PetIQ, Inc. (“PetIQ” or the “Company”) (Nasdaq: PETQ), a leading
pet medication and wellness company, today reported financial
results for the first quarter ended March 31, 2023.
Cord Christensen, PetIQ’s Chairman & CEO commented, "We are
very pleased with our first quarter results. The resilience of the
pet health and wellness category and our brands is evident in our
ability to exceed our first quarter net sales and profit
expectations. The Company's acquisition of Rocco and Roxie that
closed in the quarter provides us with a portfolio that allows us
to expand into the pet stain and odor category, and enables us to
extend our offerings into premium dog supplements and jerky treats.
We remain excited about our ability to expand Rocco & Roxie's
points of distribution, add new items, and increase velocity on its
existing base business. Our team continues to execute on our
strategic initiatives and is optimistic about our opportunities for
growth in 2023."
First Quarter 2023 Highlights Compared to Prior Year
Period
- Net sales of $290.5 million, an increase of 5.4%, and above the
Company’s guidance for the quarter of $270.0 million to $290.0
million
- Products segment net sales of $259.0 million compared to $247.8
million, an increase of 4.5%
- Net sales for PetIQ’s manufactured products was 26.2% of
Product segment net sales compared to 28.4%, including the
acquisition of Rocco & Roxie LLC ("Roxie & Roxie"), on a
higher mix of distributed product based on the timing of shipments
late in the quarter and from lapping new PetIQ manufactured brand
launches in the prior year period
- Services segment net revenues of $31.5 million compared to
$27.9 million, an increase of 12.6%
- Gross margin increased 50 basis points to 21.4%
- Record quarterly net income of $9.8 million, or earnings per
diluted share of $0.32, an increase of 209.5%, compared to net
income of $3.2 million, or earnings per diluted share of $0.11
- Adjusted net income of $14.2 million, or adjusted earnings per
diluted share of $0.45, an increase of 32.4% compared to adjusted
net income of $10.1 million, or adjusted earnings per diluted share
of $0.34
- EBITDA of $26.7 million, compared to $17.6 million, an increase
of 51.9%
- Record quarterly adjusted EBITDA of $30.7 million, compared to
$24.4 million, an increase of 25.8% and above the Company's
guidance for the quarter of $27.0 million to $29.0 million
- Adjusted EBITDA margin increased 170 basis points to 10.6%
compared to 8.9%
- Completed the strategic acquisition of Rocco & Roxie on
January 13, 2023 expanding PetIQ's brand and product portfolio into
the pet stain and odor category, and enabling the Company to extend
its offerings into premium dog supplements and jerky treats
First Quarter 2023 Financial Results
Net sales were $290.5 million for the first quarter of 2023, an
increase of 5.4% compared to net sales of $275.7 million in the
prior year period, driven by an increase in sales from both the
Products and Services segments. Products segment net sales of
$259.0 million increased 4.5% compared to the prior year period
reflecting broad-based growth across product categories and sales
channels as well as from the previously announced acquisition of
Rocco & Roxie completed on January 13, 2023. The Company
experienced a solid start to the flea and tick season with
favorable consumption trends and continued consumer trade down from
premium to more value-oriented health and wellness products in the
first quarter of 2023 as compared to the prior year period.
Services revenue for the first quarter of 2023 increased 12.6% to
$31.5 million on improved cancellation rates, increased pet counts
and increased average dollar per pet served as compared to the
first quarter of 2022.
First quarter 2023 gross profit was $62.3 million, an increase
of 8.0%, compared to $57.6 million in the prior year period. Gross
margin increased 50 basis points to 21.4% from 20.9% in the prior
year period driven primarily by higher profitability in the
Services segment, partially offset by a higher mix of distributed
product based on the timing of shipments late in the quarter and
from lapping new PetIQ manufactured brand launches in the prior
year period in the Products segment.
