(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer o | |||||
Non-accelerated filer o | |||||
June 30, 2023 | March 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowance for doubtful accounts of $ | |||||||||||
Inventories - finished goods | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Prepaid income taxes | |||||||||||
Total current assets | |||||||||||
Noncurrent assets: | |||||||||||
Property and equipment, net | |||||||||||
Intangible and other assets, net | |||||||||||
Goodwill | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Deferred tax assets, net | |||||||||||
Total noncurrent assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Current lease liabilities | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Long-term lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 9) | |||||||||||
Shareholders' equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Sales | $ | $ | ||||||||||||
Cost of sales | ||||||||||||||
Gross profit | ||||||||||||||
Operating expenses: | ||||||||||||||
General and administrative | ||||||||||||||
Advertising | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Total operating expenses | ||||||||||||||
(Loss) income from operations | ( | |||||||||||||
Other income: | ||||||||||||||
Interest income, net | ||||||||||||||
Other, net | ||||||||||||||
Total other income | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | ( | |||||||||||||
(Benefit) provision for income taxes | ( | |||||||||||||
Net (loss) income | $ | ( | $ | |||||||||||
Net (loss) income per common share: | ||||||||||||||
Basic | $ | ( | $ | |||||||||||
Diluted | $ | ( | $ | |||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||
Basic | ||||||||||||||
Diluted | ||||||||||||||
Cash dividends declared per common share | $ | $ |
Three Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share based compensation | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Bad debt expense | |||||||||||
(Increase) decrease in operating assets and increase (decrease) in operating liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories - finished goods | ( | ||||||||||
Prepaid income taxes | |||||||||||
Prepaid expenses and other current assets | ( | ||||||||||
Operating lease right-of-use assets, net | |||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses and other current liabilities | |||||||||||
Lease liabilities | ( | ||||||||||
Deferred revenue | |||||||||||
Income taxes payable | |||||||||||
Net cash provided by operating activities | $ | $ | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of minority interest investment in Vetster | ( | ||||||||||
Acquisition of PetCareRx, net of cash acquired | ( | ||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | $ | ( | $ | ( | |||||||
Cash flows from financing activities: | |||||||||||
Dividends paid | ( | ( | |||||||||
Net cash used in financing activities | $ | ( | $ | ( | |||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, at beginning of period | |||||||||||
Cash and cash equivalents, at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Dividends payable in accrued expenses | $ | $ |
Deferred revenue, March 31, 2023 | $ | |||||||
Deferred revenue acquired with PetCareRx | ||||||||
Deferred memberships fees received | ||||||||
Deferred membership fee revenue recognized | ( | |||||||
Deferred revenue, June 30, 2023 | $ |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
Revenue (In thousands) | 2023 | % | 2022 | % | $ Variance | % Variance | ||||||||||||||||||||||||||||||||
Reorder sales | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||
New order sales | % | % | % | |||||||||||||||||||||||||||||||||||
Membership fees | % | % | % | |||||||||||||||||||||||||||||||||||
Total net sales | $ | % | $ | % | $ | % |
Cash and cash equivalents | $ | |||||||
Accounts receivable, net | ||||||||
Other receivables | ||||||||
Inventory | ||||||||
Other current assets | ||||||||
Property and equipment | ||||||||
Deferred tax assets | ||||||||
Goodwill | ||||||||
Intangible assets, net | ||||||||
Right of use assets | ||||||||
Other assets | ||||||||
Total assets | ||||||||
Accounts payable | ||||||||
Accrued liabilities | ||||||||
Deferred revenue | ||||||||
Other current liabilities | ||||||||
Lease liabilities | ||||||||
Total liabilities | ||||||||
Total purchase consideration | $ |
Three Months Ended June 30, 2022 | ||||||||
(unaudited) | ||||||||
Revenue | $ | |||||||
Net income |
Three Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net (loss) income (numerator): | ||||||||||||||
Net (loss) income | $ | ( | $ | |||||||||||
Shares (denominator): | ||||||||||||||
Weighted average number of common shares outstanding used in basic computation | ||||||||||||||
Common shares issuable upon vesting of restricted stock | ||||||||||||||
Common shares issuable upon conversion of preferred shares | ||||||||||||||
Shares used in diluted computation | ||||||||||||||
Net (loss) income per common share: | ||||||||||||||
Basic | $ | ( | $ | |||||||||||
Diluted | $ | ( | $ |
2015 Director Plan | 2016 Employee Plan | 2022 Employee Plan | Total | Weighted-Average Grant Date Fair Value | |||||||||||||
Non-vested restricted stock outstanding at March 31, 2023 | $ | ||||||||||||||||
Granted and issued | $ | ||||||||||||||||
Vested | ( | ( | ( | $ | |||||||||||||
Forfeited | ( | ( | $ | ||||||||||||||
Balance at June 30, 2023 | $ | ||||||||||||||||
RSUs | Weighted-Average Grant Date Fair Value Per RSU | |||||||||||||
Balance at March 31, 2023 | $ | |||||||||||||
Granted | $ | |||||||||||||
Vested and issued | $ | |||||||||||||
Forfeited | $ | |||||||||||||
Balance at June 30, 2023 | $ | |||||||||||||
Vested and unissued at June 30, 2023 | $ | |||||||||||||
Non-vested at June 30, 2023 | $ |
PSUs | Weighted-Average Grant Date Fair Value Per PSU | |||||||||||||
Balance at March 31, 2023 | $ | |||||||||||||
Granted | $ | |||||||||||||
Vested and issued | $ | |||||||||||||
Forfeited | $ | |||||||||||||
Performance adjustment | $ | |||||||||||||
Balance at June 30, 2023 | $ | |||||||||||||
Vested and unissued at June 30, 2023 | $ | |||||||||||||
Non-vested at June 30, 2023 | $ |
Useful Life | Gross Value | Accumulated Amortization | Net Carrying Value | Weighted Average Remaining Useful Life (Years) | |||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
Toll-free telephone number | Indefinite | $ | $ | – | $ | Indefinite | |||||||||||||||||||||||
Internet domain names | Indefinite | – | Indefinite | ||||||||||||||||||||||||||
Trade Names - PetCareRx | Indefinite | – | Indefinite | ||||||||||||||||||||||||||
Customer Relationships -PetCareRx | ( | ||||||||||||||||||||||||||||
Developed Technology - PetCareRx | ( | ||||||||||||||||||||||||||||
$ | $ | ( | $ | ||||||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||||||
Initial minority interest investment in Vetster | N/A | – | N/A | ||||||||||||||||||||||||||
Balance June 30, 2023 | $ | $ | ( | $ | |||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
Toll-free telephone number | Indefinite | $ | $ | – | $ | Indefinite | |||||||||||||||||||||||
