DELRAY BEACH, Fla., June 11, 2024 (GLOBE NEWSWIRE) -- PetMed Express, Inc. dba PetMeds and parent company of PetCareRx (NASDAQ:PETS) today announced its financial results for its fourth quarter and fiscal year ended March 31, 2024.  Quarterly Highlights Net sales for the quarter ended March 31, 2024, were $66.5 million, compared to $62.4 million for the fourth quarter in the prior year, an increase of 6.6%, driven by the acquisition of PetCareRx partially offset by a decline in PetMeds legacy sales. Net loss for the quarter ended March 31, 2024 was $(5.0) million, or $(0.25) diluted earnings per share. This compares to net loss of $(0.2) million, or $(0.01) diluted earnings per share, for the prior year quarter ended March 31, 2023. The increase in the net loss can be attributed to additional G&A, marketing expenses and an increase in depreciation and amortization associated with the acquisition. Adjusted EBITDA1 was $0.5 million for the current year quarter, compared to Adjusted EBITDA of $3.6 million, for the quarter ended March 31, 2023. Annual Highlights Net sales for the fiscal year ended March 31, 2024, were $281.1 million, compared to $256.6 million for the prior year, an increase of 9.5%, driven by the acquisition of PetCareRx partially offset by a decline in PetMeds legacy sales. Net loss for the fiscal year ended March 31, 2024 was $(7.5) million, or $(0.37) diluted earnings per share. This compares to net income of $5.1 million, or $0.25 diluted earnings per share, for the prior fiscal year ended March 31, 2023. The net loss can be attributed to additional G&A, marketing expenses and an increase in depreciation and amortization. These increases were offset by higher gross margin associated with PetCareRx as driven by their membership program fee, partially offset by a decline in PetMeds' legacy gross margin. Adjusted EBITDA was $8.2 million, for the fiscal year ended March 31, 2024, compared to Adjusted EBITDA of $19.8 million for the fiscal year ended March 31, 2023. "Our results were negatively impacted by a challenging macro environment and industry dynamics, as well as a slow down in call center response times due to the implementation of our new Order Management System and Autoship platforms during the fourth quarter," said Sandra Campos, CEO & President. "We are moving swiftly to continue to improve our systems and processes to drive a better customer experience, along with investing in additional technology resources." "PetMeds and PetCareRx have been synonymous with delivering top-quality pet healthcare products for over two decades, addressing preventive care, chronic and acute medical needs for dogs, cats, and horses. Each year, millions of customers trust our integrated ecosystem of pet health and wellness products and services for the care of their beloved pets." Ms. Campos concluded, "Looking ahead to FY2025, our strategic priorities are focused on driving growth, improving profitability, and increasing our key customer satisfaction metrics. Consolidating business operations will simplify our structure, reduce cost and strengthen alignment across the organization. We will also sharpen and amplify our messaging with a comprehensive marketing plan and look to create efficiencies by leveraging investments in modern customized technology frameworks." This afternoon the Company will host a conference call to review the quarter's financial results.  Time: 4:30 P.M. Eastern Time, June 11, 2024Public call dial in (877) 407-0789 (toll free) or (201) 689-8562.  Webcast stream link: https://investors.petmeds.com for those who wish to stream the call via webcast.  Replay: Available until June 25, 2024, at 11:59 P.M Eastern Time.  To access the replay, call (844) 512-2921 (toll free) or (412) 317-6671 and enter passcode 13746751. About PetMed Express, Inc. Founded in 1996, PetMeds is a leader in pioneering the digital pet pharmacy industry. As a national online retailer, PetMeds.com and PetCareRx.com are top choices for delivering preventive and chronic symptom prescriptions and OTC medications and products through their thousands of veterinary partners and a loyal customer base. Leveraging telehealth and insurance partnerships, they offer value and convenience to pet families at every stage of their pets' lives, whether dogs, cats, or horses. PetMeds and PetCareRx provide a comprehensive range of medications, food products, and essential supplies through their websites, www.PetMeds.com and www.PetCareRx.com. Forward Looking Statement This press release may contain "forward-looking statements", within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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 the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in the Company's Annual Report on Form 10-K/A for the year ended March 31, 2023. The Company's future results may also be impacted by other risk factors listed from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and periodic filings on Form 8-K. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release and should not be relied upon as representing the Company's views as of any subsequent date. The Company explicitly disclaims any obligation to update any forward-looking statements, other than as may be required by law. If the Company does update one or more forward-looking statements, no inference should be made that the Company will make additional updates with respect to those or other forward-looking statements. Investor Contact:ICR, LLCJohn Mills(646) 277-1254Reed Anderson(646) PETMED EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share amounts) (Unaudited)     March 31,2024   March 31,2023         ASSETS               Current assets:       Cash and cash equivalents $ 55,296     $ 104,086   Accounts receivable, less allowance for credit losses of $273 and $35, respectively   3,283       1,740   Inventories   28,556       19,023   Prepaid expenses and other current assets   6,325       4,719   Prepaid income taxes   188       863   Total current assets   93,648       130,431           Noncurrent assets:       Property and equipment, net   26,657       26,178   Intangible and other assets, net   16,503       5,860   Goodwill   26,658       —   Operating lease right-of-use assets, net   1,432       —   Deferred tax assets, net   4,986       5,009   Total noncurrent assets   76,236       37,047           Total assets $ 169,884     $ 167,478           LIABILITIES AND SHAREHOLDERS' EQUITY               Current liabilities:       Accounts payable $ 37,024     $ 25,208   Sales tax payable   25,012       26,113   Accrued expenses and other current liabilities   7,060       6,191   Current operating lease liabilities   459       —   Deferred revenue   2,603       —   Total current liabilities   72,158       57,512           Long-term operating lease liabilities   995       —           Total liabilities   73,153       57,512           Shareholders' equity:       Preferred stock, $.001 par value, 5,000,000 shares authorized; 2,500 convertible shares issued and outstanding with a liquidation preference of $4 per share   9       9   Common stock, $.001 par value, 40,000,000 shares authorized; 21,148,692 and 21,084,302 shares issued and outstanding, respectively   21       21   Additional paid-in capital   25,146       18,277   Retained earnings   71,555       91,659           Total shareholders' equity   96,731       109,966           Total liabilities and shareholders' equity $ 169,884     $ 167,478   PETMED EXPRESS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME(In thousands, except for share and per share amounts) (Unaudited)     Three Months EndedMarch 31,   Year Ended March 31,     2024       2023       2024       2023                   Net sales $ 66,504     $ 62,407     $ 281,064     $ 256,579   Cost of sales   48,327       45,025       202,416       185,844                   Gross profit   18,177       17,382       78,648       70,735