First Quarter Net Income Increased 16%
First Quarter Reorder Sales Increased 1.8%
POMPANO BEACH, Fla., July 20, 2015 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ:PETS) today announced its financial results for the quarter ended June 30, 2015. Net income was $5.8 million, or $0.29 diluted per share, for the quarter ended June 30, 2015, compared to net income of $5.0 million, or $0.25 diluted per share, for the quarter ended June 30, 2014, a 16% increase to net income. Net sales for the quarter ended June 30, 2015 were $71.6 million, compared to $72.5 million for the quarter ended June 30, 2014, a decrease of 1.3%. The Company’s online sales for the quarter ended June 30, 2015 were approximately 81% of all sales, compared to 80% for the same quarter the prior year.
Menderes Akdag, CEO and President, commented: “We were able to decrease our operational expenses to improve our bottom line results for the quarter ended June 30, 2015. For the quarter ended June 30, 2015 our operating expenses decreased by about 260 basis points, which can be attributed to a reduction in advertising spending. Despite our sales decrease for the quarter we were able to increase our average order size to $82 for the quarter ended June 30, 2015, compared to $78 for the same quarter in the prior year. Reorder sales increased 1.8%, to $59.6 million for the quarter ended June 30, 2015, compared to $58.5 million for the same quarter in the prior year. For the remainder of Fiscal 2016 we are focusing on improving our marketing efforts to increase sales and profitability.”
The Board of Directors declared a quarterly dividend of $0.18 per share on the Company’s common stock. The dividend will be payable on August 14, 2015, to shareholders of record at the close of business on August 3, 2015. 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 Company’s financial performance.
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, 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 July 20, 2015 until August 3, 2015 at 11:59 P.M. To access the replay, call (866) 431-7853 (toll free) or (203) 369-0969, 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 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 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, 2015. 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.
| PETMED EXPRESS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| June 30, | March 31, | |||||||
| 2015 | 2015 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 42,685 | $ | 35,613 | ||||
| Short term investments - available for sale | 15,572 | 15,591 | ||||||
| Accounts receivable, less allowance for doubtful | ||||||||
| accounts of $23 and $8, respectively | 3,089 | 1,931 | ||||||
| Inventories - finished goods | 27,220 | 25,068 | ||||||
| Prepaid expenses and other current assets | 1,541 | 1,380 | ||||||
| Deferred tax assets | 938 | 817 | ||||||
| Total current assets | 91,045 | 80,400 | ||||||
| Noncurrent assets: | ||||||||
| Property and equipment, net | 1,488 | 1,569 | ||||||
| Intangible assets | 860 | 860 | ||||||
| Deferred tax assets | 50 | 23 | ||||||
| Total noncurrent assets | 2,398 | 2,452 | ||||||
| Total assets | $ | 93,443 | $ | 82,852 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 9,980 | $ | 5,153 | ||||
| Accrued expenses and other current liabilities | 2,229 | 2,214 | ||||||
| Income taxes payable | 3,352 | 50 | ||||||
| Total liabilities | 15,561 | 7,417 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $.001 par value, 5,000 shares authorized; | ||||||||
| 3 convertible shares issued and outstanding with a | ||||||||
| liquidation preference of $4 per share | 9 | 9 | ||||||
| Common stock, $.001 par value, 40,000 shares authorized; | ||||||||
| 20,259 and 20,262 shares issued and outstanding, respectively | 20 | 20 | ||||||
| Additional paid-in capital | 3,488 | 3,117 | ||||||
| Retained earnings | 74,454 | 72,343 | ||||||
| Accumulated other comprehensive loss | (89 | ) | (54 | ) | ||||
| Total shareholders' equity | 77,882 | 75,435 | ||||||
| Total liabilities and shareholders' equity | $ | 93,443 | $ | 82,852 | ||||
| PETMED EXPRESS, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
| (In thousands, except for per share amounts) (Unaudited) | |||||||
| Three Months Ended | |||||||
| June 30, | |||||||
| 2015 | 2014 | ||||||
| Sales | $ | 71,634 | $ | 72,541 | |||
| Cost of sales | 48,668 | 48,769 | |||||
| Gross profit | 22,966 | 23,772 | |||||
| Operating expenses: | |||||||
| General and administrative | 5,799 | 5,875 | |||||
| Advertising | 7,885 | 9,896 | |||||
| Depreciation | 191 | 163 | |||||
| Total operating expenses | 13,875 | 15,934 | |||||
| Income from operations | 9,091 | 7,838 | |||||
| Other income (expense): | |||||||
| Interest income, net | 50 | 44 | |||||
| Other, net | (4 | ) | 9 | ||||
| Total other income | 46 | 53 | |||||
| Income before provision for income taxes | 9,137 | 7,891 | |||||
| Provision for income taxes | 3,380 | 2,918 | |||||
| Net income | $ | 5,757 | $ | 4,973 | |||
| Net change in unrealized gain (loss) on short | |||||||
| term investments | (35 | ) | 8 | ||||
| Comprehensive income | $ | 5,722 | $ | 4,981 | |||
| Net income per common share: | |||||||
| Basic | $ | 0.29 | $ | 0.25 | |||
| Diluted | $ | 0.29 | $ | 0.25 | |||
| Weighted average number of common shares outstanding: | |||||||
| Basic | 20,074 | 19,961 | |||||
| Diluted | 20,198 | 20,092 | |||||
| Cash dividends declared per common share | $ | 0.18 | $ | 0.17 | |||
| PETMED EXPRESS, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (In thousands) (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| June 30, | |||||||||
| 2015 | 2014 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 5,757 | $ | 4,973 | |||||
| Adjustments to reconcile net income to net cash | |||||||||
| provided by operating activities: | |||||||||
| Depreciation | 191 | 163 | |||||||
| Share based compensation | 371 | 373 | |||||||
| Deferred income taxes | (148 | ) | (90 | ) | |||||
| Bad debt expense | 168 | 17 | |||||||
| (Increase) decrease in operating assets | |||||||||
| and increase (decrease) in liabilities: | |||||||||
| Accounts receivable | (1,326 | ) | 146 | ||||||
| Inventories - finished goods | (2,152 | ) | 2,840 | ||||||
| Prepaid income taxes | - | 54 | |||||||
| Prepaid expenses and other current assets | (161 | ) | 27 | ||||||
| Accounts payable | 4,827 | 2,821 | |||||||
| Income taxes payable | 3,302 | 2,889 | |||||||
| Accrued expenses and other current liabilities | (18 | ) | 44 | ||||||
| Net cash provided by operating activities | 10,811 | 14,257 | |||||||
| Cash flows from investing activities: | |||||||||
| Net change in investments | (16 | ) | (20 | ) | |||||
| Purchases of property and equipment | (110 | ) | (6 | ) | |||||
| Net cash used in investing activities | (126 | ) | (26 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Dividends paid | (3,613 | ) | (3,395 | ) | |||||
| Net cash used in financing activities | (3,613 | ) | (3,395 | ) | |||||
| Net increase in cash and cash equivalents | 7,072 | 10,836 | |||||||
| Cash and cash equivalents, at beginning of period | 35,613 | 18,305 | |||||||
| Cash and cash equivalents, at end of period | $ | 42,685 | $ | 29,141 | |||||
| Supplemental disclosure of cash flow information: | |||||||||
| Cash paid for income taxes | $ | 226 | $ | 66 | |||||
| Dividends payable in accrued expenses | $ | 245 | $ | 300 | |||||