PetMed Express (PETS) 10-Q 8 Nov 22 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Sep. 30, 2022	Nov. 08, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	000-28827
Entity Registrant Name	PETMED EXPRESS, INC.
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	65-0680967
Entity Address, Address Line One	420 South Congress Avenue
Entity Address, City or Town	Delray Beach
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33445
City Area Code	561
Local Phone Number	526-4444
Title of 12(b) Security	Common Stock, par value $.001 per share
Trading Symbol	PETS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,075,677
Entity Central Index Key	0001040130
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Current assets:
Cash and cash equivalents	$ 96,546	$ 111,080
Accounts receivable, less allowance for doubtful accounts of $32 and $39, respectively	1,590	1,913
Inventories - finished goods	34,022	32,455
Prepaid expenses and other current assets	5,463	4,866
Prepaid income taxes	595	681
Total current assets	138,216	150,995
Noncurrent assets:
Property and equipment, net	25,189	24,464
Intangible and other assets	5,860	860
Total noncurrent assets	31,049	25,324
Total assets	169,265	176,319
Current liabilities:
Accounts payable	23,980	27,500
Accrued expenses and other current liabilities	6,585	5,697
Total current liabilities	30,565	33,197
Deferred tax liabilities	547	936
Commitments and contingencies
Total liabilities	31,112	34,133
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; 21,077 and 20,979 shares issued and outstanding, respectively	21	21
Additional paid-in capital	14,877	11,660
Retained earnings	123,246	130,496
Total shareholders' equity	138,153	142,186
Total liabilities and shareholders' equity	$ 169,265	$ 176,319

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 32	$ 39
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000	5,000
Preferred stock, shares issued (in shares)	3	3
Preferred stock, shares outstanding (in shares)	3	3
Preferred stock, liquidation preference (in dollars per share)	$ 4	$ 4
Common stock, par or value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	40,000	40,000
Common stock, shares issued (in shares)	21,077	20,979
Common stock, shares outstanding (in shares)	21,077	20,979

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Sales	$ 65,394	$ 67,386	$ 135,581	$ 146,698
Cost of sales	46,943	48,212	97,187	105,744
Gross profit	18,451	19,174	38,394	40,954
Operating expenses:
General and administrative	10,753	6,958	20,104	14,999
Advertising	3,879	3,435	10,228	11,108
Depreciation	858	694	1,611	1,341
Total operating expenses	15,490	11,087	31,943	27,448
Income from operations	2,961	8,087	6,451	13,506
Other income:
Interest income, net	388	74	505	159
Other, net	261	170	459	454
Total other income	649	244	964	613
Income before provision for income taxes	3,610	8,331	7,415	14,119
Provision for income taxes	1,031	1,982	2,061	3,342
Net income	$ 2,579	$ 6,349	$ 5,354	$ 10,777
Net income per common share:
Basic (in dollars per share)	$ 0.13	$ 0.31	$ 0.26	$ 0.53
Diluted (in dollars per share)	$ 0.13	$ 0.31	$ 0.26	$ 0.53
Weighted average number of common shares outstanding:
Basic (in shares)	20,261	20,178	20,235	20,144
Diluted (in shares)	20,344	20,568	20,318	20,384
Cash dividends declared per common share (in dollars per share)	$ 0.30	$ 0.30	$ 0.60	$ 0.60

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 5,354	$ 10,777
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,611	1,341
Share based compensation	3,217	1,600
Deferred income taxes	(389)	346
Bad debt expense	66	58
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable	257	675
Inventories - finished goods	(1,567)	14,687
Prepaid income taxes	86	60
Prepaid expenses and other current assets	(597)	106
Accounts payable	(3,520)	(28,365)
Accrued expenses and other current liabilities	590	(210)
Net cash provided by operating activities	5,108	1,075
Cash flows from investing activities:
Purchase of minority interest investment in Vetster	(5,000)	0
Purchases of property and equipment	(2,336)	(972)
Net cash used in investing activities	(7,336)	(972)
Cash flows from financing activities:
Dividends paid	(12,306)	(12,259)
Net cash used in financing activities	(12,306)	(12,259)
Net decrease in cash and cash equivalents	(14,534)	(12,156)
Cash and cash equivalents, at beginning of period	111,080	118,718
Cash and cash equivalents, at end of period	96,546	106,562
Supplemental disclosure of cash flow information:
Cash paid for income taxes	2,560	2,935
Dividends payable in accrued expenses	$ 856	$ 110

