PetMed Express, Inc. (NASDAQ:PETS) Q3 2019 Earnings Conference Call - Final Transcript
Jan 21, 2020 • 08:30 am ET
Welcome to the PetMed Express Incorporated doing business as 1-800-PetMeds conference call to review the financial results for the third fiscal quarter ended December 31, 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 on the Internet and aim to increase the recognition of the PetMeds family of brand names. 1-800-PetMeds provides an attractive alternative for providing 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.
Bruce S. Rosenbloom
Thank you. Good morning. I'd 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 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 in our most recent Annual Report and other filings with the Securities and Exchange Commission.
Now, let me introduce today's speaker, Mendo Akdag, 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 will compare our third fiscal quarter ended on December 31, 2019 to last year's quarter ended on December 31, 2018.
For the third fiscal quarter ended on December 31, 2019, our sales were relatively flat at $59.9 million compared to $60.1 million for the same period of the prior year. The average order value for the quarter was approximately $85 compared to $84 for the same quarter of the prior year. For the third fiscal quarter, net income was $6.8 million or $0.34 diluted per share compared to $7.8 million or $0.38 diluted per share for the same quarter of the prior year, a decrease to diluted earnings per share of 10%. The decrease to net income for the quarter was mainly due to lower gross profit margins.