Internet domain names | Indefinite | – | Indefinite | ||||||||||||||||||||||||||
$ | $ | – | $ | ||||||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||||||
Initial minority interest investment in Vetster | N/A | – | N/A | ||||||||||||||||||||||||||
Balance March 31, 2023 | $ | $ | $ |
Lease cost | Three Months Ended June 30, 2023 | |||||||
Operating lease cost - fixed | $ | |||||||
Operating lease costs - variable | ||||||||
Total lease cost | $ |
Three Months Ended June 30, 2023 | ||||||||
Cash paid for the amounts included in the measurement of operating lease liabilities | $ | |||||||
Right-of-use assets obtained in exchange for new operating lease liabilities as a result of acquisition | $ |
June 30, 2023 | ||||||||
Nine months ending March 31, 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Total lease payments | ||||||||
Less: Imputed Interest | ( | |||||||
Present value of lease liabilities | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | |||||||||||||||
Beginning balance at March 31, 2023: | $ | $ | $ | ||||||||||||||
Share based compensation | — | — | |||||||||||||||
Dividends declared | — | — | ( | ||||||||||||||
Net loss | — | — | ( | ||||||||||||||
Ending balance at June 30, 2023: | $ | $ | $ | ||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | |||||||||||||||
Beginning balance at March 31, 2022: | $ | $ | $ | ||||||||||||||
Share based compensation | — | — | |||||||||||||||
Dividends declared | — | — | ( | ||||||||||||||
Net income | — | — | |||||||||||||||
Ending balance at June 30, 2022 | $ | $ | $ | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Sales | 100.0 | % | 100.0 | % | ||||||||||
Cost of sales | 71.2 | 71.6 | ||||||||||||
Gross profit | 28.8 | 28.4 | ||||||||||||
Operating expenses: | ||||||||||||||
General and administrative | 20.2 | 13.3 | ||||||||||||
Advertising | 9.3 | 9.0 | ||||||||||||
Depreciation and amortization | 2.1 | 1.1 | ||||||||||||
Total operating expenses | 31.6 | 23.4 | ||||||||||||
(Loss) income from operations | (2.8) | 5.0 | ||||||||||||
Total other income | 1.4 | 0.4 | ||||||||||||
(Loss) income before provision for income taxes | (1.4) | 5.4 | ||||||||||||
(Benefit) provision for income taxes | (0.1) | 1.4 | ||||||||||||
Net (loss) income | (1.3) | % | 4.0 | % |
Three Months Ended | |||||||||||||||||||||||
($ in thousands, except percentages) | June 30, 2023 | June 30, 2022 | $ Change | % Change | |||||||||||||||||||
Consolidated Reconciliation of GAAP Net Income to Adjusted EBITDA: | |||||||||||||||||||||||
Net (loss) income | $ | (887) | $ | 2,775 | $ | (3,662) | (132) | % | |||||||||||||||
Add (subtract): | |||||||||||||||||||||||
Share-based Compensation | $ | 1,760 | $ | 1,536 | $ | 224 | 15 | % | |||||||||||||||
Income Taxes | $ | (115) | $ | 1,030 | $ | (1,145) | (111) | % | |||||||||||||||
Depreciation and Amortization | $ | 1,678 | $ | 753 | $ | 925 | 123 | % | |||||||||||||||
Interest (Income)/Expense | $ | (620) | $ | (117) | $ | (503) | 430 | % | |||||||||||||||
Acquisition/Partnership Transactions and Other Items | $ | 1,126 | $ | 355 | $ | 771 | n/m | ||||||||||||||||
Employee Severance | $ | 393 | $ | – | $ | 393 | n/m | ||||||||||||||||
Adjusted EBITDA | $ | 3,335 | $ | 6,332 | $ | (2,997) | (47) | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
Revenue (In thousands) | 2023 | % | 2022 | % | $ Variance | % Variance | |||||||||||||||||||||||||||||
Reorder sales | $ | 68,038 | 87.0 | % | $ | 63,339 | 90.2 | % | $ | 4,699 | 7.4 | % | |||||||||||||||||||||||
New order sales | 7,820 | 10.0 | % | 6,848 | 9.8 | % | 972 | 14.2 | % | ||||||||||||||||||||||||||
Membership fees | 2,386 | 3.0 | % | – | – | % | 2,386 | – | % | ||||||||||||||||||||||||||
Total net sales | $ | 78,244 | 100.0 | % | $ | 70,187 | 100.0 | % | $ | 8,057 | 11.5 | % |
31.1* | |||||
31.2* | |||||
32.1** |
10.5 + | |||||
10.6 + |
101.INS* | Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | ||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
By: | /s/ Mathew N. Hulett | |||||||
Mathew N. Hulett | ||||||||
Chief Executive Officer and President | ||||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Christine Chambers | |||||||
Christine Chambers | ||||||||
Chief Financial Officer and Treasurer | ||||||||
(Principal Financial and Accounting Officer) |
August 1, 2023 | |||||||||||
By: | /s/ Mathew N. Hulett | ||||||||||
Mathew N. Hulett | |||||||||||
Chief Executive Officer and President |
August 1, 2023 | |||||||||||
By: | /s/ Christine Chambers | ||||||||||
Christine Chambers | |||||||||||
Chief Financial Officer and Treasurer |
Date: August 1, 2023 | |||||||||||
By: | /s/ Mathew N. Hulett | ||||||||||
Mathew N. Hulett | |||||||||||
Chief Executive Officer and President | |||||||||||
By: | /s/ Christine Chambers | ||||||||||
Christine Chambers | |||||||||||
Chief Financial Officer and Treasurer |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Jun. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 38 | $ 35 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 |
Preferred stock, shares issued (in shares) | 3 | 3 |
Preferred stock, shares outstanding (in shares) | 3 | 3 |
Preferred stock, liquidation preference (in dollars per share) | $ 4 | $ 4 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 40,000 | 40,000 |
Common stock, shares issued (in shares) | 21,170 | 21,084 |
Common stock, shares outstanding (in shares) | 21,170 | 21,084 |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization PetMed Express, Inc. and subsidiaries, d/b/a PetMeds®, is a leading direct-to-consumer pet pharmacy and online provider of prescription and non-prescription medications, food, supplements, supplies and vet services for dogs, cats, and horses. The Company markets and sells directly to consumers through its websites, toll-free numbers, and mobile applications. The Company offers consumers an attractive option for obtaining pet medications, food, and supplies in terms of convenience, price, speed of delivery, and valued customer service. Founded in 1996, the Company’s executive headquarters offices are currently located in Delray Beach, Florida. The Company’s fiscal year end is March 31, and references herein to fiscal 2024 or fiscal 2023 refer to the Company's fiscal years ending March 31, 2024 and 2023, respectively. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all of the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company at June 30, 2023, the Statements of (Loss) Income for the three months ended June 30, 2023 and 2022, and Cash Flows for the three months ended June 30, 2023 and 2022. The results of operations for the three months ended June 30, 2023 are not necessarily indicative of the operating results expected for the fiscal year ending March 31, 2024. These financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023. The unaudited condensed consolidated financial statements include the accounts of PetMed Express, Inc. and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Business Combinations The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic 805 ("Business Combinations"). The purchase price is allocated to the fair value of the assets acquired and liabilities assumed. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date. The excess of the purchase price of acquisition over the fair value of the identifiable net assets of the acquiree is recorded as goodwill. The results of businesses acquired in a business combination are included in the Company’s unaudited condensed consolidated financial statements from the date of acquisition. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates and selection of comparable companies. The estimates and assumptions used to determine the fair values and useful lives of identified intangible assets could change due to numerous factors, including market conditions, technological developments, economic conditions, and competition. In connection with the determination of fair values, the Company may engage a third-party valuation specialist to assist with the valuation of intangible and certain tangible assets acquired and certain obligations assumed. Acquisition-related transaction costs incurred by the Company are not included as a component of consideration transferred but are accounted for as an operating expense in the period in which the costs are incurred. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. Deferred Revenue Deferred revenue is recorded when payments are received or due in advance of performing our service obligations and revenue is recognized over the service period. Deferred revenue represents prepayments of PetPlus memberships with PetCareRx. The total deferred revenue as of June 30, 2023 for these memberships was $3.2 million. Memberships provide discounted pricing, free standard shipping, veterinary telehealth services and local Caremark Pharmacy prescription pickup. The membership fee is an annual charge and automatically renews one year from the initial enrollment date. The Company generally recognizes the revenue ratably over the term of the membership. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is not amortized but instead is tested for impairment annually on January 1, or more frequently if events or changes in circumstances indicate goodwill might be impaired. When testing goodwill for impairment, the Company has the option to choose whether it will apply a qualitative assessment first and then a quantitative assessment, if necessary, or to apply the quantitative assessment directly. The Company has concluded that it has one reporting unit and has assigned the entire balance of goodwill to this reporting unit. Intangible Assets The Company acquired definite-lived intangible assets in the acquisition (see Note 3) that will be amortized based on their estimated useful lives in accordance with ASC Topic 350 (“Goodwill and Other Intangible Assets”). These definite-lived intangible assets are being amortized over periods ranging from to seven years. The acquired indefinite life intangible is not being amortized and is subject to an annual review for impairment consistent with the existing intangible assets in fiscal 2024. Leases The Company accounts for leases in accordance with ASC Topic 842 ("Leases"). The Company reviews all contracts and determines if the arrangement is or contains a lease, at inception. Operating leases are reported as right-of-use (“ROU”) assets, current lease liabilities and long-term lease liabilities on the unaudited Condensed Consolidated Balance Sheets. The Company does not have any have any material leases, individually or in the aggregate, classified as a finance lease. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. The operating lease ROU asset also includes any upfront lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with a term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any residual value guarantees. Recent Accounting Pronouncements The Company does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, will have a material effect on the Company's consolidated financial position, results of operations, or cash flows.
|
Revenue Recognition |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue RecognitionIn accordance with ASC Topic 606 ("Revenue from Contracts with Customers"), the Company generates revenue by selling prescription and non-prescription pet medication products, pet food, supplements, supplies, membership fees, and veterinary services. Certain pet supplies offered on the Company’s website are drop shipped to customers. The Company considers itself the principal in the arrangement because the Company controls the specified good before it is transferred to the customer. Revenue contracts contain one performance obligation, which is delivery of the product. Customer care and support is deemed not to be a material right to the contract. The transaction price is adjusted at the date of sale for any applicable sales discounts and an estimate of product returns, which are based on historical patterns, however this is not considered a key judgment. Revenue is recognized when control transfers to the customer at the point in time at which the shipment of the product occurs. This key judgment is determined as the shipping point, which represents the point in time when the Company has a present right to payment, title has transferred to the customer, and the customer has assumed the risks and rewards of ownership. Virtually all the Company’s sales are paid by credit cards and the Company usually receives the cash settlement in two to three banking days. Credit card sales minimize the accounts receivable balances relative to sales. Outbound shipping and handling fees are an accounting policy election and are included in sales as the Company considers itself the principal in the arrangement given its responsibility for supplier selection and discretion over pricing. Shipping costs associated with outbound freight after control over a product has transferred to a customer are an accounting policy election and are accounted for as fulfillment costs and are included in cost of sales. Membership fees represent the amounts recognized periodically from two membership models. The first is the PetPlus membership for PetCareRx customers, the second is a partner membership provided through PetCareRx. These memberships provide discounted pricing, free standard shipping, veterinary telehealth services and local Caremark Pharmacy prescription pickup which represent a single stand-ready performance obligation to provide these benefits. The PetPlus membership fee is an upfront annual charge and automatically renews one year from the initial enrollment date. The Company recognizes the revenue ratably over the term of the PetPlus membership which is generally one year. As shown in the following table, under the PetPlus program, the Company recognized $1.8 million previously deferred annual membership fees in the three months ended June 30, 2023 and had $3.2 million of deferred revenue as of June 30, 2023 (amounts in millions).
