PetMed Express (PETS) 10-Q 31 Jul 17 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document Information [Line Items]
Entity Registrant Name	PETMED EXPRESS INC
Entity Central Index Key	1,040,130
Trading Symbol	pets
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		20,604,307
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Current assets:
Cash and cash equivalents	$ 68,525	$ 58,730
Accounts receivable, less allowance for doubtful accounts of $31 and $27, respectively	2,059	1,808
Inventories - finished goods	23,032	20,228
Prepaid expenses and other current assets	1,513	1,019
Total current assets	95,129	81,785
Noncurrent assets:
Property and equipment, net	29,676	30,164
Intangible assets	860	860
Total noncurrent assets	30,536	31,024
Total assets	125,665	112,809
Current liabilities:
Accounts payable	16,205	15,221
Accrued expenses and other current liabilities	3,217	2,475
Income taxes payable	6,227	659
Total current liabilities	25,649	18,355
Deferred tax liabilities	985	1,088
Total liabilities	26,634	19,443
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; 20,525 and 20,526 shares issued and outstanding, respectively	21	21
Additional paid-in capital	7,300	6,806
Retained earnings	91,701	86,530
Total shareholders' equity	99,031	93,366
Total liabilities and shareholders' equity	$ 125,665	$ 112,809

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Allowance for doubtful accounts	$ 31	$ 27
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000	5,000
Preferred stock, liquidation preference (in dollars per share)	$ 4	$ 4
Common stock, par 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)	20,525	20,526
Common stock, shares outstanding (in shares)	20,525	20,526
Convertible Preferred Stock [Member]
Preferred stock, shares issued (in shares)	3	3
Preferred stock, shares outstanding (in shares)	3	3

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Sales	$ 79,657	$ 72,487
Cost of sales	52,192	50,035
Gross profit	27,465	22,452
Operating expenses:
General and administrative	6,226	6,098
Advertising	6,292	5,760
Depreciation	531	194
Total operating expenses	13,049	12,052
Income from operations	14,416	10,400
Other income:
Interest income, net	83	28
Other, net	241	53
Total other income	324	81
Income before provision for income taxes	14,740	10,481
Provision for income taxes	5,464	3,887
Net income	9,276	6,594
Comprehensive income	$ 9,276	$ 6,594
Net income per common share:
Basic (in dollars per share)	$ 0.46	$ 0.33
Diluted (in dollars per share)	$ 0.45	$ 0.32
Weighted average number of common shares outstanding:
Basic (in shares)	20,293	20,181
Diluted (in shares)	20,448	20,333
Cash dividends declared per common share (in dollars per share)	$ 0.20	$ 0.19

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 9,276	$ 6,594
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	531	194
Share based compensation	494	463
Deferred income taxes	(104)	(44)
Bad debt expense	28	233
(Increase) decrease in operating assets and increase in liabilities:
Accounts receivable	(279)	(584)
Inventories - finished goods	(2,804)	(1,440)
Prepaid income taxes	(494)	243
Prepaid expenses and other current assets		1,143
Accounts payable	984	2,277
Income taxes payable	5,568	3,655
Accrued expenses and other current liabilities	696	372
Net cash provided by operating activities	13,896	13,106
Cash flows from investing activities:
Purchases of property and equipment	(43)	(2,604)
Net cash used in investing activities	(43)	(2,604)
Cash flows from financing activities:
Dividends paid	(4,058)	(3,834)
Net cash used in financing activities	(4,058)	(3,834)
Net increase in cash and cash equivalents	9,795	6,668
Cash and cash equivalents, at beginning of period	58,730	37,639
Cash and cash equivalents, at end of period	68,525	44,307
Supplemental disclosure of cash flow information:
Cash paid for income taxes		55
Prepaid property and equipment in current assets		2,573
Dividends payable in accrued expenses	$ 293	$ 194

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	Note 1: Organization PetMed Express, Inc. and subsidiaries, d/b/a 1 800 “1 800 www.1800petmeds.com, March 31, 2018 2017 March 31, 2018 2017, Basis of Presentation and Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10 not June 30, 2017, three June 30, 2017 2016, three June 30, 2017 2016. three June 30, 2017 not March 31, 2018. 10 March 31, 2017. 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 In May 2014, 2014 09, December 15, 2017. 2016, two The Company currently anticipates adopting the standard using the modified retrospective method. The Company has performed a high level analysis of its revenue streams and expects to complete its evaluations in FY 2018, not 2018 2019. In March 2016, 718 2016 09 2016 09 January 1, 2017. March 31, 2017. may 2018, The Company does not not

