This is an individual assignment but you may coordinate with members of your group Review the PetMed Express at the end of the textbook case 11 If you have the short textbook version, the case is also located here -- Pet Med Case - For now look closely at the charts in the case - Note the data in the various tables are for 2017 and 2018 - visit the company annual report/10k - Review instructions step 1. Click on 2019 annual report or 10k (or 2020 if out yet) - Do not work on the strengths, weakness, etc yet - Search recent data on internet - Yahoo finance WSJ or CNBC Assignment: - Bring the financial statements up to date - You will find this data in the annual report - Create an Excel table updating the exhibit 2 - Create a bar chart for key data in each table. - Comment on the significance of each - Upload the tables, chart, comments. Preferably in one document. www.1800petmeds.com, PETS Headquartered in Delray Beach. Flocida. RetMod Eapress is a licensed oeline pharmacy that fills prescriptions writhen by veterinarianc. The cuenpury has over 9 millice satisfied castoences and dispenss drugs csily ia the United States. The company connoches with local veterinarians, many of whom mabe motey seling arugs for pets. Feriled carmes all the medications wold is veterinarian offices. The cueppany ays it employs the larpest mamber of weterinary pharmacise in the world. The cemapany has a history of legal peoblens with weterienaries acnoss the country endercutting their prices and other relabed concerts. PetMlod does sot disclone where it obeains its pet drags and this fact irritales anagy veterinarian. PetMed Express is America's lagest pet pharmary. deliverieg peescription and nonprescription pet medications and oeher healdh prodocts for small animals at conipotitive priess dirwet io coesemers through its 1-800-PetMcds loll-froe sumber and an the laternet ihroegh its corporate wchsite. The compony's fikcal 2017 year coded Maech 31, 2017. For the compony"s 09 2018 that cndod Docmber 3, 2017, ace ander sales lecncasod 155 pencent, ncw incone increased 88 percent, and reverues increased 13.7 perient - so PetMed is deving well. la January 2018, the company's boaed of diroctoes iacreaned the firm's dividend by 25 percent thoen 90.20 to 90.25 per share paid en Fehraary 16. 201s. PetMed marlets pececription and nce-peewcription pet medications, as well as bealdh pecedwets and supplies foe small animals to retail customers. A sumplieg of the compuny's prodiacts include flea and tick coetrol products, boen and joint care prodosts, vitamins, treats, nutritiveal supplements, hygiene products, and supplics, and prektiption modications, inclading heartworm preventativek, flea and tick preventatives, anthrifis, thrytoid diabenes, pain madications, antibiotick, and other specialty medications, as well as groeric aubtitutes. FetMed also sells food, beds, crates, stairs, strollers, and other pet supplies throegh its website, dirset mail, and its foll-free number. It markets its prodacti throegh Internet, selephone contact cenier, asd diroct mail/priet through 1-800-PetModt cataloge, beocbures, and poiteands under various brandh. Coyvrighided by Find David Bowas, L.1C; writem by Memalial E Davil. History Reded was founded in 1996 by Marc Pulea. The coenpuny gut odf ta a rocky itart. In 1999, the company actied charpes with the Flanda Fharmaky Bound foe selling drugs that did not bave prewctiptions, false advertising, poor second lecping, and act labelint drags comectly. As part of the stilkement, the cotnpany puid a fine but also agreed ow send its promarmacists for further edicebion. agrwed to randoe inpectices, and apreed to peovide serulat nppots to the beand In 2002. PetMed was fined by the Eavironmental Protection Agency (EPA) for selling drugs marked with metric dowcs-the drups ithe ware male by Nowartis for sale in Europe and Autralia. PetMed is exclusively a US. firm and the doses and Labliag weet not FDA-appooved-Novartis sued PetMed for damages. fa 2002. Retled was eharged by the Florida Fharmacy Board for