In addition to annual membership fees earned under the PetPlus program, the Company also earns membership fees on a month-to-month basis under its PetCareRx partner membership program. For the three months ended June 30, 2023, membership fees earned under the partner program were $0.6 million. The Company has no material contract asset or liability balances at June 30, 2023 and March 31, 2023, respectively. The Company disaggregates sales in the following categories: reorder sales vs new order sales vs membership fees. The following table illustrates sales in those categories:
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | AcquisitionOn April 3, 2023, the Company acquired 100% of the issued and outstanding equity interests of PetCareRx, Inc. (“PetCareRx”), a New York corporation and a leading supplier of pet food, pet medications, and supplies. The acquisition was completed pursuant to an Agreement and Plan of Merger ("Merger Agreement") by and among the Company, Harry Merger Sub, Inc., a New York corporation and a wholly-owned subsidiary of the Company ("Merger Sub"), PetCareRx and Jeanette Loeb (as representative of the PetCareRx equity holders). The Merger Agreement provided for the Company’s acquisition of PetCareRx pursuant to the merger of Merger Sub with and into PetCareRx, with PetCareRx as the surviving corporation. The aggregate purchase price consideration was $36.1 million and was provided from the Company's cash on hand. The acquisition of PetCareRx has allowed us to significantly expand our product catalog, most notably in non-medication products, including food. In addition,PetCareRX brings increased distribution capability. The Company recognized preliminary goodwill of approximately $20.7 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of the identifiable assets acquired. Goodwill recognized in the transaction represent synergies or scale achieved by significantly increasing the customer base without adding corresponding levels of additional overhead, the value of additional vendor relationships, including the food manufacturing relationships, a broader product catalog, and an assembled and experienced workforce. These items represent intangible assets that do not qualify for separate recognition. No goodwill is deductible for tax purposes. The values assigned to the assets acquired and liabilities assumed are based on their estimates of fair value available as of April 3, 2023, as calculated by an independent third-party firm. The selected rates of returns were chosen in consideration of the individual risk profiles of the assets, as well as the resulting weighted average return on assets. Intangible assets are considered to be riskier than the overall business, so the Company included a premium to the investment rate of return on the identified intangible discount rates. The fair values of intangible assets acquired consist of a trade name, customer relationships, and developed technology, which were estimated by applying various discounted cash flow models such as the relief from royalty rate for the trade name, the multi-period excess earnings method for the customer relationships, and the cost to replace method for the developed technology. The fair value measurements were based on significant inputs that are not observable (Level 3). The assumptions made by management in determining the fair value of intangible assets included a discount rate of 12% based on the weighted average cost of capital. As a result of the acquisition, the Company performed a Section 382 analysis to determine if the net operating losses carried forward will have a utilization limitation. - refer to Note 11 for further discussion. The table below outlines the purchase price allocation of the purchase for PetCareRx to the acquired identifiable assets, liabilities assumed and goodwill (in thousands):
The Company incurred a total of $1.6 million in acquisition related costs that were expensed as incurred and recorded in general and administrative expenses in the Company’s unaudited Condensed Consolidated Statements of (Loss) Income, of which $0.5 million was recorded in fiscal year 2023. These costs include banking, legal, accounting, and consulting fees related to the acquisition. Supplemental Pro Forma Information The supplemental pro forma financial information presented below is for illustrative purposes only, does not include the pro forma adjustments that would be required under Regulation S-X of the Exchange Act for pro forma financial information, is not necessarily indicative of the financial position or results of operations that would have been realized if the PetCareRx acquisition had been completed on April 1, 2022, does not reflect synergies that might have been achieved, nor is it indicative of future operating results or financial position. The pro forma adjustments are based upon currently available information and certain assumptions that the Company believes are reasonable under the circumstances. The supplemental pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations as if the PetCareRx acquisition had occurred on April 1, 2022 to give effect to certain events that the Company believes to be directly attributable to the acquisition. These pro forma adjustments primarily include: a.A decrease in depreciation expense that would have been recognized due to acquired identifiable fixed assets; b.A decrease in amortization expense that would have been recognized due to acquired identifiable intangible assets; and c.A decrease in payroll costs and benefits. The supplemental pro forma financial information for the prior period first fiscal quarter is as follows (in thousands):
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Net (Loss) Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income Per Share | Net (Loss) Income Per ShareIn accordance with the provisions of ASC Topic 260 (“Earnings Per Share”) basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share includes the dilutive effect of potential restricted and performance stock and the effects of the potential conversion of preferred shares, calculated using the treasury stock method. Unvested restricted stock and convertible preferred shares issued by the Company represent the only dilutive effect reflected in the diluted weighted average shares outstanding. The following is a reconciliation of the numerators and denominators of the basic and diluted net (loss) income per share computations for the periods presented (in thousands, except for per share amounts):
For the three months ended June 30, 2023, 418,386 shares issuable upon vesting of restricted stock and 10,125 shares issuable upon conversion of preferred shares were excluded from the computation of diluted net (loss) income per common share, as their inclusion would have had an anti-dilutive effect on diluted net (loss) income per common share.
