PetMed Express, Inc. (NASDAQ:PETS) Q3 2019 Earnings Conference Call - Final Transcript

Welcome to the PetMed Express Inc. doing business as 1-800-PetMeds Conference Call, to review the financial results for the Second Fiscal Quarter ended last September 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 non-prescription 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 in the Internet and aim to increase the recognition of the PetMeds family of brand names. 1-800-PetMeds provide 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 Chief Financial Officer, Mr Bruce Rosenbloom. You may begin.

Thank you. I would like to welcome everybody here today. Before I turn the call over to Menderes Akdag,our President and Chief Executive Officer, 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.

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 on our most recent Annual Report, and other filings with the Securities and Exchange Commission.

Now let me introduce today's speaker Menderes Akdag, the President and Chief Executive Officer of 1-800-PetMeds. Menderes?

Thank you, Bruce. Welcome and thank you for joining us. Before we start the review of our financial results, we are pleased to report that we now have direct relationships with all the major manufacturers, and these manufacturers have minimum advertised price policies, allowing a general pricing discipline in the market.

Now we will compare our second fiscal quarter and six months ended on September 30, 2019 to last year's quarter and six months ended on September 30, 2018. For the second fiscal quarter ended on September 30, 2019, our sales were $69.9 million compared to $71.4 million for the same period the prior year, a decrease of 2%. For the six months ended on September 30, 2019 sales were $149.9 million compared to $158.8 million for the six months the prior year, a decrease of 5.6%. The decreases in sales were due to decreases in new order sales,