PetIQ, Inc. (PETQ) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

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PetIQ, Inc. Reports Fourth Quarter and  Full Year 2017 Financial Results

Company Reiterates Outlook for Full Year 2018

EAGLE, Idaho – March 13, 2018 – PetIQ, Inc. (“PetIQ” or the “Company”) (NASDAQ: PETQ), a leading pet medication and wellness company, today reported financial results for its fourth quarter and year ended December 31, 2017.

Fourth Quarter 2017 Highlights  Compared to Prior Year Period

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Net sales were $51.9 million, an increase of 15.6% year-over-year

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Net loss was $3.4 million

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Adjusted net income increased $3.7 million to $2.6 million

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Adjusted EBITDA increased $2.0 million to $3.6 million, an increase of 132% year-over-year

Full Year 2017 Highlights  Compared to Prior Year

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Net sales were $266.7 million, an increase of 33.2% year-over-year

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Net income increased $11.2 million to $7.8 million

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Adjusted net income increased $18.1 million to $16.9 million

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Adjusted EBITDA increased $11.7 million to $22.3 million, an increase of 110% year-over-year

Cord Christensen, PetIQ’s Chairman and Chief Executive Officer commented, “We are pleased with our record year of growth and profitability. PetIQ is uniquely positioned for future growth with a business model that is supported by attractive macro trends, and differentiated operational characteristics that are revolutionizing how pet parents obtain their pet healthcare products and services.  As we kick off 2018, we are a  larger and more diversified pet health and wellness company with the addition of VIP Petcare and we look forward to capitalizing on the strategic value of our combined platform.  We have countless opportunities to leverage each other’s relationships and we believe this will drive shareholder value over the long-term.”

 

Fourth quarter 2017 Financial Results

 

Net sales increased 15.6% to $51.9 million for the fourth quarter of 2017 compared to $44.9 million for the same period in the prior year. This increase is significant when considering the anniversary of the Company’s major expansion into Pet Specialty in the fourth quarter of 2016.  PetIQ continues to see significant growth as a result of the execution of its four growth initiatives which include growing consumer awareness of its products in the retail channel, delivering innovation in pet health and wellness at a great consumer value, expanding strong partnerships with leading retailers and pharmacies, and increasing the number of products with existing retailers.

 

Gross profit was $10.5 million, compared to $7.6 million, in the same period last year. The increase in gross profit was primarily due to the growth in net sales which created improved economies of scale as well as improved sales mix of more profitable categories and procurement improvements. Gross margin increased 330 basis points to 20.3% for the fourth quarter of 2017 from 17.0% for the fourth quarter of 2016.

 

Net loss was $3.4 million for the fourth quarter of 2017 compared to a net loss of $1.2 million for the prior year period. The increase in net loss largely resulted from Company recognized a one-time non-cash tax expense of $3.4 million, or $0.16 per diluted share, associated with the revaluation of its deferred tax assets, as well as a provisional tax expense of $0.2 million associated with the deemed repatriation of foreign earnings during the fourth quarter of 2017.  Additionally, fourth quarter reported net loss includes $2.0 million in transaction costs associated with the Company’s acquisition of Community Veterinary Clinics


The following information was filed by PetIQ, Inc. on Tuesday, March 13, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Exhibit 21.1 - SUBSIDARIES OF THE REGISTRANT

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Exhibit 23.1 - CONSENTS OF EXPERTS AND COUNSEL

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Exhibit 31.1 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

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Exhibit 31.2 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

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Exhibit 32.1 - SECTION 1350 CERTIFICATION

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Exhibit 32.2 - SECTION 1350 CERTIFICATION

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  • Form Type: Annual
  • Number of times amended: 0
  • Accession Number: 0001558370-18-002008
  • Submitted to the SEC: Tuesday, March 13, 2018 5:19:03 PM EST
  • Accepted by the SEC: Tuesday, March 13, 2018
  • Fiscal Year ending: December 2017
  • Industry: Wholesale Drugs Proprietaries And Druggists Sundries