Selling, general and administrative expenses (“SG&A”) was
$43.3 million for the first quarter of 2023 compared to $48.2
million in the prior year period. As a percentage of net sales,
SG&A was 14.9% for the first quarter of 2023, a decrease of 260
basis points compared to the prior year period. Adjusted SG&A
was $39.3 million for the first quarter of 2023 compared to $41.4
million in the prior year period. As a percentage of net sales
adjusted SG&A was 13.5%, a decrease of 150 basis points
compared to the prior year period.
First quarter 2023 net income increased 209.5% to a record $9.8
million and earnings per diluted share ("EPS") was $0.32, compared
to net income of $3.2 million and EPS of $0.11 in the prior year
period. Adjusted net income for the first quarter of 2023 increased
40.6% to $14.2 million and adjusted EPS was $0.45, compared to
adjusted net income of $10.1 million, and adjusted EPS of $0.34 in
the prior year period.
EBITDA was $26.7 million for the first quarter of 2023 compared
to $17.6 million in the prior year period, an increase of 51.9%.
First quarter Adjusted EBITDA was $30.7 million, an increase of
25.8%, compared to $24.4 million in the prior year period and above
the Company's guidance of $27.0 million to $29.0 million. Adjusted
EBITDA margin increased 170 basis points to 10.6% compared to 8.9%
in the prior year period.
Adjusted SG&A, adjusted net income, adjusted EPS, adjusted
EBITDA, and adjusted EBITDA margin are non-GAAP financial measures.
The Company believes these non-GAAP financial measures provide
investors with additional insight into the way management views
reportable segment operations. See “Non-GAAP Financial Measures”
for a definition of these measures and the financial tables that
accompany this release for a reconciliation to the most comparable
GAAP measure.
Cash Flow and Balance Sheet
The Company ended the first quarter of 2023 with total cash and
cash equivalents of $25.4 million. For the first quarter ended
March 31, 2023, the Company used $43.3 million of cash from
operations, of which $64.0 million was dedicated to working capital
to support the seasonal nature of the business, partially offset by
earnings. The Company’s total debt, which is comprised of its term
loan, ABL, convertible debt and capital leases, was $452.0 million
as of March 31, 2023. The Company had total liquidity, which it
defines as cash on hand plus debt availability, of $150.4 million
as of March 31, 2023. The Company's net leverage as measured under
the Company's credit agreement was 4.5x as of March 31, 2023,
consistent with the prior year period, based on the timing of
working capital needs to support the normal seasonality and growth
of the business. The Company expects the net leverage for the
quarter ended March 31, 2023 to be the highest net leverage quarter
of the year. Please refer to the financial table within this press
release for a calculation of the Company’s net leverage under the
credit agreement.
Outlook
For the full year 2023 the Company is reiterating its outlook
previously provided on February 28, 2023, as follows:
- Net sales of $970 million to $1,030 million, an increase of
approximately 9.0% compared to 2022 based on the mid-point of the
guidance
- Adjusted EBITDA of $86 million to $92 million, an increase of
approximately 15.0% compared to 2022 based on the mid-point of the
guidance
For the second quarter of 2023 the Company expects:
- Net sales of $270 million to $280 million, an increase of
approximately 9.0% compared to the prior year period based on the
mid-point of the guidance
- Adjusted EBITDA of $24 million to $26 million, an increase of
approximately 4.0% compared to the prior year period based on the
mid-point of the guidance
The Company does not provide guidance for net income, the most
directly comparable GAAP measure to Adjusted EBITDA, and similarly
cannot provide a reconciliation between its forecasted adjusted
EBITDA and net income without unreasonable effort due to the
unavailability of reliable estimates for certain components of net
income and the respective reconciliations. These forecasted items
are not within the Company’s control, may vary greatly between
periods and could significantly impact future financial results for
the second quarter ending June 30, 2023, and full year ending
December 31, 2023.
Conference Call and Webcast
The Company will host a conference call with members of the
executive management team to discuss these results. The conference
call is scheduled to begin today at 4:30 p.m. ET. To participate on
the live call listeners in North America may dial 844-826-3033 and
international listeners may dial 412-317-5185.
