GlobeNewswire Inc | May 3, 2021 08:00AM EDT

May 03, 2021

8.8% Increase in Fiscal 2021 Sales18.4% Increase in Fiscal 2021 Net Income9.7% Increase in Fiscal 2021 Reorder Sales

DELRAY BEACH, Fla., May 03, 2021 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for its fourth quarter and fiscal year ended March 31, 2021. Net sales for the year ended March 31, 2021 were $309.2 million, compared to $284.1 million for the year ended March 31, 2020, an increase of 8.8%. Net income for the year ended March 31, 2021 was $30.6 million, or $1.52 diluted per share, compared to net income of $25.9 million, or $1.29 diluted per share, for the prior year, an increase to net income of 18.4%. Reorder sales for the year ended March 31, 2021 were $272.6 million, compared to $248.6 million for the year ended March 31, 2020, an increase of 9.7%. New order sales for the year ended March 31, 2021 were $36.6 million, compared to $35.6 million for the year ended March 31, 2020, an increase of 2.8%. The Company acquired approximately 443,000 new customers in the year ended March 31, 2021, compared to 421,000 new customers in the prior year. The average order size for the year ended March 31, 2021 was $89, compared to $87 for the year ended March 31, 2020. Net sales for the quarter ended March 31, 2021 were $71.7 million, compared to $74.3 million for the quarter ended March 31, 2020, a decrease of 3.5%. Net income for the quarter ended March 31, 2021 was $6.8 million, or $0.34 diluted per share, compared to net income of $7.0 million, or $0.35 diluted per share, for the same quarter the prior year, a decrease to net income of 2.7%. The average order size for the quarter ended March 31, 2021 was $93, compared to $90 for the quarter ended March 31, 2020.

Menderes Akdag, President and CEO, commented: Overall we were pleased with our fiscal 2021 results with increases to both our top and bottom line. The year started out with greater than expected ecommerce demand due to COVID-19, with consumers shifting their purchases to online, which positively impacted our sales for the year, then in the back half of fiscal 2021, veterinarian clinics and retail stores re-opened. Our bottom line was positively impacted by growth in our gross margins by 50 basis points, due to having direct relationships with the major manufacturers, and with our operating expenses decreasing by 76 basis points, which resulted in a 126 basis points improvement to our operating income. Cash from operations increased to $40.1 million in fiscal 2021, compared to $38.8 million in fiscal 2020. In the quarter ended March 31, 2021 the reduction to sales and net income were possibly related to a pull forward of demand in the prior year due to the pandemic, along with colder weather during the March quarter, which might have delayed the start of flea and tick season. In fiscal 2022, we will be exploring alternative ways of acquiring new customers and adding value-added services, and we will continue investing in our e-commerce platform and mobile app to optimize our customers digital experience.

The Board of Directors declared an increased quarterly dividend from $0.28 to $0.30 per share on its common stock. The dividend will be payable on May 21, 2021, to shareholders of record at the close of business on May 14, 2021. 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 Companys 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. Please call in fifteen minutes prior to the scheduled start time. 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 3, 2021 until May 17, 2021 at 11:59 P.M. Eastern Time. To access the replay, call (800) 860-4709 (toll free) or (203) 369-3837 and enter passcode 5500.

Founded in 1996, PetMed Express is Americas Most Trusted 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 Companys 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 Managements 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, 2020. The Companys 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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except for per share amounts) March 31, March 31, 2021 2020 ASSETS (UNAUDITED) Current assets: Cash and cash equivalents $ 118,718 $ 103,762Accounts receivable, less allowance for 2,587 3,843doubtful accounts of $39 and $59, respectivelyInventories - finished goods 34,420 17,884Prepaid expenses and other current assets 4,503 3,529Prepaid income taxes 959 -Total current assets 161,187 129,018 Noncurrent assets: Property and equipment, net 25,450 25,445Intangible assets 860 860Total noncurrent assets 26,310 26,305 Total assets $ 187,497 $ 155,323 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 39,548 $ 19,658Accrued expenses and other current liabilities 5,387 4,214Income taxes payable - 471Total current liabilities 44,935 24,343 Deferred tax liabilities 1,281 970 Total liabilities 46,216 25,313 Commitments and contingencies Shareholders' equity: Preferred stock, $.001 par value, 5,000 sharesauthorized;3 convertible shares issued and 9 9outstanding with a liquidation preference of $4 pershareCommon stock, $.001 par value, 40,000 sharesauthorized;20,269 and 20,166 shares issued and 20 20outstanding, respectivelyAdditional paid-in capital 7,111 3,804Retained earnings 134,141 126,177 Total shareholders' equity 141,281 130,010 Total liabilities and shareholders' equity $ 187,497 $ 155,323



PETMED EXPRESS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In thousands, except for per share amount)

Three Months Year Ended Ended March 31, March 31, 2021 2020 2021 2020 (UNAUDITED) (UNAUDITED) Sales $ 71,679 $ 74,286 $ 309,215 $ 284,125Cost of sales 51,157 52,600 219,267 202,879 Gross profit 20,522 21,686 89,948 81,246 Operating expenses: General and 7,243 6,413 28,293 25,264administrativeAdvertising 4,256 6,205 21,641 22,748Depreciation 636 555 2,427 2,257Total operating expenses 12,135 13,173 52,361 50,269 Income from operations 8,387 8,513 37,587 30,977 Other income: Interest income, net 85 300 314 1,747Other, net 377 307 1,315 1,169Total other income 462 607 1,629 2,916 Income before provision for 8,849 9,120 39,216 33,893income taxes Provision for income taxes 2,037 2,117 8,613 8,042 Net income $ 6,812 $ 7,003 $ 30,603 $ 25,851 Net income per common share: Basic $ 0.34 $ 0.35 $ 1.53 $ 1.29Diluted $ 0.34 $ 0.35 $ 1.52 $ 1.29 Weighted average number of common shares outstanding:Basic 20,100 19,984 20,060 20,041Diluted 20,177 20,010 20,119 20,055 Cash dividends declared per $ 0.28 $ 0.27 $ 1.12 $ 1.08common share



PETMED EXPRESS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Year Ended March 31, 2021 2020 (UNAUDITED) Cash flows from operating activities: Net income $ 30,603 $ 25,851 Adjustments to reconcile net income to net cashprovided by operating activities:Depreciation 2,427 2,257 Share based compensation 3,307 2,822 Deferred income taxes 311 (151 )Bad debt expense 130 191 (Increase) decrease in operating assets and increase (decrease) in liabilities:Accounts receivable 1,126 (1,492 )Inventories - finished (16,536 ) 3,486 goodsPrepaid income taxes (959 ) 582 Prepaid expenses and (974 ) (376 )other current assetsAccounts payable 19,890 3,383 Accrued expenses and 1,221 1,820 other current liabilitiesIncome taxes payable (471 ) 471 Net cash provided by operating activities 40,075 38,844 Cash flows from investing activities: Purchases of property and equipment (2,432 ) (2,311 )Net cash used in investing activities (2,432 ) (2,311 ) Cash flows from financing activities: Dividends paid (22,687 ) (21,803 )Repurchase and retirement of common stock - (11,497 )Net cash used in financing activities (22,687 ) (33,300 ) Net increase in cash and cash equivalents 14,956 3,233 Cash and cash equivalents, at beginning of year 103,762 100,529 Cash and cash equivalents, at end of year $ 118,718 $ 103,762 Supplemental disclosure of cash flow information: Cash paid for income taxes $ 10,018 $ 7,140 Property and equipment in current assets $ - $ 1,745 Dividends payable in accrued expenses $ 198 $ 246