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$300.0
                                                     $238.3
$250.0                                     $219.4              $231.6
                                 $188.3
$200.0
                      $162.2
           $137.6
$150.0

$100.0

 $50.0

  $0.0
         FY 2006    FY 2007    FY 2008    FY 2009   FY 2010   FY 2011
$200.0
                                                    $162.8    $165.5
$175.0
                                          $143.3
$150.0
                                $122.5
$125.0               $100.9
$100.0     $78.4
 $75.0
 $50.0
 $25.0
  $0.0
         FY 2006   FY 2007    FY 2008    FY 2009   FY 2010   FY 2011
100%                                                                1000

                                                          PETS                                                    PETS
                                                          75%                                                     858 (3)
 75%                                                                 750
                                                           AMZN
                                                          70% (1)

 50%                                                        AVG
                                                            47%
                                                                     500                                           AVG
                                                                                                                 457 (2)(3)
                                                           (1)(2)

 25%                                                                 250


     0%                                                                  0
                 11



                             11



                                         11



                                                     11
     11




                                                           PETS




                                                                                                    1
               0



                           0



                                       0



                                                   0
 20




                                                                         0




                                                                                                             1
                                                                                  10



                                                                                           0
            /2



                        /2



                                    /2



                                                /2




                                                                                                 -1
                                                                                         -1
                                                                        1




                                                                                                            1
2/




                                                           AVG
                                                                              p-
            16



                        30



                                    13



                                                27




                                                                     n-




                                                                                                         n-
                                                                                               ar
                                                                                                                 PETS




                                                                                        ec
7/


          7/



                      7/



                                  8/



                                              8/




                                                                    Ju




                                                                                                        Ju
                                                                             Se




                                                                                               M
                                                           AMZN



                                                                                       D
                                                                                                                 AVG
OTC
                                    1%
                                                    Rx
                                                    Shipping
                 38%

                                              61%




Compared to 64% OTC, 35% RX and 1%
Shipping for the year ended March 31, 2010.
Food
                             $2.1            7.4 % Growth
                      $3.5
                                             Vet Care
                                             8.3% Growth
                                     $18.8
                                             Supplies/
              $10.9                          Medicine
                                             4.8% Growth
                                             Grooming/
                                             Boarding
                                             2.9% Growth
                             $13.0           Animal
                                             Purchases
                                             -4.5% Growth



According to American Pet
Products Manufacturers
Association (APPMA).
Veterinarians

                                          Retailers
                               22%
                                          1-800-PetMeds
                                     6%   Other Mail Order

                        67%
                                     5%




According to IMS Health and
NACDS Economics Dept., in
human pharmaceuticals, 19%
of the market is serviced by
mail order/on-line channel.
1st Q Ending
                   June 30,
                   $74.4 million
      20%
                   2nd Q Ending
                   September 30,
             22%   $61.2 million
26%                3rd Q Ending
                   December 31,
                   $45.1 million

       32%         4th Q Ending
                   March 31,
                   $50.9 million
7,000
                                                                        6,108
6,000                                                     5,463
5,000                                       4,648

4,000                         3,846                                             New
                                                                                Customers
               3,136
3,000                                                                           Total
                                                                                Accumulated
2,000
         681            710           802           815           645
1,000

    0
         FY 2007        FY 2008        FY 2009      FY 2010       FY 2011


 Note: As of FY 2011, 2.6 million customers
 purchased in the last 24 months. For the quarter
 ended June 30, 2011, we acquired 226,000 new
 customers, compared to 220,000 new customers
 for the same period prior year.
$50.0
                                                  $42
$40.0     $37       $36       $36
                                        $34

$30.0

$20.0

$10.0

 $0.0
        FY 2007   FY 2008   FY 2009   FY 2010   FY 2011
$84.0
                             $82.0
$82.0
                   $80.0               $80.0
$80.0    $79.0                                   $79.0

$78.0

$76.0

$74.0

$72.0
        FY 2007   FY 2008   FY 2009   FY 2010   FY 2011
2011              2010
New Order Revenue       $ 17.0   23.0%    $ 16.8   22.5%
Reorder Revenue         $ 56.6   77.0%    $ 57.6   77.5%
Total Net Revenue       $ 73.6            $ 74.4
Gross Profit            $ 24.1   32.8%    $ 27.2   36.6%
G&A Expenses            $ 6.1     8.3%    $ 6.2     8.3%
Advertising Expenses    $ 10.1   13.7%    $ 8.8    11.9%
Depreciation Expenses   $ 0.3     0.5%    $ 0.4     0.5%
Operating Income        $ 7.6    10.3%    $ 11.8   15.9%
Net Income              $ 4.8      6.6%   $ 7.2      9.7%
EPS - Diluted           $ 0.22            $ 0.32
2011                2010                2009
New Order Revenue    $ 47.3      20.4%   $ 60.5      25.4%   $ 62.5      28.5%
Reorder Revenue      $ 184.3     79.6%   $ 177.8     74.6%   $ 156.9     71.5%
Total Net Revenue    $ 231.6             $ 238.3             $ 219.4
Gross Profit         $ 84.0      36.2%   $ 91.9      38.6%   $ 85.3      38.9%
G&A Expenses          $ 22.2      9.6%   $ 22.4       9.4%   $ 21.6       9.8%
Advertising Expenses $ 27.4      11.8%   $ 27.7      11.6%   $ 28.7      13.1%
Depreciation Expenses $ 1.4       0.6%   $ 1.3        0.6%   $ 0.8        0.4%
Operating Income     $ 33.0      14.3%   $ 40.5      17.0%   $ 34.2      15.6%
Net Income           $ 20.9      9.0%    $ 26.0      10.9%   $ 23.0      10.5%
EPS - Diluted        $ 0.92              $ 1.14              $ 0.98
$30.0
                                                 $26.0
                                       $23.0
                             $20.0                         $20.9
$20.0
                   $14.4
         $12.1
$10.0




 $0.0
        FY 2006   FY 2007   FY 2008   FY 2009   FY 2010   FY 2011
$1.2                                            $1.14

                                      $0.98
$1.0                                                      $0.92
                            $0.82
$0.8
                  $0.60
$0.6    $0.50

$0.4

$0.2

$0.0
       FY 2006   FY 2007   FY 2008   FY 2009   FY 2010   FY 2011
$40.0

                                                           $30.1
$30.0                                            $27.7


                             $19.4
$20.0              $16.6
                                       $15.0
         $10.3
$10.0


 $0.0
        FY 2006   FY 2007   FY 2008   FY 2009   FY 2010   FY 2011
1.