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Organization PetMed Express, Inc. and subsidiaries, d/b/a PetMeds® (the “Company”), is a leading nationwide pet pharmacy and Your Trusted Pet Health Expert TM . The Company markets prescription and non-prescription pet medications, health products, and supplies for dogs, cats, and horses, directly to the consumer. The Company offers consumers an attractive alternative for obtaining pet medications in terms of expertise, convenience, price, speed of delivery and valued customer service. The Company markets its products through advertising and promotional campaigns, which aim to increase the recognition of the “PetMeds®” brand name, increase traffic on its website at www.petmeds.com , acquire new customers, and maximize repeat purchases. Virtually all of the Company’s sales are to customers in the United States. The Company’s corporate headquarters and distribution facility is located in Delray Beach, Florida. The Company’s fiscal year end is March 31, and references herein to fiscal 2023 or fiscal 2022 refer to the Company's fiscal years ending March 31, 2023 and 2022, respectively. Basis of Presentation and Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company at September 30, 2022, the Statements of Income for the three and six months ended September 30, 2022 and 2021, and Cash Flows for the six months ended September 30, 2022 and 2021. The results of operations for the three and six months ended September 30, 2022 are not necessarily indicative of the operating results expected for the fiscal year ending March 31, 2023. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022. The Condensed Consolidated Financial Statements include the accounts of PetMed Express, Inc. and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated upon consolidation. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. Recent Accounting Pronouncements

