EXHIBIT 99.1
Date: October 25, 2004
Contact: Bruce S. Rosenbloom, CFO
Phone: (954) 979-5995
Fax: (954) 971-0544
PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES SECOND QUARTER
FINANCIAL RESULTS
Pompano Beach, Florida, October 25, 2004 - PetMed Express, Inc.
(NASDAQ: PETS) today announced results for the quarter ended
September 30, 2004. Net sales for the three months ended
September 30, 2004 were $28.8 million, compared to $25.0 million
for the three months ended September 30, 2003, an increase of
15%. Net income was $1.8 million, or $.08 diluted per share, in
each of the quarters ended September 30, 2004 and 2003. Net
sales for the six months ended September 30, 2004 were $64.0
million, compared to $55.4 million for the six months ended
September 30, 2003, an increase of 16%. Net income was $3.6
million, or $.15 diluted per share, for the six month period,
compared to net income of $3.3 million or $.14 diluted per share,
for the same period a year ago, an increase of 12%.
Mendo Akdag, CEO, commented: "Our reorder sales increased 34%,
from $12.9 million to $17.2 million for the three months ended
September 30, 2003 and 2004, and our reorder sales increased 46%,
from $25.4 million to $37.2 million for the six months ended
September 30, 2003 and 2004, respectively. We also acquired
approximately 154,000 new customers in the quarter and
approximately 345,000 new customers for the six month period, and
approximately 52% of all orders were placed on our website for
the quarter."
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 risks 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 of Financial
Condition and Results of Operations in the PetMed Express Annual
Report on Form 10-K for the year ended March 31, 2004. The
Company's future results may also be impacted by other risk
factors listed from time to time in its SEC filings, including,
but not limited to, the Company's Form 10-Q and its Annual Report
on Form 10-K.
For investment relations contact PetMed Express, Inc., Pompano
Beach, Bruce S. Rosenbloom, CFO, 954-979-5995.
###
99.1 page 1 - 2
PETMED EXPRESS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITIED)
Three Months Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
Sales $ 28,754,697 $ 24,969,228 $ 64,043,225 $ 55,356,791
Cost of sales 17,141,556 14,745,824 38,568,275 33,328,504
------------ ------------ ------------ ------------
Gross profit 11,613,141 10,223,404 25,474,950 22,028,287
------------ ------------ ------------ ------------
Operating expenses:
General and administrative 2,971,268 2,718,371 6,193,173 5,739,625
Advertising 5,629,991 4,443,980 13,384,820 10,952,970
Depreciation and amortization 155,294 132,049 314,353 259,400
------------ ------------ ------------ ------------
Total operating expenses 8,756,553 7,294,400 19,892,346 16,951,995
------------ ------------ ------------ ------------
Income from operations 2,856,588 2,929,004 5,582,604 5,076,292
Other income (expense)
Interest expense (138) (1,526) (880) (4,207)
Interest income 17,372 4,705 22,005 6,854
Other, net 1,821 378 1,411 986
------------ ------------ ------------ ------------
Total other income (expense) 19,055 3,557 22,536 3,633
------------ ------------ ------------ ------------
Income before provision for income taxes 2,875,643 2,932,561 5,605,140 5,079,925
Provision for income taxes 1,063,988 1,114,373 1,975,347 1,829,153
------------ ------------ ------------ ------------
Net income $ 1,811,655 $ 1,818,188 $ 3,629,793 $ 3,250,772
------------ ------------ ------------ ------------
Net income per common share:
Basic $ 0.08 $ 0.09 $ 0.16 $ 0.17
============ ============ ============ ============
Dilutive $ 0.08 $ 0.08 $ 0.15 $ 0.14
============ ============ ============ ============
Weighted average number of
common shares outstanding:
Basic 22,719,266 19,372,365 22,370,162 19,192,390
============ ============ ============ ============
Dilutive 23,860,513 23,425,269 23,463,939 23,103,919
============ ============ ============ ============
BALANCE SHEET DATA
September 30, March 31,
2004 2004
(Unaudited)
----------- -----------
Working capital $ 16,963,569 $ 11,338,004
Total assets 23,740,590 18,480,808
Total liabilities 4,331,941 4,486,299
Total shareholders' equity 19,408,649 13,994,509
99.1 page 2 - 2