coetractiog with veterinarians mo write peecicipeions for animals they had never examined, and for selling animals drugs that had aot been approved by the FDA. In the sarne yeat, the compaas acaled simitar chargos in Otio. Aho is 2002 . the pharmacy bourd in Texas filed a lawnait charging Pedoed Express with doppenieg veteritary dnugs without prescriptions. The case was scaked in 200C. Eves as late as Aapus 2017, PotMad has legal protlems as the Ronen Law Firm filed a class action lawvuit againat the campany alleging that Peblod =am marketing dangeroes and adjictive animal drues to humanc. As a rexult of this axticn. Google may hall FetMed's afvertieng and tesiness operations with that firm. Vision/Mission RetMod Express appeass to not have a visioe or mikebce statemseat provided at the copponte wobnite or in the company's Aneal Refive. Internal Issues Customers and Advertising PetMed says 2.3 million casuenen purthased fivm the coempary in ficcal 2016 and 2017. and that about 50 persent of those cuntwens revile in Califinaia. Now York, Pennsylvania. North Carolina, Virginia, and Genryia. The compuny dispentes drugs acmous the Unital States. The company otitained 514,000 acw cuaveners dariog fixcal 2017, compared to 489,000 acw customers from the prios yeat As a pereent of revenoe, the coerpury is aftertiving respenses ware 7.1 and 9.3 percent, respectively. for fiscal 2017 and 3016 . In fiveal 3017 , the conpuny eliminated all elevision advertiving. Employees PeMled has about 190 full-timac muployses. iacloding 105 in markrting, 43 in pharmacy, 3 in information lechaology, 3 iin admieistative poitioes, and 5 wop manuper. Organizational Structure Blaied on the titles of their cocporate esocitives, it appears that PutMod operates fmum a fuactional organizational structure with mo divikipes. The company is quite light on lop etecutives and mo oec appean to head up potential seyments sach as perscription werus non-prescription. online versus traditional, of pharmaceutical veres echer. ExHIerr 1 PetMed's Top Executives and Organizational Chart Segment information Nose in Exhitir 2 that Renrder Sales coeptise alout 83 percent of all sales, and iruaically Intemet sales also comprise ahout 83 persent of alll sales. Finance PetMed's fiscal year ends March 31. Fur the coenpany's Q32018 guarter that ended Deveniber 31, 2017, net sales were \$60.1 million, compurpd to $52.9 million for the pror year same quanter, an increase of 13.7 peroedt. Net sales for the 9 months ended December 31. 2017, and were $306.5 million, cenpurod to 5156.1 million for the 9 monthe previouk, an increase of 109 percent. The incteaie in sales for the company's Q32018 quarter EXHIBIT 2. PetMed's Bv-Seament Sales Information fin thousands USDI were up due to increased new order sales, which increased 15.5 percent, and reonler aales. which increased 13.4 percent. Net income for the Q3.2618 quarter was $9.1 millien, cempared to act incothe of $4.8 million the prcvions year same quarter, an ks prrsent iacrease. Net income for the 9 moeths cnded Deccaber 31, 2017 was 527.1 million, companed bo net income of $16.3 millioe. for the 9 mkinths the prioe fiscal year, a 66 ibcome increase to net income. Average order sine increaned to 586 for the 932015 quarter, compated ta S81 for the same quarter in the prior year. Also for the company's Q32018 quarter, enline sales increased 15.0 percent to $50.4 million fraen 543.5 milline foe the same period the prior yeat, and were approximately 84 peroeat of all sales, comopared to 83 peicent for the same quarter the priar yeat. The compaay's Q32018 was the fourth coesecutive quarter of increasing boeh new ander and reonder sales. In January 3018, the company's boaed of directon doclared and increaned the quancrly diridend by 25 pensent frum 9020 to 90.25 per share on the firm' 1 coeunon sock. The dividend wax paid en Fichewry 16, 2018. PesMed Expeess beat profit estimates again in its Q 2015 thut ended 3-31-18. For Q4 2018. the company roported net income of $10.2 mullion, up froes $7.5 millioe in