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1-800-PetMeds September 2011 Business Plan

  • 1.
  • 2.
  • 3.
  • 4. $300.0 $238.3 $250.0 $219.4 $231.6 $188.3 $200.0 $162.2 $137.6 $150.0 $100.0 $50.0 $0.0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
  • 5. $200.0 $162.8 $165.5 $175.0 $143.3 $150.0 $122.5 $125.0 $100.9 $100.0 $78.4 $75.0 $50.0 $25.0 $0.0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
  • 6.
  • 7.
  • 8. 100% 1000 PETS PETS 75% 858 (3) 75% 750 AMZN 70% (1) 50% AVG 47% 500 AVG 457 (2)(3) (1)(2) 25% 250 0% 0 11 11 11 11 11 PETS 1 0 0 0 0 20 0 1 10 0 /2 /2 /2 /2 -1 -1 1 1 2/ AVG p- 16 30 13 27 n- n- ar PETS ec 7/ 7/ 7/ 8/ 8/ Ju Ju Se M AMZN D AVG
  • 9.
  • 10.
  • 11. OTC 1% Rx Shipping 38% 61% Compared to 64% OTC, 35% RX and 1% Shipping for the year ended March 31, 2010.
  • 12. Food $2.1 7.4 % Growth $3.5 Vet Care 8.3% Growth $18.8 Supplies/ $10.9 Medicine 4.8% Growth Grooming/ Boarding 2.9% Growth $13.0 Animal Purchases -4.5% Growth According to American Pet Products Manufacturers Association (APPMA).
  • 13. Veterinarians Retailers 22% 1-800-PetMeds 6% Other Mail Order 67% 5% According to IMS Health and NACDS Economics Dept., in human pharmaceuticals, 19% of the market is serviced by mail order/on-line channel.
  • 14. 1st Q Ending June 30, $74.4 million 20% 2nd Q Ending September 30, 22% $61.2 million 26% 3rd Q Ending December 31, $45.1 million 32% 4th Q Ending March 31, $50.9 million
  • 15.
  • 16.
  • 17. 7,000 6,108 6,000 5,463 5,000 4,648 4,000 3,846 New Customers 3,136 3,000 Total Accumulated 2,000 681 710 802 815 645 1,000 0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Note: As of FY 2011, 2.6 million customers purchased in the last 24 months. For the quarter ended June 30, 2011, we acquired 226,000 new customers, compared to 220,000 new customers for the same period prior year.
  • 18. $50.0 $42 $40.0 $37 $36 $36 $34 $30.0 $20.0 $10.0 $0.0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
  • 19. $84.0 $82.0 $82.0 $80.0 $80.0 $80.0 $79.0 $79.0 $78.0 $76.0 $74.0 $72.0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. 2011 2010 New Order Revenue $ 17.0 23.0% $ 16.8 22.5% Reorder Revenue $ 56.6 77.0% $ 57.6 77.5% Total Net Revenue $ 73.6 $ 74.4 Gross Profit $ 24.1 32.8% $ 27.2 36.6% G&A Expenses $ 6.1 8.3% $ 6.2 8.3% Advertising Expenses $ 10.1 13.7% $ 8.8 11.9% Depreciation Expenses $ 0.3 0.5% $ 0.4 0.5% Operating Income $ 7.6 10.3% $ 11.8 15.9% Net Income $ 4.8 6.6% $ 7.2 9.7% EPS - Diluted $ 0.22 $ 0.32
  • 25. 2011 2010 2009 New Order Revenue $ 47.3 20.4% $ 60.5 25.4% $ 62.5 28.5% Reorder Revenue $ 184.3 79.6% $ 177.8 74.6% $ 156.9 71.5% Total Net Revenue $ 231.6 $ 238.3 $ 219.4 Gross Profit $ 84.0 36.2% $ 91.9 38.6% $ 85.3 38.9% G&A Expenses $ 22.2 9.6% $ 22.4 9.4% $ 21.6 9.8% Advertising Expenses $ 27.4 11.8% $ 27.7 11.6% $ 28.7 13.1% Depreciation Expenses $ 1.4 0.6% $ 1.3 0.6% $ 0.8 0.4% Operating Income $ 33.0 14.3% $ 40.5 17.0% $ 34.2 15.6% Net Income $ 20.9 9.0% $ 26.0 10.9% $ 23.0 10.5% EPS - Diluted $ 0.92 $ 1.14 $ 0.98
  • 26. $30.0 $26.0 $23.0 $20.0 $20.9 $20.0 $14.4 $12.1 $10.0 $0.0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
  • 27. $1.2 $1.14 $0.98 $1.0 $0.92 $0.82 $0.8 $0.60 $0.6 $0.50 $0.4 $0.2 $0.0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
  • 28. $40.0 $30.1 $30.0 $27.7 $19.4 $20.0 $16.6 $15.0 $10.3 $10.0 $0.0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
  • 29. 1.