First Quarter Net Income Increased 16% 

First Quarter Reorder Sales Increased 1.8%

POMPANO BEACH, Fla., July 20, 2015 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ:PETS) today announced its financial results for the quarter ended June 30, 2015.  Net income was $5.8 million, or $0.29 diluted per share, for the quarter ended June 30, 2015, compared to net income of $5.0 million, or $0.25 diluted per share, for the quarter ended June 30, 2014, a 16% increase to net income.  Net sales for the quarter ended June 30, 2015 were $71.6 million, compared to $72.5 million for the quarter ended June 30, 2014, a decrease of 1.3%.  The Company's online sales for the quarter ended June 30, 2015 were approximately 81% of all sales, compared to 80% for the same quarter the prior year. 

Menderes Akdag, CEO and President, commented: "We were able to decrease our operational expenses to improve our bottom line results for the quarter ended June 30, 2015.  For the quarter ended June 30, 2015 our operating expenses decreased by about 260 basis points, which can be attributed to a reduction in advertising spending.  Despite our sales decrease for the quarter we were able to increase our average order size to $82 for the quarter ended June 30, 2015, compared to $78 for the same quarter in the prior year.  Reorder sales increased 1.8%, to $59.6 million for the quarter ended June 30, 2015, compared to $58.5 million for the same quarter in the prior year.  For the remainder of Fiscal 2016 we are focusing on improving our marketing efforts to increase sales and profitability."

The Board of Directors declared a quarterly dividend of $0.18 per share on the Company's common stock.  The dividend will be payable on August 14, 2015, to shareholders of record at the close of business on August 3, 2015.  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 quarter's financial results.  To access the call, which is open to the public, please dial (888) 455-1758 (toll free) or (203) 827-7025.  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. on July 20, 2015 until August 3, 2015 at 11:59 P.M.  To access the replay, call (866) 431-7853 (toll free) or (203) 369-0969, and enter passcode 5500.

Founded in 1996, PetMed Express 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 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, 2015.  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.
 
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
         
    June 30,   March 31,
      2015       2015  
ASSETS   (Unaudited)    
         
Current assets:        
  Cash and cash equivalents $     42,685   $     35,613  
  Short term investments - available for sale       15,572         15,591  
  Accounts receivable, less allowance for doubtful        
  accounts of $23 and $8, respectively       3,089         1,931  
  Inventories - finished goods       27,220         25,068  
  Prepaid expenses and other current assets       1,541         1,380  
  Deferred tax assets       938         817  
  Total current assets       91,045         80,400  
         
Noncurrent assets:        
  Property and equipment, net       1,488         1,569  
  Intangible assets       860         860  
  Deferred tax assets       50         23  
  Total noncurrent assets       2,398         2,452  
         
Total assets $     93,443   $     82,852  
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
Current liabilities:        
  Accounts payable $     9,980   $     5,153  
  Accrued expenses and other current liabilities       2,229         2,214  
  Income taxes payable       3,352         50  
         
Total liabilities       15,561         7,417  
         
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;        
  20,259 and 20,262 shares issued and outstanding, respectively       20         20  
  Additional paid-in capital       3,488         3,117  
  Retained earnings       74,454         72,343  
  Accumulated other comprehensive loss       (89 )       (54 )
         
  Total shareholders' equity       77,882         75,435  
         
Total liabilities and shareholders' equity $     93,443   $     82,852  
         
         

   
  PETMED EXPRESS, INC. AND SUBSIDIARIES    
  CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME    
  (In thousands, except for per share amounts) (Unaudited)    
           
      Three Months Ended    
      June 30,    
      2015     2014  
           
 Sales   $      71,634    $    72,541  
 Cost of sales        48,668       48,769  
           
 Gross profit        22,966       23,772  
           
 Operating expenses:           
  General and administrative        5,799       5,875  
  Advertising        7,885       9,896  
  Depreciation        191       163  
 Total operating expenses        13,875       15,934  
           
 Income from operations        9,091       7,838  
           
 Other income (expense):           
  Interest income, net        50       44  
  Other, net        (4 )     9  
 Total other income        46       53  
           
 Income before provision for income taxes        9,137       7,891  
           
 Provision for income taxes        3,380       2,918  
           
 Net income   $      5,757    $    4,973  
           
 Net change in unrealized gain (loss) on short           
  term investments        (35 )     8  
           
 Comprehensive income   $      5,722    $    4,981  
           
 Net income per common share:           
  Basic   $      0.29    $    0.25  
  Diluted   $      0.29    $    0.25  
           
 Weighted average number of common shares outstanding:           
  Basic        20,074       19,961  
  Diluted        20,198       20,092  
           
 Cash dividends declared per common share   $      0.18    $    0.17  
           
           

   
PETMED EXPRESS, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
  (In thousands) (Unaudited)    
   
      Three Months Ended    
      June 30,    
      2015       2014    
 Cash flows from operating activities:           
  Net income   $      5,757    $      4,973    
  Adjustments to reconcile net income to net cash           
  provided by operating activities:           
  Depreciation        191         163    
  Share based compensation        371         373    
  Deferred income taxes        (148 )       (90 )  
  Bad debt expense        168         17    
  (Increase) decrease in operating assets           
  and increase (decrease) in liabilities:           
  Accounts receivable        (1,326 )       146    
  Inventories - finished goods        (2,152 )       2,840    
  Prepaid income taxes        -          54    
  Prepaid expenses and other current assets        (161 )       27    
  Accounts payable        4,827         2,821    
  Income taxes payable        3,302         2,889    
  Accrued expenses and other current liabilities        (18 )       44    
 Net cash provided by operating activities        10,811         14,257    
           
 Cash flows from investing activities:           
  Net change in investments        (16 )       (20 )  
  Purchases of property and equipment        (110 )       (6 )  
 Net cash used in investing activities        (126 )       (26 )  
           
 Cash flows from financing activities:           
  Dividends paid        (3,613 )       (3,395 )  
 Net cash used in financing activities        (3,613 )       (3,395 )  
           
 Net increase in cash and cash equivalents        7,072         10,836    
 Cash and cash equivalents, at beginning of period        35,613         18,305    
           
 Cash and cash equivalents, at end of period   $      42,685    $      29,141    
           
 Supplemental disclosure of cash flow information:           
           
  Cash paid for income taxes   $      226    $      66    
           
  Dividends payable in accrued expenses   $      245    $      300    
           
           
For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 954-979-5995.