the yearearlict perind. Sales rose io $673 million from 963.0 millien. Ale for that 04 , the conmam's narema: rose to 37 percent from 35,1 pereent, boonted by a poodust mix shift is highar margin iarme. Additionally, for Q4 2018, ReaMeds average ander value was 589 conipuod in 586 for the aine quarter the prios yeat. PetMed's iacoene saatements and buleace sheets are provided in Eathibit 3 and Eatitet 4. iespectively. Competitors Merk Aninal Health, Merial, Flasco Animal Heald., Bayer Animal Healh. Bochriager Ingellicim Animal Healdh, Novartis Animal Healll. and Virtoc. However, argahly twe of PetMod's mager mals are Kroper and Walreart. Both firms fill animal prescriptinss. Headguartered in Parsippany-Troy Halls, New leney, Zoctis develoge vacciacs, parasiticides, anti-infoctives, modicialal focd adlitives and drups for paik, iodation, and cancon for pet: and farne animals. The company has annual sales of 55 billion. The conquaty name lass its mosk in "20", famaliar in woeds such as noo and moology and derived from zoetic, meaniag "pertaining to life," About 60 persent of Zactis sales cone from farm animal prodocts and a0 peront frome companioe animal producth, mainly modicines and vackins. Heakguartered in Kenilworth, New Jersey, Merck Animal Health manufarturs vaccites. anti-iafective and amti-puraitic drugi. fertility mandpement drugh and ather specialty pharmacoutical prodocts for compenioe animals and livestock. Owned by Elil Lilly and healquartered in Indianapolis, Indiana, Elanoo Animal Health Sevelops and markets peoducts to treat animal health and increase peotein prodactiont. Products feod additives for livesiock and poultry. Headequaricred in Ingelheian am Rhein, Germamy, Bochringer Inpolheim Animal Healsh markets biologicall, vaccines. pharmacsuticalk, and other case peodactu for use in pets and Fivestock. Bochriager owns Merial that develops and inarkets veterianary frodacts incladies ancsthetics, antiparasitics, antimicrohials, and gaitrointestimal, nespiratory, and cardiovascular medicines. It alwe prodaces vaccines for livestock, poultry, and pets. Headeuartered in Leveckuseth. Oermany, Bayer HeallhCare Animal Healeh manulastares antimicrobials, parasiticides, sedatives, pain killen, and mutriticnal supplements and foed additives for dogs, cats, and bornes. Products for food animals inclode anti-infectives, vaccinct. paraciticides, medatives, and pain killen Headquartered in Basel, Switrerland. Nonattis Animal Health develogs and marlens bealth product for oonpanion animals, livestock. and the apuaculture marhe. Popular pododats inchule treatments for demmatitis, flem poutection. prin and heartwort prevention in pets, and areibiotics and antiparasitics in farme animals. Novartis alko developod wome of the firt vaccines for coechating viral and porasitic infoctions in fith. Novartis was acquired by Eli Lilly in 2015 for 35 .4 hiltoe. Headquartered in Carnos, France, Virbac Croep manuflactures astibiotics, vaccikes, antipura:Aitick, denmatological, and deatal prodocts for the treatmeet and care of pets and food animals. Although the companies mkrutioned above ase cokpetiton to PetMed. including Kiroger and Walnurt, two other companies are major pet pharmaxy rivals. They are Petlo and Hesku Corporation, even ilusagh as of right now meither well alruge dinect oo ounsamen: thoy onhy aell te vets or busincsies, bet that could change anytime. PetiQ, Inc. (PETC: www.petiq.com) Foendod in 2010 and headquartered in Fagle, Mabo. Petlo manufactans and distributas pet aedications over-the-counter nedications and suplies, woel as flea and tick coutrol problucts in various forms comprising spot-on treatments, dowalles, and collens, and health and welliness products consiseing of spocialty treass and ether pet prodach, which iaclude dental treats and mutritional rupplements. Various PetlQ trade nanes inclule Petartion, Advecta. Petl ack, Heat 10. VET + CHOICE VET WORKS. TEX REANCH, ind VetQ hrads PetiQ madets ower the-conter and precripein per melkoutins and pet welliness probusts major