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PetMed Express, Inc. d/b/a 1-800-PetMeds Announces Its Fourth Quarter and Fiscal Year End Financial Results and Increases Its Quarterly Dividend to $0.30 per Share

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PetMed Express reported strong fiscal 2021 results, showing an 8.8% increase in net sales to $309.2 million and a 18.4% increase in net income to $30.6 million. Despite fourth-quarter challenges, with a 3.5% decrease in net sales to $71.7 million, the overall year reflected a successful pivot to e-commerce driven by COVID-19. The company acquired 443,000 new customers and improved average order size. An increased quarterly dividend of $0.30 per share was declared, reflecting ongoing confidence in future growth.

Positive
  • 8.8% increase in net sales to $309.2 million for fiscal 2021.
  • 18.4% increase in net income to $30.6 million for fiscal 2021.
  • Acquired 443,000 new customers, up from 421,000 the previous year.
  • Increased average order size to $89 from $87.
  • Improved gross margins by 50 basis points.
Negative
  • 3.5% decrease in fourth-quarter net sales to $71.7 million.
  • 2.7% decrease in fourth-quarter net income to $6.8 million.

8.8% Increase in Fiscal 2021 Sales
18.4% Increase in Fiscal 2021 Net Income
9.7% 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 Company’s 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 America’s 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 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, 2020. 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. For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 561-526-4444.



PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED 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$103,762
   Accounts receivable, less allowance for doubtful accounts of $39 and $59, respectively 2,587 3,843
   Inventories - finished goods 34,420 17,884
   Prepaid expenses and other current assets 4,503 3,529
   Prepaid income taxes 959 -
          Total current assets 161,187 129,018
     
Noncurrent assets:    
   Property and equipment, net 25,450 25,445
   Intangible assets 860 860
          Total noncurrent assets 26,310 26,305
     
Total assets$187,497$155,323
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
Current liabilities:    
   Accounts payable$39,548$19,658
   Accrued expenses and other current liabilities 5,387 4,214
   Income taxes payable - 471
          Total 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 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; 20,269 and 20,166 shares issued and outstanding, respectively20 20
   Additional paid-in capital 7,111 3,804
   Retained 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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except for per share amount)
 
  Three Months Ended     Year Ended
  March 31, March 31,
  2021 2020 2021 2020
       
  (UNAUDITED) (UNAUDITED)  
Sales$71,679$74,286$309,215$284,125
Cost of sales 51,157 52,600 219,267 202,879
         
Gross profit 20,522 21,686 89,948 81,246
         
Operating expenses:        
     General and administrative 7,243 6,413 28,293 25,264
     Advertising 4,256 6,205 21,641 22,748
     Depreciation 636 555 2,427 2,257
Total 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 1,747
     Other, net 377 307 1,315 1,169
Total other income 462 607 1,629 2,916
         
Income before provision for income taxes 8,849 9,120 39,216 33,893
         
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$1.29
      Diluted$0.34$0.35$1.52$1.29
         
Weighted average number of common shares outstanding:      
      Basic 20,100 19,984 20,060 20,041
      Diluted 20,177 20,010 20,119 20,055
         
Cash dividends declared per common share$0.28$0.27$1.12$1.08
         

 


PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED 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 cash provided 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 goods (16,536) 3,486 
            Prepaid income taxes (959) 582 
            Prepaid expenses and other current assets (974) (376)
            Accounts payable 19,890  3,383 
            Accrued expenses and other current liabilities 1,221  1,820 
            Income 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 
     

FAQ

What were PetMed Express's sales figures for fiscal 2021?

PetMed Express reported net sales of $309.2 million for fiscal 2021, an 8.8% increase from the previous year.

How much did net income increase for PetMed Express in fiscal 2021?

Net income increased by 18.4% to $30.6 million for fiscal 2021.

What is the dividend announced by PetMed Express for May 2021?

PetMed Express declared an increased quarterly dividend of $0.30 per share.

How many new customers did PetMed Express acquire in fiscal 2021?

The company acquired approximately 443,000 new customers in fiscal 2021.

What challenges did PetMed Express face in the fourth quarter of fiscal 2021?

The company experienced a 3.5% decrease in net sales and a 2.7% decrease in net income for the fourth quarter.

PetMed Express, Inc.

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Pharmaceutical Retailers
Retail-drug Stores and Proprietary Stores
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United States of America
DELRAY BEACH