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 2: Net Income Per Share In accordance with the provisions of ASC Topic 260 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 June 30, 2017 2016 Net income (numerator): Net income $ 9,276 $ 6,594 Shares (denominator): Weighted average number of common shares outstanding used in basic computation 20,293 20,181 Common shares issuable upon vesting of restricted stock 145 142 Common shares issuable upon conversion of preferred shares 10 10 Shares used in diluted computation 20,448 20,333 Net income per common share: Basic $ 0.46 $ 0.33 Diluted $ 0.45 $ 0.32 At June 30, 2017 2016,

Note 3 - Stock-based Compensati

Note 3 - Stock-based Compensation	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 3: Stock-Based Compensation The Company records compensation expense associated with restricted stock in accordance with ASC Topic 718 “Share Based Payment” 2016 09 976 ,461 2006 “2006 272 ,000 2006 “2006 30,000 2015 “2015 2006 June 30, 2017, lapses ratably on the first, second, and third three In July 2015, 2015 2015 400,000 10% July 2016, 2016 “2016 2016 1,000,000 The Company did not For the quarters ended June 30, 2017 2016, $494,000 $463,000, 2006 June 30, 2017 2016, $2.8 $3.2 three June 30, 2017 2016, 232,000 266,000

Note 4 - Fair Value

Note 4 - Fair Value	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 4 : Fair Value The Company carries cash and cash equivalents and investments 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 three Level 1 Level 2 Level 3 no 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 June 30, 2017, $68.5 1.

Note 5 - Commitments and Contin

Note 5 - Commitments and Contingencies	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 5 : Commitments and Contingencies In June 2017, Medical Center of Orland Park, Inc. v. PetMed Express, Inc., d/b/a 1 800 1 10, 2017 07347. The Company has settled complaints that had been filed with various states’ pharmacy boards in the past. There can be no not no

Note 6 - Changes in Shareholder

Note 6 - Changes in Shareholders' Equity	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 6 : Changes in S hare holders’ Equity: Changes in shareholders’ equity for the three June 30, 2017 Additional Paid-In Retained Capital Earnings Beginning balance at March 31, 2017: $ 6,806 $ 86,530 Share based compensation 494 - Dividends declared - (4,105 ) Net income - 9,276 Ending balance at June 30, 2017: $ 7,300 $ 91,701 No three June 30, 2017 2016.

Note 7 - Income Taxes

Note 7 - Income Taxes	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 7 : Income Taxes For the quarters ended June 30, 2017 2016, $5.5 $3.9 37.1% June 30, 2017 2016.

Note 8 - Subsequent Events

Note 8 - Subsequent Events	3 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	Note 8 : Subsequent Events On July 24, 2017 $0.20 August 7, 2017 August 18, 2017 July 31, 2017 $4.1 On July 28, 2017, 49,200 2016 30,000 2015

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis Of Presentation and Consolidation [Policy Text Block]	Basis of Presentation and Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10 not June 30, 2017, three June 30, 2017 2016, three June 30, 2017 2016. three June 30, 2017 not March 31, 2018. 10 March 31, 2017.
Use of Estimates, Policy [Policy Text Block]	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, Policy [Policy Text Block]	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.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2014, 2014 09, December 15, 2017. 2016, two The Company currently anticipates adopting the standard using the modified retrospective method. The Company has performed a high level analysis of its revenue streams and expects to complete its evaluations in FY 2018, not 2018 2019. In March 2016, 718 2016 09 2016 09 January 1, 2017. March 31, 2017. may 2018, The Company does not not

Note 2 - Net Income Per Share (

Note 2 - Net Income Per Share (Tables)	3 Months Ended
	Jun. 30, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended June 30, 2017 2016 Net income (numerator): Net income $ 9,276 $ 6,594 Shares (denominator): Weighted average number of common shares outstanding used in basic computation 20,293 20,181 Common shares issuable upon vesting of restricted stock 145 142 Common shares issuable upon conversion of preferred shares 10 10 Shares used in diluted computation 20,448 20,333 Net income per common share: Basic $ 0.46 $ 0.33 Diluted $ 0.45 $ 0.32

