Petmed Express, Inc. · NASDAQ:PETS
Petmed Express — Investor Day (January 2023)
25 slides from Petmed Express's investor day presentation, Jan 19, 2023
Slide 1: Analyst Day January 2023
Analyst Day January 2023 NASDAQ: PETS
Slide 2: Safe Harbor & Non-GAAP Measures
2 Safe Harbor & Non-GAAP Measures This Presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amend
Slide 3: Welcome and Introductions
3 Welcome and Introductions Matt Hulett, CEO & President Vision: Christine Chambers, CFO Matt Hulett is a seasoned technology executive leading world class public and private companies and working closely with Boards and investors in organizations that include Rosetta Stone, Expedia and many more. H
Slide 4: Analyst Day Agenda
4 Analyst Day Agenda Vision: Introductions PetMeds 1.0 - Legacy Business PetMeds 2.0 - Wellness from Nose to Tail Market Opportunity Transaction Summary Financial Overview Summary
Slide 5: PetMeds 1.0
5 PetMeds 1.0 Vision: 2+ 81 39% Expert Online Pet Pharmacy Net Promoter Score of 81 Strong Balance Sheet 2+ Million Unique Customers Loyal Customer Base Growing AutoShip & Save Subscriber Base • Established, widely known & trusted brand • Strong customer loyalty • Category expertise • 70,000+ Veteri
Slide 6: Reinventing PetMeds
6 Reinventing PetMeds Vision: New Management Team New Pet Health Expert Strategy Increased Autoship to 39% Added Telemedicine with Vetster partnership PetCareRx acquisitionStabilized Revenue Transformation to Complete Pet Health Experts
Slide 7: PetMeds 2.0
7 PetMeds 2.0 Medication Care Wellness Nutrition Data Holistic Health and Wellness “From Nose to Tail” PetMeds Vetster PetCareRx Coming soon!
Slide 8: Growth Strategy - Progress
8 Growth Strategy - Progress Vision: Strategic Initiatives to Transform PetMeds Increased recurring subscription revenue Non-medication catalog expansion New customer growth Unique and differentiated services
Slide 9: Market Opportunity
MARKET OPPORTUNITY
Slide 10: Market Opportunity
10 $51 $26 $35 $10 Pet Food/Treats Pet Supplies Veterinary Non-medical Pet Services Market Opportunity Source: 1) Packaged Facts, U.S. Pet Market Outlook, 2022-2023 Total Pet Market (2021)1 A diverse opportunity for pet parents focused on diet and health Prescription medication Non-prescription medi
Slide 11: Market Opportunity
11 71% 18% 10% 52%48% Brick and Mortar Internet 66% 34% Brick and Mortar Internet Market Opportunity Vision: Source: 1) Packaged Facts, U.S. Pet Market Outlook, 2022-2023 Internet sales of pet medication is forecast to grow 16% annually and increase share to 30% of total pet medication spend by 2026
Slide 12: PetCareRx Transaction Overview
PetCareRX TRANSACTION OVERVIEW
Slide 13: Transaction Overview
13 to acquire Terms Acquisition of 100% of PetCareRx for $36 million of cash Structure/ Leadership PetCareRx will continue to exist as a distinct brand. Operation will be integrated as part of PetMed’s wellness and consumables business Timing to Close Expect to close this quarter Financial Impact Ex
Slide 14: Complementary Businesses
14 Complementary Businesses Strong Customer Relationships Majority of revenue derived from loyal and recurring medication- centric customers RX Expertise Leading brand for pet Rx medication. The most complex product fulfillment in the pet market Brand Awareness Strong customer brand awareness. 55% o
Slide 15: Total Wellness: From Nose to Tail
15 Total Wellness: “From Nose to Tail” Product Expansion Telemedicine Insurance COMING SOON! Additional growth, transaction and partnership opportunities Medication Nutrition Care Wellness
Slide 16: Financial Overview
FINANCIAL OVERVIEW
Slide 17: Recent Financials
17 Recent Financials $274 $283 $284 $309 $273 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 $ in millions Room for Growth 1. Flat revenue from Fiscal 2018 – Fiscal 2022 2. Industry growth of 15% = lost opportunity 3. PetCareRx acquisition jump starts revenue growth 4. Customer and product expansion provid
Slide 18: Balance Sheet & Cash Flow
18 Balance Sheet & Cash Flow Utilizing balance sheet for further growth opportunities Organic Growth Inorganic Growth Return to Shareholders Working Capital Capex Acquire Alliances & Partnerships Dividends Share Repurchases ($ in millions) 9/30/2022 Cash $96.5 Total Assets $169.3 TTM Adj. EBITDA $30
Slide 19: Long Term Growth Outlook
19 Long Term Growth Outlook Driving value over the long term 1. The acquisition gives us an immediate revenue boost. The expanded product catalog and differentiated services positions us for growth thereafter 2. Drive operating leverage through operational efficiency and higher margin products and s
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Slide 21: Today's Summary
21 Today’s Summary Vision: A Growth Company For a Growing Industry Increased recurring subscription revenue Non-medication catalog expansion New customer growth Unique and differentiated services
Slide 22: Investment Highlights
22 Investment Highlights Massive addressable market with further opportunities to penetrate additional verticals Immediate revenue growth and product expansion with acquisition of PetCareRx Strong balance sheet as a basis for growth with significant brand assets Broader strategic plan – expansion of
Slide 23: Q&A
Q&A ‘w PetMeds Your Trusted Pet Health Exper
Slide 24: Thank You
Company Christine Chambers Chief Financial Officer 561-526-4444 www.petmeds.com THANK YOU! Investor Relations Brian M. Prenoveau, CFA MZ Group 561-489-5315 PETS@mzgroup.us
Slide 25: Non-GAAP Reconciliation
25 Non-GAAP Reconciliation Vision: Consolidated Reconciliation of GAAP Net Income to Adjusted EBITDA December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Net Income 4,257$ 6,066$ 2,775$ 2,579$ Add (subtract): Share-based Compensation 1,440$ 1,509$ 1,536$ 1,681$ Income Taxes 1,261$ 1,368