U.S. netailen. VIP is now a wholly-owned wbilfary of Petle. VIP has is mational footprint the buics of veterinary care and veserinary tecoamacoded pet poudacts and wervices:" VIP Pricare has a nationwide actwork of comanuity dlinicr and wellhes centen that deliver bigh value pet proventive and welloes veterinary services to all pet owners. Heska Corporation (HSKA wwwheska.com) veterinary products, inclofing allery leating, bood iesting intrumeats, diagnoatic lest, digital imaging equipenent, and supplenent. The conpuny developk manufecturec, and marketi advanced veterinary diaghostic and spocialty prodicts fis the deg asd cat healthare makkets in the Unisod Stides, Canadx, Furope, and internution lly. Heda oporates through two wcgmente 1) Coer Coeponive Aaimul Heakh, and 2) Ocher Vecines, Pharmaceuticals and Prodact. The Coet Coepuase Animal Heald segment offers wech prodecti as the Flement DC and DEL-CHM 7ow wertritary chemibery analyaen for Bhood chemistry and electrolyle atalyxic as well as the HTS and HEMARruE vetetinir hematology analyaens to mescure whike and red Mhod cell ouse, platelet count, and hemoglohit levels in animali. Other popolat products inclule the Element POC. blood gas and electrolye analyzers and the Elemecti i imunanodiaynosic amalyaens, as a dl as mobile digital radiography products, point-of-care heartworn dlupnostic teat peodacts for dogs and catc. TRI-HEAKT Fhas Chewable Tablets for the preventive treatment of heartack iefoction in dogk, and treationt and control of ascarid and hookwum infections. Hedka's Other Vaccince, Fharmaceuticals and Rodocti segment offers bovine vaccines, biological, and pharmaceutical prodacts for oher animaltheabl companies, and varions tarnkcy services comprising reseanh, licenting, prodactict, lahelagh, and pockagiay. This sgement also wells its products to veterinarians through a ficld orpaninatien, a selephoe sales force, and independeat third-party distritbutox, as well as trade abows, priat advertining, and other diseribution relationships. Exhilit 5 peovides a financial comparison of Remod with Petlo and Heda Comp. Notice that PutMod i the largea of the diree firms and has the bigheot profit margin. EXHiart 5 A Finanrial Comnaricon of Potked with Patio and Hecka Corn. External lssues As the year 201s begins, worldwile sales of animal raccinos, mwalicines, and mefical devices. coceds Ss bellion anneally wieh an adfitional 514 bithe it oles of vackines and medicines for Segment information Note in Exhibit 2 that Reorder Sales conise abuat i3 percent of all sales. and ironikally lnterast ales alio cemprise abret 34 percent of all iales. Finance PetMedf' fical yeur ends March 31. For the cumpuny's Q3 201s quarter that ended Deswnher 31, 2017, aet ales were 560.1 million, compared te 542.9 millice for the prior year cume quariec, an increase of 13.7 perent. Net sales for the 9 monithe caded Devember 31, 2017, and were $206.5 maillion, coecpured to 5186.1 million for the 9 mointhe powi aus, an increase of 109 perceet. The iscrease id sales for the coenpualy's Q9 2018 quattor were up doe to increaied acw crder sales, wbich increaked is.5 pencent, and monder cales. which increasd 13.4 perent. Net incene fir the Q3 2018 quarler was 59.1 million, cont. pured bo net income of 548 millbae the proviont year same quater. an is pereet increase. Net incone fer the 9 months ended Devember 31, 2017 was 527.1 millice, 6venpand to aet hacoese of 5163 nillien, for the 9 monthe the proe fiscal year, a 66 ibcuene iacheae 58! for the same quarter in the mor yoar. Aho for the company's o. 20ts quarter, ofthe same quarter the prive year, The campany's 032018 was the loerth consecutve quarten of iacreaus both new ender and wender wales. paid oe Fichruary 16. 