PETMED EXPRESS INCPETS

PETMED EXPRESS INC Segments Disclosure

10-KFiled Oct 14, 20252 min read
Segment Reporting
The Company has a single segment that derives sales from customers through the sale of products which are shipped directly to customers. The accounting policies of the Company's single segment are the same as those described in the Company's Significant Accounting Policies.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on Adjusted EBITDA that is reconciled to GAAP net loss reported on the accompanying Consolidated Statements of Operations below. The CODM uses Adjusted EBITDA to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity. Adjusted EBITDA is used to monitor budget versus actual results and forecast versus actual results and is utilized when establishing management’s compensation in collaboration with the Board of Directors. Adjusted EBITDA should only be considered as supplemental to, and alongside with, other GAAP based financial performance measures, including various cash flow metrics, net income, net margin, and our other GAAP results.

The table below provides a summary of significant expense categories regularly provided to the CODM reconciled to Adjusted EBITDA, as well as a reconciliation of Adjusted EBITDA to net (loss) income, for the years ended March 31. The CODM does not review segment assets at a different asset level or category than those disclosed within the consolidated balance sheets.

Twelve Months Ended
($ in thousands)
March 31, 2025
3/31/2024 (As Restated)
3/31/2023 (As Restated)
Net Sales$226,972 $274,095 $247,569 
Significant expense categories:
  Cost of sales157,835189,327171,068
  Advertising23,78130,62825,190
  Other segment expenses (1)
44,68445,89531,541
Adjusted EBITDA$672$8,245$19,770
(Add) subtract:
Share-based compensation (reversal) expense(6,586)6,8706,617
Income taxes5,6841,1912,305
Depreciation and amortization7,0397,0563,546
Interest income(185)(511)(450)
Acquisition/Partnership transactions and other items2311,6791,904
Employee severance738512364
Sales tax expense (reversal) (2)
(1,178)(1,088)344
Impairment loss1,200——
Net (loss) income$(6,271)$(7,464)$5,140 

(1) Consists of all other expenses on an Adjusted EBITDA basis, including salaries and wages, operating expenses such as utilities, insurance, professional fees, etc.
(2) Reversal consists of abatement of certain sales tax accruals.
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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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