Financial Performance - Net sales for the third quarter were $53.0 million, a decrease from $65.3 million in the prior year period[10] - Gross margin rate improved to 28.1%, an increase of 80 basis points year-over-year[10] - Adjusted EBITDA reached $2.0 million, up from $0.9 million in the same quarter last year, reflecting a $1.1 million improvement[10] - The company reported a net loss of $0.7 million for the quarter, compared to a net loss of $2.0 million in the prior year[16] - For the three months ended December 31, 2024, the company reported a net loss of $707,000, a decrease of 65% compared to a net loss of $2,027,000 in the same period of 2023[27] - Adjusted EBITDA for the same period was $2,002,000, representing a 116% increase from $925,000 in the prior year[27] - For the nine months ended December 31, 2024, the company achieved a net income of $5,373,000, a significant improvement from a net loss of $2,448,000 in the same period of 2023[29] - Adjusted EBITDA for the nine months ended December 31, 2024, was $2,563,000, a decrease of 67% from $7,697,000 in the previous year[29] Expenses and Liabilities - General and administrative expenses were reduced by $2.6 million compared to the previous year[4] - Cash and cash equivalents at the end of the period were $50.1 million, down from $55.3 million at the beginning of the period[19] - Total current liabilities decreased to $47.96 million from $72.16 million year-over-year[13] - The company experienced a net cash used in operating activities of $2.29 million for the nine months ended December 31, 2024[19] - Stock-based compensation for the three months ended December 31, 2024, was $452,000, down 74% from $1,708,000 in the same period of 2023[27] - The company incurred employee severance costs of $209,000 for the three months ended December 31, 2024, with no such costs reported in the same period of 2023[27] Operational Focus and Future Outlook - The company is focused on driving differentiation and sustainable growth through operational excellence and financial discipline[4] - Future outlook includes continued progress on key initiatives supporting the transformation of the business[10] Adjusted EBITDA Considerations - The company noted that adjusted EBITDA should be considered supplemental to GAAP measures, highlighting its limitations in reflecting capital expenditure requirements and other non-operating expenses[25] - The company emphasized that adjusted EBITDA calculations may vary among companies in the industry, which affects comparability[24] Interest and Tax Expenses - Interest income for the three months ended December 31, 2024, was a net expense of $28,000, compared to a net expense of $136,000 in the same period of 2023, reflecting a 79% improvement[27] - The company reported a sales tax expense of $228,000 for the three months ended December 31, 2024, which was a 100% decrease from $228,000 in the same period of 2023[27]

Core Insights - PetMed Express, Inc. reported significant progress in its transformation journey, achieving $2 million in Adjusted EBITDA for the third quarter of fiscal 2025, a $1.1 million improvement year-over-year [3][7] - The company successfully reduced general and administrative expenses by $2.6 million compared to the previous year, indicating a focus on operational efficiency [3] - Net sales for the third quarter were $53.0 million, with a gross margin rate of 28.1%, reflecting an increase of 80 basis points from the prior year [7][12] Financial Performance - Adjusted EBITDA for the third quarter was $2.0 million, compared to $0.9 million in the prior year period, marking a 116% increase [7][22] - Net sales decreased from $65.3 million in the same quarter last year to $52.98 million this year, while cost of sales also decreased from $47.43 million to $38.08 million [12] - The company reported a net loss of $707,000 for the quarter, an improvement from a net loss of $2.03 million in the same quarter last year [12][22] Balance Sheet Highlights - As of December 31, 2024, total assets were $144.8 million, down from $169.9 million as of March 31, 2024 [10][11] - Current liabilities decreased significantly from $72.2 million to $48.0 million, indicating improved liquidity [10][11] - Shareholders' equity remained relatively stable at $96.2 million compared to $96.7 million in the previous period [11] Cash Flow Analysis - The company reported a net cash used in operating activities of $2.3 million for the nine months ended December 31, 2024, compared to $2.8 million for the same period last year [14] - Cash flows from investing activities showed a net cash outflow of $2.7 million, down from $39.4 million in the previous year, indicating a reduction in capital expenditures [14] - Cash and cash equivalents at the end of the period were $50.1 million, down from $55.3 million at the beginning of the period [15]

