updated 5/9/2011 8:15:49 AM ET 2011-05-09T12:15:49

POMPANO BEACH, Fla., May 9, 2011 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (Nasdaq:PETS) today announced its financial results for the fiscal year ended March 31, 2011. Net sales for the year ended March 31, 2011 were $231.6 million, compared to $238.3 million for the year ended March 31, 2010, a decrease of 2.8%. For the quarter ended March 31, 2011, net sales were $50.9 million, compared to $50.3 million for the quarter ended March 31, 2010, an increase of 1.2%. Net income was $20.9 million, or $0.92 diluted per share, for the year ended March 31, 2011, compared to net income of $26.0 million, or $1.14 diluted per share, for the year ended March 31, 2010, a decrease to earnings per share of 19%. Net income for the quarter ended March 31, 2011 was $4.1 million, or $0.19 diluted per share, compared to net income of $6.1 million, or $0.27 diluted per share, for the same quarter the prior year, a decrease to earnings per share of 30%. Reorder sales for the year ended March 31, 2011 were $184.3 million, compared to $177.8 million for the year ended March 31, 2010, an increase of 3.7%. Reorder sales for the quarter ended March 31, 2011 were $41.5 million, compared to $40.4 million for the quarter ended March 31, 2010, an increase of 2.7%. The Company acquired approximately 645,000 new customers during fiscal 2011 compared to 815,000 during fiscal 2010, and for the quarter ended March 31, 2011, the Company acquired approximately 130,000 customers compared to 134,000 for the quarter ended March 31, 2010. 

Menderes Akdag, President and CEO, commented: "It has been a challenging year, which can be attributed to increased customer acquisition costs and decreased new order sales due to increased competition, along with consumers giving greater consideration to price and a softer demand for some of the product categories we offer. To address the decline in sales we implemented a more aggressive pricing strategy combined with increased advertising, while continuing to expand our product offerings into pet supplies. Our cash flows from operations increased to $30.1 million for the year ended March 31, 2011 from $27.7 million for the prior fiscal year. During the quarter we bought back approximately 465,000 shares of our common stock for $7.0 million, and for the fiscal year we bought back approximately 791,000 shares of our common stock for $12.2 million. During the fiscal year, we increased our quarterly dividends to $0.125 per share, an increase of 25% from the prior year."

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 (210) 234-0009. 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 May 9, 2011 until May 23, 2011 at 11:59 P.M. To access the replay, call (866) 459-3511 (toll free) or (203) 369-1325 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, 2010. 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
CONSOLIDATED BALANCE SHEETS
(In thousands)
  March 31,

2011
March 31,

2010
     
ASSETS    
     
Current assets:    
Cash and cash equivalents $ 49,660 $ 53,143
Short term investments - available for sale  10,116  -- 
Accounts receivable, less allowance for doubtful

accounts of $6 and $5, respectively
 1,985  2,097
Inventories - finished goods  25,140  29,064
Prepaid expenses and other current assets  1,036  610
Deferred tax assets  1,003  1,255
Prepaid income taxes  664  330
Total current assets  89,604  86,499
     
Long term investments  12,390  12,392
Property and equipment, net  3,433  4,429
Intangible asset  860  850
     
Total assets $ 106,287 $ 104,170
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
Current liabilities:    
Accounts payable $ 6,452 $ 4,776
Accrued expenses and other current liabilities  2,509  2,312
Total current liabilities  8,961  7,088
     
Deferred tax liabilities  321  225
     
Total liabilities:  9,282  7,313
     
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;

22,331 and 22,990 shares issued and outstanding, respectively
 22  23
Additional paid-in capital  --   2,628
Retained earnings  97,115  94,305
Accumulated other comprehensive loss  (141)  (108)
     
Total shareholders' equity  97,005  96,857
     
Total liabilities and shareholders' equity $ 106,287 $ 104,170
 
 
 PETMED EXPRESS, INC. AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF INCOME 
 (In thousands, except for per share amount) 
         
     
  Three Months Ended

March 31, 
Year Ended 

March 31, 
  2011 2010 2011 2010
   (UNAUDITED)     
 Sales  $ 50,910 $ 50,296 $ 231,642 $ 238,266
 Cost of sales   33,435  30,231  147,686  146,405
         