In addition, the call will be broadcast live over the Internet
hosted at the “Investors” section of the Company's website at
www.PetIQ.com. A telephonic playback will be available through May
30, 2023. North American listeners may dial 844-512-2921 and
international listeners may dial 412-317-6671; the passcode is
10177412.
About PetIQ
PetIQ is a leading pet medication and wellness company
delivering a smarter way for pet parents to help their pets live
their best lives through convenient access to affordable veterinary
products and services. The Company engages with customers through
more than 60,000 points of distribution across retail and
e-commerce channels with its branded and distributed medications as
well as health and wellness items, which are further supported by
its world-class medications manufacturing facility in Omaha,
Nebraska and health and wellness manufacturing facility in
Springville, Utah. The Company’s national service platform operates
in over 2,600 retail partner locations in 41 states providing cost
effective and convenient veterinary wellness services. PetIQ
believes that pets are an important part of the family and deserve
the best products and care we can give them.
Contact: katie.turner@petiq.com or
208.513.1513
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties, such as statements about our
plans, objectives, expectations, assumptions or future events. In
some cases, you can identify forward-looking statements by
terminology such as “anticipate,” “estimate,” “plan,” “project,”
“continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,”
“will,” “should,” “could” and similar expressions. Forward-looking
statements involve estimates, assumptions, known and unknown risks,
uncertainties and other factors that could cause actual results to
differ materially from any future results, performances, or
achievements expressed or implied by the forward-looking
statements. Forward-looking statements should not be read as a
guarantee of future performance or results and will not necessarily
be accurate indications of the times at, or by, which such
performance or results will be achieved. Forward-looking statements
are based on information available at the time those statements are
made or management's good faith belief as of that time with respect
to future events and are subject to risks and uncertainties that
could cause actual performance or results to differ materially from
those expressed in or suggested by the forward-looking statements.
Important factors that could cause such differences include, but
are not limited to, general economic or market conditions,
including the impacts of the ongoing COVID-19 pandemic, global
economic slowdown, increased inflation, rising interest rates and
recent and potential future bank failures; our ability to
successfully grow our business through acquisitions and our ability
to integrate acquisitions, including Rocco & Roxie; our
dependency on a limited number of customers; our ability to
implement our growth strategy effectively; our ability to manage
our manufacturing and supply chain effectively; disruptions in our
manufacturing and distribution chains; competition from
veterinarians and others in our industry; reputational damage to
our brands; economic trends and spending on pets; the effectiveness
of our marketing and trade promotion programs; recalls or
withdrawals of our products or product liability claims; our
ability to introduce new products and improve existing products;
our ability to protect our intellectual property; costs associated
with governmental regulation; our ability to keep and retain key
employees; our ability to sustain profitability; and the risks set
forth under the “Risk Factors” section of our Annual Report on Form
10-K for the year ended December 31, 2022 and other reports filed
time to time with the Securities and Exchange Commission.
Additional risks and uncertainties not currently known to us or
that we currently deem to be immaterial may materially adversely
affect our business, financial condition or operating results. The
forward-looking statements speak only as of the date on which they
are made, and, except as required by law, we undertake no
obligation to update any forward-looking statement to reflect
events or circumstances after the date on which the statement is
made or to reflect the occurrence of unanticipated events. In
addition, we cannot assess the impact of each factor on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements. Consequently, you
should not place undue reliance on forward-looking statements.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with
U.S. GAAP, PetIQ uses the following non-GAAP financial measures:
adjusted net income, adjusted earnings per share, adjusted
SG&A, adjusted EBITDA, and adjusted EBITDA margin.
Adjusted net income consists of net income adjusted for tax
expense, acquisition expenses, integration costs, litigation costs,
and stock-based compensation expense. Adjusted net income is
utilized by management to evaluate the effectiveness of our
business strategies. Non-GAAP adjusted earnings per share is
defined as non-GAAP adjusted net income divided by the weighted
average number of shares of common stock outstanding during the
period.
Adjusted SG&A consists of SG&A adjusted for acquisition
expenses, stock-based compensation expense, integration costs, and
litigation expense.
