PetMed Express, Inc. (NASDAQ:PETS) Q2 2020 Earnings Conference Call - Final Transcript

Oct 26, 2020 • 08:00 am ET


PetMed Express, Inc. (NASDAQ:PETS) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. Welcome to the PetMed Express Incorporated, doing business as 1-800-PetMeds, Conference Call to Review the Financial Results for the Second Fiscal Quarter for the quarter ended on September 30, 2020. At the request of the company, this conference call is being recorded.

Founded in 1996, 1-800-PetMeds is America's most trusted pet pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs, cats and horses, direct to the consumer. 1-800-PetMeds markets its product 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 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.

Bruce S. Rosenbloom

Thank you. I would like to welcome everybody here today. Unfortunately, due to a personal matter, Mendo Akdag, our President and Chief Executive Officer is unable to attend this morning's conference call. I would 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. Thank you for joining us, and we hope everyone is continuing to stay safe and healthy.

During the September quarter, consumer demand settled down due to a combination of vet clinics and brick and mortar pet retailers opening up, and consumers having stocked up in the June quarter. We have been open during our normal business hours without any material disruption to our operations. We are still taking measures to ensure the health and safety of our dedicated employees by allowing them to work from home where possible and continuing with social distancing and enhanced disinfection in the workplace. Also, we have not seen any major disruptions in our supply chain. However, we have experienced some delays in the delivery of the slow-to-medium moving inventory items.

Now we will compare our second fiscal quarter ended on September 30, 2020 to last year's quarter ended on September 30, 2019. For the second fiscal quarter ended