Revenue Recognition

Revenue Recognition	6 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue RecognitionThe Company generates revenue by selling pet medication products and pet supplies mainly to retail customers. Certain pet supplies offered on the Company’s website are drop shipped to customers. The Company considers itself the principal in the arrangement because the Company controls the specified good before it is transferred to the customer. Revenue contracts contain one performance obligation, which is delivery of the product. Customer care and support is deemed not to be a material right to the contract. The transaction price is adjusted at the date of sale for any applicable sales discounts and an estimate of product returns, which are based on historical patterns, however this is not considered a key judgment. Revenue is recognized when control transfers to the customer at the point in time at which the shipment of the product occurs. This key judgment is determined as the shipping point, which represents the point in time when the Company has a present right to payment, title has transferred to the customer, and the customer has assumed the risks and rewards of ownership. Outbound shipping and handling fees are an accounting policy election and are included in sales as the Company considers itself the principal in the arrangement given its responsibility for supplier selection and discretion over pricing. Shipping costs associated with outbound freight after control over a product has transferred to a customer are an accounting policy election and are accounted for as fulfillment costs and are included in cost of sales. The Company disaggregates revenue in the following two categories: (1) reorder revenue vs new order revenue, and (2) internet revenue vs. contact center revenue. The following table illustrates revenue by various classifications: Three Months Ended September 30, Revenue (In thousands) 2022 % 2021 % $ Variance % Variance Reorder Sales $ 59,729 91.3 % $ 60,646 90.0 % $ (917) -1.5 % New Order Sales 5,665 8.7 % 6,740 10.0 % (1,075) -15.9 % Total Net Sales $ 65,394 100.0 % $ 67,386 100.0 % $ (1,992) -3.0 % Internet Sales $ 56,548 86.5 % $ 55,961 83.0 % $ 587 1.0 % Contact Center Sales 8,846 13.5 % 11,425 17.0 % (2,579) -22.6 % Total Net Sales $ 65,394 100.0 % $ 67,386 100.0 % $ (1,992) -3.0 % Six Months Ended September 30, Revenue (In thousands) 2022 % 2021 % $ Variance % Variance Reorder Sales $ 123,068 90.8 % $ 129,348 88.2 % $ (6,280) -4.9 % New Order Sales 12,513 9.2 % 17,350 11.8 % (4,837) -27.9 % Total Net Sales $ 135,581 100.0 % $ 146,698 100.0 % $ (11,117) -7.6 % Internet Sales $ 116,843 86.2 % $ 122,408 83.4 % $ (5,565) -4.5 % Contact Center Sales 18,738 13.8 % 24,290 16.6 % (5,552) -22.9 % Total Net Sales $ 135,581 100.0 % $ 146,698 100.0 % $ (11,117) -7.6 % The Company changed the definition of a new customer on April 1, 2022, to include anyone who has not ordered over the past thirty-six months. The reorder and new order sales amounts for the three and six months ended September 30, 2022, and the reorder and new order sales amounts for the three and six months ended September 30, 2021 reflect this new customer definition change. Under the previous definition of a new customer, reorder and new order sales were $62.0 million and $5.4 million, respectively, for the three months ended September 30, 2021. Under the previous definition of a new customer, reorder and new order sales were $133.0 million and $13.7 million, respectively, for the six months ended September 30, 2021. Virtually all the Company’s sales are paid by credit cards and the Company usually receives the cash settlement in two to three banking days. Credit card sales minimize the accounts receivable balances relative to sales. The Company had no material contract asset or liability balances as of September 30, 2022 or March 31, 2022.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 260 (“ Earnings Per Share ”) basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share includes the dilutive effect of potential restricted stock and the effects of the potential conversion of preferred shares, calculated using the treasury stock method. Unvested restricted stock and convertible preferred shares issued by the Company represent the only dilutive effect reflected in the diluted weighted average shares outstanding. The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in thousands, except for per share amounts): Three Months Ended September 30, Six Months Ended 2022 2021 2022 2021 Net income (numerator): Net income $ 2,579 $ 6,349 $ 5,354 $ 10,777 Shares (denominator): Weighted average number of common shares outstanding used in basic computation 20,261 20,178 20,235 20,144 Common shares issuable upon vesting of restricted stock 73 380 73 230 Common shares issuable upon conversion of preferred shares 10 10 10 10 Shares used in diluted computation 20,344 20,568 20,318 20,384 Net income per common share: Basic $ 0.13 $ 0.31 $ 0.26 $ 0.53 Diluted $ 0.13 $ 0.31 $ 0.26 $ 0.53 For the three and six months ended September 30, 2022 and 2021, 261,228 and 115,219 shares of common restricted stock, respectively, were excluded from the computations of diluted net income per common share, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	6 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Accounting for Stock-Based Compensation	Accounting for Stock-Based Compensation The Company records compensation expense associated with restricted stock in accordance with ASC Topic 718 (“ Share Based Payment ”) (ASU 2016-09). The Company had 958,998 common shares issued under the 2016 Employee Equity Compensation Restricted Stock Plan (“2016 Employee Plan”), and 240,755 common shares issued under the 2015 Outside Director Equity Compensation Restricted Stock Plan (“2015 Director Plan”) at September 30, 2022, all shares of which were issued subject to a restriction or forfeiture period that lapses ratably on the first, second, and third anniversaries of the date of grant, and the fair value of which is being amortized over the one In August 2021, the Company issued 90,000 restricted shares and 510,000 performance restricted shares to the Company’s CEO, in accordance with the CEO’s employment agreement, under the 2016 Employee Plan. The fair value of the 90,000 restricted shares issuance was valued at $28.70 per share. The value of the 510,000 performance restricted shares issuance was valued by a third party valuation firm, and these shares were valued at $9.7 million, or $19.06 per share. The valuation firm utilized a Monte Carlo model to value the 510,000 performance restricted shares and looked at several other factors such as historical stock price volatility. The fair value of the restricted performance shares is being amortized over the three-year restriction period. Effective, August 3, 2022 Christine Chambers, the new Chief Financial Officer, received an initial equity award under the 2016 Employee Plan consisting of (i) an award of 13,000 restricted shares, and (ii) 3,000 performance restricted shares, which performance restricted shares will be based on the attainment of performance criteria equally weighted between adjusted EBITDA and revenue. The shares for each grant will be released from restriction equally over a three The Company issued 57,640 shares of restricted stock, net of forfeitures, to certain employees under the 2016 Employee Plan during the quarter ended September 30, 2022. The Company issued 30,000 shares of restricted stock, net of forfeitures, to board members under the 2015 Director Plan during the quarter ended September 30, 2022. For the quarters ended September 30, 2022 and 2021, the Company recognized $1.7 million and $0.9 million, respectively, of compensation expense related to the 2016 Employee Plan and 2015 Director Plan. For the six months ended September 30, 2022 and 2021, the Company recognized $3.2 million and $1.6 million, respectively, of compensation expense related to the 2016 Employee Plan and 2015 Director Plan. At September 30, 2022 and 2021 there was $12.2 million and $15.8 million of unrecognized compensation cost related to the non-vested restricted stock awards, respectively, which is expected to be recognized over the next one In July 2022, the Company’s 2022 Employee Equity Compensation Restricted Stock Plan (“2022 Employee Plan”) became effective upon the approval of the plan by the Company’s Shareholders. The 2022 Employee Plan authorizes 1,000,000 shares of the Company's common stock available for issuance under the plan. The value of the restricted stock is determined based on the market value of the stock at the issuance date. The restriction period or forfeiture period is determined by the Company’s Board of Directors and is to be no less than 1 year and no more than ten years. No shares had been issued under the 2022 Employee Plan as of September 30, 2022.

