PetMed Express, Inc. D/B/A 1-800-PetMeds Announces Its Financial Results for Fiscal 2012

PetMed Express, Inc. D/B/A 1-800-PetMeds Announces Its Financial Results for
Fiscal 2012

              Quarterly Net Sales Increased 10% to $55.9 Million

           Quarterly New Order Sales Increased 22% to $11.5 Million

            Quarterly Online Sales Increased 16% to $42.7 Million

POMPANO BEACH, Fla., May 7, 2012 (GLOBE NEWSWIRE) -- PetMed Express, Inc.
(Nasdaq:PETS) today announced its financial results for the fiscal year ended
March 31, 2012. Net sales for the quarter ended March 31, 2012 were $55.9
million, compared to $50.9 million for the quarter ended March 31, 2011, an
increase of 10%. For the year ended March 31, 2012 net sales were $238.3
million, compared to $231.6 million for the year ended March 31, 2011, an
increase of 3%. Net income for the quarter ended March 31, 2012 was $4.0
million, or $0.20 diluted per share, compared to net income of $4.1 million,
or $0.19 diluted per share, for the same quarter the prior year, an increase
to earnings per share of 7%.Net income was $16.7 million, or $0.80 diluted
per share, for the year ended March 31, 2012, compared to net income of $20.9
million, or $0.92 diluted per share, for the year ended March 31, 2011, a
decrease to earnings per share of 13%.New order sales for the quarter ended
March 31, 2012 were $11.5 million, compared to $9.4 million for the quarter
ended March 31, 2011, an increase of 22%.New order sales for the year ended
March 31, 2012 were $51.3 million, compared to $47.3 million for the year
ended March 31, 2011, an increase of 8%.Reorder sales for the quarter ended
March 31, 2012 were $44.4 million, compared to $41.5 million for the quarter
ended March 31, 2011, an increase of 7%. Reorder sales for the year ended
March 31, 2012 were $187.0 million, compared to $184.3 million for the year
ended March 31, 2011, an increase of 1%.

Menderes Akdag, President and CEO, commented: "We are pleased with the strong
new and reorder growth in the quarter.We acquired approximately 162,000 new
customers during the fourth quarter compared to 130,000 during the same period
a year ago, an increase of 25%, and for the year ended March 31, 2012, the
Company acquired approximately 722,000 customers compared to 645,000 for the
year ended March 31, 2011, an increase of 12%.We are also pleased to report
that our online sales increased 16% for the quarter ended March 31, 2012, and
8% for the year ended March 31, 2012.Moving forward we will continue with an
aggressive pricing strategy combined with increased advertising, while
expanding our product offerings. During the fiscal year, we increased our
quarterly dividends to $0.15 per share, an increase of 20%.In accordance with
our share repurchase program, we repurchased approximately 2.1 million shares
paying approximately $23.7 million in fiscal 2012."

This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a conference call
to review the year-end financial results.To access the call which is open to
the public, dial (888) 455-1758 (toll free) or (203) 827-7025.Callers will be
required to supply PETMEDS as the passcode.For those unable to participate in
the live event, the call will be available for replay from 10 A.M. on May 07,
2012 until May 21, 2012 at 11:59 P.M.To access the replay, call (800)
513-1175 (toll free) or (402) 344-6835 and enter passcode 5500.

Founded in 1996, PetMed Express is America's Largest Pet Pharmacy, delivering
prescription and non-prescription pet medications and other health products
for dogs and cats at competitive prices direct to the consumer through its
1-800-PetMeds toll free number and on the Internet through its website at
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, 2011.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
CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                                  
                                                         March 31, March 31,
                                                          2012      2011
                                                                  
ASSETS                                                             
                                                                  
Current assets:                                                    
Cash and cash equivalents                                 $46,801 $49,660
Short term investments - available for sale               10,347   10,116
Accounts receivable, less allowance for doubtful accounts 1,572    1,985
of $5 and $6, respectively
Inventories - finished goods                              26,217   25,140
Prepaid expenses and other current assets                 1,241    1,036
Deferred tax assets                                       1,230    1,003
Prepaid income taxes                                      199      664
Total current assets                                      87,607   89,604
                                                                  
Long term investments                                     --      12,390
Property and equipment, net                               2,597    3,433
Intangible asset                                          860      860
                                                                  