EBITDA represents net income before interest, income taxes, and
depreciation and amortization. Adjusted EBITDA represents EBITDA
plus adjustments for transactions that management does not believe
are representative of our core ongoing business including
acquisition costs, stock-based compensation expense, and
integration costs. Adjusted EBITDA margin is adjusted EBITDA stated
as a percentage of net sales.
Beginning in the fourth quarter and full year ended December 31,
2022, the Company no longer adds back non-same store adjustments in
its calculation of Adjusted EBITDA and have recast prior year
periods to reflect this change.
Adjusted EBITDA is utilized by management as a factor in
evaluating the Company's performance and the effectiveness of our
business strategies. The Company presents EBITDA because it is a
necessary component for computing adjusted EBITDA.
We believe that the use of these non-GAAP measures provides
additional tools for investors to use in evaluating ongoing
operating results and trends. In addition, you should be aware when
evaluating these non-GAAP measures that in the future we may incur
expenses similar to those excluded when calculating these measures.
Our presentation of these measures should not be construed as an
inference that our future results will be unaffected by these or
other unusual or non-recurring items. Our computation of non-GAAP
measures may not be comparable to other similarly titled measures
computed by other companies, because all companies do not calculate
these non-GAAP measures in the same manner. Our management does
not, and you should not, consider the non-GAAP financial measures
in isolation or as an alternative to financial measures determined
in accordance with GAAP. The principal limitation of non-GAAP
financial measures is that they exclude significant expenses and
income that are required by GAAP to be recorded in our financial
statements. See a reconciliation of each non-GAAP measure to the
most comparable GAAP measure, in the financial tables that
accompany this release.
PetIQ, Inc.Condensed Consolidated Balance
Sheets(Unaudited, in 000’s except for per share
amounts) |
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
25,410 |
|
|
$ |
101,265 |
|
Accounts receivable, net |
|
|
203,325 |
|
|
|
118,004 |
|
Inventories |
|
|
158,087 |
|
|
|
142,605 |
|
Other current assets |
|
|
10,330 |
|
|
|
8,238 |
|
Total current assets |
|
|
397,152 |
|
|
|
370,112 |
|
Property, plant and equipment, net |
|
|
71,667 |
|
|
|
73,395 |
|
Operating lease right of use assets |
|
|
16,651 |
|
|
|
18,231 |
|
Other non-current assets |
|
|
2,527 |
|
|
|
1,373 |
|
Intangible assets, net |
|
|
176,145 |
|
|
|
172,479 |
|
Goodwill |
|
|
203,573 |
|
|
|
183,306 |
|
Total assets |
|
$ |
867,715 |
|
|
$ |
818,896 |
|
Liabilities and equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
150,012 |
|
|
$ |
112,995 |
|
Accrued wages payable |
|
|
9,547 |
|
|
|
11,512 |
|
Accrued interest payable |
|
|
3,155 |
|
|
|
1,912 |
|
Other accrued expenses |
|
|
8,388 |
|
|
|
7,725 |
|
Current portion of operating leases |
|
|
6,410 |
|
|
|
6,595 |
|
Current portion of long-term debt and finance leases |
|
|
8,675 |
|
|
|
8,751 |
|
Total current liabilities |
|
|