 Gross profit   17,475  20,065  83,956  91,861
         
 Operating expenses:         
 General and administrative   5,183  5,143  22,200  22,341
 Advertising   5,497  4,856  27,357  27,657
 Depreciation and amortization   352  339  1,375  1,321
 Total operating expenses   11,032  10,338  50,932  51,319
         
 Income from operations   6,443  9,727  33,024  40,542
         
 Other income (expense):         
 Interest income, net   116  32  381  196
 Other, net   (17)  --   (128)  4
 Loss on disposal of property and equipment   --   --   --   -- 
 Total other income (expense)   99  32  253  200
         
 Income before provision for income taxes   6,542  9,759  33,277  40,742
         
 Provision for income taxes   2,395  3,687  12,406  14,740
         
 Net income  $ 4,147 $ 6,072 $ 20,871 $ 26,002
         
 Net income per common share:         
 Basic  $ 0.19 $ 0.27 $ 0.93 $ 1.15
 Diluted  $ 0.19 $ 0.27 $ 0.92 $ 1.14
         
 Weighted average number of common shares outstanding:         
 Basic   22,208  22,680  22,514  22,617
 Diluted   22,309  22,759  22,643  22,746
         
 Cash dividends declared per common share  $ 0.125 $ 0.100 $ 0.475 $ 0.300
 
 
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands) 
   Year Ended March 31, 
  2011 2010 2009
 Cash flows from operating activities:       
Net income  $ 20,871 $ 26,002 $ 22,976
Adjustments to reconcile net income to net cash 

provided by operating activities: 
     
Depreciation and amortization   1,375  1,321  815
Share based compensation   2,171  1,594  1,464
Deferred income taxes   348  (305)  497
Loss on disposal of property and equipment   --   --   9
Bad debt expense   48  18  74
(Increase) decrease in operating assets 

and increase (decrease) in liabilities: 
     
Accounts receivable   64  766  (1,380)
Inventories - finished goods   3,924  (2,286)  (8,868)
Prepaid income taxes   (335)  32  (362)
Prepaid expenses and other current assets   (426)  144  (62)
Accounts payable   1,964  313  (313)
Income taxes payable   --   --   (185)
Accrued expenses and other current liabilities   102  86  301
Net cash provided by operating activities   30,106  27,685  14,966
       
Cash flows from investing activities:       
Net change in investments   (10,146)  2,150  14,870
Purchases of property and equipment   (667)  (1,047)  (3,208)
Purchases of intangible asset   (10)  --   (485)
Net proceeds from the sale of property and equipment   --   --   2
Net cash (used in) provided by investing activities   (10,823)  1,103  11,179
       
Cash flows from financing activities:       
Dividends paid   (10,727)  (6,805)  -- 
Purchases of treasury stock   (12,247)  --   (18,448)
Proceeds from the exercise of stock options   340  735  1,893
Tax benefit related to stock options exercised   --   299  268
Tax adjustment related to stock compensation   (132)  --   -- 
Net cash used in financing activities   (22,766)  (5,771)  (16,287)
       
Net increase (decrease) in cash and cash equivalents   (3,483)  23,017  9,858
Cash and cash equivalents, at beginning of year   53,143  30,126  20,268
       
Cash and cash equivalents, at end of year  $ 49,660 $ 53,143 $ 30,126
       
Supplemental disclosure of cash flow information:       
       
Cash paid for income taxes  $ 12,578 $ 14,719 $ 16,462
       
Retirement of treasury stock  $ 12,247 $ --  $ 18,482
       
Property and equipment purchases in accounts payable  $ 130 $ 418 $ 772
       
Dividends payable in accrued expenses  $ 143 $ 48 $ -- 
CONTACT: For investment relations contact PetMed Express, Inc.
         Bruce S. Rosenbloom, CFO
         954-979-5995

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.94%
$30K home equity loan FICO 5.19%
$75K home equity loan FICO 4.58%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.40%
13.40%
Cash Back Cards 17.92%
17.91%
Rewards Cards 17.12%
17.11%
Source: Bankrate.com