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PetMed Express Reports First Quarter 2022 Financial Results

Strategic Insights

— 2 min read

PetMed Express, Inc., the leading online pet pharmacy, announced its financial results for the first quarter ended June 30, 2021. Despite a relatively flat quarter compared to the same period in 2019, before the pandemic, the company's net income was $4.4 million, or $0.22 diluted per share. This is a decrease from the $7.8 million net income in the first quarter of 2020, or $0.39 diluted per share.

The company's CEO, Mendo Akdag, attributed the decline in sales to a decrease in advertising effectiveness due to the rapid recovery of the advertising market and a surge in veterinary visits by consumers who had delayed their pets' annual exams and prescriptions renewals during the pandemic. However, the company expects to see stronger reorder sales in the second half of 2022 as more prescriptions are renewed.

PetMed Express is also investing in its ecommerce platform, adding features to its website to better service its customers, such as AutoShip & Save, which was launched last week. The company's chairman, Gian Fulgoni, expressed excitement about the company's future, citing its strong financial position, with over $111 million in cash and no debt. The company plans to continue investing in its ecommerce platform and media strategies to broaden its customer base.

Key Takeaways:

  • Net sales for the quarter ended June 30, 2021, were $79.3 million, a decrease from $96.2 million in the same quarter of 2020.
  • Net income was $4.4 million, or $0.22 diluted per share, a decrease from $7.8 million, or $0.39 diluted per share, in the same quarter of 2020.
  • One-time charges of $717,000 were incurred during the quarter related to the CEO's separation agreement.
  • The company's ecommerce platform is being upgraded with features to better service customers, such as AutoShip & Save, which was launched last week.
  • PetMed Express has over $111 million in cash and no debt, providing a strong financial foundation for future investments.
  • The company is investing in media strategies and value-added services to broaden its customer base.
  • The CEO, Mendo Akdag, will be leaving the company on July 30, 2021, after 20 years of service.
  • The company declared a quarterly dividend of $0.30 per share, payable on August 13, 2021, to shareholders of record at the close of business on August 6, 2021.

Statistics:

  • Net sales for the quarter ended June 30, 2021: $79.3 million
  • Net income for the quarter ended June 30, 2021: $4.4 million, or $0.22 diluted per share
  • One-time charges related to the CEO's separation agreement: $717,000
  • Cash and cash equivalents: over $111 million
  • Debt: $0
  • Quarterly dividend: $0.30 per share
  • Date of dividend payment: August 13, 2021
  • Date of dividend record date: August 6, 2021

Sources:

  • PetMed Express, Inc., "Form 8-K" (July 26, 2021)
  • PetMed Express, Inc., "PetMed Express Announces First Quarter 2022 Financial Results" (July 26, 2021)

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