2018. PetMed Expecs beit profit ectimates again in is Q4 2016 that endat 3-31-15. Fur Q4 201K. the compuny wpocted aet incoew of 5102 millon, up frue 575 millon in the yourcarlich Alibibanally, for Q4 2018. Pwhed w averape ender value was 589 cumpured to 566 flar the same gearter the proer yevar acspertively- This is an individual assignment but you may coordinate with members of your group Review the PetMed Express at the end of the textbook case 11 If you have the short textbook version, the case is also located here -- Pet Med Case - For now look closely at the charts in the case - Note the data in the various tables are for 2017 and 2018 - visit the company annual report/10k - Review instructions step 1. Click on 2019 annual report or 10k (or 2020 if out yet) - Do not work on the strengths, weakness, etc yet - Search recent data on internet - Yahoo finance WSJ or CNBC Assignment: - Bring the financial statements up to date - You will find this data in the annual report - Create an Excel table updating the exhibit 2 - Create a bar chart for key data in each table. - Comment on the significance of each - Upload the tables, chart, comments. Preferably in one document. www.1800petmeds.com, PETS Headquartered in Delray Beach. Flocida. RetMod Eapress is a licensed oeline pharmacy that fills prescriptions writhen by veterinarianc. The cuenpury has over 9 millice satisfied castoences and dispenss drugs csily ia the United States. The company connoches with local veterinarians, many of whom mabe motey seling arugs for pets. Feriled carmes all the medications wold is veterinarian offices. The cueppany ays it employs the larpest mamber of weterinary pharmacise in the world. The cemapany has a history of legal peoblens with weterienaries acnoss the country endercutting their prices and other relabed concerts. PetMlod does sot disclone where it obeains its pet drags and this fact irritales anagy veterinarian. PetMed Express is America's lagest pet pharmary. deliverieg peescription and nonprescription pet medications and oeher healdh prodocts for small animals at conipotitive priess dirwet io coesemers through its 1-800-PetMcds loll-froe sumber and an the laternet ihroegh its corporate wchsite. The compony's fikcal 2017 year coded Maech 31, 2017. For the compony"s 09 2018 that cndod Docmber 3, 2017, ace ander sales lecncasod 155 pencent, ncw incone increased 88 percent, and reverues increased 13.7 perient - so PetMed is deving well. la January 2018, the company's boaed of diroctoes iacreaned the firm's dividend by 25 percent thoen 90.20 to 90.25 per share paid en Fehraary 16. 201s. PetMed marlets pececription and nce-peewcription pet medications, as well as bealdh pecedwets and supplies foe small animals to retail customers. A sumplieg of the compuny's prodiacts include flea and tick coetrol products, boen and joint care prodosts, vitamins, treats, nutritiveal supplements, hygiene products, and supplics, and prektiption modications, inclading heartworm preventativek, flea and tick preventatives, anthrifis, thrytoid diabenes, pain madications, antibiotick, and other specialty medications, as well as groeric aubtitutes. FetMed also sells food, beds, crates, stairs, strollers, and other pet supplies throegh its website, dirset mail, and its foll-free number. It markets its prodacti throegh Internet, selephone contact cenier, asd diroct mail/priet through 1-800-PetModt cataloge, beocbures, and poiteands under various brandh. Coyvrighided by Find David Bowas, L.1C; writem by Memalial E Davil. History Reded was founded in 1996 by Marc Pulea. The coenpuny gut odf ta a rocky itart. In 1999, the company actied charpes with the Flanda Fharmaky Bound foe selling drugs that did not bave prewctiptions, false advertising, poor second lecping, and act labelint drags comectly. As part of the stilkement, the cotnpany puid a fine but also agreed ow send its promarmacists for further edicebion. agrwed to randoe inpectices, and apreed to peovide serulat nppots to the beand In 2002. PetMed was fined by the Eavironmental Protection Agency (EPA) for selling drugs marked with metric dowcs-the drups ithe ware male by Nowartis for sale in Europe and Autralia. PetMed is exclusively a US. firm and the doses and Labliag weet not FDA-appooved-Novartis sued PetMed for damages. fa 2002. Retled was eharged by the Florida Fharmacy Board for