PetMeds Announces Selected Preliminary Third Quarter Financial Results

Company to Restate Certain Previously Issued Financial Statements Due to Correction of Errors in Accounting for Tax-Related Entries; Filing of Form 10-Q to be Delayed

DELRAY BEACH, Fla., Feb. 08, 2024 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ: PETS) (“PetMeds” or the “Company”), Your Trusted Pet Health Expert^TM, today announced its selected preliminary financial results for its third quarter ended December 31, 2023.

These preliminary financial results are unaudited, based on currently available information and do not present all necessary information for a complete understanding of the Company’s financial condition as of December 31, 2023 or its results of operations for the quarter ended December 31, 2023.

Quarterly Highlights

• Net sales for the quarter ended December 31, 2023, are expected to be $65.3 million, compared to $58.9 million for the third quarter in the prior year, an increase of 11% year over year. The current quarter includes the results from the recent acquisition of PetCareRx.
• Gross profit in the quarter ended December 31, 2023, is expected to be $17.9 million, compared to $15.2 million in the prior year period. Gross margin improved to 27.4% in the quarter ended December 31, 2023 from 25.9% in the prior year period.
• Cash and equivalents at December 31, 2023 are expected to be $49.4 million.
  

“Having to restate previously issued financial statements is certainly disappointing, but the restatement is a matter of tax accounting and will have no impact on our current cash balance,” said Matt Hulett, CEO and President. “From an operational perspective, we are encouraged to see the continued growth of recurring revenue as driven by our AutoShip & Save and PetPlus programs, which represented 52.2% of revenue during the quarter, up from 42.3% for the same quarter last year.” Hulett continued, “PetMeds is on a mission to deepen our engagement with our over two million pet parents, offering them an expanded portfolio of products and services on a regular, recurring basis. The introduction of a premium food brand and a substantial enhancement to our AutoShip & Save program mark pivotal steps in our transformation.”