PETMED EXPRESS ANNOUNCES ITS SECOND QUARTER FINANCIAL RESULTS AND ITS QUARTELY DIVIDEND OF $0.30 PER SHARE - Form 8-K

PETMED EXPRESS ANNOUNCES ITS SECOND QUARTER FINANCIAL RESULTS AND ITS QUARTELY

DIVIDEND OF $0.30 PER SHARE

Delray Beach, Florida, October 25, 2021, PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2021. Net sales for the quarter ended September 30, 2021 were $67.4 million, compared to $75.4 million for the quarter ended September 30, 2020, a decrease of 10.7%. Net sales for the six months ended September 30, 2021 were $146.7 million, compared to $171.6 million for the six months ended September 30, 2020, a decrease of 14.5%. Net income was $6.3 million, or $0.31 diluted per share, for the quarter ended September 30, 2021, compared to net income of $8.4 million, or $0.42 diluted per share, for the quarter ended September 30, 2020, a 24.5% decrease to net income. Net income was $10.8 million, or $0.53 diluted per share, for the six months ended September 30, 2021, compared to net income of $16.2 million, or $0.81 diluted per share, for the six months ended September 30, 2020, a 33.4% decrease to net income. Average order size increased from $87 to $92 for the quarters ended September 30, 2020 and 2021, respectively.

"PetMeds has been a pioneer in the business of pet health and wellness for over 25 years, and it's time to take the next step towards expanding our business in the $10 billion pet medication market and to begin our foray into the much larger $107 billion total pet care market," said Matt Hulett, CEO and President. "As one example, during the quarter we recently launched our "AutoShip and Save" program which allows us to build a greater lifetime value and recurring relationships with our customers. The team and I are looking forward to leveraging PetMeds' many assets in a variety of other new opportunity areas as we elevate our growth prospects for the future."

The Board of Directors declared a quarterly dividend of $0.30 per share on the Company's common stock. The dividend will be payable on November 19, 2021, to shareholders of record at the close of business on November 8, 2021. The Company intends to continue to pay regular quarterly dividends; however, the declaration and payment of future dividends is discretionary and will be subject to a determination by the Board of Directors each quarter following its review of the Company's financial performance.

This afternoon at 4:30 P.M. Eastern Time, the Company will host a conference call to review the quarter's financial results. To access the call, which is open to the public, please dial [phone] (toll free) or [phone]. We will also provide a link at https://www.1800petmeds.com/investor.html for those who wish to stream the call via webcast. For those unable to participate in the live event, the call will be available for replay from 7:30 P.M. Eastern Time on October 25, 2021 until November 8, 2021 at 11:59 P.M Eastern Time. To access the replay, call [phone] (toll free) or [phone], and enter passcode 13724036.

Founded in 1996, PetMed Express is America's Most Trusted Pet Pharmacy®, delivering prescription and non-prescription pet medications and other health products for dogs, cats, and horses at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and on the Internet through its website at www.petmeds.com.

This press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, 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 Management's Discussion and Analysis of Financial Condition and Results of Operations in the PetMed Express Annual Report on Form 10-K for the year ended March 31, 2021. The Company's future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company's Form 10-Q and its Annual Report on Form 10-K.

For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 561-526-4444.

Exhibit 99.1 Page 1 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for per share data)

		September 30,			March 31,
		2021			2021
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	106,562			$	118,718
Accounts receivable, less allowance for doubtful accounts of $28 and $39, respectively			1,854				2,587
Inventories - finished goods, net			19,733				34,420
Prepaid expenses and other current assets			4,397				4,503
Prepaid income taxes			899				959
Total current assets			133,445				161,187
Noncurrent assets:
Property and equipment, net			25,081				25,450
Intangible assets			860				860
Total noncurrent assets			25,941				26,310
Total assets		$	159,386			$	187,497
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	11,183			$	39,548
Accrued expenses and other current liabilities			5,089				5,387
Total current liabilities			16,272				44,935
Deferred tax liabilities			1,627				1,281
Total liabilities			17,899				46,216
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 5,000 shares authorized; 3 convertible shares issued and outstanding with a liquidation preference of $4 per share			9				9
Common stock, $.001 par value, 40,000 shares authorized; 20,943 and 20,269 shares issued and outstanding, respectively			21				20
Additional paid-in capital			8,711				7,111
Retained earnings			132,746				134,141
Total shareholders' equity			141,487				141,281
Total liabilities and shareholders' equity		$	159,386			$	187,497

Exhibit 99.1 Page 2 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share amounts) (Unaudited)

		Three Months Ended			Six Months Ended
		September 30,			September 30,
		2021			2020			2021			2020
Sales		$	67,386			$	75,436			$	146,698			$	171,640
Cost of sales			48,212				52,418				105,744				121,837
Gross profit			19,174				23,018				40,954				49,803
Operating expenses:
General and administrative			6,958				6,809				14,999				14,563
Advertising			3,435				5,131				11,108				14,164
Depreciation			694				607				1,341				1,169
Total operating expenses			11,087				12,547				27,448				29,896
Income from operations			8,087				10,471				13,506				19,907
Other income:
Interest income, net			74				66				159				156
Other, net			170				338				454				593
Total other income			244				404				613				749
Income before provision for income taxes			8,331				10,875				14,119				20,656
Provision for income taxes			1,982				2,463				3,342				4,476
Net income		$	6,349			$	8,412			$	10,777			$	16,180
Net income per common share:
Basic		$	0.31			$	0.42			$	0.53			$	0.81
Diluted		$	0.31			$	0.42			$	0.53			$	0.81
Weighted average number of common shares outstanding:
Basic			20,178				20,063				20,144				20,024
Diluted			20,568				20,154				20,384				20,098
Cash dividends declared per common share		$	0.30			$	0.28			$	0.60			$	0.56

Exhibit 99.1 Page 3 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands) (Unaudited)

		Six Months Ended
		September 30,
		2021			2020
Cash flows from operating activities:
Net income		$	10,777			$	16,180
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			1,341				1,169
Share based compensation			1,600				1,513
Deferred income taxes			346				408
Bad debt expense			58				61
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable			675				1,570
Inventories - finished goods			14,687				(3,567	)
Prepaid income taxes			60				-
Prepaid expenses and other current assets			106				916
Accounts payable			(28,365	)			(3,600	)
Accrued expenses and other current liabilities			(210	)			391
Income taxes payable			-				147
Net cash provided by operating activities			1,075				15,188
Cash flows from investing activities:
Purchases of property and equipment			(972	)			(1,193	)
Net cash used in investing activities			(972	)			(1,193	)
Cash flows from financing activities:
Dividends paid			(12,259	)			(11,413	)
Net cash used in financing activities			(12,259	)			(11,413	)
Net (decrease) increase in cash and cash equivalents			(12,156	)			2,582
Cash and cash equivalents, at beginning of period			118,718				103,762
Cash and cash equivalents, at end of period		$	106,562			$	106,344
Supplemental disclosure of cash flow information:
Cash paid for income taxes		$	2,935			$	4,206
Dividends payable in accrued expenses		$	110			$	126

Exhibit 99.1 Page 4 of 4