PetMed Express Inc. (PETS, Financial) filed Quarterly Report for the period ended 2009-12-31.
Petmed Express Inc. has a market cap of $420.96 million; its shares were traded at around $18.43 with a P/E ratio of 16.17 and P/S ratio of 1.92. The dividend yield of Petmed Express Inc. stocks is 2.17%. Petmed Express Inc. had an annual average earning growth of 27.2% over the past 5 years.
Gross profit increased by approximately $1.5 million, or 8.7%, to approximately $18.8 million for the quarter ended December 31, 2009, from approximately $17.3 million for the quarter ended December 31, 2008. For the nine months ended December 31, 2009, gross profit increased by approximately $5.8 million, or 8.8%, to approximately $71.8 million compared to $66.0 million for the same period in the prior year. The increase in gross profit is directly related to the increase in sales in the quarter and nine months ended December 31, 2009 compared to the quarter and nine months ended December 31, 2008. Gross profit as a percentage of sales was 38.9% and 39.9% for the three months ended December 31, 2009 and 2008, respectively, and for the nine months ended December 31, 2009 and 2008, the gross profit was 38.2% and 38.5%, respectively. The percentage decrease for the three months can be attributed to increases in our product costs. The percentage decrease for the nine months can also be attributed to increases in our product costs, offset by a reduction in freight expenses due to a shift from priority to standard shipping.
General and administrative expenses decreased by approximately $90,000, or 1.8%, to approximately $4.9 million for the quarter ended December 31, 2009, from approximately $5.0 million for the quarter ended December 31, 2008. For the nine months ended December 31, 2009, general and administrative expenses increased by approximately $751,000, or 4.6%, to approximately $17.2 million compared to general and administrative expenses of approximately $16.5 million for the nine months ended December 31, 2008. The decrease in general and administrative expenses for the three months ended December 31, 2009 was primarily due to the following: a $242,000 decrease to professional fees, with the majority of the decrease relating to legal and pharmacy fees and a $34,000 decrease to other expenses, including bad debt expenses and office expenses. Offsetting the decrease was an $80,000 increase to property expenses which can be directly attributed to increased rent due to the 15,000 square feet warehouse and pharmacy expansion; a $68,000 increase in credit card and bank service fees which is directly attributable to increased sales in the quarter; and a net $38,000 increase in other expenses, including payroll expenses, license fees, and insurance expenses.
Advertising expenses increased by approximately $277,000, or 5.7%, to approximately $5.2 million for the quarter ended December 31, 2009, from approximately $4.9 million for the quarter ended December 31, 2008. For the nine months ended December 31, 2009, advertising expenses decreased by approximately $819,000, or 3.5%, to approximately $22.8 million compared to advertising expenses of approximately $23.6 million for the nine months ended December 31, 2008. The decrease in advertising expenses for the nine months can be mainly attributed to a shortage in the remnant television advertising inventory. During the quarter the Company planned to commit certain amounts specifically designated towards television, direct mail/print, and online advertising to stimulate sales, create brand awareness, and acquire new customers. The advertising costs of acquiring a new customer, defined as total advertising costs divided by new customers acquired, was $34 for the quarter ended December 31, 2009 and $33 for the nine months ended December 31, 2009, compared to $32 for the quarter ended December 31, 2008 and $36 for the nine months ended December 31, 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. Historically, the advertising environment fluctuates due to supply and demand. A more favorable advertising environment may positively impact future new order sales, whereas a less favorable advertising environment may negatively impact future new order sales. As a percentage of sales, advertising expense was 10.7% and 11.3% for the quarters ended December 31, 2009 and 2008, respectively, and 12.1% and 13.8% for the nine months ended December 31, 2009 and 2008, respectively. The decrease in advertising expense as a percentage of total sales for the quarter ended December 31, 2009 can be attributed to increased sales, and for the nine months ended December 31, 2009 the decrease can be attributed to increased sales with declining new
Depreciation and amortization expenses increased by approximately $151,000, or 81%, to approximately $337,000 for the quarter ended December 31, 2009, from approximately $186,000 for the quarter ended December 31, 2008. Depreciation and amortization expenses increased by approximately $479,000, or 95%, to approximately $982,000 for the quarter ended December 31, 2009, from approximately $503,000 for the quarter ended December 31, 2008. This increase to depreciation and amortization expense for the quarter and nine months ended December 31, 2009 can be attributed to an increase in new property and equipment additions relating to the warehouse, pharmacy, and customer call center expansion in Fiscal 2009.
Other income decreased by approximately $222,000, or 82%, to approximately $47,000 for the quarter ended December 31, 2009 from approximately $269,000 for the quarter ended December 31, 2008. Other income decreased by approximately $1.1 million, or 87%, to approximately $169,000 for the quarter ended December 31, 2009 from approximately $1.3 million for the quarter ended December 31, 2008. The decrease to other income can be primarily attributed to decreased interest income due to a reduction in interest rates. The decrease can also be attributed to a reduction in advertising revenue generated from our website. Interest income may decrease in the future due to a reduction in interest rates and also as the Company utilizes its cash balances on its $20.0 million share repurchase plan, with approximately $10.0 million remaining as of December 31, 2009, on any quarterly dividend payment, or on its operating activities.
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Petmed Express Inc. has a market cap of $420.96 million; its shares were traded at around $18.43 with a P/E ratio of 16.17 and P/S ratio of 1.92. The dividend yield of Petmed Express Inc. stocks is 2.17%. Petmed Express Inc. had an annual average earning growth of 27.2% over the past 5 years.
