Fri, Jun 14, 12:32 PM (129 days ago)
PetMed Express, Inc. (PetMeds) reported its annual financial performance for the fiscal year ended March 31, 2024. Key highlights include: - **Financial Performance**: Net sales increased by 9.5% to $281.1 million, driven primarily by the acquisition of PetCareRx. Reorder sales and new order sales were $247.0 million and $24.3 million, respectively. Membership fees contributed $9.8 million to net sales. - **Net Income**: The company reported a net loss of $7.5 million, compared to a net income of $5.1 million in the previous fiscal year. The loss was due to increased general and administrative expenses, higher advertising costs, and increased depreciation and amortization expenses. - **Operating Expenses**: General and administrative expenses rose by 32.4% to $55.2 million, while advertising expenses increased by 26.2% to $24.5 million. Depreciation and amortization expenses nearly doubled to $7.1 million. - **Gross Profit**: Gross profit improved by 11.2% to $78.6 million, with a gross margin of 28.0%, up from 27.6% in the prior year. - **Liquidity**: Working capital decreased to $21.5 million from $72.9 million, mainly due to the $36 million acquisition of PetCareRx and other investments. - **Strategic Overview**: The acquisition of PetCareRx expanded the product catalog and customer base. The company also focused on enhancing its AutoShip program, which accounted for 53.5% of net sales in the fourth quarter. - **Future Outlook**: PetMeds aims to become a leading digital-first pet wellness company by consolidating its brands, optimizing operations, and investing in technology. - **Risk Factors**: The company faces risks such as increased competition, regulatory compliance, and potential cybersecurity incidents. Overall, PetMeds is strategically positioning itself for growth despite the current financial challenges.