Plain-text annual report
Fast, Easy, Helpful Service with Great Savings!
www.1800petmeds.com
2017
ANNUAL REPORT
PetMed Express, Inc.
To My Fellow Stockholders:
In fiscal 2017, the Company made progress in growing both top and bottom line results. For the
fiscal year ended March 31, 2017 sales were $249.2 million compared to $234.7 million for the
prior fiscal year, an increase of 6.2%. For the fiscal year ended March 31, 2017 net income was
$23.8 million, or $1.17 diluted per share compared to $20.6 million, or $1.02 diluted per share
a year ago, an increase to net income of 16%. We were encouraged with increases in both new
order and reorder sales and we were also pleased with our advertising efficiency, as our new
customer acquisition costs were reduced to $34 for fiscal 2017 compared to $45 for fiscal 2016.
Online sales for the fiscal year were approximately 83% of sales compared to 81% of sales for the
prior fiscal year, and the average purchase value was approximately $83 for fiscal 2017 compared
to $81 for fiscal 2016.
1-800-PetMeds remains committed to returning capital to our stockholders. During the fiscal
year, we paid a quarterly dividend of $0.19 per share and in the first quarter of fiscal 2018, the
quarterly dividend was raised to $0.20 per share. While the Company intends to continue to pay
regular quarterly dividends, the declaration and payment of future dividends is discretionary
and will be subject to a determination by our Board of Directors each quarter, following its re
view of the Company’s financial performance. Since fiscal 2010 the Company has paid a cumula
tive total of $5.89 per share in dividends.
According to the American Pet Products Manufacturers Association, pet spending in the United
States increased 10.7% to $66.9 billion in 2016. Pet supplies and medications represented $14.7
billion, or 22% of the total spending on pets in the United States. The pet medication market
that we participate in is estimated to be approximately $4.3 billion, with veterinarians having
the majority of the market share. The dog and cat population is approximately 184 million, with
approximately 68% of all households having a pet.
We are a licensed pharmacy to dispense prescription medications in all 50 states. We offer a wide
selection of products, over 3,000 SKUs, including a variety of private label products. We regularly
research new products, and select new products or the latest generation of existing products to
become part of our product selection, so that we can offer our customers the best medications,
supplements, and pet supplies for dogs and cats at affordable prices. Our customers can en
joy either the convenience of ordering online at our top-rated website www.1800petmeds.com
or through our newly-launched mobile app, or over the telephone, where they can experience
1-800-PetMeds’ exceptional customer care.
We were very pleased that during the fiscal year we moved into our new corporate headquarters
and distribution center in Delray Beach, FL and upgraded our infrastructure to better service our
customers. As the national brand leader and America’s Largest Pet Pharmacy, we continue to
make it the goal of everyone at 1-800-PetMeds to provide “Fast, Easy, Helpful Service with Great
Savings!” We have served over 9.5 million satisfied customers, with approximately 2.3 million
customers having purchased from us within the last two years. We are proud that our customer
service satisfaction rating, as measured by independent companies, continues to well exceed
other online participants.
As always, we remain thankful to our loyal customers, dedicated employees, and, you, our
stockholders, for your ongoing support of 1-800-PetMeds.
Sincerely,
PERFORMANCE
SUMMARY
Sales
($ in millions)
$249.2
$233.4
$227.8
$229.4
$234.7
2013
2014
2015
2016
2017
Net Income
($ in millions)
$17.2
$18.0
$17.5
$23.8
$20.6
2013
2014
2015
2016
2017
Earnings per share EPS
(Diluted)
$1.17
$1.02
$0.86
$0.90
$0.87
2013
2014
2015
2016
2017
Dividends declared
(Per share)
$1.60
$0.66
$0.68
$0.72
$0.76
2013
2014
2015
2016
2017
(all above fiscal years ended on March 31st)
Menderes Akdag
President, Chief Executive Officer, Director
June 12, 2017
PetMed Express, Inc.
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[This Page Intentionally Left Blank]
www.1800petmeds.com
Corporate Information:
Directors, Executive Officers, and Corporate Secretary
Robert C. Schweitzer
Chairman of the Board
and Independent Director
Financial Consultant
Menderes Akdag
Director, Chief Executive Officer
and President of the Company
Frank J. Formica
Independent Director
Legal Consultant
Ronald J. Korn
Independent Director
President of Ronald Korn Consulting
Dr. Gian M. Fulgoni
Independent Director
Chief Executive Officer and Co-Founder
of comScore, Inc.
Bruce S. Rosenbloom, CPA
Chief Financial Officer and Treasurer
of the Company
Alison Berges, Esq.
Corporate Secretary and
General Counsel to the Company
Corporate Headquarters
PetMed Express, Inc.
420 South Congress Ave., Suite 100
Delray Beach, Florida 33445
Independent Registered Public Accounting Firm
RSM US LLP
West Palm Beach, Florida
Transfer Agent
Continental Stock Transfer & Trust Company
New York, New York
Stock Exchange Listing
The NASDAQ Stock Market LLC
Trading Symbol: PETS
Annual Meeting
The Annual Meeting of Stockholders will be held at 1 p.m. Eastern Time,
July 28, 2017.
Investor Relations
PetMed Express, Inc. welcomes inquiries from stockholders and other
interested investors. You may contact us by phone: (800) 738-6337 or
(561) 526-4444 or by writing to the corporate headquarters address above.
QUARTERLY
STOCK
PRICE RANGE
First Quarter
Fiscal 2017
High
Low
$19.49
$17.31
Fiscal 2016
High
Low
$17.73
$15.82
Second Quarter
Fiscal 2017
High
Low
$20.94
$18.76
Fiscal 2016
High
Low
$18.23
$15.72
Third Quarter
Fiscal 2017
High
Low
$23.49
$19.28
Fiscal 2016
High
Low
$17.88
$16.04
Fourth Quarter
Fiscal 2017
High
Low
$23.66
$19.26
Fiscal 2016
High
Low
$18.70
$15.77
PetMed Express, Inc.
You’re 100% satisfied
or your money back!
www.1800petmeds.com
Continue reading text version or see original annual report in PDF
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