Fair Value

Fair Value	6 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value	Fair Value The Company carries cash and cash equivalents at fair value in the Condensed Consolidated Balance Sheets. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. ASC Topic 820 (“Fair Value Measurements”) establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. At September 30, 2022, the Company had invested the majority of its $96.5 million cash and cash equivalents balance in money market funds which are classified within Level 1.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters and Routine Proceedings The Company has settled complaints that had been filed with various states’ pharmacy boards in the past. There can be no assurances made that other states will not attempt to take similar actions against the Company in the future. The Company also intends to vigorously defend its trade or service marks. There can be no assurance that the Company will be successful in protecting its trade or service marks. Legal costs related to the above matters are expensed as incurred .From time to time, the Company may be involved in and subject to disputes and legal proceedings, as well as demands, claims and threatened litigation that arise in the ordinary course of its business. These proceedings may include allegations involving business practices, infringement of intellectual property, employment or other matters. The ultimate outcome of any legal proceeding is often uncertain, there can be no assurance that the Company will be successful in any legal proceeding, and unfavorable outcomes could have a negative impact on our results of operations and financial condition. The Company records a liability in its financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews the status of each significant matter each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the Company’s financial statements. Gain contingencies are not recorded until they are realized. Legal costs related to any legal matters are expensed as incurred. The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of the loss can be reasonably estimated and is not currently a party to any legal proceeding that management believes could have a material adverse effect on our results of operations. Estimated state sales tax assessment accruals in the amount of $0.9 million are included in the "Accrued expenses and other current liabilities" line item on the Condensed Consolidated Balance Sheets as of September 30, 2022 and the offsetting expense was recognized in the "General and administrative" line item within the Condensed Consolidated Statements of Income for the three months ended September 30, 2022. The Company believes the recorded reserves in the consolidated financial statements are adequate considering the probable and estimable liabilities. The Company continues to assess and evaluate sales tax contingencies. At this point, additional contingencies are not estimable. Employment Agreements and Separation Agreement On July 14, 2022, the Board of Directors of Company appointed Christine Chambers to serve as the Company’s Chief Financial Officer and to assume the duties of principal financial officer and principal accounting officer effective August 3, 2022 (“Effective Date”).

