PetMed Express (PETS) 10-Q 31 Oct 17 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Sep. 30, 2017	Oct. 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	Sep. 30, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Current assets:
Cash and cash equivalents	$ 68,443	$ 58,730
Accounts receivable, less allowance for doubtful accounts of $31 and $27, respectively	2,012	1,808
Inventories - finished goods	23,005	20,228
Prepaid expenses and other current assets	1,106	1,019
Total current assets	94,566	81,785
Noncurrent assets:
Property and equipment, net	29,456	30,164
Intangible assets	860	860
Total noncurrent assets	30,316	31,024
Total assets	124,882	112,809
Current liabilities:
Accounts payable	10,376	15,221
Accrued expenses and other current liabilities	2,871	2,475
Income taxes payable	6,008	659
Total liabilities	19,255	18,355
Deferred tax liabilities	1,304	1,088
Total liabilities	20,559	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; 20,604 and 20,526 shares issued and outstanding, respectively	21	21
Additional paid-in capital	7,952	6,806
Retained earnings	96,341	86,530
Total shareholders' equity	104,323	93,366
Total liabilities and shareholders' equity	$ 124,882	$ 112,809

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Sep. 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)	20,604	20,526
Common stock, shares outstanding (in shares)	20,604	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		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Sales	$ 66,711	$ 60,791	$ 146,368	$ 133,278
Cost of sales	43,232	42,727	95,424	92,762
Gross profit	23,479	18,064	50,944	40,516
Operating expenses:
General and administrative	6,178	5,747	12,404	11,845
Advertising	4,526	4,382	10,818	10,142
Depreciation	527	204	1,058	398
Total operating expenses	11,231	10,333	24,280	22,385
Income from operations	12,248	7,731	26,664	18,131
Other income:
Interest income, net	143	32	226	60
Other, net	249	23	490	76
Total other income	392	55	716	136
Income before provision for income taxes	12,640	7,786	27,380	18,267
Provision for income taxes	3,880	2,887	9,344	6,774
Net income	8,760	4,899	18,036	11,493
Comprehensive income	$ 8,760	$ 4,899	$ 18,036	$ 11,493
Net income per common share:
Basic (in dollars per share)	$ 0.43	$ 0.24	$ 0.89	$ 0.57
Diluted (in dollars per share)	$ 0.43	$ 0.24	$ 0.88	$ 0.56
Weighted average number of common shares outstanding:
Basic (in shares)	20,349	20,234	20,321	20,208
Diluted (in shares)	20,437	20,377	20,442	20,355
Cash dividends declared per common share (in dollars per share)	$ 0.20	$ 0.19	$ 0.40	$ 0.38

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 18,036	$ 11,493
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,058	398
Share based compensation	1,146	946
Deferred income taxes	216	364
Bad debt expense	46	352
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable	(250)	3
Inventories - finished goods	(2,777)	10,765
Prepaid income taxes		222
Prepaid expenses and other current assets	(87)	1,764
Accounts payable	(4,845)	1,143
Income taxes payable	5,349
Accrued expenses and other current liabilities	411	335
Net cash provided by operating activities	18,303	27,785
Cash flows from investing activities:
Purchases of property and equipment	(350)	(5,859)
Net cash used in investing activities	(350)	(5,859)
Cash flows from financing activities:
Dividends paid	(8,240)	(7,784)
Excess tax benefits related to restricted stock		115
Net cash used in financing activities	(8,240)	(7,669)
Net increase in cash and cash equivalents	9,713	14,257
Cash and cash equivalents, at beginning of period	58,730	37,639
Cash and cash equivalents, at end of period	68,443	51,896
Supplemental disclosure of cash flow information:
Cash paid for income taxes	3,780	6,186
Prepaid property and equipment in current assets		5,815
Dividends payable in accrued expenses	$ 202	$ 144

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	6 Months Ended
	Sep. 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 Company”), is a leading nationwide pet pharmacy. The Company markets prescription and non-prescription pet medications, health products, and supplies for dogs and cats, direct to the consumer. The Company offers consumers an attractive alternative for obtaining pet medications in terms of convenience, price, and speed of delivery. The Company markets its products through national advertising campaigns, which aim to increase the recognition of the “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 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, 2017, three six September 30, 2017 2016, six September 30, 2017 2016. three six September 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, Financial Accounting Standards Board (“FASB”) issued ASU 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 strea ms 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 ’s effective tax rate in fiscal 2018, The Company does not other recently issued, but not

