EXHIBIT 99.1
Date: May 15, 2006
Contact: Bruce S. Rosenbloom, CFO
Phone: (954) 979 5995
Fax: (954) 971 0544
PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES RECORD FINANCIAL RESULTS
FOR FISCAL 2006 - SALES INCREASE 27%, NET INCOME INCREASES 51%
Pompano Beach, Florida, May 15, 2006 - PetMed Express, Inc.
(NASDAQ: PETS) today announced its financial results for the
fiscal year ended March 31, 2006. Net sales for the year ended
March 31, 2006 were $137.6 million, compared to $108.4 million
for the year ended March 31, 2005, an increase of 27%. Net
income was $12.1 million, or $0.50 diluted per share, for the
year ended March 31, 2006, compared to net income of $8.0
million, or $0.34 diluted per share, for the year ended March 31,
2005, an increase to net income of 51%. The Company acquired
approximately 624,000 new customers during the fiscal year
compared to 510,000 during the prior year. Approximately 57% of
all orders were placed on our website during the fiscal year.
For the quarter ended March 31, 2006, net sales were $29.4
million, compared to $23.5 million for the quarter ended March
31, 2005, an increase of 25%. Net income for the quarter ended
March 31, 2006 was $3.1 million, or $0.13 diluted per share,
compared to net income of $2.4 million, or $0.10 diluted per
share, for the same quarter the prior year, an increase to net
income of 30%. The Company acquired approximately 94,000 new
customers during the fourth fiscal quarter compared to 80,000 new
customers for the same quarter in the prior year.
Mendo Akdag, CEO and President, commented: "We are pleased to
report that our retail reorder sales increased 29%, from $68.7
million to $88.4 million, for the years ended March 31, 2005 and
2006, respectively. We will continue to focus on reorder sales
in fiscal 2007 by initiating more relevant personalized
communication and health education content to build value for our
customers and assist them in choosing the right products for
their pets. We invite everyone to visit the newly launched
health and education website, Pet Health 101
(www.pethealth101.com)."
--------------------
This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a
conference call to review the year end financial results. To
access the call which is open to the public, dial (888) 455-1758
(toll free) or (312) 470-7365. Callers will be required to
supply PETMEDS as the passcode. For those unable to participate
in the live event, the call will be available for replay from 10
A.M. on May 15, 2006 until May 29, 2006 at 11:59 P.M. To access
the replay, call (866) 365-4158 (toll free) or (203) 369-0225,
and enter passcode 5500.
Founded in 1996, PetMed Express is America's largest pet
pharmacy, delivering prescription and non-prescription pet
medications and other health products for dogs, cats and horses
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, 2005. 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., Bruce S.
Rosenbloom, CFO, 954-979-5995.
###
99.1 page 1 - 4
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31,
2006 2005
------------- -------------
ASSETS
------
Current assets:
Cash and cash equivalents $ 23,216,907 $ 12,680,962
Accounts receivable, less allowance
for doubtful accounts of $23,000
and $37,000, respectively 1,155,781 1,796,756
Inventories - finished goods 14,997,675 11,180,333
Prepaid expenses and other current assets 583,038 213,152
------------- -------------
Total current assets 39,953,401 25,871,203
Property and equipment, net 1,497,589 1,286,267
Deferred income taxes 794,002 582,846
Intangible asset 365,000 365,000
Other assets 14,167 14,167
------------- -------------
Total assets $ 42,624,159 $ 28,119,483
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 3,052,953 $ 2,724,990
Income taxes payable 958,318 601,535
Accrued expenses and other current liabilities 973,359 575,894
------------- -------------
Total liabilities 4,984,630 3,902,419
============= =============
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 5,000,000
shares authorized;
2,500 convertible shares issued and
outstanding with a liquidation preference
of $4 per share 8,898 8,898
Common stock, $.001 par value, 40,000,000
shares authorized;
23,967,390 and 23,458,725 shares issued
and outstanding, respectively 23,967 23,459
Additional paid-in capital 13,433,054 12,074,611
Retained earnings 24,173,610 12,110,096
------------- -------------
Total shareholders' equity 37,639,529 24,217,064
------------- -------------
Total liabilities and shareholders' equity $ 42,624,159 $ 28,119,483
============= =============
99.1 page 2 - 4
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Year Ended March 31,
2006 2005 2004
------------ ------------ ------------
Sales $ 137,583,155 $ 108,357,747 $ 93,994,233
Cost of sales 83,244,366 64,700,002 55,824,406
------------ ------------ ------------
Gross profit 54,338,789 43,657,745 38,169,827
------------ ------------ ------------
Operating expenses:
General and administrative 14,078,343 11,396,320 10,754,427
Advertising 21,570,667 19,185,982 17,653,614
Depreciation and amortization 544,535 573,817 550,392
------------ ------------ ------------
Total operating expenses 36,193,545 31,156,119 28,958,433
------------ ------------ ------------
Income from operations 18,145,244 12,501,626 9,211,394
------------ ------------ ------------
Other income (expense):
Loss on disposal of property and equipment (1,719) - -
Interest expense - (965) (14,546)
Interest income 676,083 99,044 9,739
Other, net 215,586 3,710 6,938
------------ ------------ ------------
Total other income (expense) 889,950 101,789 2,131
------------ ------------ ------------
Income before provision for income taxes 19,035,194 12,603,415 9,213,525
Provision for income taxes 6,971,680 4,593,045 3,399,921
------------ ------------ ------------
Net income $ 12,063,514 $ 8,010,370 $ 5,813,604
============ ============ ============
Net income per common share:
Basic $ 0.51 $ 0.35 $ 0.30
============ ============ ============
Diluted $ 0.50 $ 0.34 $ 0.25
============ ============ ============
Weighted average number of common shares outstanding:
Basic 23,658,722 22,862,417 19,471,681
============ ============ ============
Diluted 24,211,955 23,833,189 23,689,866
============ ============ ============
99.1 page 3 - 4
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended March 31,
2006 2005 2004
------------ ------------ ------------
Cash flows from operating activities:
Net income $ 12,063,514 $ 8,010,370 $ 5,813,604
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 544,535 573,817 550,392
Tax benefit related to stock options exercised 342,920 918,749 588,872
Deferred income taxes (211,156) (1,490) -
Loss on disposal of property and equipment 1,719 - -
Bad debt expense (recovery) (1,709) 16,092 7,432
(Increase) decrease in operating assets
and increase (decrease) in liabilities:
Accounts receivable 642,684 (679,547) (488,850)
Inventories - finished goods (3,817,342) (475) (6,911,712)
Prepaid expenses and other current assets (369,886) 19,066 245,890
Other assets - 7,655 178,333
Accounts payable 327,963 (548,072) 702,603
Income taxes payable 356,783 179,090 251,693
Accrued expenses and other current liabilities 397,465 (146,456) 167,338
------------ ------------ ------------
Net cash provided by operating activities 10,277,490 8,348,799 1,105,595
------------ ------------ ------------
Cash flows from investing activities:
Purchases of property and equipment (758,176) (171,757) (741,740)
Net proceeds from the sale of property
and equipment 600 - -
------------ ------------ ------------
Net cash used in investing activities (757,576) (171,757) (741,740)
------------ ------------ ------------
Cash flows from financing activities:
Proceeds from the exercise of stock options
and warrants and other transactions 1,016,031 1,293,436 1,999,345
Payments on the loan obligation - (68,442) (68,443)
------------ ------------ ------------
Net cash provided by financing activities 1,016,031 1,224,994 1,930,902
------------ ------------ ------------
Net increase in cash and cash equivalents 10,535,945 9,402,036 2,294,757
Cash and cash equivalents, at beginning of period 12,680,962 3,278,926 984,169
------------ ------------ ------------
Cash and cash equivalents, at end of period $ 23,216,907 $ 12,680,962 $ 3,278,926
============ ============ ============
Supplemental disclosure of cash flow information:
Cash paid for interest $ - $ 884 $ 14,302
============ ============ ============
Cash paid for income taxes $ 6,483,132 $ 3,496,696 $ 2,513,214
============ ============ ============
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