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense associated with restricted stock in accordance with ASC Topic 718 (“Share Based Payment”). The Company had 968,667 common shares issued under the 2016 Employee Equity Compensation Restricted Stock Plan (“2016 Employee Plan”), 75,742 common shares issued under the 2022 Employee Equity Compensation Plan (as amended) (“2022 Employee Plan”), and 242,378 common shares issued under the 2015 Outside Director Equity Compensation Plan (as amended) (“2015 Director Plan”) at June 30, 2023, all shares of which were issued with service-based vesting conditions which vest subject to the employee's continued employment with the Company through the applicable vesting date. The Company recorded share-based compensation expense for these awards on a straight line basis over the requisite service period and accounted for forfeitures as they occur, with the exception of market based restricted shares which were issued to the Chief Executive Officer. In June 2023, the Board of Directors amended and restated the 2015 Director Plan and the 2022 Employee Plan (collectively, the "Plans") to include the ability to grant restricted stock units ("RSUs") and performance stock units ("PSUs") under the Plans. The amendments and restatement of the Plans did not increase the maximum number of shares of common stock that may be awarded under the Plans. At June 30, 2023, the Company also had 13,250 RSUs and 12,000 PSUs granted under the 2022 Employee Plan. In August 2021, the Company issued 90,000 restricted shares and 510,000 performance restricted shares to the Company’s CEO, in accordance with the CEO’s employment agreement, under the 2016 Employee Plan. The performance restricted shares vest based on achieving absolute stock hurdles within the three-year period from the grant date. If the shares meet the absolute stock price hurdle, they will only vest on the third anniversary of the date of grant. As of June 30, 2023, none of the performance stock hurdles were met. In June 2023, the Company granted the Company's CFO 11,750 RSUs under the 2022 Employee Plan, of which 3,750 RSUs were awarded in recognition of Ms. Chambers’ contributions during fiscal year 2023 and the remaining 8,000 awarded as a part of the equity award cycle for fiscal year 2024. One-third of the RSUs will vest on each of the first anniversaries of the date of grant, subject to Ms. Chambers’ continued employment with the Company through the applicable vesting date, with any unvested RSUs being forfeited upon Ms. Chambers ceasing to be an employee of the Company. Also in June 2023, the Company's CFO was awarded 8,000 PSUs. Ms. Chambers will earn shares of our common stock pursuant to the PSUs based on the Company’s total shareholder return (“TSR”) relative to the S&P 600 Specialty Retail Index (“Index”) over an overall three-year performance period consisting of the 2024 through 2026 fiscal years, as follows: •100% of the target number of shares, which is 8,000 shares, will be earned if the Company’s TSR is equal to or greater than the 75th percentile of the Index (the “maximum target payout”); •50% of the target number of shares, which is 4,000 shares, will be earned if the Company’s TSR is equal to at least the 50th percentile of the Index; •25% of the target number of shares, which is 2,000 shares, will be earned if the Company’s TSR is equal to at least the 25th percentile of the Index (the “minimum threshold”); •No shares will be earned if the TSR is less than the 25th percentile of the Index, and the payout is capped at 2,000 shares if absolute TSR is negative, regardless of relative position to the Index; and •Linear scaling will be used to determine the number of shares earned for performance between the maximum target payout level and the minimum threshold payout level. The Company issued 12,400 shares of restricted stock to certain employees under the 2016 Employee Plan and 75,742 shares of restricted stock to certain employees under the 2022 Employee Plan during the quarter ended June 30, 2023. The Company issued 1,623 shares of restricted stock to board members under the 2015 Director Plan during the quarter ended June 30, 2023. For the quarters ended June 30, 2023 and 2022, the Company recognized $1.8 million and $1.5 million, respectively, of compensation expense related to the 2016 Employee Plan, 2022 Employee Plan, and 2015 Director Plan. At June 30, 2023 and 2022 there was $9.0 million and $12.3 million of unrecognized compensation cost related to the non-vested restricted stock awards, respectively, which is expected to be recognized over the next to three years. All stock-based compensation expense is recognized as a payroll-related expense and it is included within the general and administrative expenses line item within the Company’s unaudited Consolidated Statements of (Loss) Income , and the offset is included in the additional paid-in capital line item of the Company’s unaudited Condensed Consolidated Balance Sheets. As of June 30, 2023 and 2022, there were 837,269 and 780,167 non-vested restricted shares issued and outstanding, respectively. Restricted Stock Awards Restricted stock award activity under the 2016 Employee Plan, 2022 Employee Plan, and 2015 Director Plan was as follows:
Restricted Stock Units The fair value of RSUs is determined on the date of grant. The Company records compensation expense in the unaudited condensed Consolidated Statements of (Loss) Income on a straight-line basis over the vesting period for RSUs. The vesting period for employees and members of the Board of Directors ranges from to three years. RSU activity under the Plans was as follows:
The total grant-date fair value of RSUs granted during the quarters ended June 30, 2023 and 2022 was $0.2 million and zero, respectively. For the quarters ended June 30, 2023 and 2022, the Company recorded stock- based compensation related to RSUs of zero for both periods. Performance Stock Units Stock-based compensation costs associated with the Company’s PSUs are either initially determined using the fair market value of the Company’s common stock on the date the awards are granted (service inception date) for awards with performance condition or for awards with a market condition, the grant value is based on a Monte Carlo simulation. The vesting of PSUs is subject to certain performance conditions and a service requirement ranging from to three years. Stock-based compensation costs associated with PSUs are re-assessed each reporting period based upon the estimated performance attainment on the reporting date until the performance conditions are met. The ultimate number of shares of common stock that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance targets and generally ranges from 0% to 200% of the initial PSU grant. Stock compensation expense for PSUs is recognized on a straight line basis over the requisite service period and forfeitures are accounted for as they occur. PSU activity under the Plans was as follows:
The total grant-date fair value of PSUs granted during the quarters ended June 30, 2023 and 2022 was $0.1 million and zero, respectively. For the quarters ended June 30, 2023 and 2022, the Company recorded stock- based compensation related to PSUs of zero for both periods.
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Fair Value |
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Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company carries cash and cash equivalents at fair value in the unaudited Condensed Consolidated Balance Sheets. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. ASC Topic 820 (“Fair Value Measurements”) establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. At June 30, 2023 and March 31, 2023 , the Company had invested the majority of its $61.5 million and $104.1 million cash and cash equivalents balance in money market funds which are classified within Level 1.