coetractiog with veterinarians mo write peecicipeions for animals they had never examined, and for selling animals drugs that had aot been approved by the FDA. In the sarne yeat, the compaas acaled simitar chargos in Otio. Aho is 2002 . the pharmacy bourd in Texas filed a lawnait charging Pedoed Express with doppenieg veteritary dnugs without prescriptions. The case was scaked in 200C. Eves as late as Aapus 2017, PotMad has legal protlems as the Ronen Law Firm filed a class action lawvuit againat the campany alleging that Peblod =am marketing dangeroes and adjictive animal drues to humanc. As a rexult of this axticn. Google may hall FetMed's afvertieng and tesiness operations with that firm. Vision/Mission RetMod Express appeass to not have a visioe or mikebce statemseat provided at the copponte wobnite or in the company's Aneal Refive. Internal Issues Customers and Advertising PetMed says 2.3 million casuenen purthased fivm the coempary in ficcal 2016 and 2017. and that about 50 persent of those cuntwens revile in Califinaia. Now York, Pennsylvania. North Carolina, Virginia, and Genryia. The compuny dispentes drugs acmous the Unital States. The company otitained 514,000 acw cuaveners dariog fixcal 2017, compared to 489,000 acw customers from the prios yeat As a pereent of revenoe, the coerpury is aftertiving respenses ware 7.1 and 9.3 percent, respectively. for fiscal 2017 and 3016 . In fiveal 3017 , the conpuny eliminated all elevision advertiving. Employees PeMled has about 190 full-timac muployses. iacloding 105 in markrting, 43 in pharmacy, 3 in information lechaology, 3 iin admieistative poitioes, and 5 wop manuper. Organizational Structure Blaied on the titles of their cocporate esocitives, it appears that PutMod operates fmum a fuactional organizational structure with mo divikipes. The company is quite light on lop etecutives and mo oec appean to head up potential seyments sach as perscription werus non-prescription. online versus traditional, of pharmaceutical veres echer. ExHIerr 1 PetMed's Top Executives and Organizational Chart Segment information Nose in Exhitir 2 that Renrder Sales coeptise alout 83 percent of all sales, and iruaically Intemet sales also comprise ahout 83 persent of alll sales. Finance PetMed's fiscal year ends March 31. Fur the coenpany's Q32018 guarter that ended Deveniber 31, 2017, net sales were \$60.1 million, compurpd to $52.9 million for the pror year same quanter, an increase of 13.7 peroedt. Net sales for the 9 months ended December 31. 2017, and were $306.5 million, cenpurod to 5156.1 million for the 9 monthe previouk, an increase of 109 percent. The incteaie in sales for the company's Q32018 quarter EXHIBIT 2. PetMed's Bv-Seament Sales Information fin thousands USDI were up due to increased new order sales, which increased 15.5 percent, and reonler aales. which increased 13.4 percent. Net income for the Q3.2618 quarter was $9.1 millien, cempared to act incothe of $4.8 million the prcvions year same quarter, an ks prrsent iacrease. Net income for the 9 moeths cnded Deccaber 31, 2017 was 527.1 million, companed bo net income of $16.3 millioe. for the 9 mkinths the prioe fiscal year, a 66 ibcome increase to net income. Average order sine increaned to 586 for the 932015 quarter, compated ta S81 for the same quarter in the prior year. Also for the company's Q32018 quarter, enline sales increased 15.0 percent to $50.4 million fraen 543.5 milline foe the same period the prior yeat, and were approximately 84 peroeat of all sales, comopared to 83 peicent for the same quarter the priar yeat. The compaay's Q32018 was the fourth coesecutive quarter of increasing boeh new ander and reonder sales. In January 3018, the company's boaed of directon doclared and increaned the quancrly diridend by 25 pensent frum 9020 to 90.25 per share on the firm' 1 coeunon sock. The dividend wax paid en Fichewry 16, 2018. PesMed Expeess beat profit estimates again in its Q 2015 thut ended 3-31-18. For Q4 2018. the company roported net income of $10.2 mullion, up froes $7.5 millioe in