PetMed Express – PETS – Announces Its First Quarter Financial Results
PetMed Express, Inc. (NASDAQ: PETS) announced its financial results for the quarter ended June 30, 2012. PETS Net sales for the quarter ended June 30, 2012 were $69.0 million, compared to $73.6 million for the quarter ended June 30, 2011, a decrease of 6%. PETS Net income was $4.0 million, or $0.20 diluted per share, for the quarter ended June 30, 2012, compared to net income of $4.8 million, or $0.22 diluted per share, for the quarter ended June 30, 2011, a 12% decrease to EPS. Reorder sales decreased by 3%, from $56.6 million to $55.1 million for the quarters ended June 30, 2011 and 2012, respectively. The Company acquired approximately 197,000 new customers for the quarter ended June 30, 2012, compared to 226,000 new customers for the quarter ended June 30, 2011. Additionally, our online sales decreased by 3% to $52.8 million for the quarter, compared to $54.1 million for the quarter the prior year, with approximately 77% of our orders being generated from our website during the quarter compared to 73% for the quarter the prior year.
Menderes Akdag, CEO and President, commented: “Although our sales were down due to a decline in average order size, we did see an increase in total orders. During the quarter ended June 30, 2012 our average order size was $73, compared to $80 for the quarter ended June 30, 2011. This reduction can be attributed to customers purchasing smaller quantities, for example a 3-month supply instead of 6 months, additional discounts given, and a change in product mix to lower priced items. In addition, the decrease in sales for the quarter can be attributed to the unavailability of Novartis brands during the quarter, due to the manufacturer’s suspended production. The sales in the June quarter might also have been negatively affected by the peak season starting earlier this year due to the warmer weather, which shifted sales to the March quarter. Cash flow from operations increased by 62%, from $8.5 million to $13.8 million for the quarters ended June 30, 2011 and 2012, respectively. To address the decrease in sales for the quarter, we are focusing on advertising efficiency and shifting sales to higher margin items, while continuing to expand our product offerings.”
About PetMed Express – PETS
Founded in 1996, PetMed Express (PETS) 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 toll free number and on the Internet.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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