DELRAY BEACH, Fla., July 31, 2023 (GLOBE NEWSWIRE) -- PetMed Express, Inc. ( PETS) (“PetMeds” or “Company”), Your Trusted Pet Health Expert™, today announced its financial results for its first quarter ended June 30, 2023.
Quarterly Highlights
- Net sales for the quarter ended June 30, 2023, were $78.2 million, compared to $70.2 million for the first quarter in the prior year, an increase of 11.5%.
- PetMeds reported an increase in new customers of 25% year over year for the quarter ended June 30, 2023, representing the third consecutive quarter of new customer growth. This includes new customers from the PetCareRx acquisition.
- Net loss for the quarter ended June 30, 2023 was $(0.9) million, or $(0.04) per diluted share, including $1.1 million of acquisition related costs expensed in the quarter. The quarterly results compare to net income of $2.8 million, or $0.14 diluted earnings per share, for the prior year quarter ended June 30, 2022.
- Adjusted EBITDA1 of $3.3 million for the current year quarter, compared to Adjusted EBITDA of $6.3 million, for the quarter ended June 30, 2022, a decrease of 47%. The decrease was due to increased gross profit and other income, offset by higher G&A expenses and advertising expenses.
- PetMeds successfully closed on the acquisition of PetCareRx on April 3, 2023 and is including almost a full quarter of results in the consolidated results ended June 30, 2023.
"This quarter's performance is a pivotal step in our Company's transformative path,” said Matt Hulett, CEO and President. “After over two years of declining revenues, we have successfully achieved year-over-year growth in our top line.” Hulett continued, “Not only did revenue increase by 11.5%, year-over-year, but 49% of our total revenue was derived from recurring sources such as our AutoShip subscription and PetPlus membership programs. Our journey towards becoming a leader in comprehensive pet health expertise is showing promising progress. The acquisition of PetCareRx has unlocked tremendous growth opportunities, allowing us to expand our product catalog and capitalize on synergies between the two. "
The Board of Directors declared a quarterly dividend of $0.30 per share on the Company’s common stock. The dividend will be payable on August 18, 2023, to shareholders of record at the close of business on August 14, 2023. The declaration and payment of future dividends is discretionary and will be subject to the determination by the Board of Directors.
This afternoon the Company will host a conference call to review the quarter’s financial results.
Time: 4:30 P.M. Eastern Time, July 31, 2023
Public call dial in (877) 407-0789 (toll free) or (201) 689-8562.
Webcast stream link: https://investors.petmeds.com/overview/default.aspx for those who wish to stream the call via webcast.
Replay: Available until August 14, 2023, at 11:59 P.M Eastern Time.
To access the replay, call (844) 512-2921 (toll free) or (412) 317-6671 and enter passcode 13740086.
Founded in 1996, PetMeds is Your Trusted Pet Health Expert™, providing prescription and non-prescription medications, food, supplements, supplies and vet services for dogs, cats, and horses at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and through its website at www.petmeds.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 the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023. 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-Qs and its Annual Reports on Form 10-K.
PETMEDS INVESTOR RELATIONS CONTACT
Brian M. Prenoveau, CFA
MZ Group
561-489-5315
[email protected]
PETMEDS MEDIA CONTACT
Mary Eva Tredway
Butin PR
[email protected]
| PETMED EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for per share data) | |||||
| June 30, 2023 | March 31, 2023 | ||||
| (Unaudited) | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 61,534 | $ | 104,086 | |
| Accounts receivable, less allowance for doubtful accounts of $38 and $35, respectively | 1,894 | 1,740 | |||
| Inventories - finished goods | 32,324 | 19,023 | |||
| Prepaid expenses and other current assets | 8,530 | 4,719 | |||
| Prepaid income taxes | 1,548 | 1,883 | |||
| Total current assets | 105,830 | 131,451 | |||
| Noncurrent assets: | |||||
