Loading, Please Wait...

CST: 20/09/2019 07:42:35   

PetMed Express, Inc. D/B/A 1-800-PetMeds Announces Its Fourth Quarter and Fiscal Year End Financial Results and Declares Its $0.27 Per Share Dividend

136 Days ago

DELRAY BEACH, Fla., May 06, 2019 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2019.  Net sales for the quarter ended March 31, 2019 were $64.6 million, compared to $67.3 million for the quarter ended March 31, 2018, a decrease of 4.1%.  For the fiscal year ended March 31, 2019 net sales were $283.4 million, compared to $273.8 million for the fiscal year ended March 31, 2018, an increase of 3.5%.  Reorder sales for the fiscal year ended March 31, 2019 were $241.8 million, compared to $227.5 million for the year ended March 31, 2018, an increase of 6.3%.  Net income for the quarter ended March 31, 2019 was $6.6 million, or $0.32 diluted per share, compared to net income of $10.2 million, or $0.50 diluted per share, for the same quarter the prior year, a decrease to net income of 35%.  Net income for the fiscal year ended March 31, 2019 was $37.7 million, or $1.84 diluted per share, compared to net income of $37.3 million, or $1.82 diluted per share, for the fiscal year ended March 31, 2018, an increase to net income of 1.2%.  The Company’s online sales for the fiscal year ended March 31, 2019 were approximately 85% of all sales, compared to 84% for the prior year.

Menderes Akdag, President and CEO, commented: “The online pet medication market continued to be more competitive during the quarter, which had a negative effect on our sales and gross margins. Our average order value was $87 for both fiscal 2019 and 2018. Net cash provided by operating activities improved to $45.1 million for fiscal 2019 compared to $37.4 million for fiscal 2018. In fiscal 2020, we will continue to be price competitive, and will increase advertising to promote brand awareness and reinforce brand loyalty to address this more competitive online market. In addition, we will be investing in our e-commerce platform to better service our customers.”

The Board of Directors declared a quarterly dividend of $0.27 per share on its common stock.  The dividend will be payable on May 24, 2019, to shareholders of record at the close of business on May 17, 2019.  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 year-end financial results.  To access the call which is open to the public, 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. Eastern Time on May 6, 2019 until May 20, 2019 at 11:59 P.M.  To access the replay, call (866) 465-0340 (toll free) or (203) 369-1417 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, 2018.  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, 561-526-4444.

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except for per share amounts)
    March 31,   March 31,
    2019   2018
         
ASSETS   (UNAUDITED)    
         
Current assets:        
Cash and cash equivalents $   100,529 $   77,936
Accounts receivable, less allowance for doubtful
  accounts of $39 and $35, respectively
    2,542     2,292
Inventories - finished goods     21,370     23,337
Prepaid expenses and other current assets     1,408     882
Prepaid income taxes     582     788
Total current assets     126,431     105,235
         
Noncurrent assets:        
Property and equipment, net     27,136     28,741
Intangible assets     860     860
Total noncurrent assets     27,996     29,601
         
Total assets $   154,427 $   134,836
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
Current liabilities:        
Accounts payable $   16,275 $   15,274
Accrued expenses and other current liabilities     2,351     2,835
Total current liabilities     18,626     18,109
         
Deferred tax liabilities     1,121     996
         
Total liabilities     19,747     19,105
         
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;        
20,674 and 20,601 shares issued and outstanding, respectively     21     21
Additional paid-in capital     12,478     9,381
Retained earnings     122,172     106,320
         
Total shareholders' equity     134,680     115,731
         
Total liabilities and shareholders' equity $   154,427 $   134,836
         

 

  PETMED EXPRESS, INC. AND SUBSIDIARIES  
  CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  
  (In thousands, except for per share amount)  
                 
      Three Months Ended       Year Ended  
      March 31,       March 31,  
    2019   2018   2019   2018
                 
      (UNAUDITED)       (UNAUDITED)      
Sales   $    64,565  $    67,322  $    283,419  $    273,800
Cost of sales      43,841     42,403     188,105     175,993
                 
Gross profit      20,724     24,919     95,314     97,807
                 
Operating expenses:                 
General and administrative      5,840     6,068     24,767     24,290
Advertising      6,522     4,311     22,148     19,255
Depreciation      560     536     2,225     2,126
Total operating expenses      12,922     10,915     49,140     45,671
                 
Income from operations      7,802     14,004     46,174     52,136
                 
Other income:                 
Interest income, net      549     241     1,864     658
Other, net      256     240     1,083     995
Total other income      805     481     2,947     1,653
                 
Income before provision for income taxes      8,607     14,485     49,121     53,789
                 
Provision for income taxes      1,987     4,302     11,381     16,506
                 
Net income   $    6,620  $    10,183  $    37,740  $    37,283
                 
Comprehensive income   $    6,620  $    10,183  $    37,740  $    37,283
                 
Net income per common share:                 
Basic   $    0.32  $    0.50  $    1.84  $    1.83
Diluted   $    0.32  $    0.50  $    1.84  $    1.82
                 
Weighted average number of common shares outstanding:             
Basic      20,491     20,375     20,461     20,346
Diluted      20,501     20,422     20,491     20,433
                 
 Cash dividends declared per common share   $    0.27  $    0.25  $    1.06  $    0.85

 

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
      Year Ended  
      March 31,  
    2019    2018 
    (UNAUDITED)    
Cash flows from operating activities:         
Net income   $    37,740    $    37,283  
Adjustments to reconcile net income to net cash
  provided by operating activities: 
       
Depreciation      2,225       2,126  
Share based compensation      3,097       2,575  
Deferred income taxes      125       (92 )
Bad debt expense      85       112  
(Increase) decrease in operating assets
  and increase (decrease) in liabilities: 
       
Accounts receivable      (335 )     (596 )
Inventories - finished goods      1,967       (3,109 )
Prepaid income taxes      206       (788 )
Prepaid expenses and other current assets      (526 )     137  
Accounts payable      1,001       53  
Accrued expenses and other current liabilities      (447 )     337  
Income taxes payable      -        (659 )
Net cash provided by operating activities      45,138       37,379  
         
Cash flows from investing activities:         
Purchases of property and equipment      (620 )     (703 )
Net cash used in investing activities      (620 )     (703 )
         
Cash flows from financing activities:         
Dividends paid      (21,925 )     (17,470 )
Net cash used in financing activities      (21,925 )     (17,470 )
         
Net increase in cash and cash equivalents      22,593       19,206  
         
Cash and cash equivalents, at beginning of year      77,936       58,730  
         
Cash and cash equivalents, at end of year   $    100,529    $    77,936  
         
Supplemental disclosure of cash flow information:         
         
Cash paid for income taxes   $    11,051    $    18,046  
         
Dividends payable in accrued expenses   $    203    $    240  

Is your business listed correctly on America’s largest city directory network of 1,000 portals?