186,187 |
|
|
|
149,490 |
|
Operating leases, less current installments |
|
|
10,956 |
|
|
|
12,405 |
|
Long-term debt, less current installments |
|
|
441,938 |
|
|
|
443,276 |
|
Finance leases, less current installments |
|
|
703 |
|
|
|
907 |
|
Other non-current liabilities |
|
|
4,782 |
|
|
|
1,025 |
|
Total non-current liabilities |
|
|
458,379 |
|
|
|
457,613 |
|
Equity |
|
|
|
|
Additional paid-in capital |
|
|
380,429 |
|
|
|
378,709 |
|
Class A common stock, par value $0.001 per share, 125,000 shares
authorized; 29,499 and 29,348 shares issued, respectively |
|
|
29 |
|
|
|
29 |
|
Class B common stock, par value $0.001 per share, 8,402 shares
authorized; 244 and 252 shares issued and outstanding,
respectively |
|
|
— |
|
|
|
— |
|
Class A treasury stock, at cost, 373 shares |
|
|
(3,857 |
) |
|
|
(3,857 |
) |
Accumulated deficit |
|
|
(153,034 |
) |
|
|
(162,733 |
) |
Accumulated other comprehensive loss |
|
|
(2,275 |
) |
|
|
(2,224 |
) |
Total stockholders' equity |
|
|
221,292 |
|
|
|
209,924 |
|
Non-controlling interest |
|
|
1,857 |
|
|
|
1,869 |
|
Total equity |
|
|
223,149 |
|
|
|
211,793 |
|
Total liabilities and equity |
|
$ |
867,715 |
|
|
$ |
818,896 |
|
PetIQ, Inc. Condensed Consolidated
Statements of Operations (Unaudited, in 000’s,
except for per share amounts) |
|
|
|
|
|
For the Three Months Ended |
|
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
|
|
Product sales |
|
$ |
258,993 |
|
|
$ |
247,750 |
|
Services revenue |
|
|
31,478 |
|
|
|
27,945 |
|
Total net sales |
|
|
290,471 |
|
|
|
275,695 |
|
Cost of products sold |
|
|
200,902 |
|
|
|
190,851 |
|
Cost of
services |
|
|
27,308 |
|
|
|
27,209 |
|
Total cost of sales |
|
|
228,210 |
|
|
|
218,060 |
|
Gross profit |
|
|
62,261 |
|
|
|
57,635 |
|
Operating expenses |
|
|
|
|
Selling, general and administrative expenses |
|
|
43,326 |
|
|
|
48,236 |
|
Operating income |
|
|
18,935 |
|
|
|
9,399 |
|
Interest expense, net |
|
|
8,732 |
|
|
|
6,121 |
|
Other income, net |
|
|
(26 |
) |
|
|
(3 |
) |
Total other expense, net |
|
|
8,706 |
|
|
|
6,118 |
|
Pretax net income |
|
|
10,229 |
|
|
|
3,281 |
|
Income tax expense |
|
|
(448 |
) |
|
|
(121 |
) |
Net income |
|
|
9,781 |
|
|
|
3,160 |
|
Net income attributable to non-controlling interest |
|
|
82 |
|
|
|
29 |
|
Net income attributable to PetIQ, Inc. |
|
$ |
9,699 |
|
|
$ |
3,131 |
|
Net income per share attributable to PetIQ, Inc. Class A
common stock |
|
|
|
|
Basic |
|
$ |
0.33 |
|
|
$ |
0.11 |
|
Diluted |
|
$ |
0.32 |
|
|
$ |
0.11 |
|
Weighted Average
shares of Class A common stock outstanding |
|
|
|
|
Basic |
|
|
29,125 |
|
|
|
29,164 |
|
Diluted |
|
|
35,230 |
|
|
|
29,290 |
|
PetIQ, Inc.Condensed Consolidated
Statements of Cash Flows(Unaudited, in
000’s) |
|
|
|
|
|
For the Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating
activities |
|
|
|
|
Net income |
|
$ |
9,781 |
|
|
$ |
3,160 |
|
Adjustments to reconcile net income to net cash used in operating
activities |
|
|
|
|
Depreciation and amortization of intangible assets and loan
fees |
|
|
8,463 |
|
|
|
8,966 |
|
Loss on disposition of property, plant, and equipment |
|
|
— |
|
|
|
148 |
|
Stock based compensation expense |
|
|
2,466 |
|
|
|
3,823 |
|
Other non-cash activity |
|
|
(52 |
