Enhanced Investments - Financial Portal

Published: 2021-10-26 14:08:52 ET

EX-99.1 2 ex_296068.htm EXHIBIT 99.1

Exhibit 99.1

PETMED EXPRESS ANNOUNCES ITS SECOND QUARTER FINANCIAL RESULTS AND ITS QUARTELY

DIVIDEND OF $0.30 PER SHARE

Delray Beach, Florida, October 25, 2021, PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2021. Net sales for the quarter ended September 30, 2021 were $67.4 million, compared to $75.4 million for the quarter ended September 30, 2020, a decrease of 10.7%. Net sales for the six months ended September 30, 2021 were $146.7 million, compared to $171.6 million for the six months ended September 30, 2020, a decrease of 14.5%. Net income was $6.3 million, or $0.31 diluted per share, for the quarter ended September 30, 2021, compared to net income of $8.4 million, or $0.42 diluted per share, for the quarter ended September 30, 2020, a 24.5% decrease to net income. Net income was $10.8 million, or $0.53 diluted per share, for the six months ended September 30, 2021, compared to net income of $16.2 million, or $0.81 diluted per share, for the six months ended September 30, 2020, a 33.4% decrease to net income. Average order size increased from $87 to $92 for the quarters ended September 30, 2020 and 2021, respectively.

“PetMeds has been a pioneer in the business of pet health and wellness for over 25 years, and it’s time to take the next step towards expanding our business in the $10 billion pet medication market and to begin our foray into the much larger $107 billion total pet care market,” said Matt Hulett, CEO and President. “As one example, during the quarter we recently launched our “AutoShip and Save” program which allows us to build a greater lifetime value and recurring relationships with our customers. The team and I are looking forward to leveraging PetMeds’ many assets in a variety of other new opportunity areas as we elevate our growth prospects for the future.”

The Board of Directors declared a quarterly dividend of $0.30 per share on the Company’s common stock. The dividend will be payable on November 19, 2021, to shareholders of record at the close of business on November 8, 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 afternoon at 4:30 P.M. Eastern Time, the Company will host a conference call to review the quarter’s financial results. To access the call, which is open to the public, please dial (877) 407-0789 (toll free) or (201) 689-8562. We will also provide a link at https://www.1800petmeds.com/investor.html for those who wish to stream the call via webcast. For those unable to participate in the live event, the call will be available for replay from 7:30 P.M. Eastern Time on October 25, 2021 until November 8, 2021 at 11:59 P.M Eastern Time. To access the replay, call (844) 512-2921 (toll free) or (412) 317-6671, and enter passcode 13724036.

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.petmeds.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, 2021. 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.

Exhibit 99.1 Page 1 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for per share data)

	September 30,		March 31,
	2021		2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	106,562	$	118,718
Accounts receivable, less allowance for doubtful accounts of $28 and $39, respectively		1,854		2,587
Inventories - finished goods, net		19,733		34,420
Prepaid expenses and other current assets		4,397		4,503
Prepaid income taxes		899		959
Total current assets		133,445		161,187

Noncurrent assets:
Property and equipment, net		25,081		25,450
Intangible assets		860		860
Total noncurrent assets		25,941		26,310

Total assets	$	159,386	$	187,497

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	11,183	$	39,548
Accrued expenses and other current liabilities		5,089		5,387
Total current liabilities		16,272		44,935

Deferred tax liabilities		1,627		1,281

Total liabilities		17,899		46,216

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; 20,943 and 20,269 shares issued and outstanding, respectively		21		20
Additional paid-in capital		8,711		7,111
Retained earnings		132,746		134,141

Total shareholders' equity		141,487		141,281

Total liabilities and shareholders' equity	$	159,386	$	187,497

Exhibit 99.1 Page 2 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except for per share amounts) (Unaudited)

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2021		2020		2021		2020

Sales	$	67,386	$	75,436	$	146,698	$	171,640
Cost of sales		48,212		52,418		105,744		121,837

Gross profit		19,174		23,018		40,954		49,803

Operating expenses:
General and administrative		6,958		6,809		14,999		14,563
Advertising		3,435		5,131		11,108		14,164
Depreciation		694		607		1,341		1,169
Total operating expenses		11,087		12,547		27,448		29,896

Income from operations		8,087		10,471		13,506		19,907

Other income:
Interest income, net		74		66		159		156
Other, net		170		338		454		593
Total other income		244		404		613		749

Income before provision for income taxes		8,331		10,875		14,119		20,656

Provision for income taxes		1,982		2,463		3,342		4,476

Net income	$	6,349	$	8,412	$	10,777	$	16,180

Net income per common share:
Basic	$	0.31	$	0.42	$	0.53	$	0.81
Diluted	$	0.31	$	0.42	$	0.53	$	0.81

Weighted average number of common shares outstanding:
Basic		20,178		20,063		20,144		20,024
Diluted		20,568		20,154		20,384		20,098

Cash dividends declared per common share	$	0.30	$	0.28	$	0.60	$	0.56

Exhibit 99.1 Page 3 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands) (Unaudited)

	Six Months Ended
	September 30,
	2021			2020
Cash flows from operating activities:
Net income	$	10,777		$	16,180
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,341			1,169
Share based compensation		1,600			1,513
Deferred income taxes		346			408
Bad debt expense		58			61
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable		675			1,570
Inventories - finished goods		14,687			(3,567	)
Prepaid income taxes		60			-
Prepaid expenses and other current assets		106			916
Accounts payable		(28,365	)		(3,600	)
Accrued expenses and other current liabilities		(210	)		391
Income taxes payable		-			147
Net cash provided by operating activities		1,075			15,188

Cash flows from investing activities:
Purchases of property and equipment		(972	)		(1,193	)
Net cash used in investing activities		(972	)		(1,193	)

Cash flows from financing activities:
Dividends paid		(12,259	)		(11,413	)
Net cash used in financing activities		(12,259	)		(11,413	)

Net (decrease) increase in cash and cash equivalents		(12,156	)		2,582
Cash and cash equivalents, at beginning of period		118,718			103,762

Cash and cash equivalents, at end of period	$	106,562		$	106,344

Supplemental disclosure of cash flow information:

Cash paid for income taxes	$	2,935		$	4,206

Dividends payable in accrued expenses	$	110		$	126

Exhibit 99.1 Page 4 of 4

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

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Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.