Changes in Shareholders' Equity

Changes in Shareholders' Equity	6 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Changes in Shareholders' Equity	Changes in Shareholders ’ Equity: Changes in Shareholders’ Equity for the three months ended September 30, 2022 is summarized below (in thousands): Common Stock Additional Retained Beginning balance at March 31, 2022: $ 21 $ 11,660 $ 130,496 Share based compensation — 1,536 — Dividends declared — — (6,297) Net income — — 2,775 Ending balance at June 30, 2022 $ 21 $ 13,196 $ 126,974 Shares Issued — — — Share based compensation — 1,681 — Dividends declared — — (6,307) Net income — — 2,579 Ending balance at September 30, 2022: $ 21 $ 14,877 $ 123,246 Changes in Shareholders’ Equity for the six months ended September 30, 2021 is summarized below (in thousands): Common Stock Additional Retained Beginning balance at March 31, 2021: $ 20 $ 7,111 $ 134,141 Share based compensation — 718 — Dividends declared — — (6,080) Net income — — 4,428 Ending balance at June 30, 2021 $ 20 $ 7,829 $ 132,489 Shares Issued 1 — — Share based compensation — 882 — Dividends declared — — (6,092) Net income — — 6,349 Ending balance at September 30, 2021: $ 21 $ 8,711 $ 132,746 There were no shares of common stock that were purchased or retired in the six months ended September 30, 2022 or 2021. At September 30, 2022, the Company had approximately $28.7 million remaining under the Company’s share repurchase plan.

Income Taxes

Income Taxes	6 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesFor the quarters ended September 30, 2022 and 2021, the Company recorded an income tax provision of approximately $1.0 million and $2.0 million, respectively, and for the six months ended September 30, 2022 and 2021 the Company recorded an income tax provision of approximately $2.1 million and $3.3 million, respectively. The effective tax rate for the quarter ended September 30, 2022 was approximately 28.6%, compared to approximately 23.8% for the quarter ended September 30, 2021, and the effective tax rate for the six months ended September 30, 2022 was approximately 27.8% compared to approximately 23.7% for the six months ended September 30, 2021. The increase in the effective tax rate for the quarter and six months ended September 30, 2022 is due to an increase in state tax due to the extension of the Company's business operations.

Related Party Transaction

Related Party Transaction	6 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transaction	Related Party Transaction The Company’s Board of Directors' Chairman, Gian Fulgoni serves on the board of directors of Prophet, a brand and marketing consulting company, which the Company engaged with in March 2021 for $292 thousand. The Company expensed $32 thousand in fiscal 2021 and $260 thousand in fiscal 2022. There was no related expense in the six months ended September 30, 2022. This transaction was approved by the Company’s Board of Directors with terms that are comparable to those with an unrelated third party.

Minority Interest Investment in

Minority Interest Investment in Vetster	6 Months Ended
	Sep. 30, 2022
Noncontrolling Interest [Abstract]
Minority Interest Investment in Vetster	Minority Interest Investment in VetsterOn April 19, 2022, the Company engaged in a three-year partnership agreement with Vetster Inc. (“Vetster”), a veterinary telehealth Canadian company. The Company also purchased a 5% minority interest in Vetster in the amount of $5.0 million and received warrants for additional equity in Vetster, which are tied to future performance milestones. Under the terms of the agreement, the Company becomes the exclusive e-commerce provider for Vetster, and Vetster becomes the exclusive provider of telehealth and telemedicine services to the Company. The minority interest investment is being valued on the cost basis and the investment will be evaluated periodically for any impairment.