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 2: Net Income Per Share In accordance with the provisions of Accounting Standards Codification (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 September 30, Six Months Ended September 30, 2017 2016 2017 2016 Net income (numerator): Net income $ 8,760 $ 4,899 $ 18,036 $ 11,493 Shares (denominator): Weighted average number of common shares outstanding used in basic computation 20,349 20,234 20,321 20,208 Common shares issuable upon vesting of restricted stock 78 133 111 137 Common shares issuable upon conversion of preferred shares 10 10 10 10 Shares used in diluted computation 20,437 20,377 20,442 20,355 Net income per common share: Basic $ 0.43 $ 0.24 $ 0.89 $ 0.57 Diluted $ 0.43 $ 0.24 $ 0.88 $ 0.56 For the three six September 30, 2017, 79,200 three six September 30, 2016, 30,000

Note 3 - Accounting for Stock-b

Note 3 - Accounting for Stock-based Compensation	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 3: Accounting for Stock-Based Compensation The Company records compensation expense associated with restricted stock in accordance with ASC Topic 7 18 “Share Based Payment” 2016 09 976 ,461 2006 “2006 49,200 2016 “2016 2006 272,000 2006 “2006 60,000 2015 “2015 2006 September 30, 2017, lapses ratably on the first, second, and third three . In July 201 7 , the Board of Directors approved the issuance of 49,200 2016 $48.37 July 2017 , the Board of Directors approved the issuance of 30,000 2015 $48.37 September 30, 2017 2016, $652,000 $483,000, six September 30, 2017 2016, $1.1 $946,000, September 30, 2017 2016, $6.0 $4.3 three September 30, 2017 2016, 236,000 273,000

Note 4 - Fair Value

Note 4 - Fair Value	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 4: Fair Value The Company carries various assets and liabilities at fair value in the Condensed Consolidated Balanc e 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 September 30, 2017, $68.4 1.

Note 5 - Commitments and Contin

Note 5 - Commitments and Contingencies	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 5: In June 2017, Medical Center of Orland Park, Inc. v. PetMed Express, Inc., d/b/a 1 800 1 10, 2017 07347. On August 25, 2017, PetMed Express, Inc. (the “Company”) and the Company’s principal executive officers, one September 7, 2017, second one The Company has settled complaints that had been filed with various states’ regulatory boards in the past. There can be no not no Legal costs related to the above matters are expensed as incurred.

Note 6 - Changes in Shareholder

Note 6 - Changes in Shareholders' Equity and Comprehensive Income	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 6 : Changes in S hare holders’ Equity and Comprehensive Income: Changes in shareholders’ equity for the six September 30, 2017 Additional Paid-In Retained Capital Earnings Beginning balance at March 31, 2017: $ 6,806 $ 86,530 Share based compensation 1,146 - Dividends declared - (8,225 ) Net income - 18,036 Ending balance at September 30, 2017: $ 7,952 $ 96,341 No purchased or retired in the six September 30, 2017 2016.

Note 7 - Income Taxes

Note 7 - Income Taxes	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 7 : Income Taxes For the quarters ended September 30, 201 7 2016, $3.9 $2.9 six September 30, 2017 2016, $9.3 $6.8 three six September 30, 2017, September 30, 2017 30.7%, 37.1% September 30, 2016. six September 30, 2017 34.1%, 37.1% six September 30, 2016. three six September 30, 2017 $807,000 September

Note 8 - Subsequent Events

Note 8 - Subsequent Events	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	Note 8 : Subsequent Events On October 23, 2017 $0.20 November 6, 2017 November 17, 2017 October 31, 2017 $4.1

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Sep. 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 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, 2017, three six September 30, 2017 2016, six September 30, 2017 2016. three six September 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, Financial Accounting Standards Board (“FASB”) issued ASU 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 strea ms 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 ’s effective tax rate in fiscal 2018, The Company does not other recently issued, but not

Note 2 - Net Income Per Share (

Note 2 - Net Income Per Share (Tables)	6 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Six Months Ended September 30, 2017 2016 2017 2016 Net income (numerator): Net income $ 8,760 $ 4,899 $ 18,036 $ 11,493 Shares (denominator): Weighted average number of common shares outstanding used in basic computation 20,349 20,234 20,321 20,208 Common shares issuable upon vesting of restricted stock 78 133 111 137 Common shares issuable upon conversion of preferred shares 10 10 10 10 Shares used in diluted computation 20,437 20,377 20,442 20,355 Net income per common share: Basic $ 0.43 $ 0.24 $ 0.89 $ 0.57 Diluted $ 0.43 $ 0.24 $ 0.88 $ 0.56