Note 6 - Changes in Sharehold16

Note 6 - Changes in Shareholders' Equity (Tables)	3 Months Ended
	Jun. 30, 2017
Notes Tables
Schedule of Stockholders Equity [Table Text Block]	Additional Paid-In Retained Capital Earnings Beginning balance at March 31, 2017: $ 6,806 $ 86,530 Share based compensation 494 - Dividends declared - (4,105 ) Net income - 9,276 Ending balance at June 30, 2017: $ 7,300 $ 91,701

Note 2 - Net Income Per Share -

Note 2 - Net Income Per Share - Reconciliation of the Numerators and Denominators of the Basic and Diluted Net Income per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Net income (numerator):
Net income	$ 9,276	$ 6,594
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation (in shares)	20,293	20,181
Common shares issuable upon vesting of restricted stock (in shares)	145	142
Common shares issuable upon conversion of preferred shares (in shares)	10	10
Shares used in diluted computation (in shares)	20,448	20,333
Net income per common share
Basic (in dollars per share)	$ 0.46	$ 0.33
Diluted (in dollars per share)	$ 0.45	$ 0.32

Note 3 - Stock-based Compensa18

Note 3 - Stock-based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Jul. 31, 2015	Jun. 30, 2017	Jun. 30, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross		0
2006 Employee Equity Compensation Restricted Stock Plan (the "Employee Plan") [Member] | Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		976,461
2006 Outside Director Equity Compensation Restricted Stock Plan (the "Director Plan") [Member] | Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		272,000
Common Stock, Capital Shares Reserved for Future Issuance	400,000
Percentage of Automatic Increase in the Amount of Shares Available for Issuance	10.00%
2015 Outside Director Equity Compensation Restricted Stock Plan ("2015 Director Plan") [Member] | Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		30,000
2016 Employee Equity Compensation Restricted Stock Plan [Member] | Restricted Stock [Member]
Common Stock, Capital Shares Reserved for Future Issuance		1,000,000
Employee and Director Plans [Member] | Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		232,000	266,000
Employee and Director Plans [Member] | Restricted Stock [Member] | General and Administrative Expense [Member]
Allocated Share-based Compensation Expense		$ 494,000	$ 463,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options		$ 2,800,000	$ 3,200,000

Note 4 - Fair Value (Details Te

Note 4 - Fair Value (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016
Cash and Cash Equivalents, at Carrying Value	$ 68,525	$ 58,730	$ 44,307	$ 37,639

Note 6 - Changes in Sharehold20

Note 6 - Changes in Shareholders' Equity (Details Textual) - shares	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Treasury Stock, Shares, Retired	0	0
Treasury Stock, Shares, Acquired	0	0

Note 6 - Changes in Sharehold21

Note 6 - Changes in Shareholders' Equity - Schedule of Changes in Shareholders' Equity and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Beginning balance at March 31, 2017:	$ 93,366
Net income	9,276	$ 6,594
Ending balance at June 30, 2017:	99,031
Additional Paid-in Capital [Member]
Beginning balance at March 31, 2017:	6,806
Share based compensation	494
Dividends declared
Net income
Ending balance at June 30, 2017:	7,300
Retained Earnings [Member]
Beginning balance at March 31, 2017:	86,530
Share based compensation
Dividends declared	(4,105)
Net income	9,276
Ending balance at June 30, 2017:	$ 91,701

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Income Tax Expense (Benefit)	$ 5,464	$ 3,887
Effective Income Tax Rate Reconciliation, Percent	37.10%	37.10%

Note 8 - Subsequent Events (Det

Note 8 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Jul. 31, 2017	Jul. 28, 2017	Jul. 24, 2017	Jun. 30, 2017
Stock Issued During Period, Shares, Restricted Stock Award, Gross				0
Subsequent Event [Member]
Dividends Payable, Date to be Paid			Aug. 18, 2017
Dividends Payable, Amount Per Share			$ 0.20
Dividends, Paid-in-kind	$ 4.1
Dividends Payable, Date Declared			Jul. 24, 2017
Dividends Payable, Date of Record			Aug. 7, 2017
Subsequent Event [Member] | 2016 Employee Equity Compensation Restricted Stock Plan [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		49,200
Subsequent Event [Member] | 2015 Outside Director Equity Compensation Restricted Stock Plan ("2015 Director Plan") [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		30,000