Petco Animal Supplies (NASDAQ:PETC)
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PETCO Leadership Team Reviews Performance and Strategies at
Annual Meeting
* Highlights Strong Financial and Operational Results
SAN DIEGO, June 3 /PRNewswire-FirstCall/ -- PETCO Animal Supplies, Inc.
(NASDAQ:PETC) today updated shareholders on its 2003 financial and operational
performance and reviewed strategic plans and outlook for 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030603/PETCOLOGO )
Speaking at the Company's Annual Meeting of Shareholders, Chief Executive
Officer James Myers noted that through its first quarter 2004 PETCO has
delivered comparable store sales increases of 5% or greater in 44 of the past
45 quarters, an impressive track record extending more than 11 years. In
fiscal 2003, total sales increased to $1.65 billion, representing an increase
of 12% over the prior year. Sales of services including grooming and canine
education achieved total annual growth of 22% in 2003, again establishing the
segment as the fastest growing of PETCO's businesses. Operating income
increased substantially to $138 million, or 8.3% of sales. Overall, strong
comparable store sales and expanding margins drove a significant increase in
net earnings.
Net sales for PETCO during first quarter 2004 increased 13.7% to $425.9 million
with a comparable store sales increase of 6.3%. This strong revenue growth
drove a 42% increase in net earnings over the prior year quarter.
"PETCO's exceptional performance is a reflection of our leading market position
in a consistently growing $28 billion industry," Myers said. "Positive
demographic forces and our business model's track record of operational
excellence position us well for continued strong growth."
Store Enhancements, Expansion Plans
In fiscal 2003, the Company opened 54 net new stores and created more than 100
new "Millennium"-format stores through the combination of new stores and
remodels. This brought the total number of stores in the "Millennium" format
to more than 200. The Company ended fiscal 2003 with 654 stores, and the first
quarter of 2004 with 669 stores in 44 states and the District of Columbia.
In fiscal 2004, the Company plans to continue with its strategic store remodel
program and update approximately 50 stores to the latest format. In addition,
PETCO plans to open 90 new stores, or, 70 net new stores after relocations and
store closings.
"We believe there is significant room for additional growth as we continue
onward to our target store count of 1,250 total community based stores," Myers
said.
Animal Care Initiatives
The Company noted its dedication to continually raising animal care standards
within the industry by educating both associates and customers.
Included in its ongoing initiatives are:
* Providing award-winning training to all store associates
* Conducting hourly walks with comprehensive checklists to further
ensure the well being of animals
* Designing high-quality habitats around the well-being of companion
animals
* Appointing a Director of Veterinary Medicine, who has reviewed all
animal care protocols and habitats
* Ensuring that every store has an associated veterinarian working with
it so that any animal requiring vet care receives appropriate
treatment
* Creating an industry-leading vendor certification program under which
inspection teams ensure that PETCO's animal care standards are met at
each of the Company's vendor partner facilities
* Development of an Animal Care Advisory Board that will help the
Company to continue raising the bar for animal care standards within
the industry
Community Animal Welfare Support
PETCO emphasized the importance of the PETCO Foundation, the Company's
non-profit charity, which in fiscal 2003 raised and donated more than $3.6
million to animal welfare groups around the country. Since inception in 1999,
the Foundation has raised more than $17 million, which has supported more than
2,000 grassroots animal welfare organizations.
When devastating firestorms ravaged Southern California last year, PETCO and
the PETCO Foundation provided truckloads of food, supplies and temporary
housing for animals forced from their homes.
"Customers instinctively brought all kinds of animals, including the barnyard
variety, to PETCO stores, where our animal-loving associates provided free care
and safekeeping. Many store associates volunteered their time at a number of
temporary shelters where families were stranded for up to a week. These actions
demonstrate PETCO's community focus and the empathy and care we strive to
promote as core PETCO values among our store associates," Myers said.
In addition to helping in disasters, the Foundation, with its animal adoption
group partners around the country, helped place more than 1.5 million adoptable
animals in 2003.
Building the PETCO Brand at the National Level with PETCO Park
Myers also discussed that while PETCO remains a community-focused organization,
it continues to strengthen its brand at a national level in a variety of ways.
One noteworthy example is PETCO Park, the new home of the San Diego Padres
baseball team, which is increasing the Company's top-of-mind brand recognition.
Already generating more than half a billion impressions nationwide, PETCO Park
has been a home run from a branding perspective, both in PETCO's home town as
well as its store communities across the country.
Other Business Items
A shareholder proposal relating to the review of animal sales was rejected.
More than 98% of the votes cast were against the shareholder proposal.
About PETCO Animal Supplies, Inc.
PETCO is a leading specialty retailer of premium pet food, supplies and
services. PETCO's vision is to best promote, through its people, the highest
level of well being for companion animals, and to support the human-animal
bond. PETCO generated net sales of $1.6 billion in fiscal 2003. It operates
669 stores in 44 states and the District of Columbia, as well as a leading
destination for on-line pet food and supplies at http://www.petco.com/.
Through the PETCO Foundation, PETCO's non-profit charity, the Company endeavors
to be a community leader in promoting the welfare of companion animals, as well
as the importance of the human-animal bond. The PETCO Foundation has raised
more than $17 million since inception in 1999. More than 2,000 non-profit
grassroots animal welfare organizations from around the nation have received
support from the Foundation.
Certain statements in this news release that are not historical fact constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Stockholders and other readers are cautioned
not to place undue reliance on these forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause the actual results of PETCO to be materially
different from historical results or from any results expressed or implied by
such forward-looking statements. These factors, such as performance of new
stores, ability to execute expansion strategy and sustain growth, debt levels,
reliance on vendors and exclusive distribution arrangements, competition,
integration of operations as a result of acquisitions, compliance with various
state and local regulations and dependence on senior management, are discussed
from time to time in the reports filed by PETCO with the Securities and
Exchange Commission, including the Annual Report on Form 10-K for the fiscal
year ended January 31, 2004.
http://www.newscom.com/cgi-bin/prnh/20030603/PETCOLOGO
http://photoarchive.ap.org/
DATASOURCE: PETCO Animal Supplies, Inc.
CONTACT: Rodney Carter, Senior Vice President, CFO, +1-858-202-7848,
, or Don Cowan, Director, Communications, +1-858-657-2086,
, both of PETCO Animal Supplies, Inc.
Web site: http://www.petco.com/