This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PetMed Express Management Discusses Q1 2013 Results - Earnings Call Transcript

Now let me introduce today's speaker, Mendo Akdag, the President and Chief Executive Officer of 1-800-PetMeds. Mendo?

Menderes Akdag

Thank you, Bruce. Welcome, everyone. Thank you for joining us. Today, we will review the highlights of our financial results. We'll compare our first fiscal quarter ended on June 30, 2012, to last year's quarter ended on June 30, 2011.

For the first fiscal quarter ended on June 30, 2012, sales were $69 million compared to sales of $73.6 million for the same period the prior year, a decrease of 6.3%. The unavailability of Novartis brands disrupted our sales during the quarter. In addition, the decrease was due to the consumers purchasing smaller quantities, for example, 3 packs instead of 6 packs, additional discounts given due to increased competition and a change in product mix to lower-priced items.

Also, the peak season started early this year due to the warmer climate in the March quarter, which might have shifted sales from the June quarter to the March quarter. For the first fiscal quarter, net income was $4 million or $0.20 diluted per share, compared to $4.8 million or $0.22 diluted per share for the same quarter last year, a decreased earnings per share of 12%. The decrease was mainly due to a decrease in sales.

Reorder sales decreased by 2.8% to $55.1 million for the quarter compared to reorder sales of $56.6 million for the same quarter the prior year. The decrease was due to a decrease in average order size.

Reorder sales decreased by 18% to $13.9 million for the quarter, compared to $17 million for the same quarter the prior year. The decrease was mainly due to an increase in customer acquisition costs and decrease in average order size, in addition to slightly reduced advertising.

We acquired approximately 197,000 new customers in our first fiscal quarter compared to 226,000 for the same period the prior year. Our average order was approximately $73 for the quarter compared to $80 for the same quarter the prior year. The decline was also due to the consumer purchasing smaller quantities, additional discounts given and a change in product mix to lower-priced items.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs