PetMed Express, Inc. (NASDAQ:PETS) Q1 2020 Earnings Conference Call - Final Transcript

Jul 20, 2020 • 08:30 am ET


PetMed Express, Inc. (NASDAQ:PETS) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to the PetMed Express Incorporated, doing business as 1-800-PetMeds, Conference Call to review the financial results for the First Fiscal Quarter ended on June 30, 2020. At the request of the Company, this conference 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 and horses 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 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 Chief Financial Officer, Mr. Bruce Rosenbloom. Mr. Rosenbloom, please go ahead.

Bruce S. Rosenbloom

Thank you. 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 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've 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?

Menderes Akdag

Thank you, Bruce. So, welcome and thank you for joining us.

During the June quarter, consumer demand continued to be strong for e-commerce, with pet owners shifting their purchases to online. Our sales have been positively impacted due to this increased demand coinciding with our peak season. As an essential business, we have been open during our normal business hours without any material disruptions in our operations. We have also taken measures to ensure the health and safety of our employees. We have implemented working from home where possible and [Indecipherable] of our workplace. Also, so far, we have not seen any material disruptions in our supply chain. But as a precaution, we have temporarily increased our inventory during the quarter.

Now we'll compare our first fiscal quarter ended on June 30, 2020 to last year's quarter ended on June 30, 2019. For the first fiscal quarter ended on