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible and Other Assets, Net | Intangible and Other Assets, Net Intangible assets and other assets, net consisted of the following (in thousands):
Amortization expense for intangible assets was $0.5 million and zero for the three months ended June 30, 2023 and 2022, respectively. The indefinite life intangibles are not being amortized and are subject to an annual review for impairment in accordance with the ASC Topic 350 (“Goodwill and Other Intangible Assets”). On April 19, 2022, the Company engaged in a three-year partnership agreement with Vetster Inc. (“Vetster”), a veterinary telehealth Canadian company. The Company also purchased a 5% minority interest in Vetster in the amount of $5.0 million and received warrants for additional equity in Vetster, which are tied to future performance milestones. Under the terms of the agreement, the Company became the exclusive e-commerce provider for Vetster, and Vetster became the exclusive provider of telehealth and telemedicine services to the Company. The minority interest investment is being valued on the cost basis and the investment will be evaluated periodically for any impairment.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company’s leasing activities primarily consist of real estate leases acquired during the acquisition of PetCareRx for use in the business operations. The leases had initial terms ranging from 5 years to 10 years. Some of the initial lease terms have already matured and the remaining leases have maturity dates ranging from 2024 to 2027. The Company assesses whether each lease is an operating lease or a finance lease at the lease commencement date. The Company does not have any material leases, individually or in the aggregate, classified as a finance lease. Variable Lease Costs Certain of the Company’s leases require payments for taxes, insurance, and other costs applicable to the property, in addition to the minimum lease payment. These costs are considered variable costs which are based on actual expenses incurred by the lessor. Therefore, these amounts are not included in the calculation of the right-of-use assets and lease liabilities. The Company has lease agreements which provide for fixed and scheduled escalations, which are included in the calculation of the right-of-use assets and lease liabilities. Options to Extend or Terminate Leases The Company’s leases may contain an option to extend the lease term for periods from to five years The exercise of lease renewal options is at the Company’s sole discretion. If it is reasonably certain that the Company will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of the Company’s right-of-use assets and lease liabilities. The Company’s leases do not generally contain options to early terminate. Other Lease items The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company's operating leases are included in operating lease right-of-use assets, other current liabilities, and operating lease liabilities on the accompanying unaudited Condensed Consolidated Balance Sheets. Discount Rate and Lease Term As of June 30, 2023, the weighted average remaining lease term and discount rate for the Company’s operating leases were 3.4 years and 6.6%. As the rate implicit in the lease is generally not readily determinable for the Company’s operating leases, the Company uses its estimated incremental borrowing rate based on the information available at the date of acquisition, April 3, 2023 in determining the present value of future payments. Lease Costs and Activity The Company’s lease costs are recorded in the general and administrative costs and activity for the three months ended June 30, 2023 are as follows (in thousands):
Supplemental cash flow information for the three months ended June 30, 2023 are as follows (in thousands):
Maturity of Lease Liabilities The maturity of the Company’s lease liabilities on an undiscounted cash flow basis and a reconciliation to the operating lease liabilities recognized on the Company’s unaudited Condensed Consolidated Balance Sheet as of June 30, 2023 were as follows (in thousands):
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Commitments and Contingencies |
3 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters and Routine Proceedings The Company has settled complaints that had been filed with various states’ pharmacy boards in the past. There can be no assurances made that other states will not attempt to take similar actions against the Company in the future. The Company also intends to vigorously defend its trade or service marks. There can be no assurance that the Company will be successful in protecting its trade or service marks. Legal costs related to the above matters are expensed as incurred. From time to time, the Company may be involved in and subject to disputes and legal proceedings, as well as demands, claims and threatened litigation that arise in the ordinary course of its business. These proceedings may include allegations involving business practices, infringement of intellectual property, employment or other matters. The ultimate outcome of any legal proceeding is often uncertain, there can be no assurance that the Company will be successful in any legal proceeding, and unfavorable outcomes could have a negative impact on our results of operations and financial condition. In accordance with ASC Topic 450-20 ("Loss Contingencies"), the Company records a liability in its financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews the status of each significant matter each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the financial statements not misleading. If the loss is not probable and cannot be reasonably estimated, a liability is not recorded in the Company’s financial statements. Gain contingencies are not recorded until they are realized. Legal costs related to any legal matters are expensed as incurred. Sales Tax On June 21, 2018, the United States Supreme Court rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning certain existing court precedent. The Company has evaluated its state tax filings with respect to the Wayfair decision and currently collects and remits applicable sales taxes in all jurisdictions in which it has a physical presence or it believes nexus exists. During the year ended March 31, 2023, the Company received an assessment for sales tax; based upon this, the Company evaluated the various jurisdictions for additional exposure and recorded an increase of $7.8 million for potential sales tax exposure. The Company included $4.0 million in the "Accrued expenses and other current liabilities" line item and $3.8 million in the "Other long-term liabilities" line item in the audited Condensed Consolidated Balance Sheet as of March 31, 2023 and unaudited Condensed Consolidated Balance Sheet as of June 30, 2023.
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Changes in Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Shareholders' Equity | Changes in Shareholders’ Equity: Changes in Shareholders’ Equity for the three months ended June 30, 2023 is summarized below (in thousands):
Changes in Shareholders’ Equity for the three months ended June 30, 2022 is summarized below (in thousands):
There were no shares of common stock that were purchased or retired in the three months ended June 30, 2023 or 2022. At June 30, 2023, the Company had approximately $28.7 million remaining under the Company’s share repurchase plan.
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Income Taxes |
3 Months Ended |
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Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the quarters ended June 30, 2023 and 2022, the Company recorded an income tax benefit of approximately $(0.1) million and a tax provision of approximately $1.0 million, respectively. The decrease in the tax provision for the three months ended June 30, 2023 is related to the utilization of net operating losses available related to the acquisition of PetCareRx. The effective tax rate for the quarter ended June 30, 2023 was approximately 11.5%, compared to approximately 27.1% for the quarter ended June 30, 2022. The decrease to the effective tax rate for the three months ended June 30, 2023 can be attributed to more deductible expenses and net operating losses offsetting taxable income, partially offset by an increase in the state income tax. Under Internal Revenue Code Section 382, if a corporation undergoes an “ownership change”, the corporation’s ability to use its pre-change net operating loss and tax credit carryforwards to offset its post-change income and tax liabilities may be limited. Generally, an ownership change occurs when the equity ownership of one or more stockholders or groups of stockholders who owns at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over their lowest ownership percentage in a testing period (typically three years). On April 3, 2023, 100% of the issued and outstanding stock of PetCareRx was acquired by the Company. The merger triggered an ownership change of PetCareRx within the meaning of Section 382. As a result of the acquisition, the Company performed a Section 382 analysis to determine if the net operating losses carried forward will have a utilization limitation. Any limitation may result in the expiration of a portion of the federal net operating loss carryforward before utilization, which would reduce the Company's gross deferred tax assets. As of April 3, 2023, and prior to the acquisition, PetCareRx had approximately $96.0 million of net operating losses and $1.9 million of disallowed interest expense. The preliminary results of the Section 382 analysis determined the net operating loss and disallowed interest expense in total, would be limited and reduced to approximately $35.0 million.