) |
|
|
316 |
|
Changes in assets and liabilities, net of business acquisition |
|
|
|
|
Accounts receivable |
|
|
(84,250 |
) |
|
|
(65,026 |
) |
Inventories |
|
|
(13,567 |
) |
|
|
(71,417 |
) |
Other assets |
|
|
(2,065 |
) |
|
|
(1,273 |
) |
Accounts payable |
|
|
36,019 |
|
|
|
74,094 |
|
Accrued wages payable |
|
|
(1,988 |
) |
|
|
(1,496 |
) |
Other accrued expenses |
|
|
1,866 |
|
|
|
3,325 |
|
Net cash used in operating activities |
|
|
(43,327 |
) |
|
|
(45,380 |
) |
Cash flows from investing activities |
|
|
|
|
Business acquisition (net of cash acquired) |
|
|
(27,634 |
) |
|
|
— |
|
Purchase of property, plant, and equipment |
|
|
(1,910 |
) |
|
|
(5,678 |
) |
Net cash used in investing activities |
|
|
(29,544 |
) |
|
|
(5,678 |
) |
Cash flows from financing activities |
|
|
|
|
Proceeds from issuance of long-term debt |
|
|
15,000 |
|
|
|
40,000 |
|
Principal payments on long-term debt |
|
|
(16,900 |
) |
|
|
(16,150 |
) |
Principal payments on finance lease obligations |
|
|
(346 |
) |
|
|
(399 |
) |
Tax withholding payments on Restricted Stock Units |
|
|
(840 |
) |
|
|
(688 |
) |
Exercise of options to purchase Class A common stock |
|
|
— |
|
|
|
100 |
|
Net cash (used in) provided by financing activities |
|
|
(3,086 |
) |
|
|
22,863 |
|
Net change in cash and cash equivalents |
|
|
(75,957 |
) |
|
|
(28,195 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
|
102 |
|
|
|
(107 |
) |
Cash
and cash equivalents, beginning of period |
|
|
101,265 |
|
|
|
79,406 |
|
Cash and cash equivalents, end of period |
|
$ |
25,410 |
|
|
$ |
51,104 |
|
PetIQ, Inc.Summary Segment
Results(Unaudited, in 000’s) |
|
|
|
|
|
For the Three Months Ended |
$'s in 000's |
|
March 31, 2023 |
|
March 31, 2022 |
Products segment sales |
|
$ |
258,993 |
|
$ |
247,750 |
Services segment revenue: |
|
|
|
|
Same-store sales |
|
|
28,528 |
|
|
20,725 |
Non same-store sales |
|
|
2,950 |
|
|
7,220 |
Total services segment revenue |
|
$ |
31,478 |
|
$ |
27,945 |
Total net sales |
|
$ |
290,471 |
|
$ |
275,695 |
PetIQ, Inc.Reconciliation between Selling,
General & Administrative (“SG&A”) and Adjusted
SG&A(Unaudited, in 000’s) |
|
|
|
|
|
For the Three Months Ended |
$'s in 000's |
|
March 31, 2023 |
|
March 31, 2022 |
SG&A |
|
$ |
43,326 |
|
|
$ |
48,236 |
|
Less: |
|
|
|
|
Acquisition costs(1) |
|
|
538 |
|
|
|
— |
|
Stock based compensation expense |
|
|
2,466 |
|
|
|
3,823 |
|
Integration costs(2) |
|
|
976 |
|
|
|
339 |
|
Litigation expenses |
|
|
— |
|
|
|
2,661 |
|
Adjusted SG&A (3) |
|
$ |
39,346 |
|
|
$ |
41,413 |
|
% of Sales (GAAP) |
|
|
14.9 |
% |
|
|
17.5 |
% |
PetIQ, Inc.Reconciliation between Net
Income and Adjusted EBITDA(Unaudited, in
000’s) |
|
|
|
|
|
For the Three Months Ended |
$'s in 000's |
|
March 31, 2023 |
|
March 31, 2022 |
Net income |
|
$ |
9,781 |
|
|
$ |
3,160 |
|
Plus: |
|
|
|
|
Tax expense |
|
|
448 |
|
|
|
121 |
|
Depreciation |
|
|
3,521 |
|
|
|
3,682 |
|
Amortization |
|
|
4,261 |
|
|
|
4,523 |
|
Interest expense, net |
|
|
8,732 |
|
|
|
6,121 |
|
EBITDA |
|
$ |
26,743 |
|
|
$ |
17,607 |
|
Acquisition costs(1) |
|
|
538 |
|
|
|
— |
|
Stock based compensation expense |
|
|
2,466 |
|
|
|
3,823 |
|
Integration costs(2) |
|
|
976 |
|
|
|
339 |
|
Litigation expenses |
|
