Petco Health + Wellness Company, Inc. Announces Record Revenue and Earning

Petco Health and Wellness Company, Inc., a complete partner in pet health and wellness, today released its financial results for its third quarter ended Oct. 30, 2021.

In the third quarter of 2021, Petco delivered net revenue of $1.4 billion, up 15 percent versus prior year. Net income improved by $49.3 million from prior year to $52.8 million or $0.20 per share. Trailing 12-month net income improved by $156.8 million from prior year to $129.3 million. Adjusted Net Income¹ for the third quarter increased $40.4 million from prior year to $54.0 million or $0.20 per share, while Adjusted EBITDA¹ increased by 17 percent from prior year to $138.5 million.

“Q3 marked our sixth consecutive quarter of double-digit growth with a 15 percent Q3 comp, lapping 17 percent a year ago, giving us confidence to raise guidance for Full Year 2021,” said Ron Coughlin, Chairman and CEO of Petco. “Our focus on long-term, sustainable growth is powered by continued execution against our transformation, with one of the fastest veterinary expansions in history, further enhancement of our digital competitive advantages, expansion of our merchandise differentiation through powerful owned and exclusive brands and our incredible Petco Partners who are improving more and more pet lives every single day in a challenging environment.”

Additionally, through the first thirty-nine weeks of 2021, total debt remained roughly flat at $1.7 billion with Net Debt¹ improving $94.8 million to $1.5 billion driven by net cash flow from operations of $288.4 million and Free Cash Flow¹ of $124.1 million, up 43 percent and 18 percent, respectively, from the first thirty-nine weeks of 2020. Also, in the first thirty-nine weeks of 2021, Net Debt¹ / Trailing Twelve Month Adjusted EBITDA¹ decreased 19 percent or 0.6x to 2.6x driven by Free Cash Flow¹ generation and growth in Adjusted EBITDA¹.

Fiscal Q3 2021 Highlights:

Comparisons are third quarter of 2021 ended Oct. 30, 2021 versus third quarter of 2020 ended Oct. 31, 2020 unless otherwise noted

• Net revenue increased 15 percent to $1.4 billion driven by comp sales growth of 15 percent
• Net income increased $49.3 million to $52.8 million or $0.20 per share
• Adjusted Net Income¹ increased $40.4 million to $54.0 million or $0.20 per share
• Adjusted EBITDA¹ increased 17 percent to $138.5 million ³
• Trailing twelve-month net income increased $156.8 million to $129.3 million
• Trailing Twelve Month Adjusted EBITDA¹ increased $100.3 million to $567.9 million
• Net cash provided by operating activities increased $87.0 million to $288.4 million in the first thirty-nine weeks of 2021
• Free Cash Flow¹ increased $18.9 million to $124.1 million in the first thirty-nine weeks of 2021
• Total debt decreased $1.6 billion or 48 percent, to $1.7 billion driven by the proceeds generated from the company’s initial public offering, related recapitalization and Free Cash Flow¹ generation
• Net Debt¹ decreased $1.6 billion or 52 percent to $1.5 billion
• Net Debt¹ / Trailing Twelve Month Adjusted EBITDA¹ improved 60 percent to 2.6x
• Liquidity of $662.6 million as of Oct. 30, 2021 inclusive of $221.5 million of cash and cash equivalents and $441.1 million of availability on revolving credit facility
• Ended the quarter with 1,449 Pet Care Centers in the U.S. and Puerto Rico, 172 full-service Vet Hospitals within Pet Care Centers and 108 Pet Care Centers in Mexico

For more information, visit the company’s official statement.