PetMed Express, Inc. (NASDAQ:PETS) Q2 2018 Earnings Conference Call Transcript

Oct 22, 2018 • 08:30 am ET

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PetMed Express, Inc. (NASDAQ:PETS) Q2 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Petmed Express Incorporated doing business as 1-800-PetMeds conference call to review the financial results for the second fiscal quarter ended September 30th, 2018. At the request of the Company, this conference call is being recorded. Founded in 1996, 1-800-PetMeds is America's largest pet pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs and cats direct to the customer.

1-800-PetMeds markets its products through national advertising campaigns which direct consumers to order by phone or on the Internet, and aim to increase the recognition of the PetMed's family of brand names. 1-800-PetMeds provides an attractive alternative for obtaining pet medications in terms of convenience, price, ease of ordering and rapid home delivery.

At this time, I would like to turn the call over to the Company's CFO, Mr. Bruce Rosenbloom.

Executive
Bruce Rosenbloom

Thank you. I would like to welcome everybody here today. Before I turn the call over to Mendo Akdag, our President and CEO, I'd like to remind everyone that the first portion of this conference call will be listen-only until the question-and-answer session, which will be later in the call.

(Forward-Looking Cautionary Statements)

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

Executive
Mendo Akdag

Thank you, Bruce. Welcome everyone. Thank you for joining us. Today we will review the highlights of our financial results, will compare our second fiscal quarter and six months ended on September 30, 2018 to last year's quarter and six months ended on September 30, 2017.

For the second fiscal quarter ended on September 30, 2018, our sales were $71.4 million compared to $66.7 million for the same period the prior year, an increase of 7%. For the six months ended on September 30, 2018, sales were $158.8 million compared to $146.4 million for the six months the prior year, an increase of 8.5%. The increases in sales were due to increases in reorder sales. The average order value was approximately $87 for the quarter compared to $85 for the same period last year.

For the second fiscal quarter, net income was $10.8 million or $0.52 diluted per share, compared to $8.8 million or $0.43 diluted per share for the same quarter the prior year, an increase to net income of 23%. And for the six months, net income was $23.3 million or $1.14 diluted per share compared to $18 million or $0.88 diluted per share a year ago, an increase to net income of 29%.

In addition to increased sales, the Tax Reform Act of 2017 helped to boost our earnings. Reorder sales increased by 11% to $61 million for the quarter compared to reorder sales of $55.1 million for the same quarter the prior year. For the six months, the reorder sales increased by 11% to $132.5 million compared to $119.5 million for the same period last year.

New order sales decreased by 11% to $10.4 million for the quarter compared to $11.6 million for the same period the prior year. For the six months,