|
— |
|
|
|
2,661 |
|
Adjusted EBITDA (3) |
|
$ |
30,723 |
|
|
$ |
24,430 |
|
Adjusted EBITDA Margin |
|
|
10.6 |
% |
|
|
8.9 |
% |
PetIQ, Inc.Reconciliation between Net
Income and Adjusted Net Income(Unaudited, in
000’s, except for per share amounts) |
|
|
|
|
|
For the Three Months Ended |
$'s in 000's |
|
March 31, 2023 |
|
March 31, 2022 |
Net income |
|
$ |
9,781 |
|
$ |
3,160 |
Plus: |
|
|
|
|
Tax expense |
|
|
448 |
|
|
121 |
Acquisition costs(1) |
|
|
538 |
|
|
— |
Stock based compensation expense |
|
|
2,466 |
|
|
3,823 |
Integration costs(2) |
|
|
976 |
|
|
339 |
Litigation expenses |
|
|
— |
|
|
2,661 |
Adjusted Net income (3) |
|
$ |
14,209 |
|
$ |
10,104 |
|
|
|
|
|
Non-GAAP adjusted EPS |
|
|
|
|
Basic |
|
$ |
0.49 |
|
$ |
0.35 |
Diluted |
|
$ |
0.45 |
|
$ |
0.34 |
Weighted Average
shares of Class A common stock outstanding used to compute non-GAAP
adjusted EPS |
Basic |
|
|
29,125 |
|
|
29,164 |
Diluted |
|
|
35,230 |
|
|
29,290 |
(1) Acquisition costs include legal, accounting, banking,
consulting, diligence, and other costs related to completed and
contemplated acquisitions.
(2) Integration costs represent costs related to integrating the
acquired businesses including personnel costs such as severance and
retention bonuses, consulting costs, contract termination, and IT
conversion costs. The costs are primarily within the Products
segment.
(3) Effective December 31, 2022, the Company no longer includes
non same-store operating results related to the Services segment
wellness centers with less than six full quarters of operating
results, and pre-opening expenses, as an adjustment to its
calculation of its non-GAAP financial measures. As a result, the
following non-GAAP measures have been recast for comparability to
remove non same-store operating results for the three months ended
March 31, 2022 as follows:
- Adjusted SG&A - $2.5
million
- Adjusted net income - $8.2
million
- Adjusted EBITDA - $7.2 million
PetIQ, Inc.Calculation of Net Leverage
Ratio Under Term Loan B(Unaudited, in 000’s,
except for multiples) |
|
|
|
March 31, 2023 |
Total debt |
$ |
449,138 |
|
Total Capital Leases |
|
2,904 |
|
Less Cash |
|
(25,410 |
) |
Net Debt |
|
426,632 |
|
LTM Term Loan B Adjusted
EBITDA(1) |
|
95,500 |
|
Term Loan B net leverage |
4.5 x |
(1) Our Term Loan B documentation defines Adjusted EBITDA as net
income before interest, income taxes, depreciation and amortization
and a non-cash goodwill impairment charge, as further adjusted for
acquisition costs, loss on debt extinguishment and related costs,
stock based compensation expense, integration costs, litigation
expenses, and non-same-store net income (loss), which we refer to
as “Term Loan B Adjusted EBITDA.” Term Loan B Adjusted EBITDA is
not a non-GAAP measure and is presented solely for purposes of
providing investors an understanding of the Company’s financial
condition and liquidity and should not be relied upon for any
purposes other than an understanding of the Company’s financial
condition and liquidity as it relates to the Company’s Term Loan
B
PetIQ (NASDAQ:PETQ)
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부터 4월(4) 2024 으로 5월(5) 2024
PetIQ (NASDAQ:PETQ)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024