| Property and equipment, net | 27,207 | 26,178 | |||
| Intangible and other assets, net | 17,671 | 5,860 | |||
| Goodwill | 20,735 | – | |||
| Operating lease right-of-use assets, net | 2,024 | – | |||
| Deferred tax assets, net | 7,270 | 628 | |||
| Total noncurrent assets | 74,907 | 32,666 | |||
| Total assets | $ | 180,737 | $ | 164,117 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 40,037 | $ | 25,208 | |
| Accrued expenses and other current liabilities | 13,240 | 11,289 | |||
| Current lease liabilities | 799 | – | |||
| Deferred revenue | 3,246 | – | |||
| Total current liabilities | 57,322 | 36,497 | |||
| Long-term lease liabilities | 1,268 | – | |||
| Other long-term liabilities | 3,825 | 3,825 | |||
| Total liabilities | 62,415 | 40,322 | |||
| 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, $0.001 par value, 40,000 shares authorized; 21,170 and 21,084 shares issued and outstanding, respectively | 21 | 21 | |||
| Additional paid-in capital | 20,037 | 18,277 | |||
| Retained earnings | 98,255 | 105,488 | |||
| Total shareholders' equity | 118,322 | 123,795 | |||
| Total liabilities and shareholders' equity | $ | 180,737 | $ | 164,117 | |
| PETMED EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except for per share amounts) (Unaudited) | |||||||
| Three Months Ended June 30, | |||||||
| 2023 | 2022 | ||||||
| Sales | $ | 78,244 | $ | 70,187 | |||
| Cost of sales | 55,718 | 50,244 | |||||
| Gross profit | 22,526 | 19,943 | |||||
| Operating expenses: | |||||||
| General and administrative | 15,711 | 9,351 | |||||
| Advertising | 7,265 | 6,349 | |||||
| Depreciation and amortization | 1,678 | 753 | |||||
| Total operating expenses | 24,654 | 16,453 | |||||
| (Loss) income from operations | (2,128 | ) | 3,490 | ||||
| Other income: | |||||||
| Interest income, net | 620 | 117 | |||||
| Other, net | 506 | 198 | |||||
| Total other income | 1,126 | 315 | |||||
| (Loss) income before (benefit) provision for income taxes | (1,002 | ) | 3,805 | ||||
| (Benefit) provision for income taxes | (115 | ) | 1,030 | ||||
| Net (loss) income | $ | (887 | ) | $ | 2,775 | ||
| Net (loss) income per common share: | |||||||
| Basic | $ | (0.04 | ) | $ | 0.14 | ||
| Diluted | $ | (0.04 | ) | $ | 0.14 | ||
| Weighted average number of common shares outstanding: | |||||||
| Basic | 20,333 | 20,208 | |||||
| Diluted | 20,333 | 20,291 | |||||
| Cash dividends declared per common share | $ | 0.30 | $ | 0.30 | |||
| PETMED EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
| Three Months Ended June 30, | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (887 | ) | $ | 2,775 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 1,678 | 753 | |||||
| Share based compensation | 1,760 | 1,536 | |||||
| Deferred income taxes | (450 | ) | (294 | ) | |||
| Bad debt expense | 19 | 45 | |||||
| (Increase) decrease in operating assets and increase (decrease) in operating liabilities: | |||||||
| Accounts receivable | (46 | ) | 86 | ||||
| Inventories - finished goods | (10,185 | ) | 9,880 | ||||
| Prepaid income taxes | 335 | 681 | |||||
| Prepaid expenses and other current assets | (2,390 | ) | 451 | ||||
| Operating lease right-of-use assets, net | 196 | – | |||||
| Accounts payable | 9,115 | (10,469 | ) | ||||
| Accrued expenses and other current liabilities | 1,369 | 97 | |||||
| Lease liabilities | (205 | ) | – | ||||
| Deferred revenue | 253 | – | |||||
| Income taxes payable | – | 839 | |||||
| Net cash provided by operating activities | $ | 562 | $ | 6,380 | |||
| Cash flows from investing activities: | |||||||
| Purchase of minority interest investment in Vetster | – | (5,000 | ) | ||||
| Acquisition of PetCareRx, net of cash acquired | (35,859 | ) | – | ||||
| Purchases of property and equipment | (1,153 | ) | (982 | ) | |||
| Net cash used in investing activities | $ | (37,012 | ) | $ | (5,982 | ) | |
| Cash flows from financing activities: | |||||||
| Dividends paid | (6,102 | ) | (6,064 | ) | |||
| Net cash used in financing activities | $ | (6,102 | ) | $ | (6,064 | ) | |
| Net decrease in cash and cash equivalents | (42,552 | ) | (5,666 | ) | |||
| Cash and cash equivalents, at beginning of period | 104,086 | 111,080 | |||||
| Cash and cash equivalents, at end of period | $ | 61,534 | |||||