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Subsequent Events |
3 Months Ended |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn July 31, 2023, the Board of Directors declared a quarterly dividend of $0.30 per share. The Board established a August 14, 2023 record date and a August 18, 2023 payment date. Based on the outstanding share balance as of July 31, 2023, the Company estimates the dividend payable to be approximately $6.4 million.Subsequent to June 30, 2023, the Board of Directors approved and granted 2,500 RSUs to employees pursuant to the (as amended) 2022 Employee Plan. |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||
Net income (loss) | $ (887) | $ 2,775 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and ConsolidationThe accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all of the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company at June 30, 2023, the Statements of (Loss) Income for the three months ended June 30, 2023 and 2022, and Cash Flows for the three months ended June 30, 2023 and 2022. The results of operations for the three months ended June 30, 2023 are not necessarily indicative of the operating results expected for the fiscal year ending March 31, 2024. These financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023. The unaudited condensed consolidated financial statements include the accounts of PetMed Express, Inc. and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. |
Business Combinations | Business Combinations The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic 805 ("Business Combinations"). The purchase price is allocated to the fair value of the assets acquired and liabilities assumed. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date. The excess of the purchase price of acquisition over the fair value of the identifiable net assets of the acquiree is recorded as goodwill. The results of businesses acquired in a business combination are included in the Company’s unaudited condensed consolidated financial statements from the date of acquisition. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates and selection of comparable companies. The estimates and assumptions used to determine the fair values and useful lives of identified intangible assets could change due to numerous factors, including market conditions, technological developments, economic conditions, and competition. In connection with the determination of fair values, the Company may engage a third-party valuation specialist to assist with the valuation of intangible and certain tangible assets acquired and certain obligations assumed. Acquisition-related transaction costs incurred by the Company are not included as a component of consideration transferred but are accounted for as an operating expense in the period in which the costs are incurred.
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Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. |
Deferred Revenue | Deferred Revenue Deferred revenue is recorded when payments are received or due in advance of performing our service obligations and revenue is recognized over the service period. Deferred revenue represents prepayments of PetPlus memberships with PetCareRx. The total deferred revenue as of June 30, 2023 for these memberships was $3.2 million. Memberships provide discounted pricing, free standard shipping, veterinary telehealth services and local Caremark Pharmacy prescription pickup. The membership fee is an annual charge and automatically renews one year from the initial enrollment date. The Company generally recognizes the revenue ratably over the term of the membership.
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Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is not amortized but instead is tested for impairment annually on January 1, or more frequently if events or changes in circumstances indicate goodwill might be impaired. When testing goodwill for impairment, the Company has the option to choose whether it will apply a qualitative assessment first and then a quantitative assessment, if necessary, or to apply the quantitative assessment directly. The Company has concluded that it has one reporting unit and has assigned the entire balance of goodwill to this reporting unit.
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Intangible Assets | Intangible AssetsThe Company acquired definite-lived intangible assets in the acquisition (see Note 3) that will be amortized based on their estimated useful lives in accordance with ASC Topic 350 (“Goodwill and Other Intangible Assets”). These definite-lived intangible assets are being amortized over periods ranging from to seven years. The acquired indefinite life intangible is not being amortized and is subject to an annual review for impairment consistent with the existing intangible assets in fiscal 2024. |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842 ("Leases"). The Company reviews all contracts and determines if the arrangement is or contains a lease, at inception. Operating leases are reported as right-of-use (“ROU”) assets, current lease liabilities and long-term lease liabilities on the unaudited Condensed Consolidated Balance Sheets. The Company does not have any have any material leases, individually or in the aggregate, classified as a finance lease. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. The operating lease ROU asset also includes any upfront lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with a term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any residual value guarantees.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, will have a material effect on the Company's consolidated financial position, results of operations, or cash flows. |
Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disaggregation of Revenue | The following table illustrates sales in those categories:
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Deferred Revenue Rollforward | As shown in the following table, under the PetPlus program, the Company recognized $1.8 million previously deferred annual membership fees in the three months ended June 30, 2023 and had $3.2 million of deferred revenue as of June 30, 2023 (amounts in millions).
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Acquisitions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquired Identifiable Assets, Liabilities Assumed and Goodwill | The table below outlines the purchase price allocation of the purchase for PetCareRx to the acquired identifiable assets, liabilities assumed and goodwill (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pro-Forma Information | The supplemental pro forma financial information for the prior period first fiscal quarter is as follows (in thousands):
|
Net (Loss) Income Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following is a reconciliation of the numerators and denominators of the basic and diluted net (loss) income per share computations for the periods presented (in thousands, except for per share amounts):
|
Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Awards | Restricted stock award activity under the 2016 Employee Plan, 2022 Employee Plan, and 2015 Director Plan was as follows:
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Schedule of RSU Activity | RSU activity under the Plans was as follows:
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Schedule of PSU Activity | PSU activity under the Plans was as follows:
|
Intangible and Other Assets, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Other Assets | Intangible assets and other assets, net consisted of the following (in thousands):
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Costs and Activity | The Company’s lease costs are recorded in the general and administrative costs and activity for the three months ended June 30, 2023 are as follows (in thousands):
Supplemental cash flow information for the three months ended June 30, 2023 are as follows (in thousands):
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Maturity of Lease Liabilities | The maturity of the Company’s lease liabilities on an undiscounted cash flow basis and a reconciliation to the operating lease liabilities recognized on the Company’s unaudited Condensed Consolidated Balance Sheet as of June 30, 2023 were as follows (in thousands):
|
