PetMed Express (PETS) 10-Q 30 Jan 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2017	Jan. 30, 2018
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)		20,601,106
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Current assets:
Cash and cash equivalents	$ 80,997	$ 58,730
Accounts receivable, less allowance for doubtful accounts of $26 and $27, respectively	1,715	1,808
Inventories - finished goods	21,907	20,228
Prepaid expenses and other current assets	974	1,019
Total current assets	105,593	81,785
Noncurrent assets:
Property and equipment, net	29,138	30,164
Intangible assets	860	860
Total noncurrent assets	29,998	31,024
Total assets	135,591	112,809
Current liabilities:
Accounts payable	12,426	15,221
Income taxes payable	9,474	659
Accrued expenses and other current liabilities	3,034	2,475
Total current liabilities	24,934	18,355
Deferred tax liabilities	676	1,088
Total liabilities	25,610	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; 20,601 and 20,526 shares issued and outstanding, respectively	21	21
Additional paid-in capital	8,664	6,806
Retained earnings	101,287	86,530
Total shareholders' equity	109,981	93,366
Total liabilities and shareholders' equity	$ 135,591	$ 112,809

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Allowance for doubtful accounts	$ 26	$ 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)	20,601	20,526
Common stock, shares outstanding (in shares)	20,601	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		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Sales	$ 60,110	$ 52,866	$ 206,478	$ 186,144
Cost of sales	38,166	36,223	133,590	128,985
Gross profit	21,944	16,643	72,888	57,159
Operating expenses:
General and administrative	5,818	5,361	18,222	17,206
Advertising	4,126	3,170	14,944	13,312
Depreciation	532	457	1,590	855
Total operating expenses	10,476	8,988	34,756	31,373
Income from operations	11,468	7,655	38,132	25,786
Other income:
Interest income, net	191	36	417	96
Other, net	265	130	755	206
Total other income	456	166	1,172	302
Income before provision for income taxes	11,924	7,821	39,304	26,088
Provision for income taxes	2,860	2,998	12,204	9,772
Net income	9,064	4,823	27,100	16,316
Comprehensive income	$ 9,064	$ 4,823	$ 27,100	$ 16,316
Net income per common share:
Basic (in dollars per share)	$ 0.45	$ 0.24	$ 1.33	$ 0.81
Diluted (in dollars per share)	$ 0.44	$ 0.24	$ 1.33	$ 0.80
Weighted average number of common shares outstanding:
Basic (in shares)	20,368	20,253	20,337	20,223
Diluted (in shares)	20,425	20,408	20,437	20,373
Cash dividends declared per common share (in dollars per share)	$ 0.20	$ 0.19	$ 0.60	$ 0.57

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 27,100	$ 16,316
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,590	855
Share based compensation	1,858	1,444
Deferred income taxes	(412)	1,164
Bad debt expense	72	368
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable	21	(188)
Inventories - finished goods	(1,679)	10,661
Prepaid income taxes		(632)
Prepaid expenses and other current assets	45	857
Accounts payable	(2,795)	387
Income taxes payable	8,815
Accrued expenses and other current liabilities	530	410
Net cash provided by operating activities	35,145	31,642
Cash flows from investing activities:
Purchases of property and equipment	(564)	(9,860)
Net cash used in investing activities	(564)	(9,860)
Cash flows from financing activities:
Dividends paid	(12,314)	(11,632)
Excess tax benefits related to restricted stock		115
Net cash used in financing activities	(12,314)	(11,517)
Net increase in cash and cash equivalents	22,267	10,265
Cash and cash equivalents, at beginning of period	58,730	37,639
Cash and cash equivalents, at end of period	80,997	47,904
Supplemental disclosure of cash flow information:
Cash paid for income taxes	3,801	9,246
Prepaid property and equipment in current assets		863
Dividends payable in accrued expenses	$ 246	$ 196

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	9 Months Ended
	Dec. 31, 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 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 December 31, 2017, three nine December 31, 2017 2016, nine December 31, 2017 2016. three nine December 31, 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 was effective for annual and interim periods beginning January 1, 2017. March 31, 2017. may 2018, The Company does not other recently issued, but not

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share	9 Months Ended
	Dec. 31, 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 December 31 , Nine Months Ended December 31 , 201 7 201 6 201 7 201 6 Net income (numerator) : Net incom e $ 9,064 $ 4,823 $ 27,100 $ 16,316 Shares (denominator) : Weighted average number of common shares n 20,368 20,253 20,337 20,223 Common shares issuable upon vesting o f k 47 145 90 140 Common shares issuable upon conversio n s 10 10 10 10 Shares used in diluted computatio n 20,425 20,408 20,437 20,373 Net income per common share : Basi c $ 0.45 $ 0.24 $ 1.33 $ 0.81 Dilute d $ 0.44 $ 0.24 $ 1.33 $ 0.80 For the three nine December 31, 2017, 77,600 three nine December 31, 2016,

Note 3 - Accounting for Stock-b

Note 3 - Accounting for Stock-based Compensation	9 Months Ended
	Dec. 31, 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 718 “Share Based Payment” 2016 09 974 ,860 2006 “2006 47,600 2016 “2016 2006 272,000 2006 “2006 60,000 2015 “2015 2006 December 31, 2017, lapses ratably on the first, second, and third three . For the quarters ended December 31 , 2017 2016, $712,000 $498,000, nine December 31, 2017 2016, $1.9 $1.4 December 31, 2017 2016, $5.1 $3.8 three December 31, 2017 2016, 233,000 273,000

Note 4 - Fair Value

Note 4 - Fair Value	9 Months Ended
	Dec. 31, 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 December 31, 2017, $81.0 1.

