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PetMeds® Investor Relations
Welcome:
To My Fellow Stockholders:
Even in an uncertain economy, 1-800-PetMeds continues to provide solid performance and profitability in its fiscal year ended March 31, 2009.
Net income increased to $23.0 million in fiscal 2009, or $0.98 diluted per share, compared to $20.0 million, or $0.82 diluted per share for fiscal 2008,
an increase to earnings per share of 19%. Net sales for fiscal 2009 were $219.4 million compared to $188.3 million for fiscal 2008, an increase of 17%. Our continued
strong financial performance can be attributed to reorder and new order growth, and success in leveraging our operating expenses. Our reorder sales increased 17%, from
$134.3 million to $156.8 million in fiscal years 2008 and 2009, respectively, our new order sales increased 16% from $53.8 million to $62.5 million in fiscal years 2008
and 2009, respectively, and our operating expenses as a percent of sales improved 120 basis points for the fiscal year ended March 31, 2009, compared to the prior fiscal year.
As in years past, we acquired more new customers during fiscal year 2009 as compared to the prior fiscal year, approximately 802,000 during fiscal year 2009 compared to
710,000 during fiscal 2008. Approximately 65% of all orders were placed on our newly designed website at www.petmeds.com during the fiscal year as we look to create a more personalized experience for our customers. We also continue to be active repurchasing shares of our outstanding common stock pursuant to the stock buy back plans approved by
our Board of Directors, repurchasing approximately 1,347,000 shares for approximately $18.4 million, averaging $13.70 per share during the fiscal year.
1-800-PetMeds is America’s Largest Pet Pharmacy and continues to be the most recognized national brand in the pet industry as a result of our investment of |
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approximately $158 million in advertising since fiscal 2001. This advertising investment has helped us increase our sales from $10.0 million in fiscal 2001 to $219.4 million in fiscal
2009. We continue to offer a broad selection of products, both over-the-counter and prescription, for dogs, cats, and horses at affordable prices. Our customers can enjoy
either the convenience of ordering over the telephone with 1-800-PetMeds’ exceptional customer service or on the web at our highly-rated web site www.petmeds.com.
According to the American Pet Products Manufacturers Association, spending on pets in the U.S. increased by 5.3% and reached $43.4 billion in 2008, and the pet
medication market that we participate in is estimated to be approximately $3.6 billion. There is a continuing increase in pet-related spending, a higher awareness of pet
health, and the continued humanization of pets, integrating them into all aspects of our lives. Our continued focus in fiscal 2010 will be on capturing additional market share,
improving reorders with personalized communication and health education content, and also improving our customer care levels.
We remain thankful to our loyal customers, dedicated employees, and, you, our stockholders, for your ongoing support of 1-800-PetMeds.
Sincerely,
Menderes Akdag
President, Chief Executive Officer, Director
June 19, 2009
PetMed Express, Inc., d/b/a 1-800-PetMeds
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