Subsequent Events

Subsequent Events	6 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn November 7, 2022, the Board of Directors declared a quarterly dividend of $0.30 per share. The Board established a November 18, 2022 record date and a November 30, 2022 payment date. Based on the outstanding share balance as of November 8, 2022 the Company estimates the dividend payable to be approximately $6.3 million.Subsequent to September 30, 2022, the Board of Directors approved and issued 1,000 restricted shares to employees pursuant to the 2016 Employee Plan.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis Of Presentation and Consolidation	Basis of Presentation and ConsolidationThe accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company at September 30, 2022, the Statements of Income for the three and six months ended September 30, 2022 and 2021, and Cash Flows for the six months ended September 30, 2022 and 2021. The results of operations for the three and six months ended September 30, 2022 are not necessarily indicative of the operating results expected for the fiscal year ending March 31, 2023. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022. The Condensed Consolidated Financial Statements include the accounts of PetMed Express, Inc. and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, will have a material effect on the Company's consolidated financial position, results of operations, or cash flows.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Summary of Disaggregation of Revenue	The following table illustrates revenue by various classifications: Three Months Ended September 30, Revenue (In thousands) 2022 % 2021 % $ Variance % Variance Reorder Sales $ 59,729 91.3 % $ 60,646 90.0 % $ (917) -1.5 % New Order Sales 5,665 8.7 % 6,740 10.0 % (1,075) -15.9 % Total Net Sales $ 65,394 100.0 % $ 67,386 100.0 % $ (1,992) -3.0 % Internet Sales $ 56,548 86.5 % $ 55,961 83.0 % $ 587 1.0 % Contact Center Sales 8,846 13.5 % 11,425 17.0 % (2,579) -22.6 % Total Net Sales $ 65,394 100.0 % $ 67,386 100.0 % $ (1,992) -3.0 % Six Months Ended September 30, Revenue (In thousands) 2022 % 2021 % $ Variance % Variance Reorder Sales $ 123,068 90.8 % $ 129,348 88.2 % $ (6,280) -4.9 % New Order Sales 12,513 9.2 % 17,350 11.8 % (4,837) -27.9 % Total Net Sales $ 135,581 100.0 % $ 146,698 100.0 % $ (11,117) -7.6 % Internet Sales $ 116,843 86.2 % $ 122,408 83.4 % $ (5,565) -4.5 % Contact Center Sales 18,738 13.8 % 24,290 16.6 % (5,552) -22.9 % Total Net Sales $ 135,581 100.0 % $ 146,698 100.0 % $ (11,117) -7.6 %

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in thousands, except for per share amounts): Three Months Ended September 30, Six Months Ended 2022 2021 2022 2021 Net income (numerator): Net income $ 2,579 $ 6,349 $ 5,354 $ 10,777 Shares (denominator): Weighted average number of common shares outstanding used in basic computation 20,261 20,178 20,235 20,144 Common shares issuable upon vesting of restricted stock 73 380 73 230 Common shares issuable upon conversion of preferred shares 10 10 10 10 Shares used in diluted computation 20,344 20,568 20,318 20,384 Net income per common share: Basic $ 0.13 $ 0.31 $ 0.26 $ 0.53 Diluted $ 0.13 $ 0.31 $ 0.26 $ 0.53

Changes in Shareholders' Equi_2

Changes in Shareholders' Equity (Tables)	6 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of Changes in Shareholders' Equity	Changes in Shareholders’ Equity for the three months ended September 30, 2022 is summarized below (in thousands): Common Stock Additional Retained Beginning balance at March 31, 2022: $ 21 $ 11,660 $ 130,496 Share based compensation — 1,536 — Dividends declared — — (6,297) Net income — — 2,775 Ending balance at June 30, 2022 $ 21 $ 13,196 $ 126,974 Shares Issued — — — Share based compensation — 1,681 — Dividends declared — — (6,307) Net income — — 2,579 Ending balance at September 30, 2022: $ 21 $ 14,877 $ 123,246 Changes in Shareholders’ Equity for the six months ended September 30, 2021 is summarized below (in thousands): Common Stock Additional Retained Beginning balance at March 31, 2021: $ 20 $ 7,111 $ 134,141 Share based compensation — 718 — Dividends declared — — (6,080) Net income — — 4,428 Ending balance at June 30, 2021 $ 20 $ 7,829 $ 132,489 Shares Issued 1 — — Share based compensation — 882 — Dividends declared — — (6,092) Net income — — 6,349 Ending balance at September 30, 2021: $ 21 $ 8,711 $ 132,746

