PetMed Express, Inc. (NASDAQ:PETS) Q1 2019 Earnings Conference Call - Final Transcript
Jul 22, 2019 • 08:00 am ET
Welcome to the PetMed Express, Inc. doing business as 1-800-PetMeds Conference Call to Review the Financial Results for the First Fiscal Quarter Ended June 30th 2019. 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 nonprescription pet medications and other health products for dogs and cats direct to the consumer. 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 PetMeds family of brand names. 1-800-PetMeds provides an attractive alternative for obtaining pet medication 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 Chief Financial Officer, Mr. Bruce Rosenbloom. You may begin.
Bruce S. Rosenbloom
Thank you. Good morning. I would like to welcome everybody here today.
Before I turn the call over to Mendo Akdag, our President and Chief Executive Officer, I'd like to remind everyone the first portion of this conference call will be listen-only until the question-and-answer session, which will be later in the call. Also, certain information that will be included in this press conference may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission that may involve a number of risks and uncertainties. These statements are based on our beliefs as well as assumptions we have used based upon information currently available to us. Because these statements reflect our current views concerning future events, these statements involve risks, uncertainties and assumptions.
Actual future results may vary significantly based on a number of factors that may cause the actual results or events to be materially different from future results, performance or achievements expressed or implied by these statements. We have identified various risk factors associated with our operations in our most recent Annual Report and other filings with the Securities and Exchange Commission.
Now, let me introduce today's speaker, Mendo Akdag, the President and Chief Executive Officer of 1-800-PetMeds. Mendo?
Thank you, Bruce. Welcome, everyone, and thank you for joining us. Today, we will review the highlights of our financial results. We'll compare our first fiscal quarter ended on June 30, 2019, to last year's quarter, ended on June 30, 2018.
For the first fiscal quarter ended on June 30, 2019, sales were $80 million compared to sales of $87.4 million for the same period the prior year, a decline of 5%. The decrease in sales was due to decreases in new order and reorder sales. Sales were negatively impacted by increased online competition and aggressive pricing in the market that forced us to reduce prices. Our average order value was approximately $86 for the quarter, compared to $90 for the same quarter last year. The decrease was due to the price reductions.
For the first fiscal quarter, net income was $5.3 million, or $0.26 diluted per share, compared