Note 5 - Commitments and Contin

Note 5 - Commitments and Contingencies	9 Months Ended
	Dec. 31, 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. November 13, 2017, On August 25, 2017 and September 7, 2017, one August 23, 2017 10 20 1934. January 19, 2018, 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	9 Months Ended
	Dec. 31, 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 nine December 31, 2017 Additional Paid-In Retained Capital Earnings Beginning balance at March 31, 2017: $ 6,806 $ 86,530 Share based compensation 1,858 - Dividends declared - (12,343 ) Net income - 27,100 Ending balance at December 31, 2017: $ 8,664 $ 101,287 No nine December 31, 2017 2016.

Note 7 - Income Taxes

Note 7 - Income Taxes	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 7 : Income Taxes For the quarters ended December 31, 2017 2016, $2.9 $3.0 nine December 31, 2017 2016, $12.2 $9.8 three December 31, 2017, 2017 “2017 nine December 31, 2017, 2017 December 31, 2017 24.0%, 38.3% December 31, 2016, nine December 31, 2017 31.1%, 37.5% nine December 31, 2016. three nine December 31, 2017 2017 No. 118, 35.0% nine December 31, 2017, 31.5%. nine December 31, 2017, $1.7 one $384,000 one $175,000 2017 December 31, 2017.

Note 8 - Subsequent Events

Note 8 - Subsequent Events	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	Note 8 : Subsequent Events On or about January 19, 2018, August September 2017, On January 22, 2018 $0.25 February 5, 2018 February 16, 2018 January 30, 2018 $5.2

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 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 December 31, 2017, three nine December 31, 2017 2016, nine December 31, 2017 2016. three nine December 31, 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 was effective for annual and interim periods beginning January 1, 2017. March 31, 2017. may 2018, The Company does not other recently issued, but not

Note 2 - Net Income Per Share (

Note 2 - Net Income Per Share (Tables)	9 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended December 31 , Nine Months Ended December 31 , 201 7 201 6 201 7 201 6 Net income (numerator) : Net incom e $ 9,064 $ 4,823 $ 27,100 $ 16,316 Shares (denominator) : Weighted average number of common shares n 20,368 20,253 20,337 20,223 Common shares issuable upon vesting o f k 47 145 90 140 Common shares issuable upon conversio n s 10 10 10 10 Shares used in diluted computatio n 20,425 20,408 20,437 20,373 Net income per common share : Basi c $ 0.45 $ 0.24 $ 1.33 $ 0.81 Dilute d $ 0.44 $ 0.24 $ 1.33 $ 0.80

Note 6 - Changes in Sharehold16

Note 6 - Changes in Shareholders' Equity and Comprehensive Income (Tables)	9 Months Ended
	Dec. 31, 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 1,858 - Dividends declared - (12,343 ) Net income - 27,100 Ending balance at December 31, 2017: $ 8,664 $ 101,287

Note 2 - Net Income Per Share17

Note 2 - Net Income Per Share (Details Textual) - shares	3 Months Ended	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	77,600	77,600

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		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net income (numerator):
Net income	$ 9,064	$ 4,823	$ 27,100	$ 16,316
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation (in shares)	20,368	20,253	20,337	20,223
Common shares issuable upon vesting of restricted stock (in shares)	47	145	90	140
Common shares issuable upon conversion of preferred shares (in shares)	10	10	10	10
Shares used in diluted computation (in shares)	20,425	20,408	20,437	20,373
Net income per common share
Basic (in dollars per share)	$ 0.45	$ 0.24	$ 1.33	$ 0.81
Diluted (in dollars per share)	$ 0.44	$ 0.24	$ 1.33	$ 0.80

Note 3 - Accounting for Stock19

Note 3 - Accounting for Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
2006 Employee Equity Compensation Restricted Stock Plan (the "Employee Plan") [Member] | Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross			974,860
2016 Employee Equity Compensation Restricted Stock Plan [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross			47,600
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] | 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	$ 712,000	$ 498,000	$ 1,900,000	$ 1,400,000
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	233,000	273,000	233,000	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	$ 5,100,000	$ 3,800,000	$ 5,100,000	$ 3,800,000

Note 4 - Fair Value (Details Te

Note 4 - Fair Value (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Cash and Cash Equivalents, at Carrying Value	$ 80,997	$ 58,730	$ 47,904	$ 37,639

Note 6 - Changes in Sharehold21

Note 6 - Changes in Shareholders' Equity and Comprehensive Income (Details Textual) - shares shares in Thousands	9 Months Ended
	Dec. 31, 2017	Dec. 31, 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		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Balance			$ 93,366
Net income	$ 9,064	$ 4,823	27,100	$ 16,316
Balance	109,981		109,981
Additional Paid-in Capital [Member]
Balance			6,806
Share based compensation			1,858
Dividends declared
Net income
Balance	8,664		8,664
Retained Earnings [Member]
Balance			86,530
Share based compensation
Dividends declared			(12,343)
Net income			27,100
Balance	$ 101,287		$ 101,287

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Tax Expense (Benefit)	$ 2,860,000	$ 2,998,000	$ 12,204,000	$ 9,772,000
Effective Income Tax Rate Reconciliation, Percent	24.00%	38.30%	31.10%	37.50%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			31.50%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount			$ 1,700,000
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability			$ (384,000)
Tax Adjustments, Settlements, and Unusual Provisions	$ 175,000

Note 8 - Subsequent Events (Det

Note 8 - Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions	Jan. 22, 2018	Jan. 30, 2018
Dividends Payable, Date Declared	Jan. 22, 2018
Dividends Payable, Amount Per Share	$ 0.25
Dividends Payable, Date of Record	Feb. 5, 2018
Dividends Payable, Date to be Paid	Feb. 16, 2018
Dividends Payable		$ 5.2