Revenue Recognition - Summary o

Revenue Recognition - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Sales	$ 65,394	$ 67,386	$ 135,581	$ 146,698
Revenues, percentage	100%	100%	100%	100%
Revenues, variance	$ (1,992)		$ (11,117)
Revenues, variance, percentage	(3.00%)		(7.60%)
Internet Sales
Disaggregation of Revenue [Line Items]
Sales	$ 56,548	$ 55,961	$ 116,843	$ 122,408
Revenues, percentage	86.50%	83%	86.20%	83.40%
Revenues, variance	$ 587		$ (5,565)
Revenues, variance, percentage	1%		(4.50%)
Contact Center Sales
Disaggregation of Revenue [Line Items]
Sales	$ 8,846	$ 11,425	$ 18,738	$ 24,290
Revenues, percentage	13.50%	17%	13.80%	16.60%
Revenues, variance	$ (2,579)		$ (5,552)
Revenues, variance, percentage	(22.60%)		(22.90%)
Reorder Sales
Disaggregation of Revenue [Line Items]
Sales	$ 59,729	$ 60,646	$ 123,068	$ 129,348
Revenues, percentage	91.30%	90%	90.80%	88.20%
Revenues, variance	$ (917)		$ (6,280)
Revenues, variance, percentage	(1.50%)		(4.90%)
New Order Sales
Disaggregation of Revenue [Line Items]
Sales	$ 5,665	$ 6,740	$ 12,513	$ 17,350
Revenues, percentage	8.70%	10%	9.20%	11.80%
Revenues, variance	$ (1,075)		$ (4,837)
Revenues, variance, percentage	(15.90%)		(27.90%)

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Sales	$ 65,394	$ 67,386	$ 135,581	$ 146,698
Reorder Sales
Disaggregation of Revenue [Line Items]
Sales	59,729	60,646	123,068	129,348
Reorder Sales | Previously Reported
Disaggregation of Revenue [Line Items]
Sales		62,000		133,000
New Order Sales
Disaggregation of Revenue [Line Items]
Sales	$ 5,665	6,740	$ 12,513	17,350
New Order Sales | Previously Reported
Disaggregation of Revenue [Line Items]
Sales		$ 5,400		$ 13,700

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income (numerator):
Net income	$ 2,579	$ 6,349	$ 5,354	$ 10,777
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation (in shares)	20,261	20,178	20,235	20,144
Common shares issuable upon vesting of restricted stock (in shares)	73	380	73	230
Common shares issuable upon conversion of preferred shares (in shares)	10	10	10	10
Shares used in diluted computation (in shares)	20,344	20,568	20,318	20,384
Basic (in dollars per share)	$ 0.13	$ 0.31	$ 0.26	$ 0.53
Diluted (in dollars per share)	$ 0.13	$ 0.31	$ 0.26	$ 0.53

Net Income Per Share - Narrativ

Net Income Per Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Common restricted stock (in shares)	261,228	115,219	261,228	115,219

