PetMed Express(PETS) - 2025 Q2 - Quarterly Results

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]