8.8% Increase in Fiscal 2021 Sales
18.4% Increase in Fiscal 2021 Net Income
9.7% Increase in Fiscal 2021 Reorder Sales
DELRAY BEACH, Fla., May 03, 2021 (GLOBE NEWSWIRE) — PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for its fourth quarter and fiscal year ended March 31, 2021. Net sales for the year ended March 31, 2021 were $309.2 million, compared to $284.1 million for the year ended March 31, 2020, an increase of 8.8%. Net income for the year ended March 31, 2021 was $30.6 million, or $1.52 diluted per share, compared to net income of $25.9 million, or $1.29 diluted per share, for the prior year, an increase to net income of 18.4%. Reorder sales for the year ended March 31, 2021 were $272.6 million, compared to $248.6 million for the year ended March 31, 2020, an increase of 9.7%. New order sales for the year ended March 31, 2021 were $36.6 million, compared to $35.6 million for the year ended March 31, 2020, an increase of 2.8%. The Company acquired approximately 443,000 new customers in the year ended March 31, 2021, compared to 421,000 new customers in the prior year. The average order size for the year ended March 31, 2021 was $89, compared to $87 for the year ended March 31, 2020. Net sales for the quarter ended March 31, 2021 were $71.7 million, compared to $74.3 million for the quarter ended March 31, 2020, a decrease of 3.5%. Net income for the quarter ended March 31, 2021 was $6.8 million, or $0.34 diluted per share, compared to net income of $7.0 million, or $0.35 diluted per share, for the same quarter the prior year, a decrease to net income of 2.7%. The average order size for the quarter ended March 31, 2021 was $93, compared to $90 for the quarter ended March 31, 2020.
Menderes Akdag, President and CEO, commented: “Overall we were pleased with our fiscal 2021 results with increases to both our top and bottom line. The year started out with greater than expected ecommerce demand due to COVID-19, with consumers shifting their purchases to online, which positively impacted our sales for the year, then in the back half of fiscal 2021, veterinarian clinics and retail stores re-opened. Our bottom line was positively impacted by growth in our gross margins by 50 basis points, due to having direct relationships with the major manufacturers, and with our operating expenses decreasing by 76 basis points, which resulted in a 126 basis points improvement to our operating income. Cash from operations increased to $40.1 million in fiscal 2021, compared to $38.8 million in fiscal 2020. In the quarter ended March 31, 2021 the reduction to sales and net income were possibly related to a pull forward of demand in the prior year due to the pandemic, along with colder weather during the March quarter, which might have delayed the start of flea and tick season. In fiscal 2022, we will be exploring alternative ways of acquiring new customers and adding value-added services, and we will continue investing in our e-commerce platform and mobile app to optimize our customers’ digital experience.”
The Board of Directors declared an increased quarterly dividend from $0.28 to $0.30 per share on its common stock. The dividend will be payable on May 21, 2021, to shareholders of record at the close of business on May 14, 2021. The Company intends to continue to pay regular quarterly dividends; however, the declaration and payment of future dividends is discretionary and will be subject to a determination by the Board of Directors each quarter following its review of the Company’s financial performance. 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 (203) 827-7025. Please call in fifteen minutes prior to the scheduled start time. 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 10:00 A.M. Eastern Time on May 3, 2021 until May 17, 2021 at 11:59 P.M. Eastern Time. To access the replay, call (800) 860-4709 (toll free) or (203) 369-3837 and enter passcode 5500.
Founded in 1996, PetMed Express is America’s Most Trusted 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, 2020. 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, 561-526-4444.
