PetMed Express Inc. (PETS, Financial) filed Quarterly Report for the period ended 2010-09-30.
Petmed Express Inc. has a market cap of $355.4 million; its shares were traded at around $15.45 with a P/E ratio of 14.6 and P/S ratio of 1.5. The dividend yield of Petmed Express Inc. stocks is 3.3%. Petmed Express Inc. had an annual average earning growth of 33.4% over the past 10 years.PETS is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
General and administrative expenses decreased by approximately $64,000, or 1.1%, to approximately $5.7 million for the quarter ended September 30, 2010, from approximately $5.8 million for the quarter ended September 30, 2009. For the six months ended September 30, 2010, general and administrative expenses decreased by approximately $349,000, or 2.8%, to approximately $11.9 million compared to general and administrative expenses of approximately $12.3 million for the six months ended September 30, 2009. The decrease in general and administrative expenses for the three months ended September 30, 2010 was primarily due to the following: a $72,000 decrease to payroll expenses related to a reduction of employees in the customer care, pharmacy, and warehouse departments, offset by an increase in stock compensation; a $37,000 decrease in insurance expenses, due to a reduction in insurance premiums; and a $34,000 net decrease in other expenses, including bad debt expense, credit card and bank service fees, travel expenses, and license fees. Offsetting the decrease was a $72,000 increase in professional fees, which includes legal and pharmacy fees, and a $7,000 net increase to property and telephone expenses.
Advertising expenses increased by approximately $823,000, or 10.6%, to approximately $8.6 million for the quarter ended September 30, 2010, from approximately $7.8 million for the quarter ended September 30, 2009. For the six months ended September 30, 2010, advertising expenses decreased by approximately $209,000, or 1.2%, to approximately $17.4 million compared to advertising expenses of approximately $17.6 million for the six months ended September 30, 2009. The increase in advertising spend for the quarter ended September 30, 2010 was due to the Companys plan to commit certain amounts specifically towards television, direct mail/print, and online advertising to stimulate sales, acquire new customers, and create brand awareness. During the quarter the Company paid more to advertise, which resulted in an increase in the advertising cost to acquire a new customer. The advertising costs of acquiring a new customer, defined as total advertising costs divided by new customers acquired, increased to $46 for the quarter ended September 30, 2010, compared to $33 for the quarter ended September 30, 2009, and $43 for the six months ended September 30, 2010 compared to $33 for the six months ended September 30, 2009. Advertising cost of acquiring a new customer can be impacted by the advertising environment, the effectiveness of our advertising creative, increased advertising spending, and price competition from veterinarians and other retailers of pet medications.
Depreciation and amortization expenses decreased by approximately $8,000, or 2.5%, to approximately $315,000 for the quarter ended September 30, 2010, from approximately $323,000 for the quarter ended September 30, 2009. Depreciation and amortization expenses increased by approximately $20,000, or 3.1%, to approximately $665,000 for the six months ended September 30, 2010, from approximately $645,000 for the six months ended September 30, 2009.
Other income increased by approximately $72,000, to approximately $131,000 for the quarter ended September 30, 2010 from approximately $59,000 for the quarter ended September 30, 2009. Other income increased by approximately $78,000, to approximately $200,000 for the six months ended September 30, 2010 from approximately $122,000 for the six months ended September 30, 2009. The increase to other income can be primarily attributed to increased interest income due to increased cash and investment balances and increased interest rates. Interest income may decrease in the future as the Company utilizes its cash balances on its $20.0 million share repurchase plan, with approximately $5.7 million remaining as of September 30, 2010, on any quarterly dividend payment, or on its operating activities.
The Companys working capital at September 30, 2010 and March 31, 2010 was $84.8 million and $79.4 million, respectively. The $5.4 million increase in working capital was primarily attributable to cash flow generated from operations. Net cash provided by operating activities was $26.7 million and $26.1 million for the six months ended September 30, 2010 and 2009, respectively. Net cash used in investing activities was $10.4 million for the six months ended September 30, 2010, compared to net cash provided for investing activities of $1.6 million for the six months ended September 30, 2009. This change can be attributed to an increase in the Companys short term investments during the six months. Net cash used in financing activities was $9.0 million and $1.6 million for the six months ended September 30, 2010 and 2009, respectively. This change was primarily due to the Company paying approximately $5.1 million in dividends for the six months ended September 30, 2010, and purchasing 260,000 shares of its common stock for approximately $4.2 million during the first six months of fiscal 2011, compared to the Company paying approximately $2.3 million in dividends and not purchasing any shares of its common stock during the first six months of fiscal 2010. As of September 30, 2010 the Company had approximately $5.7 million remaining under the Companys share repurchase plan.
