors declared a quarterly dividend of $0.17 per share on the Companyâ€™s common stock. The dividend will be payable on November 14, 2014, to shareholders of record at the close of business on November 3, 2014. 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 quarterâ€™s financial results. To access the call, which is open to the public, please 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 October 20, 2014 until November 3, 2014 at 11:59 P.M. To access the replay, call (866) 420-4828 (toll free) or (203) 369-0790 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.