Changes in Shareholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Shareholders' Equity | Changes in Shareholders’ Equity for the three months ended June 30, 2023 is summarized below (in thousands):
Changes in Shareholders’ Equity for the three months ended June 30, 2022 is summarized below (in thousands):
|
Summary of Significant Accounting Policies (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
reportingUnit
|
Mar. 31, 2023
USD ($)
|
|
Finite-Lived Intangible Assets [Line Items] | ||
Deferred revenue | $ | $ 3,246 | $ 0 |
Number of reporting units | reportingUnit | 1 | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 3 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 7 years |
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 3,246 | $ 0 | |
Membership fees earned | $ 78,244 | $ 70,187 | |
Membership fees | |||
Disaggregation of Revenue [Line Items] | |||
Annual membership fees renewal period | 1 year | ||
Revenue recognition period | 1 year | ||
Deferred membership fee revenue recognized | $ 1,800 | ||
Membership fees earned | 2,386 | $ 0 | |
Membership fees | Partner Program | |||
Disaggregation of Revenue [Line Items] | |||
Membership fees earned | $ 600 |
Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Contract With Customer, Liability, Current [Roll Forward] | ||
Deferred revenue, beginning balance | $ 0 | |
Deferred memberships fees received | 253 | $ 0 |
Deferred revenue, ending balance | 3,246 | |
PetCareRx | ||
Contract With Customer, Liability, Current [Roll Forward] | ||
Deferred revenue acquired with PetCareRx | 3,000 | |
Membership fees | ||
Contract With Customer, Liability, Current [Roll Forward] | ||
Deferred memberships fees received | 2,000 | |
Deferred membership fee revenue recognized | $ (1,800) |
Revenue Recognition - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Sales | $ 78,244 | $ 70,187 |
Sales, percentage | 100.00% | 100.00% |
Sales, variance | $ 8,057 | |
Sales, variance, percentage | 11.50% | |
Reorder sales | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 68,038 | $ 63,339 |
Sales, percentage | 87.00% | 90.20% |
Sales, variance | $ 4,699 | |
Sales, variance, percentage | 7.40% | |
New order sales | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 7,820 | $ 6,848 |
Sales, percentage | 10.00% | 9.80% |
Sales, variance | $ 972 | |
Sales, variance, percentage | 14.20% | |
Membership fees | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 2,386 | $ 0 |
Sales, percentage | 3.00% | 0.00% |
Sales, variance | $ 2,386 | |
Sales, variance, percentage | 0.00% |
Acquisitions - Narrative (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
|
Business Acquisition [Line Items] | |||
Goodwill | $ 0 | $ 20,735 | |
PetCareRx | |||
Business Acquisition [Line Items] | |||
Percentage of equity interests acquired | 100.00% | ||
Purchase price consideration | $ 36,100 | ||
Goodwill | $ 20,735 | ||
Discount rate applied to intangible assets aquired | 0.12 | ||
Acquisition related costs incurred | $ 1,600 | ||
Acquisition related costs | $ 500 |
Acquisitions - Schedule of Assets Acquired, Liabilities Assumed and Goodwill (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Apr. 03, 2023 |
Mar. 31, 2023 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 20,735 | $ 0 | |
PetCareRx | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 220 | ||
Accounts receivable, net | 125 | ||
Other receivables | 506 | ||
Inventory | 3,116 | ||
Other current assets | 835 | ||
Property and equipment | 1,065 | ||
Deferred tax assets | 6,192 | ||
Goodwill | 20,735 | ||
Intangible assets, net | 12,300 | ||
Right of use assets | 2,220 | ||
Other assets | 80 | ||
Total assets | 47,394 | ||
Accounts payable | 5,713 | ||
Accrued liabilities | 131 | ||
Deferred revenue | 2,993 | ||
Other current liabilities | 206 | ||
Lease liabilities | 2,272 | ||
Total liabilities | 11,315 | ||
Total purchase consideration | $ 36,079 |
Acquisitions - Pro-Forma Information (Details) - PetCareRx $ in Thousands |
3 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Business Acquisition [Line Items] | |
Revenue | $ 81,390 |
Net income | $ 995 |
Net (Loss) Income Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Net (loss) income (numerator): | ||
Net (loss) income | $ (887) | $ 2,775 |
Shares (denominator): | ||
Weighted average number of common shares outstanding used in basic computation (in shares) | 20,333 | 20,208 |
Common shares issuable upon vesting of restricted stock (in shares) | 0 | 73 |
Common shares issuable upon conversion of preferred shares (in shares) | 0 | 10 |
Shares used in diluted computation (in shares) | 20,333 | 20,291 |
Net (loss) income per common share: | ||
Basic (in dollars per share) | $ (0.04) | $ 0.14 |
Diluted (in dollars per share) | $ (0.04) | $ 0.14 |
Net (Loss) Income Per Share - Narrative (Details) |
3 Months Ended |
---|---|
Jun. 30, 2023
shares
| |
Shares Issuable Upon Vesting of Restricted Stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities (in shares) | 418,386 |
Convertible Preferred Stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities (in shares) | 10,125 |
Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Cash and cash equivalents | $ 61,534 | $ 104,086 |
Leases - Narrative (Details) |
Jun. 30, 2023 |
---|---|
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 3 years 4 months 24 days |
Lease discount rate | 6.60% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Lease option to extend period | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
Lease option to extend period | 5 years |
Leases - Lease Costs and Activity (Details) $ in Thousands |
3 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Leases [Abstract] | |
Operating lease cost - fixed | $ 215 |
Operating lease costs - variable | 14 |
Total lease cost | 229 |
Cash paid for the amounts included in the measurement of operating lease liabilities | 209 |
Right-of-use assets obtained in exchange for new operating lease liabilities as a result of acquisition | $ 2,220 |
Leases - Maturity of Lease Liabilities (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Leases [Abstract] | |
Nine months ending March 31, 2024 | $ 623 |
2025 | 501 |
2026 | 488 |
2027 | 502 |
2028 | 42 |
Total lease payments | 2,156 |
Less: Imputed Interest | (126) |
Present value of lease liabilities | $ 2,030 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Jun. 30, 2023 |
|
Other Commitments [Line Items] | ||
Sales tax exposure | $ 7.8 | |
Accrued Expenses and Other Current Liabilities | ||
Other Commitments [Line Items] | ||
Accrued sales tax | $ 4.0 | |
Other Long-Term Liabilities | ||
Other Commitments [Line Items] | ||
Accrued sales tax | $ 3.8 |
Changes in Shareholders' Equity - Schedule of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 123,795 | |
Net income (loss) | (887) | $ 2,775 |
Ending balance | 118,322 | |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 21 | 21 |
Ending balance | 21 | 21 |
Additional Paid-In Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 18,277 | 11,660 |
Share based compensation | 1,760 | 1,536 |
Ending balance | 20,037 | 13,196 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 105,488 | 130,496 |
Dividends declared | (6,346) | (6,297) |
Net income (loss) | (887) | 2,775 |
Ending balance | $ 98,255 | $ 126,974 |
Changes in Shareholders' Equity - Narrative (Details) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Equity [Abstract] | ||
Shares repurchased and retired (in shares) | 0 | 0 |
Remaining authorized repurchase amount | $ 28.7 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Apr. 03, 2023 |
|
Income Tax Contingency [Line Items] | |||
Provision (benefit) for income taxes | $ (115) | $ 1,030 | |
Effective income tax rate, percent | 11.50% | 27.10% | |
PetCareRx | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforward | $ 96,000 | ||
Disallowed interest expense | 1,900 | ||
Total operating loss carryforward and disallowed interest expense | $ 35,000 | ||
PetCareRx | |||
Income Tax Contingency [Line Items] | |||
Percentage of equity interests acquired | 100.00% |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Aug. 02, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.30 | $ 0.30 | ||
Subsequent Event | Quarterly Dividend | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.30 | |||
Dividends payable | $ 6.4 | |||
Subsequent Event | Employee Stock | 2022 Employee Plan | ||||
Subsequent Event [Line Items] | ||||
Issued shares (in shares) | 2,500 |
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