21.82, +2.48) has jumped 12.8% after beating first quarter estimates.
The provider of pet medication reported above-consensus first quarter earnings of $0.09 per share on a 71.8% year/year spike in revenue to $115.10 mln, which was also ahead of expectations.
Product segment sales grew 46.1% year/year to $97.90 mln while segment operating income increased 3.4% to $9.20 mln. The company adopted a new revenue recognition standard during the quarter, impacting comparability. The Products segment includes the company's legacy operations and the product distribution business of recently-acquired VIP.
The company's newly-defined Services segment generated revenue of $17.22 mln. This segment includes all veterinary services provided by the company to customers. The company reported an operating loss of $400,000 for the Services segment. The operating loss was fueled by the purchase accounting adjustment related to acquired inventory. The company closed about 370 locations for mobile clinics due to low performance. The closed clinics generated revenue of $400,000 and an operating loss of about $400,000.
Two VetIQ wellness centers were opened during the quarter with plans for 20 more openings before the end of the second quarter.
PetIQ used $38.43 mln for operating activities, up from $16.86 mln used one year ago.
The company ended the quarter with long-term debt of $126.92 mln.
Looking ahead, the company expects that revenue for fiscal year 2018 will be between $450 mln and $500 mln, which encompasses current market estimates. Adjusted EBITDA is expected between $40 mln and $45 mln.
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