PetMed Express D/B/A 1-800-PetMeds Announces Record Financial Results

    Business Editors

    POMPANO BEACH, Fla.--(BUSINESS WIRE)--May 16, 2005--PetMed Express, Inc. (NASDAQ:PETS) today announced results for the fiscal year ended March 31, 2005. Net income was $8.0 million, or $.34 diluted per share, for fiscal 2005, compared to net income of $5.8 million, or $.25 diluted per share, for fiscal 2004, an increase to net income of 38%. Net sales for the fiscal year ended March 31, 2005 were $108.4 million, compared to $94.0 million for the fiscal year ended March 31, 2004, an increase of 15%. The Company acquired approximately 510,000 new customers for the fiscal year, and approximately 53% of all orders were placed on its website for the fiscal year.
    For the quarter ended March 31, 2005, net income was $2.4 million, or $.10 diluted per share, compared to $1.3 million, or $.06 diluted per share, for the same quarter in the prior year, an increase to net income of 81%. Net sales for the quarter ended March 31, 2005 were $23.5 million, compared to $21.5 million for the same quarter in the prior year, an increase of 10%.
    Mendo Akdag, CEO, commented: "We are pleased to report that our reorder sales increased 34%, from $51.4 million to $68.7 million for the years ended March 31, 2004 and 2005, respectively. We will continue to focus on reorder sales in fiscal 2006 by initiating more relevant personalized communication with our customers, approximately 1.4 million of whom have placed an order with us over the past two years. We are also pleased to report that net cash provided by operating activities increased $7.2 million, from $1.1 million in fiscal 2004 to $8.3 million in fiscal 2005."
    Founded in 1996, PetMed Express is America's largest pet pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs, cats and horses at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and on the Internet through its website at http://www.1800petmeds.com.

    This press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, that involve a number of risks and uncertainties, including the Company's ability to meet the objectives included in its business plan. Important factors that could cause results to differ materially from those indicated by such "forward-looking" statements are set forth in Management's Discussion and Analysis of Financial Condition and Results of Operations in the PetMed Express Annual Report on Form 10-K for the year ended March 31, 2004. The Company's future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company's Form 10-Q and its Annual Report on Form 10-K.
    For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 954-979-5995.

PETMED EXPRESS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS

CONSOLIDATED STATEMENTS OF INCOME

Year Ended March 31, 2005 2004 2003 ------------ ----------- -----------

Sales $108,357,747 $93,994,233 $54,974,916 Cost of sales 64,700,002 55,824,406 31,517,639 ------------ ----------- -----------

Gross profit 43,657,745 38,169,827 23,457,277 ------------ ----------- -----------

Operating expenses: General and administrative 11,396,320 10,754,427 7,956,786 Advertising 19,185,982 17,653,614 11,649,811 Depreciation and amortization 573,817 550,392 367,673 ------------ ----------- ----------- Total operating expenses 31,156,119 28,958,433 19,974,270 ------------ ----------- -----------

Income from operations 12,501,626 9,211,394 3,483,007 ------------ ----------- -----------

Other income (expense): Gain on disposal of property and equipment - - 15,000 Interest expense (965) (14,546) (30,658) Interest income 99,044 9,739 6,973 Other, net 3,710 6,938 6,084 ------------ ----------- ----------- Total other income (expense) 101,789 2,131 (2,601) ------------ ----------- -----------

Income before provision for income taxes 12,603,415 9,213,525 3,480,406

Provision for income taxes 4,593,045 3,399,921 222,841 ------------ ----------- -----------

Net income $ 8,010,370 $ 5,813,604 $ 3,257,565 ============ =========== ===========

Net income per common share: Basic $ 0.35 $ 0.30 $ 0.19 ============ =========== =========== Diluted $ 0.34 $ 0.25 $ 0.16 ============ =========== ===========

Weighted average number of common shares outstanding: Basic 22,862,417 19,471,681 17,300,130 ============ =========== =========== Diluted 23,833,189 23,689,866 20,749,515 ============ =========== ===========

BALANCE SHEET DATA

March 31, 2005 2004 ------------ -----------

Working capital $ 21,968,784 $11,338,004 Total assets 28,119,483 18,480,808 Total liabilities 3,902,419 4,486,299 Total shareholders' equity 24,217,064 13,994,509

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CONTACT: PetMed Express, Inc., Pompano Beach Bruce S. Rosenbloom, 954-979 5995, Fax: 954-971 0544

KEYWORD: FLORIDA INDUSTRY KEYWORD: PHARMACEUTICAL RETAIL CONSUMER/HOUSEHOLD INTERNET E-COMMERCE EARNINGS SOURCE: PetMed Express, Inc.

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