the yearearlict perind. Sales rose io $673 million from 963.0 millien. Ale for that 04 , the conmam's narema: rose to 37 percent from 35,1 pereent, boonted by a poodust mix shift is highar margin iarme. Additionally, for Q4 2018, ReaMeds average ander value was 589 conipuod in 586 for the aine quarter the prios yeat. PetMed's iacoene saatements and buleace sheets are provided in Eathibit 3 and Eatitet 4. iespectively. Competitors Merk Aninal Health, Merial, Flasco Animal Heald., Bayer Animal Healh. Bochriager Ingellicim Animal Healdh, Novartis Animal Healll. and Virtoc. However, argahly twe of PetMod's mager mals are Kroper and Walreart. Both firms fill animal prescriptinss. Headguartered in Parsippany-Troy Halls, New leney, Zoctis develoge vacciacs, parasiticides, anti-infoctives, modicialal focd adlitives and drups for paik, iodation, and cancon for pet: and farne animals. The company has annual sales of 55 billion. The conquaty name lass its mosk in "20", famaliar in woeds such as noo and moology and derived from zoetic, meaniag "pertaining to life," About 60 persent of Zactis sales cone from farm animal prodocts and a0 peront frome companioe animal producth, mainly modicines and vackins. Heakguartered in Kenilworth, New Jersey, Merck Animal Health manufarturs vaccites. anti-iafective and amti-puraitic drugi. fertility mandpement drugh and ather specialty pharmacoutical prodocts for compenioe animals and livestock. Owned by Elil Lilly and healquartered in Indianapolis, Indiana, Elanoo Animal Health Sevelops and markets peoducts to treat animal health and increase peotein prodactiont. Products feod additives for livesiock and poultry. Headequaricred in Ingelheian am Rhein, Germamy, Bochringer Inpolheim Animal Healsh markets biologicall, vaccines. pharmacsuticalk, and other case peodactu for use in pets and Fivestock. Bochriager owns Merial that develops and inarkets veterianary frodacts incladies ancsthetics, antiparasitics, antimicrohials, and gaitrointestimal, nespiratory, and cardiovascular medicines. It alwe prodaces vaccines for livestock, poultry, and pets. Headeuartered in Leveckuseth. Oermany, Bayer HeallhCare Animal Healeh manulastares antimicrobials, parasiticides, sedatives, pain killen, and mutriticnal supplements and foed additives for dogs, cats, and bornes. Products for food animals inclode anti-infectives, vaccinct. paraciticides, medatives, and pain killen Headquartered in Basel, Switrerland. Nonattis Animal Health develogs and marlens bealth product for oonpanion animals, livestock. and the apuaculture marhe. Popular pododats inchule treatments for demmatitis, flem poutection. prin and heartwort prevention in pets, and areibiotics and antiparasitics in farme animals. Novartis alko developod wome of the firt vaccines for coechating viral and porasitic infoctions in fith. Novartis was acquired by Eli Lilly in 2015 for 35 .4 hiltoe. Headquartered in Carnos, France, Virbac Croep manuflactures astibiotics, vaccikes, antipura:Aitick, denmatological, and deatal prodocts for the treatmeet and care of pets and food animals. Although the companies mkrutioned above ase cokpetiton to PetMed. including Kiroger and Walnurt, two other companies are major pet pharmaxy rivals. They are Petlo and Hesku Corporation, even ilusagh as of right now meither well alruge dinect oo ounsamen: thoy onhy aell te vets or busincsies, bet that could change anytime. PetiQ, Inc. (PETC: www.petiq.com) Foendod in 2010 and headquartered in Fagle, Mabo. Petlo manufactans and distributas pet aedications over-the-counter nedications and suplies, woel as flea and tick coutrol problucts in various forms comprising spot-on treatments, dowalles, and collens, and health and welliness products consiseing of spocialty treass and ether pet prodach, which iaclude dental treats and mutritional rupplements. Various PetlQ trade nanes inclule Petartion, Advecta. Petl ack, Heat 10. VET + CHOICE VET WORKS. TEX REANCH, ind VetQ hrads PetiQ madets ower the-conter and precripein per melkoutins and pet welliness probusts major