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]

Core Insights - PetMed Express, Inc. reported financial results for the second quarter of fiscal 2025, showing improvements in net income and adjusted EBITDA, indicating progress in its business transformation efforts [2][3]. Financial Performance - Net sales for the second quarter were $59.6 million, a decrease from $70.999 million in the prior year period [2][9]. - Gross margin increased to 29.1%, up by 0.8% compared to the same period last year [2]. - Net income rose 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][10]. - Adjusted EBITDA improved to $2.1 million, a significant recovery from an adjusted EBITDA loss of $(1.5) million in the first quarter of fiscal 2025, but down from $3.4 million in the prior year period [2][3][13]. Business Transformation Initiatives - The company is focused on key initiatives aimed at improving profitability and establishing itself as a leader in the consumer pet healthcare sector [3]. - Efforts include consolidating and streamlining operations between PetMeds and PetCareRx, which have materially lowered the cost structure [3]. - The company plans to enhance product assortments, brand awareness campaigns, and core marketing initiatives to drive growth [3]. Operational Metrics - Total current assets decreased to $70.779 million from $93.648 million year-over-year [7]. - Total assets decreased to $146.034 million from $169.884 million year-over-year [7]. - Current liabilities decreased to $48.832 million from $72.158 million year-over-year [7]. Future Outlook - The company remains confident in its direction and believes that ongoing changes and investments will create a more compelling value proposition for stakeholders [3].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify stocks likely to outperform in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, focusing on finding undervalued stocks [3] Growth Score - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using metrics like one-week price change and monthly earnings estimate changes [4] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum characteristics [5] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [6] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential upside [8] - Stocks with lower ranks, even with high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [9] Company Spotlight: PetMed Express - PetMed Express, operating as 1-800-PetMeds, is a leading pet pharmacy with a product line of approximately 750 SKUs for various pets [10] - The company holds a 1 (Strong Buy) Zacks Rank and a VGM Score of B, indicating strong investment potential [10] - PetMed Express has a Momentum Style Score of B, with shares increasing by 22.1% over the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [11]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks St ...