EXHIBIT 99.1
Date: October 27, 2003
Contact: Mendo Akdag, CEO
Phone: (954) 979-5995
Fax: (954) 971-0544
PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES SECOND QUARTER
FINANCIAL RESULTS - SALES OF $25.0 MILLION / NET INCOME OF $1.8
MILLION
Pompano Beach, Florida, October 27, 2003 - PetMed Express, Inc.
(OTCBB: PETS) today announced results for the quarter ended
September 30, 2003. Net sales were $25.0 million, compared to
$14.2 million for the three months ended September 30, 2002, an
increase of 76%. Net income was $1.8 million, or $.08 diluted
per share, for the quarter, compared to net income of $205,000 or
$.01 diluted per share, for the same quarter a year ago, an
increase of 787%. Net sales for the six months ended September
30, 2003 were $55.4 million, compared to $29.1 million for the
six months ended September 30, 2002, an increase of 91%. Net
income was $3.3 million, or $.14 diluted per share, for the six
month period, compared to net income of $1.1 million or $.05
diluted per share, for the same period a year ago, an increase of
194%.
Mendo Akdag, CEO, commented: "We are very pleased with our second
quarter results, and proud to announce that we were able to
exceed fiscal year 2003 sales, and equal fiscal year 2003 net
income within the first six months of fiscal 2004. In addition
to the increases in sales and profits for the quarter, our
reorder sales increased 103%, from $6.4 million to $12.9 million
for the three months ended September 30, 2002 and 2003,
respectively. We also reported new customer growth of
approximately 166,000 customers for the quarter, and
approximately 49% of all orders were placed on our website for
the quarter in comparison to 40% for the same period a year ago."
Added Mr. Akdag: "On August 28, 2003, we signed an amendment to
our existing line of credit agreement, which extended our line of
credit from $2,000,000 up to $5,000,000. This increase to our
borrowing capacity will give us added financial flexibility in
the future."
On Monday, November 10, 2003 at 5 p.m. Eastern Standard Time, Mr.
Akdag, CEO, will host a conference call to review the second
quarter financial results of fiscal 2004. The associated
quarterly filing will be issued before the market opens on
November 10, 2003.
To access the call, which is open to the public, call (888) 790-
1641 (toll free) 15 minutes prior to the scheduled start time.
Callers will be required to supply EARNINGS as the passcode.
Callers will be placed on hold with music until the call begins.
For those unable to participate in the live event, the call will
be available for replay from 8 p.m. on November 10, 2003 until
November 25, 2003 at 11:59 p.m. To access the replay, call (800)
925-4890 (toll free), and enter passcode 5500.
Founded in 1996, PetMed Express is America's largest pet
pharmacy, delivering prescription and non-prescription pet
medications, health and nutritional supplements at competitive
prices through the PetMed Express catalog, customer service
representatives, and on the Internet through its website at
www.1800PetMeds.com.
- -------------------
This press release may contain "forward-looking" statements, as
defined in the Private Securities Litigation Reform Act of 1995
or by the Securities and Exchange Commission, that involve a
number of risk and uncertainties, including the Company's ability
to meet the objectives included in its business plan. Important
factors that could cause results to differ materially from those
indicated by such "forward-looking" statements are set forth in
Management's Discussion and Analysis or Plan of Operations in the
PetMed Express Annual Report on Form 10-KSB for the year ended
March 31, 2003.
For investment relations contact PetMed Express, Inc., Pompano
Beach, Mendo Akdag, CEO, 954-979-5995.
###
99.1 page 1 - 2
PETMED EXPRESS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
September 30, September 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Sales $ 24,969,228 $ 14,229,702 $ 55,356,791 $ 29,060,457
Cost of sales 14,745,824 8,029,410 33,328,504 16,597,663
---------- ---------- ---------- ----------
Gross profit 10,223,404 6,200,292 22,028,287 12,462,794
Operating expenses:
General and administrative 2,718,371 1,974,189 5,739,625 4,057,612
Advertising 4,443,980 3,832,241 10,952,970 6,639,421
Depreciation and amortization 132,049 86,108 259,400 166,772
---------- ---------- ---------- ----------
Total operating expenses 7,294,400 5,892,538 16,951,995 10,863,805
Income from operations 2,929,004 307,754 5,076,292 1,598,989
---------- ---------- ---------- ----------
Other income (expense):
Interest expense (1,526) (4,450) (4,207) (10,040)
Interest income 4,705 1,824 6,854 5,957
Other, net 378 952 986 3,287
---------- ---------- ---------- ----------
Total other income (expense) 3,557 (1,674) 3,633 (796)
---------- ---------- ---------- ----------
Income before provision for
income taxes 2,932,561 306,080 5,079,925 1,598,193
Provision for income taxes 1,114,373 101,193 1,829,153 490,977
---------- ---------- ---------- ----------
Net income $ 1,818,188 $ 204,887 $ 3,250,772 $ 1,107,216
========== ========== ========== ==========
Net income per common share:
Basic $ 0.09 $ 0.01 $ 0.17 $ 0.07
========== ========== ========== ==========
Diluted $ 0.08 $ 0.01 $ 0.14 $ 0.05
========== ========== ========== ==========
Weighted average number of
common shares outstanding:
Basic 19,372,365 17,173,499 19,192,390 16,883,731
========== ========== ========== ==========
Diluted 23,425,269 21,356,196 23,103,919 20,655,407
========== ========== ========== ==========
BALANCE SHEET DATA
September 30, March 31,
2003 2003
------------- ------------
(Unaudited)
Working capital $ 8,111,544 $ 3,017,641
Total assets 15,303,571 9,025,796
Total liabilities 4,788,826 3,433,108
Total shareholders' equity 10,514,745 5,592,688
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