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Petmed Express Inc. has a market cap of $355.4 million; its shares were traded at around $15.45 with a P/E ratio of 14.6 and P/S ratio of 1.5. The dividend yield of Petmed Express Inc. stocks is 3.3%. Petmed Express Inc. had an annual average earning growth of 33.4% over the past 10 years.PETS is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Cost of sales increased by approximately $150,000, or 0.4%, to approximately $38.9 million for the quarter ended September 30, 2010, from approximately $38.8 million for the quarter ended September 30, 2009. For the six months ended September 30, 2010, cost of sales decreased by approximately $589,000, or 0.7%, to approximately $86.1 million compared to $86.6 million for the same period in the prior year. The decrease in cost of sales is directly related to the decrease in sales for the six months ended September 30, 2010 compared to the six months ended September 30, 2009. As a percent of sales, the cost of sales was 63.5% and 62.1% for the quarters and six months ended September 30, 2010 and 2009, respectively. The percentage increase can be mainly attributed to more aggressive sales promotions and increases in our product costs.General and administrative expenses decreased by approximately $64,000, or 1.1%, to approximately $5.7 million for the quarter ended September 30, 2010, from approximately $5.8 million for the quarter ended September 30, 2009. For the six months ended September 30, 2010, general and administrative expenses decreased by approximately $349,000, or 2.8%, to approximately $11.9 million compared to general and administrative expenses of approximately $12.3 million for the six months ended September 30, 2009. The decrease in general and administrative expenses for the three months ended September 30, 2010 was primarily due to the following: a $72,000 decrease to payroll expenses related to a reduction of employees in the customer care, pharmacy, and warehouse departments, offset by an increase in stock compensation; a $37,000 decrease in insurance expenses, due to a reduction in insurance premiums; and a $34,000 net decrease in other expenses, including bad debt expense, credit card and bank service fees, travel expenses, and license fees. Offsetting the decrease was a $72,000 increase in professional fees, which includes legal and pharmacy fees, and a $7,000 net increase to property and telephone expenses.
Advertising expenses increased by approximately $823,000, or 10.6%, to approximately $8.6 million for the quarter ended September 30, 2010, from approximately $7.8 million for the quarter ended September 30, 2009. For the six months ended September 30, 2010, advertising expenses decreased by approximately $209,000, or 1.2%, to approximately $17.4 million compared to advertising expenses of approximately $17.6 million for the six months ended September 30, 2009. The increase in advertising spend for the quarter ended September 30, 2010 was due to the Companys plan to commit certain amounts specifically towards television, direct mail/print, and online advertising to stimulate sales, acquire new customers, and create brand awareness. During the quarter the Company paid more to advertise, which resulted in an increase in the advertising cost to acquire a new customer. The advertising costs of acquiring a new customer, defined as total advertising costs divided by new customers acquired, increased to $46 for the quarter ended September 30, 2010, compared to $33 for the quarter ended September 30, 2009, and $43 for the six months ended September 30, 2010 compared to $33 for the six months ended September 30, 2009. Advertising cost of acquiring a new customer can be impacted by the advertising environment, the effectiveness of our advertising creative, increased advertising spending, and price competition from veterinarians and other retailers of pet medications.
Depreciation and amortization expenses decreased by approximately $8,000, or 2.5%, to approximately $315,000 for the quarter ended September 30, 2010, from approximately $323,000 for the quarter ended September 30, 2009. Depreciation and amortization expenses increased by approximately $20,000, or 3.1%, to approximately $665,000 for the six months ended September 30, 2010, from approximately $645,000 for the six months ended September 30, 2009.
Other income increased by approximately $72,000, to approximately $131,000 for the quarter ended September 30, 2010 from approximately $59,000 for the quarter ended September 30, 2009. Other income increased by approximately $78,000, to approximately $200,000 for the six months ended September 30, 2010 from approximately $122,000 for the six months ended September 30, 2009. The increase to other income can be primarily attributed to increased interest income due to increased cash and investment balances and increased interest rates. Interest income may decrease in the future as the Company utilizes its cash balances on its $20.0 million share repurchase plan, with approximately $5.7 million remaining as of September 30, 2010, on any quarterly dividend payment, or on its operating activities.
The Companys working capital at September 30, 2010 and March 31, 2010 was $84.8 million and $79.4 million, respectively. The $5.4 million increase in working capital was primarily attributable to cash flow generated from operations. Net cash provided by operating activities was $26.7 million and $26.1 million for the six months ended September 30, 2010 and 2009, respectively. Net cash used in investing activities was $10.4 million for the six months ended September 30, 2010, compared to net cash provided for investing activities of $1.6 million for the six months ended September 30, 2009. This change can be attributed to an increase in the Companys short term investments during the six months. Net cash used in financing activities was $9.0 million and $1.6 million for the six months ended September 30, 2010 and 2009, respectively. This change was primarily due to the Company paying approximately $5.1 million in dividends for the six months ended September 30, 2010, and purchasing 260,000 shares of its common stock for approximately $4.2 million during the first six months of fiscal 2011, compared to the Company paying approximately $2.3 million in dividends and not purchasing any shares of its common stock during the first six months of fiscal 2010. As of September 30, 2010 the Company had approximately $5.7 million remaining under the Companys share repurchase plan.
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