Petsmart 2005 Annual Report Download - page 17

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by year’s end, and more than two-thirds of total transactions and three-fourths of
total sales captured by the cards. Using this data, we have developed successful
relationship marketing promotions. We expect the PetPerks program to deliver
meaningful benefit to the top line in 2006 by driving loyalty, increasing spend per
pet and enticing customers to products and services only we provide.
Our focus on operating excellence and execution is a meaningful competitive
advantage and helps us provide our customers with a consistently superior shopping
experience. By emphasizing retail basics like store cleanliness, short checkout
lines, a strong in-stock position and the care of the pets in our stores, we are
managing costs, driving efficiency and assuring that we provide a consistently
superior shopping experience even as we grow.
Our ongoing ability to generate cash from operations—we ended 2005 with
$330.3 million in cash, cash equivalents and short-term investments—gives
us tremendous financial flexibility to invest in profitable growth and still provide
shareholders with tangible returns in the form of stock purchases and dividends.
In 2005, we bought back 9.9 million shares of our stock, and paid quarterly
dividends of 3 cents per share.
With another solid year behind us and our smart business model firmly in place,
we feel good about our long-term prospects. Our business is strong, and we are
positioned to capture a large and growing share of the compelling pet market. We
have the right strategies, and we’re committed to investing in smart initiatives that
can fuel our ongoing growth. We believe that we can continue to thrive and generate
meaningful returns for our shareholders over the long term.
Sincerely,
Philip L. Francis
Chairman and Chief Executive Officer
Robert F. Moran
President and Chief Operating Officer
15
Robert F. Moran
President and Chief Operating Officer
with Bailey and Tatum
Earnings Per Share
Stores
PetsHotels