EXHIBIT 99.1
Date: January 24, 2005
Contact: Bruce S. Rosenbloom, CFO
Phone: (954) 979-5995
Fax: (954) 971-0544
PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES THIRD QUARTER
FINANCIAL RESULTS
Pompano Beach, Florida, January 24, 2005 - PetMed Express, Inc.
(NASDAQ: PETS) today announced results for the quarter ended
December 31, 2004. Net sales for the three months ended
December 31, 2004 were $20.8 million, compared to $17.2 million
for the three months ended December 31, 2003, an increase of
21%. Net income was $2.0 million, or $.08 diluted per share,
for the quarter ended December 31, 2004, compared to $1.2
million, or $.05 diluted per share, for the quarter ended
December 31, 2003, an increase to net income of 60%. Net sales
for the nine months ended December 31, 2004 were $84.8 million,
compared to $72.5 million for the nine months ended December 31,
2003, an increase of 17%. Net income was $5.6 million, or $.23
diluted per share, for the nine month period, compared to net
income of $4.5 million or $.19 diluted per share, for the same
period a year ago, an increase to net income of 25%.
Mendo Akdag, CEO, commented: "Our reorder sales increased 27%,
from $11.4 million to $14.5 million for the three months ended
December 31, 2003 and 2004, and our reorder sales increased 40%,
from $36.8 million to $51.7 million for the nine months ended
December 31, 2003 and 2004, respectively. We also acquired
approximately 85,000 new customers in the quarter and
approximately 430,000 new customers for the nine month period,
and approximately 53% 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 other health products 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 STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
December 31, December 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Sales $ 20,782,837 $ 17,169,571 $ 84,826,062 $ 72,526,362
Cost of sales 12,337,310 10,119,515 50,905,585 43,448,019
---------- ---------- ---------- ----------
Gross profit 8,445,527 7,050,056 33,920,477 29,078,343
---------- ---------- ---------- ----------
Operating expenses:
General and administrative 2,541,197 2,318,094 8,734,370 8,057,719
Advertising 2,628,090 2,618,149 16,012,910 13,571,119
Depreciation and amortization 146,609 137,705 460,962 397,105
---------- ---------- ---------- ----------
Total operating expenses 5,315,896 5,073,948 25,208,242 22,025,943
---------- ---------- ---------- ----------
Income from operations 3,129,631 1,976,108 8,712,235 7,052,400
---------- ---------- ---------- ----------
Other income (expense)
Interest expense - (4,213) (880) (8,420)
Interest income 33,409 2,085 55,414 8,939
Other, net 906 90 2,317 1,076
---------- ---------- ---------- ----------
Total other income (expense) 34,315 (2,038) 56,851 1,595
---------- ---------- ---------- ----------
Income before provision for income taxes 3,163,946 1,974,070 8,769,086 7,053,995
Provision for income taxes 1,206,835 750,146 3,182,182 2,579,299
---------- ---------- ---------- ----------
Net income $ 1,957,111 $ 1,223,924 $ 5,586,904 $ 4,474,696
========== ========== ========== ==========
Net income per common share:
Basic $ 0.08 $ 0.06 $ 0.25 $ 0.23
========== ========== ========== ==========
Diluted $ 0.08 $ 0.05 $ 0.23 $ 0.19
========== ========== ========== ==========
Weighted average number of common shares outstanding:
Basic 23,266,549 19,631,732 22,670,044 19,339,370
========== ========== ========== ==========
Diluted 23,903,297 23,739,336 23,867,698 23,333,622
========== ========== ========== ==========
BALANCE SHEET DATA
December 31, March 31,
2004 2004
---------- -----------
(UNAUDITED)
Working capital $ 19,221,758 $ 11,338,004
Total assets 24,288,805 18,480,808
Total liabilities 2,655,081 4,486,299
Total shareholders' equity 21,633,724 13,994,509
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