Accounting for Stock-Based Co_2

Accounting for Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended		3 Months Ended		6 Months Ended
	Aug. 03, 2022	Jul. 31, 2022	Aug. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
2016 Employee Plan | Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted common shares issued (in shares)				57,640		958,998
Restriction period			3 years
2016 Employee Plan | Restricted Stock | Chief Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issued restricted shares (in shares)			90,000
Issued restricted share price (in dollars per share)			$ 28.70
2016 Employee Plan | Restricted Stock | Chief Financial Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issued restricted shares (in shares)	13,000
2016 Employee Plan | Performance Restricted Stock | Chief Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issued restricted shares (in shares)			510,000
Value of shares			$ 9.7
Issued restricted share price (in dollars per share)			$ 19.06
2016 Employee Plan | Performance Restricted Stock | Chief Financial Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issued restricted shares (in shares)	3,000
2015 Director Plan | Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted common shares issued (in shares)				30,000		240,755
2015 Director Plan | Restricted Stock | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restriction period						1 year
2015 Director Plan | Restricted Stock | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restriction period						3 years
2016 Employee Plan and 2015 Director Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense				$ 1.7	$ 0.9	$ 3.2	$ 1.6
2016 Employee Plan and 2015 Director Plan | Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost				$ 12.2	$ 15.8	$ 12.2	$ 15.8
Nonvested restricted shares issued and outstanding (in shares)				776,928	734,669	776,928	734,669
2016 Employee Plan and 2015 Director Plan | Restricted Stock | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Recognition period						1 year
2016 Employee Plan and 2015 Director Plan | Restricted Stock | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Recognition period						3 years
2022 Employee Plan | Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted common shares issued (in shares)				0
Shares available for issuance (in shares)		1,000,000
2022 Employee Plan | Restricted Stock | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restriction period		1 year
2022 Employee Plan | Restricted Stock | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restriction period		10 years
2016 Employee Equity Compensation Restricted Stock Plan | Chief Financial Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant release restriction period	3 years

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 96,546	$ 111,080

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
State sales tax assessment accruals	$ 900
Accrued severance costs	$ 364

Note 7 - Changes in Shareholder

Note 7 - Changes in Shareholders' Equity - Schedule of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		$ 142,186			$ 142,186
Shares Issued			$ 1
Net income	$ 2,579		6,349		5,354	$ 10,777
Ending balance	138,153				138,153
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	21	21	20	$ 20	21	20
Ending balance	21	21	21	20	21	21
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	13,196	11,660	7,829	7,111	11,660	7,111
Share based compensation	1,681	1,536	882	718
Ending balance	14,877	13,196	8,711	7,829	14,877	8,711
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	126,974	130,496	132,489	134,141	130,496	134,141
Dividends declared	(6,307)	(6,297)	(6,092)	(6,080)
Net income	2,579	2,775	6,349	4,428
Ending balance	$ 123,246	$ 126,974	$ 132,746	$ 132,489	$ 123,246	$ 132,746

Changes in Shareholders' Equi_3

Changes in Shareholders' Equity - Narrative (Details) - USD ($) shares in Thousands, $ in Millions	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Equity [Abstract]
Shares repurchased and retired (in shares)	0	0
Remaining authorized repurchase amount	$ 28.7

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 1,031	$ 1,982	$ 2,061	$ 3,342
Effective Income Tax Rate Reconciliation, Percent, Total	28.60%	23.80%	27.80%	23.70%

Note 9 - Related Party Transact

Note 9 - Related Party Transaction (Details) - Prophet - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Sep. 30, 2022	Mar. 31, 2022	Mar. 31, 2021
Related Party Transaction [Line Items]
Amount of transaction	$ 292
Related expenses		$ 0	$ 260	$ 32

Note 10 - Minority Interest Inv

Note 10 - Minority Interest Investment in Vetster (Details Textual) - Partnership Agreement with Vetster $ in Millions	Apr. 19, 2022 USD ($)
Noncontrolling Interest [Line Items]
Term of agreement	3 years
Minority interest purchased	5%
Investments	$ 5

Note 11 - Subsequent Events (De

Note 11 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 07, 2022	Nov. 08, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Subsequent Event [Line Items]
Cash dividends declared per common share (in dollars per share)			$ 0.30	$ 0.30	$ 0.60	$ 0.60
Subsequent Event | Quarterly Dividend
Subsequent Event [Line Items]
Cash dividends declared per common share (in dollars per share)	$ 0.30
Dividends payable		$ 6.3
Subsequent Event | Employee Stock | 2016 Employee Equity Compensation Restricted Stock Plan
Subsequent Event [Line Items]
Issued restricted shares (in shares)		1,000