Total assets                                              $91,064 $106,287
                                                                  
LIABILITIES AND SHAREHOLDERS' EQUITY                               
                                                                  
Current liabilities:                                               
Accounts payable                                          $6,619  $6,452
Accrued expenses and other current liabilities            2,772    2,509
Total current liabilities                                 9,391    8,961
                                                                  
Deferred tax liabilities                                  492      321
                                                                  
Total liabilities:                                        9,883    9,282
                                                                  
Commitments and contingencies                                      
                                                                  
Shareholders' equity:                                              
Preferred stock, $.001 par value, 5,000 shares
authorized; 3 convertible shares issued and outstanding   9        9
with a liquidation preference of $4 per share
Common stock, $.001 par value, 40,000 shares authorized;
20,338 and 22,331 shares issued and outstanding,          20       22
respectively
Retained earnings                                         81,108   97,115
Accumulated other comprehensive gain (loss)               44       (141)
                                                                  
Total shareholders' equity                                81,181   97,005
                                                                  
Total liabilities and shareholders' equity                $91,064 $106,287


PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share amount)
                                                                
                                   Three Months Ended  Year Ended
                                    March 31,           March 31,
                                   2012       2011      2012       2011
                                   (UNAUDITED)                  
Sales                              $55,924  $50,910 $238,250 $231,642
Cost of sales                      36,957    33,435   158,085   147,686
                                                                
Gross profit                       18,967    17,475   80,165    83,956
                                                                
Operating expenses:                                             
General and administrative         5,411     5,183    22,363    22,200
Advertising                        6,916     5,497    30,369    27,357
Depreciation                       365       352      1,411     1,375
Total operating expenses           12,692    11,032   54,143    50,932
                                                                
Income from operations             6,275     6,443    26,022    33,024
                                                                
Other income (expense):                                         
Interest income, net               60        116      288       381
Other, net                         (1)       (17)     61        (128)
Total other income (expense)       59        99       349       253
                                                                
Income before provision for income  6,334     6,542    26,371    33,277
taxes
                                                                
Provision for income taxes         2,341     2,395    9,712     12,406
                                                                
Net income                         $3,993   $4,147  $16,659  $20,871
                                                                
Net income per common share:                                    
Basic                              $0.20    $0.19   $0.81    $0.93
Diluted                            $0.20    $0.19   $0.80    $0.92
                                                                
Weighted average number of common shares                          
outstanding:
Basic                              20,086    22,208   20,613    22,514
Diluted                            20,176    22,309   20,708    22,643
                                                                
Cash dividends declared per common  $0.150   $0.125  $0.525   $0.475
share


PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                                          
                                                          Year Ended
                                                           March 31,
                                                          2012      2011
Cash flows from operating activities:                              
Net income                                                $16,659 $20,871
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation                                              1,411    1,375
Share based compensation                                  2,246    2,171
Deferred income taxes                                     (56)     348
Bad debt expense                                          47       48
(Increase) decrease in operating assets and increase
(decrease) in liabilities:
Accounts receivable                                       366      64
Inventories - finished goods                              (1,077)  3,924
Prepaid income taxes                                      465      (335)
Prepaid expenses and other current assets                 (205)    (426)
Accounts payable                                          297      1,964
Accrued expenses and other current liabilities            238      102
Net cash provided by operating activities                 20,391   30,106
                                                                   
Cash flows from investing activities:                              
Net change in investments                                 12,344   (10,146)
Purchases of property and equipment                       (705)    (667)
Purchases of intangible asset                             --      (10)
Net cash provided by (used in) investing activities       11,639   (10,823)
                                                                   
Cash flows from financing activities:                              
Dividends paid                                            (10,964) (10,727)
Purchases of treasury stock                               (23,685) (12,247)
Proceeds from the exercise of stock options               --      340
Tax adjustment related to stock compensation              (240)    (132)
Net cash used in financing activities                     (34,889) (22,766)
                                                                   
Net decrease in cash and cash equivalents                 (2,859)  (3,483)
Cash and cash equivalents, at beginning of year           49,660   53,143
                                                                   
Cash and cash equivalents, at end of year                 $46,801 $49,660
                                                                   
Supplemental disclosure of cash flow information:                  
                                                                   
Cash paid for income taxes                                $9,543  $12,578
                                                                   
Retirement of treasury stock                              $23,685 $12,247
                                                                   
Property and equipment purchases in accounts payable      $--     $130
                                                                   
Dividends payable in accrued expenses                     $168    $143

CONTACT: PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 954-979-5995
 
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