PetSmart Announces Second Quarter 2013 Results

Total Sales up 5.3%; Comp Sales of 3.4%; Earnings up 25% to $0.89 per Share

PHOENIX–(BUSINESS WIRE)–Aug. 21, 2013– PetSmart, Inc. (NASDAQ: PETM) today reported earnings of $0.89per share, up 25% compared to $0.71 per share in the second quarter of 2012. Net income totaled $93 million in the second quarter of 2013, compared to $79 million in the second quarter of 2012. Total sales for the second quarter of 2013 increased 5.3% to $1.7 billion. Comparable store sales, or sales in stores open at least a year, grew 3.4%, benefitting from comparable transactions growth of 1.0%. Services sales, which are included in total sales, grew 7.3% to $205 million.
During the second quarter, the company generated $87 million in cash flows from operating activities, spent $26 million in capital expenditures, and repurchased $24 million of PetSmart stock. The company ended the quarter with $353 million in cash, cash equivalents and restricted cash and zero borrowings on its credit facility.

“We are pleased with our results and level of execution in the second quarter,” said David Lenhardt, Chief Executive Officer. “Our performance demonstrates the continued strength and stability of our business model, and what we can achieve when we focus on caring for our customers.”

“As a reminder, the annual guidance for 2013 is for 52 weeks versus 53 weeks in 2012. For fiscal year 2013, we anticipate comparable store sales growth of 3% to 4%, and total sales growth of 3% to 4%. We are raising our earnings per share guidance from a previous range of $3.82 to $3.94, to our current expectations of $3.88 to $3.98,” said Carrie Teffner, Senior Vice President and Chief Financial Officer. “For the third quarter of 2013, we are expecting comparable store sales growth in the 3% to 4% range, and earnings per share between $0.83 to $0.87.”

Conference call information
PetSmart management has scheduled a teleconference for 10:00 a.m. EDT on August 21, 2013 to discuss results for the second quarter 2013. This teleconference will be webcast live for all investors at www.petm.com. The webcast will be available until the company announces results for the third quarter of 2013. In addition, you can listen to the call live by dialing 866-219-5631 (within the United States and Canada) or 703-639-1122 (for international callers), code 1621111.

A phone replay will be available through September 21, 2013, 11:59 p.m. EDT, at 888-266-2081 in the United States and Canada, or at 703-925-2533 for international callers, code 1621111.

Source: PetSmart Corporate