EXHIBIT 99.1
------------
Date: January 26, 2004
Contact: Mendo Akdag, CEO
Phone: (954) 979-5995
Fax: (954) 971-0544
PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES THIRD QUARTER
FINANCIAL RESULTS - SALES OF $17.2 MILLION / NET INCOME OF $1.2
MILLION
Pompano Beach, Florida, January 26, 2004 - PetMed Express, Inc.
(NASDAQ-NM: PETS) today announced results for the quarter ended
December 31, 2003. Net sales were $17.2 million, compared to
$11.1 million for the three months ended December 31, 2002, an
increase of 55%. Net income was $1.2 million, or $.05 diluted
per share, for the quarter, compared to net income of $435,000 or
$.02 diluted per share, for the same quarter a year ago, an
increase of 182%. Net sales for the nine months ended December
31, 2003 were $72.5 million, compared to $40.1 million for the
nine months ended December 31, 2002, an increase of 81%. Net
income was $4.5 million, or $.19 diluted per share, for the nine
month period, compared to net income of $1.5 million or $.07
diluted per share, for the same period a year ago, an increase of
190%.
Mendo Akdag, CEO, commented: "We are very pleased with our third
quarter results during our off season, in particular our strong
customer reorder sales and continued profitability for the
quarter. Our reorder sales increased 90%, from $6.0 million to
$11.4 million for the three months ended December 31, 2002 and
2003, respectively. We also reported new customer growth of
approximately 82,000 customers for the quarter."
The majority of the Company's product sales are affected by the
seasons, due to the seasonality of mainly heartworm and flea and
tick medications. The third quarter is considered the Company's
off season, and the first and second quarters encompass its peak
season. Industry seasonality trends, according to Fountain
Agricounsel LLC, Management Consultants to Agribusiness, are
divided into percentage of industry sales by quarter. For the
quarters ended March 31, June 30, September 30, and December 31
industry sales are approximately 19%, 37%, 28%, and 16%,
respectively.
On January 21, 2004 the Company announced that its application to
list its common stock on the NASDAQ National Market was approved,
with trading on NASDAQ beginning on Friday, January 23, 2004
under the symbol "PETS." Prior to the move to the NASDAQ
National Market, PetMed Express shares had been traded on the
over-the-counter bulletin board.
On Monday, February 9, 2004 at 5 p.m. Eastern Standard Time, Mr.
Akdag, CEO, will host a conference call to review the third
quarter financial results of fiscal 2004. The associated
quarterly filing will be issued before the market opens on
February 9, 2004.
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 February 9, 2004 until
February 24, 2004 at 11:59 p.m. To access the replay, call (800)
294-0988 (toll free), and enter passcode 5500.
Founded in 1996, PetMed Express is America's largest pet
pharmacy, delivering prescription and non-prescription pet
medications and health and nutritional supplements for dogs and
cats at competitive prices direct to the consumer through its 1-
800-PetMeds toll free number 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 and the Quarterly Report on Form 10-Q for the
quarter ended September 30, 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 Nine Months Ended
December 31, December 31,
-------------------------- -------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Sales $ 17,169,571 $ 11,050,124 $ 72,526,362 $ 40,110,581
Cost of sales 10,119,515 6,341,577 43,448,019 22,939,240
----------- ----------- ----------- -----------
Gross profit 7,050,056 4,708,547 29,078,343 17,171,341
Operating expenses:
General and administrative 2,318,094 1,801,081 8,057,719 5,858,693
Advertising 2,618,149 2,116,258 13,571,119 8,755,679
Depreciation and amortization 137,705 97,939 397,105 264,711
----------- ----------- ----------- -----------
Total operating expenses 5,073,948 4,015,278 22,025,943 14,879,083
----------- ----------- ----------- -----------
Income from operations 1,976,108 693,269 7,052,400 2,292,258
----------- ----------- ----------- -----------
Other income (expense):
Gain on disposal of property
and equipment - 15,000 - 15,000
Interest expense (4,213) (8,876) (8,420) (18,916)
Interest income 2,085 505 8,939 6,462
Other, net 90 1,247 1,076 4,534
----------- ----------- ----------- -----------
Total other income (expense) (2,038) 7,876 1,595 7,080
----------- ----------- ----------- -----------
Income before provision for
income taxes 1,974,070 701,145 7,053,995 2,299,338
Provision for income taxes 750,146 266,435 2,579,299 757,412
----------- ----------- ----------- -----------
Net income $ 1,223,924 $ 434,710 $ 4,474,696 $ 1,541,926
=========== =========== =========== ===========
Net income per common share:
Basic $ 0.06 $ 0.03 $ 0.23 0.09
=========== =========== =========== ===========
Diluted $ 0.05 $ 0.02 $ 0.19 0.07
=========== =========== =========== ===========
Weighted average number of
common shares outstanding:
Basic 19,631,732 17,658,010 19,339,370 17,142,763
=========== =========== =========== ===========
Diluted 23,739,336 21,662,154 23,333,622 20,999,411
=========== =========== =========== ===========
BALANCE SHEET DATA
December 31, March 31,
2003 2003
------------ ----------
(Unaudited)
Working capital $ 9,370,534 $ 3,017,641
Total assets 16,672,257 9,025,796
Total liabilities 4,925,376 3,433,108
Total shareholders' equity 11,746,881 5,592,688
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