U.S. netailen. VIP is now a wholly-owned wbilfary of Petle. VIP has is mational footprint the buics of veterinary care and veserinary tecoamacoded pet poudacts and wervices:" VIP Pricare has a nationwide actwork of comanuity dlinicr and wellhes centen that deliver bigh value pet proventive and welloes veterinary services to all pet owners. Heska Corporation (HSKA wwwheska.com) veterinary products, inclofing allery leating, bood iesting intrumeats, diagnoatic lest, digital imaging equipenent, and supplenent. The conpuny developk manufecturec, and marketi advanced veterinary diaghostic and spocialty prodicts fis the deg asd cat healthare makkets in the Unisod Stides, Canadx, Furope, and internution lly. Heda oporates through two wcgmente 1) Coer Coeponive Aaimul Heakh, and 2) Ocher Vecines, Pharmaceuticals and Prodact. The Coet Coepuase Animal Heald segment offers wech prodecti as the Flement DC and DEL-CHM 7ow wertritary chemibery analyaen for Bhood chemistry and electrolyle atalyxic as well as the HTS and HEMARruE vetetinir hematology analyaens to mescure whike and red Mhod cell ouse, platelet count, and hemoglohit levels in animali. Other popolat products inclule the Element POC. blood gas and electrolye analyzers and the Elemecti i imunanodiaynosic amalyaens, as a dl as mobile digital radiography products, point-of-care heartworn dlupnostic teat peodacts for dogs and catc. TRI-HEAKT Fhas Chewable Tablets for the preventive treatment of heartack iefoction in dogk, and treationt and control of ascarid and hookwum infections. Hedka's Other Vaccince, Fharmaceuticals and Rodocti segment offers bovine vaccines, biological, and pharmaceutical prodacts for oher animaltheabl companies, and varions tarnkcy services comprising reseanh, licenting, prodactict, lahelagh, and pockagiay. This sgement also wells its products to veterinarians through a ficld orpaninatien, a selephoe sales force, and independeat third-party distritbutox, as well as trade abows, priat advertining, and other diseribution relationships. Exhilit 5 peovides a financial comparison of Remod with Petlo and Heda Comp. Notice that PutMod i the largea of the diree firms and has the bigheot profit margin. EXHiart 5 A Finanrial Comnaricon of Potked with Patio and Hecka Corn. External lssues As the year 201s begins, worldwile sales of animal raccinos, mwalicines, and mefical devices. coceds Ss bellion anneally wieh an adfitional 514 bithe it oles of vackines and medicines for Segment information Note in Exhibit 2 that Reorder Sales conise abuat i3 percent of all sales. and ironikally lnterast ales alio cemprise abret 34 percent of all iales. Finance PetMedf' fical yeur ends March 31. For the cumpuny's Q3 201s quarter that ended Deswnher 31, 2017, aet ales were 560.1 million, compared te 542.9 millice for the prior year cume quariec, an increase of 13.7 perent. Net sales for the 9 monithe caded Devember 31, 2017, and were $206.5 maillion, coecpured to 5186.1 million for the 9 mointhe powi aus, an increase of 109 perceet. The iscrease id sales for the coenpualy's Q9 2018 quattor were up doe to increaied acw crder sales, wbich increaked is.5 pencent, and monder cales. which increasd 13.4 perent. Net incene fir the Q3 2018 quarler was 59.1 million, cont. pured bo net income of 548 millbae the proviont year same quater. an is pereet increase. Net incone fer the 9 months ended Devember 31, 2017 was 527.1 millice, 6venpand to aet hacoese of 5163 nillien, for the 9 monthe the proe fiscal year, a 66 ibcuene iacheae 58! for the same quarter in the mor yoar. Aho for the company's o. 20ts quarter, ofthe same quarter the prive year, The campany's 032018 was the loerth consecutve quarten of iacreaus both new ender and wender wales. paid oe Fichruary 16. 2018. PetMed Expecs beit profit ectimates again in is Q4 2016 that endat 3-31-15. Fur Q4 201K. the compuny wpocted aet incoew of 5102 millon, up frue 575 millon in the yourcarlich Alibibanally, for Q4 2018. Pwhed w averape ender value was 589 cumpured to 566 flar the same gearter the proer yevar acspertively