Core Viewpoint - PetMed Express, Inc. will hold a conference call on February 10, 2025, to discuss its financial results for the fiscal third quarter ended December 31, 2024 [1]. Group 1: Conference Call Details - The conference call is scheduled for February 10, 2025, at 4:30 PM Eastern Time [2]. - U.S. dial-in number for the call is 877-407-0789, and the international number is 201-689-8562 [2]. - A telephonic replay will be available after 7:30 PM Eastern Time on the same day through February 24, 2025 [2][3]. Group 2: Company Overview - PetMed Express, Inc. is a leader in the consumer pet healthcare sector, founded in 1996 [3]. - The company operates as a national online retailer, providing top branded pharmaceuticals, generics, compounded prescription medications, and OTC supplements and vitamins [3]. - PetMeds leverages telehealth and insurance partnerships to enhance wellness and longevity for pets, including dogs, cats, and horses [3].

Company Overview - PetMed Express, Inc. operates as a leader in the consumer pet healthcare sector, providing a range of pet health products through its online platforms PetMeds.com and PetCareRx.com [3] - The company was founded in 1996 and has established itself as a national online retailer with expert pharmacists and licenses across all fifty states [3] - PetMed Express offers top branded pharmaceuticals, generics, compounded prescription medications, and OTC supplements and vitamins aimed at enhancing the health and longevity of pets [3] Upcoming Events - PetMed Express will participate in the 27th Annual ICR Conference scheduled for January 13-15, 2025, in Orlando, Florida [1] - CEO Sandra Campos and CFO Robyn DâElia will present to investors on January 13, 2025, at approximately 11:00 a.m. Eastern Time [2] - A live webcast of the presentation will be accessible on the company's investor relations website [2]

Company Overview - Rescued Pets Movement Inc. (RPM) is the largest homeless animal rescue, rehabilitation, and transport nonprofit in the United States, having saved approximately 92,000 homeless animals since its founding in September 2013 [1][10] - RPM focuses on rescuing at-risk pets from overcrowded shelters in the Houston area, providing veterinary care, and transporting them to regions with higher demand for adoptable pets [1][10] Recent Developments - RPM has been selected by Main Street Capital Corporation as its charity of choice for the NYSE's 2024 Global Giving Campaign, which will enhance RPM's operations and support its mission [6][7] - In 2024 alone, RPM has already rescued 7,350 animals, contributing to its total of approximately 92,000 rescues since inception [2][10] Partnership with Main Street Capital - Main Street Capital is committed to providing financial support and volunteer resources to RPM, aligning with its corporate social responsibility initiatives [7][8] - Main Street's employees are actively engaged in volunteer opportunities with RPM, assisting in various operations including animal care and community outreach [7][8] Mission and Impact - RPM aims to create a world where every animal is valued and loved, transforming the lives of countless animals through dedicated rescue efforts and transport initiatives [2][10] - The partnership with Main Street Capital allows RPM to expand its medical services, improve boarding facilities, and ensure safe transportation for the animals [2][7]

Core Viewpoint - PetMed Express, Inc. has adopted a limited duration shareholder rights plan to protect the interests of its shareholders during a period of significant stock accumulation by certain shareholders, believing that the current share price does not reflect the company's inherent value or long-term growth potential [1][2]. Summary by Sections Rights Plan Adoption - The Board of Directors has implemented a Rights Plan to enable shareholders to realize the long-term value of their investments and to prevent any entity from gaining control without compensating all shareholders appropriately [2][3]. Rights Plan Details - The Rights Plan will issue one right for each outstanding share of common stock to shareholders of record on December 16, 2024, and will be effective immediately, expiring on December 2, 2025, unless terminated earlier [5]. - Rights become exercisable if an acquiring person obtains 12.5% or more of the outstanding shares without Board approval, allowing existing right holders to purchase shares at a 50% discount [6]. Exemptions and Conditions - Existing shareholders who own 12.5% or more prior to the announcement of the Rights Plan will not face penalties as long as they do not increase their ownership [7]. - The Rights Plan does not interfere with any Board-approved sales, mergers, or other business combinations [4]. Company Overview - PetMed Express, Inc. is a leader in the consumer pet healthcare sector, providing a range of pharmaceuticals and health products for pets through its online platforms [9][10].