Note 6 - Changes in Sharehold16

Note 6 - Changes in Shareholders' Equity and Comprehensive Income (Tables)	6 Months Ended
	Sep. 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 1,146 - Dividends declared - (8,225 ) Net income - 18,036 Ending balance at September 30, 2017: $ 7,952 $ 96,341

Note 2 - Net Income Per Share17

Note 2 - Net Income Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	79,200	30,000	79,200	30,000

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		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (numerator):
Net income	$ 8,760	$ 4,899	$ 18,036	$ 11,493
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation (in shares)	20,349	20,234	20,321	20,208
Common shares issuable upon vesting of restricted stock (in shares)	78	133	111	137
Common shares issuable upon conversion of preferred shares (in shares)	10	10	10	10
Shares used in diluted computation (in shares)	20,437	20,377	20,442	20,355
Net income per common share
Basic (in dollars per share)	$ 0.43	$ 0.24	$ 0.89	$ 0.57
Diluted (in dollars per share)	$ 0.43	$ 0.24	$ 0.88	$ 0.56

Note 3 - Accounting for Stock19

Note 3 - Accounting for Stock-based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
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
2016 Employee Equity Compensation Restricted Stock Plan [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	49,200
Shares Issued, Price Per Share	$ 48.37
2016 Employee Equity Compensation Restricted Stock Plan [Member] | Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross				49,200
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
2015 Outside Director Equity Compensation Restricted Stock Plan ("2015 Director Plan") [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	30,000
Shares Issued, Price Per Share	$ 48.37
2015 Outside Director Equity Compensation Restricted Stock Plan ("2015 Director Plan") [Member] | Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross				60,000
Employee and Director Plans [Member] | Restricted Stock [Member]
Allocated Share-based Compensation Expense		$ 652,000	$ 483,000	$ 1,100,000	$ 946,000
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		236,000	273,000	236,000	273,000
Employee and Director Plans [Member] | Restricted Stock [Member] | General and Administrative Expense [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options		$ 6,000,000	$ 4,300,000	$ 6,000,000	$ 4,300,000

Note 4 - Fair Value (Details Te

Note 4 - Fair Value (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Mar. 31, 2016
Cash and Cash Equivalents, at Carrying Value	$ 68,443	$ 58,730	$ 51,896	$ 37,639

Note 6 - Changes in Sharehold21

Note 6 - Changes in Shareholders' Equity and Comprehensive Income (Details Textual) - shares shares in Thousands	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Treasury Stock, Shares, Acquired	0	0
Treasury Stock, Shares, Retired	0	0

Note 6 - Changes in Sharehold22

Note 6 - Changes in Shareholders' Equity and Comprehensive Income - Schedule of Changes in Shareholders' Equity and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Beginning balance at March 31, 2017:			$ 93,366
Net income	$ 8,760	$ 4,899	18,036	$ 11,493
Ending balance at September 30, 2017:	104,323		104,323
Additional Paid-in Capital [Member]
Beginning balance at March 31, 2017:			6,806
Share based compensation			1,146
Dividends declared
Net income
Ending balance at September 30, 2017:	7,952		7,952
Retained Earnings [Member]
Beginning balance at March 31, 2017:			86,530
Share based compensation
Dividends declared			(8,225)
Net income			18,036
Ending balance at September 30, 2017:	$ 96,341		$ 96,341

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Expense (Benefit)	$ 3,880,000	$ 2,887,000	$ 9,344,000	$ 6,774,000
Effective Income Tax Rate Reconciliation, Percent	30.70%	37.10%	34.10%	37.10%
Restricted Stock [Member]
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 807,000		$ 807,000

Note 8 - Subsequent Events (Det

Note 8 - Subsequent Events (Details Textual) - Subsequent Event [Member] $ / shares in Units, $ in Millions	Oct. 23, 2017USD ($)$ / shares
Dividends Payable, Amount Per Share | $ / shares	$ 0.20
Dividends Payable | $	$ 4.1
Dividends Payable, Date of Record	Nov. 6, 2017
Dividends Payable, Date to be Paid	Nov. 17, 2017
Dividends Payable, Date Declared	Oct. 31, 2017