EXHIBIT 99.1
Date: May 17, 2004
Contact: Mendo Akdag, CEO
Phone: (954) 979 5995
Fax: (954) 971 0544
PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES FISCAL 2004
FINANCIAL RESULTS WITH RECORD SALES AND PROFITS
Pompano Beach, Florida, May 17, 2004 - PetMed Express, Inc.
(NASDAQ: PETS) today announced results for the fiscal year ended
March 31, 2004. Net income was $5.8 million, or $.30 per share,
$.25 diluted per share, for fiscal 2004, compared to net income
of $3.3 million or $.19 per share, $.16 diluted per share, for
fiscal 2003, an increase of 79%. Net sales for the fiscal year
ended March 31, 2004 were $94.0 million, compared to $55.0
million for the fiscal year ended March 31, 2003, an increase of
71%. PetMed Express also reported new customer growth of
approximately 572,000 customers in fiscal 2004, compared with
414,000 in fiscal 2003.
For the quarter ended March 31, 2004, income before provision for
income taxes was $2.2 million compared to $1.2 million for the
quarter ended March 31, 2003, an increase of 83%. For the
quarters ended March 31, 2004 and 2003, respectively, net income
was $1.3 million and $1.7 million, the latter of which included a
deferred tax asset eliminating the income tax provision and
reflecting a tax benefit of $535,000. Net sales for the quarter
ended March 31, 2004 were $21.5 million, compared to $14.9
million, an increase of 44%.
Mendo Akdag, CEO, commented: "We are very pleased with the
sustained profitability and the incremental increase in sales
over the past year. We are also proud to report that our reorder
sales doubled from $25.8 million in fiscal 2003 to $51.4 million
in fiscal 2004. Over the past three years our sales have grown
from $10.0 million to $94.0 million, and the diluted earning per
share has improved from $.28 loss per share to $.25 earnings per
share, over the same period. We are excited about the future
prospects for the company, and in anticipation of future growth
we have completed the expansion to our warehouse/fulfillment
operation. The expansion will increase our daily order capacity
by approximately 40% as well as create additional warehouse space
for inventory."
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 and the Quarterly Report on Form 10-Q for the
quarter ended December 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 SUBISIDIARES
FINANCIAL HIGHLIGHTS
CONSOLIDATED STATEMENTS OF INCOME
Year Ended March 31, Quarter Ended March 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Sales $ 93,994,233 $ 54,974,916 $ 21,467,871 $ 14,864,335
Cost of sales 55,824,406 31,517,639 12,376,387 8,578,399
---------- ---------- ---------- ----------
Gross profit 38,169,827 23,457,277 9,091,484 6,285,936
---------- ---------- ---------- ----------
Operating expenses:
General and administrative 10,754,427 7,956,786 2,696,708 2,098,093
Advertising 17,653,614 11,649,811 4,082,495 2,894,132
Depreciation and amortization 550,392 367,673 153,287 102,962
---------- ---------- ---------- ----------
Total operating expenses 28,958,433 19,974,270 6,932,490 5,095,187
---------- ---------- ---------- ----------
Income from operations 9,211,394 3,483,007 2,158,994 1,190,749
---------- ---------- ---------- ----------
Other income (expense)
Gain on disposal of property
and equipment - 15,000 - -
Interest expense (14,546) (30,658) (6,126) (11,742)
Interest income 9,739 6,973 800 511
Other, net 6,938 6,084 5,862 1,550
---------- ---------- ---------- ----------
Total other income (expense) 2,131 (2,601) 536 (9,681)
---------- ---------- ---------- ----------
Income before provision
(benefit) for income taxes 9,213,525 3,480,406 2,159,530 1,181,068
Provision (benefit) for
income taxes 3,399,921 222,841 820,622 (534,571)
---------- ---------- ---------- ----------
Net income $ 5,813,604 $ 3,257,565 $ 1,338,908 $ 1,715,639
========= ========== ========== ==========
Net income per common share:
Basic $ 0.30 $ 0.19 $ 0.07 $ 0.10
========= ========== ========== ==========
Diluted $ 0.25 $ 0.16 $ 0.06 $ 0.09
========= ========== ========== ==========
BALANCE SHEET DATA
March 31,
2004 2003
---------- ---------
Working capital $ 11,338,004 $ 3,017,641
Total assets 18,480,808 9,025,796
Total liabilities 4,486,299 3,433,108
Total shareholders' equity 13,994,509 5,592,688
99.1 page 2 - 2