Petmed Express, Inc. · NASDAQ:PETS
Petmed Express — Investor Presentation (May 2019)
20 slides from Petmed Express's investor presentation, May 2019
Slide 1: 1-800-PetMeds: America's Largest Pet Pharmacy
1-800-PetMeds America’s Largest Pet Pharmacy Your pet’s same exact medications delivered to your door, saving you time & money! www.1800petmeds.com
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Certain information that is included in this investor presentation may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission that may involve a
Slide 3: Company Overview
Company Overview • Formed in 1996 • Leading marketer of pet medications and other health products for dogs and cats direct to the consumer. • Markets its products through national advertising campaigns, which direct the consumer to order by phone or on the internet, and aim to increase recognition o
Slide 4: The Leading Direct Marketer of Pet Medications Annual Sales
The Leading Direct Marketer of Pet Medications Annual Sales (in millions) $273.8 $283.4 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 FY 2018 FY 2019
Slide 5: E-Commerce Annual Sales
E-Commerce Annual Sales (in millions) $230.3 $240.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 FY 2018 FY 2019
Slide 6: Fast, Easy, Helpful Service With Great Savings
Fast, Easy, Helpful Service With Great Savings • Consumers generally save money from veterinarians' prices. • Consumers enjoy the convenience of rapid home or office delivery. • Exceptional customer care and support is our top priority.
Slide 7: Exceptional Customer Service
Exceptional Customer Service Net Promoter Score 100% PETS • Net Promoter Score = 82.5% 82.5% 75% in the top 2 % of companies 50% AVG • Google Seller Rating = 4.7/5.0 45.0% (1) 25% • Average email response time is less than 10 minutes vs 24 0% hours PETS 9 18 8 18 -1 -1 p- n- AVG ar ec Se Ju M D (1)N
Slide 8: Pet Medications
Pet Medications • Flea & Tick Preventatives • Heartworm Preventives • Arthritis, Thyroid, Heart, Blood Pressure • Skin, Dental, Ear, Eye Care • Vitamins & Nutritional Supplements
Slide 9: $72.6 Billion Pet Market in U.S.
$72.6 Billion Pet Market in U.S. 4.4% Growth in 2018 $2.0 Food 4.3% Growth $6.1 Vet Care -6.2% Growth $30.4 Supplies/ $18.1 Medicine 19.9% Growth Grooming/ Boarding - 0.8% Growth $16.0 Animal Purchases -4.3% Growth According to American Pet Products Manufacturers Association (APPMA).
Slide 10: Pet Medications Market Share $5 Billion (Estimated)
Pet Medications Market Share $5 Billion (Estimated) Veterinarians Retailers 30% 1-800-PetMeds 6% Other Mail Order Pure Plays 6% 58% According to IMS Health and NACDS Economics Dept., in human pharmaceuticals, 19% of the market is serviced by mail order/on-line channel.
Slide 11: Sales Seasonality Trends
Sales Seasonality Trends Fiscal Year Ended March 31, 2018 1st Q Ending June 30, 21% $87.4 million 2nd Q Ending 23% September 30, $71.4 million 3rd Q Ending December 31, 25% $60.1 million 31% 4th Q Ending March 31, $64.5 million
Slide 12: Average Order Value
Average Order Value $100.0 $95.0 $90.0 $87.0 $87.0 $85.0 $80.0 FY 2018 FY 2019 For the three months ended March 31, 2019, AOV was $85 compared to $89 for the same period the prior year.
Slide 13: Customer Acquisition Cost
Customer Acquisition Cost $47.0 $50.0 $37.0 $40.0 $30.0 $20.0 $10.0 $0.0 FY 2018 FY 2019 For the three months ended March 31, 2019, CAC was $65 compared to $38 for the same period the prior year.
Slide 14: 1-800-PetMeds Website and Top Sellers
e MyAccount ~ ContactUs Reorder ® View Cart 1-800-PetMeds . . America’s Largest Pet Pharmacy Products +» Search 1-800-738-6337 Dog Cat Flea&Tick Heartworm Pain Joints Medications Skin&Coat Vitamins Dental Ear Supplies More ~ Top Sellers — Heartgard « aoe £ x, - NexGard Heartgard Plus Bravecto Revolu
Slide 15: Competitive Strengths
Competitive Strengths • Channel leader • “1-800-PetMeds” brand name • Licensed pharmacy to do business in 50 states – Pharmacy verified website • Superior service – Fast, Easy and Helpful – Most consumers do not have hard copy prescriptions. We do the work for them. • 1,000 SKUs in stock, and 2,000
Slide 16: Annual Net Income
Annual Net Income (in millions) $37.3 $37.7 $40.0 $30.0 $20.0 FY 2018 FY 2019
Slide 17: Diluted EPS
Diluted EPS (per share) $2.00 $1.84 $1.82 $1.50 FY 2018 FY 2019
Slide 18: Gross Profit Margin
Gross Profit Margin 35.7% 40.0% 33.6% 30.0% 20.0% 10.0% 0.0% FY 2018 FY 2019 For the three months ended March 31, 2019 and 2018, gross profit margin was 32.1% and 37.0%, respectively.
Slide 19: Summary Financial Data
Summary Financial Data (in millions) FY 2019 FY 2018 New Order Revenue $ 41.6 14.7% $ 46.3 16.9% Reorder Revenue $ 241.8 85.3% $ 227.5 83.1% Total Net Revenue $ 283.4 $ 273.8 Gross Profit $ 95.3 33.6% $ 97.8 35.7% G&A Expenses $ 24.8 8.7% $ 24.3 8.9% Advertising Expenses $ 22.1 7.8% $ 19.3 7.0% Depr
Slide 20: Compelling Reasons To Invest in 1-800-PetMeds
4 Compelling Reasons To invest in 1-800-PetMeds 1. Leader in its channel in an estimated $5 billion industry 2. 1-800-PetMeds brand name 3. Licensed pharmacy to conduct business in 50 states 4. Exceptional customer service and support