Highlight of Business Operations:
Cost of sales increased by approximately $3.4 million, or 13.2%, to approximately $29.5 million for the quarter ended December 31, 2009, from approximately $26.1 million for the quarter ended December 31, 2008. For the nine months ended December 31, 2009, cost of sales increased by approximately $10.8 million, or 10.3%, to approximately $116.2 million compared to $105.4 million for the same period in the prior year. The increase in cost of sales is directly related to the increase in sales in the quarter and the nine months ended December 31, 2009 compared to the quarter and nine months ended December 31, 2008. As a percent of sales, the cost of sales was 61.1% and 60.1% for the quarters ended December 31, 2009 and 2008, respectively, and for the nine months ended December 31, 2009 and 2008, the cost of sales was 61.8% and 61.5%, respectively. The percentage increase for the three months can be attributed to increases in our product costs. The percentage increase for the nine months can also be attributed to increases in our product costs, offset by a reduction in freight expenses due to a shift from priority to standard shipping.Gross profit increased by approximately $1.5 million, or 8.7%, to approximately $18.8 million for the quarter ended December 31, 2009, from approximately $17.3 million for the quarter ended December 31, 2008. For the nine months ended December 31, 2009, gross profit increased by approximately $5.8 million, or 8.8%, to approximately $71.8 million compared to $66.0 million for the same period in the prior year. The increase in gross profit is directly related to the increase in sales in the quarter and nine months ended December 31, 2009 compared to the quarter and nine months ended December 31, 2008. Gross profit as a percentage of sales was 38.9% and 39.9% for the three months ended December 31, 2009 and 2008, respectively, and for the nine months ended December 31, 2009 and 2008, the gross profit was 38.2% and 38.5%, respectively. The percentage decrease for the three months can be attributed to increases in our product costs. The percentage decrease for the nine months can also be attributed to increases in our product costs, offset by a reduction in freight expenses due to a shift from priority to standard shipping.
General and administrative expenses decreased by approximately $90,000, or 1.8%, to approximately $4.9 million for the quarter ended December 31, 2009, from approximately $5.0 million for the quarter ended December 31, 2008. For the nine months ended December 31, 2009, general and administrative expenses increased by approximately $751,000, or 4.6%, to approximately $17.2 million compared to general and administrative expenses of approximately $16.5 million for the nine months ended December 31, 2008. The decrease in general and administrative expenses for the three months ended December 31, 2009 was primarily due to the following: a $242,000 decrease to professional fees, with the majority of the decrease relating to legal and pharmacy fees and a $34,000 decrease to other expenses, including bad debt expenses and office expenses. Offsetting the decrease was an $80,000 increase to property expenses which can be directly attributed to increased rent due to the 15,000 square feet warehouse and pharmacy expansion; a $68,000 increase in credit card and bank service fees which is directly attributable to increased sales in the quarter; and a net $38,000 increase in other expenses, including payroll expenses, license fees, and insurance expenses.
Advertising expenses increased by approximately $277,000, or 5.7%, to approximately $5.2 million for the quarter ended December 31, 2009, from approximately $4.9 million for the quarter ended December 31, 2008. For the nine months ended December 31, 2009, advertising expenses decreased by approximately $819,000, or 3.5%, to approximately $22.8 million compared to advertising expenses of approximately $23.6 million for the nine months ended December 31, 2008. The decrease in advertising expenses for the nine months can be mainly attributed to a shortage in the remnant television advertising inventory. During the quarter the Company planned to commit certain amounts specifically designated towards television, direct mail/print, and online advertising to stimulate sales, create brand awareness, and acquire new customers. The advertising costs of acquiring a new customer, defined as total advertising costs divided by new customers acquired, was $34 for the quarter ended December 31, 2009 and $33 for the nine months ended December 31, 2009, compared to $32 for the quarter ended December 31, 2008 and $36 for the nine months ended December 31, 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. Historically, the advertising environment fluctuates due to supply and demand. A more favorable advertising environment may positively impact future new order sales, whereas a less favorable advertising environment may negatively impact future new order sales. As a percentage of sales, advertising expense was 10.7% and 11.3% for the quarters ended December 31, 2009 and 2008, respectively, and 12.1% and 13.8% for the nine months ended December 31, 2009 and 2008, respectively. The decrease in advertising expense as a percentage of total sales for the quarter ended December 31, 2009 can be attributed to increased sales, and for the nine months ended December 31, 2009 the decrease can be attributed to increased sales with declining new
Depreciation and amortization expenses increased by approximately $151,000, or 81%, to approximately $337,000 for the quarter ended December 31, 2009, from approximately $186,000 for the quarter ended December 31, 2008. Depreciation and amortization expenses increased by approximately $479,000, or 95%, to approximately $982,000 for the quarter ended December 31, 2009, from approximately $503,000 for the quarter ended December 31, 2008. This increase to depreciation and amortization expense for the quarter and nine months ended December 31, 2009 can be attributed to an increase in new property and equipment additions relating to the warehouse, pharmacy, and customer call center expansion in Fiscal 2009.
Other income decreased by approximately $222,000, or 82%, to approximately $47,000 for the quarter ended December 31, 2009 from approximately $269,000 for the quarter ended December 31, 2008. Other income decreased by approximately $1.1 million, or 87%, to approximately $169,000 for the quarter ended December 31, 2009 from approximately $1.3 million for the quarter ended December 31, 2008. The decrease to other income can be primarily attributed to decreased interest income due to a reduction in interest rates. The decrease can also be attributed to a reduction in advertising revenue generated from our website. Interest income may decrease in the future due to a reduction in interest rates and also as the Company utilizes its cash balances on its $20.0 million share repurchase plan, with approximately $10.0 million remaining as of December 31, 2009, on any quarterly dividend payment, or on its operating activities.
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