PetMeds® Announces Its First Quarter Financial Results and Declares a Quarterly Dividend of $0.30 Per Share

DELRAY BEACH, Fla., July 31, 2023 (GLOBE NEWSWIRE) — PetMed Express, Inc. (NASDAQ: PETS) (“PetMeds” or “Company”), Your Trusted Pet Health Expert™, right this moment introduced its monetary outcomes for its first quarter ended June 30, 2023.

Quarterly Highlights

• Net gross sales for the quarter ended June 30, 2023, had been $78.2 million, in comparison with $70.2 million for the primary quarter within the prior yr, a rise of 11.5%.

• PetMeds reported a rise in new clients of 25% yr over yr for the quarter ended June 30, 2023, representing the third consecutive quarter of recent buyer development. This consists of new clients from the PetCareRx acquisition.

• Net loss for the quarter ended June 30, 2023 was $(0.9) million, or $(0.04) per diluted share, together with $1.1 million of acquisition associated prices expensed within the quarter. The quarterly outcomes examine to internet revenue of $2.8 million, or $0.14 diluted earnings per share, for the prior yr quarter ended June 30, 2022.

• Adjusted EBITDA¹ of $3.3 million for the present yr quarter, in comparison with Adjusted EBITDA of $6.3 million, for the quarter ended June 30, 2022, a lower of 47%. The lower was because of elevated gross revenue and different revenue, offset by larger G&A bills and promoting bills.

• PetMeds efficiently closed on the acquisition of PetCareRx on April 3, 2023 and is together with almost a full quarter of ends in the consolidated outcomes ended June 30, 2023.

“This quarter’s efficiency is a pivotal step in our Company’s transformative path,” stated Matt Hulett, CEO and President. “After over two years of declining revenues, we have successfully achieved year-over-year growth in our top line.” Hulett continued, “Not only did revenue increase by 11.5%, year-over-year, but 49% of our total revenue was derived from recurring sources such as our AutoShip subscription and PetPlus membership programs. Our journey towards becoming a leader in comprehensive pet health expertise is showing promising progress. The acquisition of PetCareRx has unlocked tremendous growth opportunities, allowing us to expand our product catalog and capitalize on synergies between the two. “

Story continues

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 August 18, 2023, to shareholders of record at the close of business on August 14, 2023.  The declaration and payment of future dividends is discretionary and will be subject to the determination by the Board of Directors.

This afternoon the Company will host a conference call to review the quarter’s financial results.

Time: 4:30 P.M. Eastern Time, July 31, 2023
Public call dial in (877) 407-0789 (toll free) or (201) 689-8562. 
Webcast stream link: for those who wish to stream the call via webcast. 
Replay: Available until August 14, 2023, at 11:59 P.M Eastern Time.
To access the replay, call (844) 512-2921 (toll free) or (412) 317-6671 and enter passcode 13740086.

Founded in 1996, PetMeds is Your Trusted Pet Health Expert™, providing prescription and non-prescription medications, food, supplements, supplies and vet services for dogs, cats, and horses at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and through its website at www.petmeds.com.

This press release may contain “forward-looking” statements, as outlined within the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, that contain a lot of dangers and uncertainties, together with the Company’s means to fulfill the aims included in its business plan.  Important elements that might trigger outcomes to vary materially from these indicated by such “forward-looking” statements are set forth within the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” part within the Company’s Annual Report on Form 10-Ok for the yr ended March 31, 2023.  The Company’s future outcomes can also be impacted by different threat elements listed on occasion in its SEC filings, together with, however not restricted to, the Company’s Form 10-Qs and its Annual Reports on Form 10-Ok.

PETMEDS INVESTOR RELATIONS CONTACT
Brian M. Prenoveau, CFA
MZ Group
561-489-5315
[email protected]

PETMEDS MEDIA CONTACT
Mary Eva Tredway
Butin PR
[email protected]

Non-GAAP Financial Measures

To present traders and the market with further data relating to our monetary outcomes, we have now disclosed (see beneath) adjusted EBITDA, a non-GAAP monetary measure that we calculate as internet revenue excluding share-based compensation expense; depreciation and amortization; revenue tax provision; curiosity revenue (expense); and different non-operational bills. We have offered reconciliations beneath of adjusted EBITDA to internet revenue, probably the most instantly comparable GAAP monetary measures.

We have included adjusted EBITDA, herein, as a result of it’s a key measure utilized by our administration and Board of Directors to guage our working efficiency, generate future working plans, and make strategic choices relating to the allocation of capital. In specific, the exclusion of sure bills in calculating adjusted EBITDA facilitates working efficiency comparability throughout reporting durations by eradicating the impact of non-cash bills and different bills. Accordingly, we imagine that adjusted EBITDA gives helpful data to traders and others in understanding and evaluating our working ends in the identical method as our administration and Board of Directors.

We imagine it’s helpful to exclude non-cash fees, similar to share-based compensation expense, depreciation and amortization from our adjusted EBITDA as a result of the quantity of such bills in any particular interval might circuitously correlate to the underlying efficiency of our business operations. We imagine it’s helpful to exclude revenue tax provision and curiosity revenue (expense), as neither are parts of our core business operations. We additionally imagine that it’s helpful to exclude different bills, together with the funding banking charge associated to the Vetster partnership, acquisition prices associated to PetCareRx, worker severance and estimated state gross sales tax accrual as this stuff usually are not indicative of our ongoing operations. Adjusted EBITDA has limitations as a monetary measure, and these non-GAAP measures shouldn’t be thought of in isolation or as an alternative to evaluation of our outcomes as reported underneath GAAP. Some of those limitations are:

• Although depreciation and amortization are non-cash fees, the property being depreciated and amortized might have to get replaced sooner or later and adjusted EBITDA doesn’t replicate capital expenditure necessities for such replacements or for brand new capital expenditures;

• Adjusted EBITDA doesn’t replicate share-based compensation. Share-based compensation has been, and can proceed to be for the foreseeable future, a fabric recurring expense in our business and an essential a part of our compensation technique;

• Adjusted EBITDA doesn’t replicate curiosity revenue (expense), internet; or adjustments in, or money necessities for, our working capital;

• Adjusted EBITDA doesn’t replicate transaction associated prices and different objects that are both not consultant of our underlying operations or are incremental prices that consequence from an precise or deliberate transaction and embody litigation issues, integration consulting charges, inside salaries and wages (to the extent the people are assigned full-time to integration and transformation actions) and sure prices associated to integrating and converging IT techniques;

• Adjusted EBITDA doesn’t replicate sure non-operating bills together with the worker severance which reduces money available to us;

• Adjusted EBITDA doesn’t replicate sure bills together with the estimated state gross sales tax accrual which reduces money available to us.

• Other corporations, together with corporations in our business, might calculate adjusted EBITDA otherwise, which reduces the measures usefulness as comparative measures.

Because of those and different limitations, adjusted EBITDA ought to solely be thought of as supplemental to, and alongside with different GAAP primarily based monetary efficiency measures, together with varied money circulate metrics, internet revenue, internet margin, and our different GAAP outcomes.

The following desk presents a reconciliation of internet revenue, probably the most instantly comparable GAAP measure to adjusted EBITDA for every of the durations indicated:

____________________
¹ Adjusted EBITDA is a non-GAAP monetary measure. See “Non-GAAP Financial Measures” for added data on non-GAAP monetary measures and a reconciliation to probably the most comparable GAAP measures.