Overview

• US pet pharmacy's Q4 revenue fell 16% yr/yr on lower prescription sales

• Q4 net loss narrowed from prior year due to lower expenses and no impairment charge

• Company rejected two unsolicited acquisition offers and remains independent

Outlook

• Company says it will focus on operational excellence and sustainable long-term results

• PetMed Express plans to expand market footprint through B2B relationships and white-label pharmacy services

• Company aims to improve customer retention by leveraging operational improvements

Result Drivers

• PRESCRIPTION SALES DECLINE - Co said Q4 revenue drop was primarily due to lower prescription medication sales

• LOWER EXPENSES - Co said net loss narrowed due to lower general and administrative expenses, absence of prior-year impairment charge, higher interest income, and lower provision for income taxes

• COST REDUCTION INITIATIVES - Co said it completed strategic, operational and technology initiatives that reduced its cost structure

Company press release: ID:nGNX2HPZCw

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue		$42.80 mln
Q4 EPS		-$0.19
Q4 Net Income		-$4.10 mln
Q4 Adjusted EBITDA		-$2.80 mln

Analyst Coverage

• The one available analyst rating on the shares is "sell"

• The average consensus recommendation for the drug retailers peer group is "buy."

• Wall Street's median 12-month price target for Petmed Express Inc is $2.15, about 0.9% below its June 1 closing price of $2.17

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