PetSmart Announces Third Quarter 2013 Results

PetSmart, Inc. (NASDAQ: PETM) today announced financial results for the third quarter of 2013 and provided guidance for the fourth quarter and fiscal year 2013.

Third Quarter Results

Earnings of $0.88 per share, up 17.3% compared to $0.75 per share in the third quarter of 2012. Net income totaled $92 million in the third quarter of 2013, compared to $82 million in the third quarter of 2012.

Total sales for the third quarter of 2013 increased 4.0% to $1.7 billion. Comparable store sales, or sales in stores open at least a year, grew 2.7%, including comparable transactions growth of 0.2%. Services sales, which are included in total sales, grew 5.2% to $184 million.

The company generated $107 million in cash flows from operating activities, spent $51 million in capital expenditures, distributed $17 million in dividends, and repurchased $30 million of PetSmart stock. The company ended the quarter with $367 million in cash, cash equivalents and restricted cash and zero borrowings on its credit facility.

“Given the challenged consumer environment during the quarter, we are pleased with our results and level of execution,” said David Lenhardt, Chief Executive Officer. “Our performance demonstrates the strength and stability of our business.”

Guidance

Fiscal year 2013 is a 52-week year. Except for comparable stores sales growth, which is calculated on an equivalent basis, comparisons to fiscal year 2012, a 53-week year, are based on U.S. GAAP, unless otherwise noted.
  • Comparable store sales growth of 3% to 3.5%
  • Total sales growth of approximately 3% (on a 52 to 52-week basis, total sales growth of approximately 5%)
  • Earnings before tax margin expansion of 20 to 40 basis points (on a 52 to 52-week basis, earnings before tax margin expansion of 50 to 70 basis points)
  • Earnings per share of $3.94 to $3.98

The fourth quarter of 2013 is a 13-week quarter. Except for comparable stores sales growth, which is calculated on an equivalent basis, comparisons to the fourth quarter of 2012, a 14-week quarter, are based on U.S. GAAP, unless otherwise noted.
  • Comparable store sales growth of 2.5% to 3.5%
  • Total sales growth of -3% to -2% (on a 13 to 13-week basis, total sales growth of 4% to 5%)
  • Earnings before tax margin expansion of -45 to -15 basis points (on a 13 to 13-week basis, earnings before tax margin expansion of 45 to 75 basis points)
  • Earnings per share of $1.19 to $1.23

Conference call information

PetSmart management has scheduled a teleconference for 9:00 a.m. EST on November 22, 2013 to discuss results for the third quarter 2013. This teleconference will be webcast live for all investors at www.petm.com. The webcast will be available until the company announces results for the fourth quarter of 2013. In addition, you can listen to the call live by dialing 866-219-5631 (within the United States and Canada) or 703-639-1122 (for international callers), code 1627400.

A phone replay will be available through December 22, 2013, 11:59 p.m. EST, at 888-266-2081 in the United States and Canada, or at 703-925-2533 for international callers, code 1627400.

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