| PETMED EXPRESS, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED BALANCE SHEETS | ||||
| (In thousands, except for per share amounts) | ||||
| March 31, | March 31, | |||
| 2021 | 2020 | |||
| ASSETS | (UNAUDITED) | |||
| Current assets: | ||||
| Cash and cash equivalents | $ | 118,718 | $ | 103,762 |
| Accounts receivable, less allowance for doubtful accounts of $39 and $59, respectively | 2,587 | 3,843 | ||
| Inventories – finished goods | 34,420 | 17,884 | ||
| Prepaid expenses and other current assets | 4,503 | 3,529 | ||
| Prepaid income taxes | 959 | – | ||
| Total current assets | 161,187 | 129,018 | ||
| Noncurrent assets: | ||||
| Property and equipment, net | 25,450 | 25,445 | ||
| Intangible assets | 860 | 860 | ||
| Total noncurrent assets | 26,310 | 26,305 | ||
| Total assets | $ | 187,497 | $ | 155,323 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 39,548 | $ | 19,658 |
| Accrued expenses and other current liabilities | 5,387 | 4,214 | ||
| Income taxes payable | – | 471 | ||
| Total current liabilities | 44,935 | 24,343 | ||
| Deferred tax liabilities | 1,281 | 970 | ||
| Total liabilities | 46,216 | 25,313 | ||
| Commitments and contingencies | ||||
| Shareholders’ equity: | ||||
| Preferred stock, $.001 par value, 5,000 shares authorized; 3 convertible shares issued and outstanding with a liquidation preference of $4 per share | 9 | 9 | ||
| Common stock, $.001 par value, 40,000 shares authorized; 20,269 and 20,166 shares issued and outstanding, respectively | 20 | 20 | ||
| Additional paid-in capital | 7,111 | 3,804 | ||
| Retained earnings | 134,141 | 126,177 | ||
| Total shareholders’ equity | 141,281 | 130,010 | ||
| Total liabilities and shareholders’ equity | $ | 187,497 | $ | 155,323 |
| PETMED EXPRESS, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
| (In thousands, except for per share amount) | ||||||||
| Three Months Ended | Year Ended | |||||||
| March 31, | March 31, | |||||||
| 2021 | 2020 | 2021 | 2020 | |||||
| (UNAUDITED) | (UNAUDITED) | |||||||
| Sales | $ | 71,679 | $ | 74,286 | $ | 309,215 | $ | 284,125 |
| Cost of sales | 51,157 | 52,600 | 219,267 | 202,879 | ||||
| Gross profit | 20,522 | 21,686 | 89,948 | 81,246 | ||||
| Operating expenses: | ||||||||
| General and administrative | 7,243 | 6,413 | 28,293 | 25,264 | ||||
| Advertising | 4,256 | 6,205 | 21,641 | 22,748 | ||||
| Depreciation | 636 | 555 | 2,427 | 2,257 | ||||
| Total operating expenses | 12,135 | 13,173 | 52,361 | 50,269 | ||||
| Income from operations | 8,387 | 8,513 | 37,587 | 30,977 | ||||
| Other income: | ||||||||
| Interest income, net | 85 | 300 | 314 | 1,747 | ||||
| Other, net | 377 | 307 | 1,315 | 1,169 | ||||
| Total other income | 462 | 607 | 1,629 | 2,916 | ||||
| Income before provision for income taxes | 8,849 | 9,120 | 39,216 | 33,893 | ||||
| Provision for income taxes | 2,037 | 2,117 | 8,613 | 8,042 | ||||
| Net income | $ | 6,812 | $ | 7,003 | $ | 30,603 | $ | 25,851 |
| Net income per common share: | ||||||||
| Basic | $ | 0.34 | $ | 0.35 | $ | 1.53 | $ | 1.29 |
| Diluted | $ | 0.34 | $ | 0.35 | $ | 1.52 | $ | 1.29 |
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 20,100 | 19,984 | 20,060 | 20,041 | ||||
| Diluted | 20,177 | 20,010 | 20,119 | 20,055 | ||||
| Cash dividends declared per common share | $ | 0.28 | $ | 0.27 | $ | 1.12 | $ | 1.08 |
| PETMED EXPRESS, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (In thousands) | ||||||
| Year Ended | ||||||
| March 31, | ||||||
| 2021 | 2020 | |||||
| (UNAUDITED) | ||||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 30,603 | $ | 25,851 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation | 2,427 | 2,257 | ||||
| Share based compensation | 3,307 | 2,822 | ||||
| Deferred income taxes | 311 | (151 | ) | |||
| Bad debt expense | 130 | 191 | ||||
| (Increase) decrease in operating assets and increase (decrease) in liabilities: | ||||||
| Accounts receivable | 1,126 | (1,492 | ) | |||
| Inventories – finished goods | (16,536 | ) | 3,486 | |||
| Prepaid income taxes | (959 | ) | 582 | |||
| Prepaid expenses and other current assets | (974 | ) | (376 | ) | ||
| Accounts payable | 19,890 | 3,383 | ||||
| Accrued expenses and other current liabilities | 1,221 | 1,820 | ||||
| Income taxes payable | (471 | ) | 471 | |||
| Net cash provided by operating activities | 40,075 | 38,844 | ||||
| Cash flows from investing activities: | ||||||
| Purchases of property and equipment | (2,432 | ) | (2,311 | ) | ||
| Net cash used in investing activities | (2,432 | ) | (2,311 | ) | ||
| Cash flows from financing activities: | ||||||
| Dividends paid | (22,687 | ) | (21,803 | ) | ||
| Repurchase and retirement of common stock | – | (11,497 | ) | |||
| Net cash used in financing activities | (22,687 | ) | (33,300 | ) | ||
| Net increase in cash and cash equivalents | 14,956 | 3,233 | ||||
| Cash and cash equivalents, at beginning of year | 103,762 | 100,529 | ||||
| Cash and cash equivalents, at end of year | $ | 118,718 | $ | 103,762 | ||
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid for income taxes | $ | 10,018 | $ | 7,140 | ||
| Property and equipment in current assets | $ | – | $ | 1,745 | ||
| Dividends payable in accrued expenses | $ | 198 | $ | 246 | ||
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