PetMed Express(PETS) - 2025 Q3 - Quarterly Results

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]