DELRAY BEACH, Fla., May 06, 2019 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2019. Net sales for the quarter ended March 31, 2019 were $64.6 million, compared to $67.3 million for the quarter ended March 31, 2018, a decrease of 4.1%. For the fiscal year ended March 31, 2019 net sales were $283.4 million, compared to $273.8 million for the fiscal year ended March 31, 2018, an increase of 3.5%. Reorder sales for the fiscal year ended March 31, 2019 were $241.8 million, compared to $227.5 million for the year ended March 31, 2018, an increase of 6.3%. Net income for the quarter ended March 31, 2019 was $6.6 million, or $0.32 diluted per share, compared to net income of $10.2 million, or $0.50 diluted per share, for the same quarter the prior year, a decrease to net income of 35%. Net income for the fiscal year ended March 31, 2019 was $37.7 million, or $1.84 diluted per share, compared to net income of $37.3 million, or $1.82 diluted per share, for the fiscal year ended March 31, 2018, an increase to net income of 1.2%. The Company’s online sales for the fiscal year ended March 31, 2019 were approximately 85% of all sales, compared to 84% for the prior year.

Menderes Akdag, President and CEO, commented: “The online pet medication market continued to be more competitive during the quarter, which had a negative effect on our sales and gross margins. Our average order value was $87 for both fiscal 2019 and 2018. Net cash provided by operating activities improved to $45.1 million for fiscal 2019 compared to $37.4 million for fiscal 2018. In fiscal 2020, we will continue to be price competitive, and will increase advertising to promote brand awareness and reinforce brand loyalty to address this more competitive online market. In addition, we will be investing in our e-commerce platform to better service our customers.”

The Board of Directors declared a quarterly dividend of $0.27 per share on its common stock. The dividend will be payable on May 24, 2019, to shareholders of record at the close of business on May 17, 2019. 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. 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 6, 2019 until May 20, 2019 at 11:59 P.M. To access the replay, call (866) 465-0340 (toll free) or (203) 369-1417 and enter passcode 5500.

Founded in 1996, PetMed Express is America’s Largest Pet Pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs and cats 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, 2018. 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,
		2019		2018
ASSETS		(UNAUDITED)
Current assets:
Cash and cash equivalents	$	100,529	$	77,936
Accounts receivable, less allowance for doubtful accounts of $39 and $35, respectively		2,542		2,292
Inventories - finished goods		21,370		23,337
Prepaid expenses and other current assets		1,408		882
Prepaid income taxes		582		788
Total current assets		126,431		105,235
Noncurrent assets:
Property and equipment, net		27,136		28,741
Intangible assets		860		860
Total noncurrent assets		27,996		29,601
Total assets	$	154,427	$	134,836
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	16,275	$	15,274
Accrued expenses and other current liabilities		2,351		2,835
Total current liabilities		18,626		18,109
Deferred tax liabilities		1,121		996
Total liabilities		19,747		19,105
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 5,000 shares authorized;
3 convertible shares issued and outstanding with aliquidation preference of $4 per share		9		9
Common stock, $.001 par value, 40,000 shares authorized;
20,674 and 20,601 shares issued and outstanding, respectively		21		21
Additional paid-in capital		12,478		9,381
Retained earnings		122,172		106,320
Total shareholders' equity		134,680		115,731
Total liabilities and shareholders' equity	$	154,427	$	134,836

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,
		2019		2018		2019		2018
		(UNAUDITED)				(UNAUDITED)
Sales	$	64,565	$	67,322	$	283,419	$	273,800
Cost of sales		43,841		42,403		188,105		175,993
Gross profit		20,724		24,919		95,314		97,807
Operating expenses:
General and administrative		5,840		6,068		24,767		24,290
Advertising		6,522		4,311		22,148		19,255
Depreciation		560		536		2,225		2,126
Total operating expenses		12,922		10,915		49,140		45,671
Income from operations		7,802		14,004		46,174		52,136
Other income:
Interest income, net		549		241		1,864		658
Other, net		256		240		1,083		995
Total other income		805		481		2,947		1,653
Income before provision for income taxes		8,607		14,485		49,121		53,789
Provision for income taxes		1,987		4,302		11,381		16,506
Net income	$	6,620	$	10,183	$	37,740	$	37,283
Comprehensive income	$	6,620	$	10,183	$	37,740	$	37,283
Net income per common share:
Basic	$	0.32	$	0.50	$	1.84	$	1.83
Diluted	$	0.32	$	0.50	$	1.84	$	1.82
Weighted average number of common shares outstanding:
Basic		20,491		20,375		20,461		20,346
Diluted		20,501		20,422		20,491		20,433
Cash dividends declared per common share	$	0.27	$	0.25	$	1.06	$	0.85

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
		Year Ended
		March 31,
		2019			2018
		(UNAUDITED)
Cash flows from operating activities:
Net income	$	37,740		$	37,283
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		2,225			2,126
Share based compensation		3,097			2,575
Deferred income taxes		125			(92	)
Bad debt expense		85			112
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable		(335	)		(596	)
Inventories - finished goods		1,967			(3,109	)
Prepaid income taxes		206			(788	)
Prepaid expenses and other current assets		(526	)		137
Accounts payable		1,001			53
Accrued expenses and other current liabilities		(447	)		337
Income taxes payable		-			(659	)
Net cash provided by operating activities		45,138			37,379
Cash flows from investing activities:
Purchases of property and equipment		(620	)		(703	)
Net cash used in investing activities		(620	)		(703	)
Cash flows from financing activities:
Dividends paid		(21,925	)		(17,470	)
Net cash used in financing activities		(21,925	)		(17,470	)
Net increase in cash and cash equivalents		22,593			19,206
Cash and cash equivalents, at beginning of year		77,936			58,730
Cash and cash equivalents, at end of year	$	100,529		$	77,936
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	11,051		$	18,046
Dividends payable in accrued expenses	$	203		$	240

Source: PetMed Express, Inc.

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