Group 1 - PetMed Express (NASDAQ: PETS) experienced a significant stock surge of approximately 35.8% on November 7 [1] - The surge in stock price is attributed to recent developments related to the online pet pharmacy [1] Group 2 - No specific financial metrics or future projections were provided in the article [2] - The article does not include any investment recommendations or advice [2] - The author has no financial interest in PetMed Express or any related companies mentioned [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $.001 per share PETS NASDAQ Global Select Market FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ ...

Financial Performance - PetMed (PETS) reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of a loss of $0.06 per share, compared to break-even earnings per share a year ago, representing an earnings surprise of 283.33% [1] - The company posted revenues of $59.57 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 9.77%, and down from $71 million in the same quarter last year [2] - PetMed has surpassed consensus EPS estimates two times over the last four quarters but has not beaten consensus revenue estimates during that period [2] Stock Performance - PetMed shares have declined approximately 43.6% since the beginning of the year, while the S&P 500 has gained 21.2% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $64.51 million, and for the current fiscal year, it is $0.08 on revenues of $265.56 million [7] - The estimate revisions trend for PetMed is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which PetMed belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Chewy (CHWY), another company in the same industry, is expected to report quarterly earnings of $0.23 per share, reflecting a year-over-year increase of 53.3% [9]

Financial Performance - Net sales for Q2 FY2025 were $59.6 million, a decrease from $70.999 million in the same period last year[2] - Gross margin improved to 29.1%, up 0.8% compared to the prior year period[2] - Net income increased to $2.3 million, or $0.11 per diluted share, compared to $0.7 million, or $0.03 per diluted share, in the prior year[2] - Net income for the six months ended September 30, 2024, was $6,080,000, a significant increase of 1,544% compared to a net loss of $421,000 in the same period of 2023[19] - Adjusted EBITDA was $2.1 million, a significant improvement from an Adjusted EBITDA loss of $(1.5) million in Q1 FY2025[3] - Adjusted EBITDA for the six months ended September 30, 2024, was $561,000, a decrease of 92% from $6,772,000 in the prior year[19] Operating Expenses and Liabilities - Operating expenses decreased to $16.757 million from $19.187 million in the prior year period, reflecting cost control measures[11] - Total current liabilities reduced to $48.832 million from $72.158 million at the end of the previous fiscal year[10] Cash Flow and Cash Position - Cash and cash equivalents were $52.045 million, down from $55.296 million at the end of the previous fiscal year[10] - Cash flows from operating activities showed a net cash used of $1,128,000 for the six months ended September 30, 2024, compared to a net cash used of $215,000 in 2023[12] - Cash and cash equivalents at the end of the period were $52,045,000, down from $53,471,000 at the end of the previous year[12] - The company reported a net decrease in cash and cash equivalents of $3,251,000 for the six months ended September 30, 2024, compared to a decrease of $50,615,000 in the same period of 2023[12] Inventory and Accounts Receivable - The company reported a significant increase in inventories, netting $15,464,000 for the six months ended September 30, 2024, compared to $3,237,000 in 2023[12] - Accounts receivable increased by $1,488,000 for the six months ended September 30, 2024, compared to a decrease of $345,000 in 2023[12] Strategic Initiatives - The company is focused on consolidating operations to lower costs and improve profitability as part of its transformation strategy[4] - Future growth initiatives will include differentiating product assortments and enhancing brand awareness campaigns[4] - The company remains confident in its turnaround strategy and the investments being made to strengthen its competitive position[4] Stock-Based Compensation and Dividends - Stock-based compensation for the six months ended September 30, 2024, was $(7,631,000), a decrease of 319% from $3,488,000 in the same period of 2023[19] - The company paid dividends of $175,000 in the current period, a significant decrease from $12,404,000 in the same period of 2023[12] Acquisitions - The company acquired PetCareRx, resulting in a cash outflow of $35,859,000 in the previous period[12]