Financial Performance - For the three months ended June 30, 2023, total net sales increased to $314.5 million, up 25% from $252.0 million in the same period of 2022[17]. - Gross profit for the six months ended June 30, 2023, was $136.1 million, representing a 14% increase compared to $119.6 million for the same period in 2022[17]. - Net income attributable to PetIQ, Inc. for the three months ended June 30, 2023, was $9.5 million, compared to $4.6 million for the same period in 2022, reflecting a 104% increase[17]. - Operating income for the three months ended June 30, 2023, was $18.7 million, up from $11.4 million in the same period of 2022, marking a 64% increase[17]. - The total net income for the six months ended June 30, 2023, was $19,334,000, an increase from $7,838,000 in the same period of 2022[86]. - For the three months ended June 30, 2023, net sales for the Products segment were $278,167,000, an increase of 26.9% from $219,014,000 in the same period of 2022[82]. - For the six months ended June 30, 2023, net sales for the Services segment reached $67,858,000, up from $60,945,000 in the same period of 2022, reflecting an increase of 11.8%[83]. - The total Segment Adjusted EBITDA for the three months ended June 30, 2023, was $34,790,000, compared to $27,582,000 for the same period in 2022, representing a growth of 26.1%[86]. - Consolidated net sales increased by $62.5 million, or 24.8%, to $314.5 million for the three months ended June 30, 2023, compared to $252.0 million for the same period in 2022[101]. - Product sales rose by $59.2 million, or 27.0%, to $278.2 million for the three months ended June 30, 2023, driven by strong consumer demand and the acquisition of R&R[102]. - Services revenue increased by $3.4 million, or 10.2%, to $36.4 million for the three months ended June 30, 2023, with same-store sales up by $5.3 million, or 19.0%[103]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $78.4 million as of June 30, 2023, down from $101.3 million at the end of 2022[15]. - The company reported a net cash provided by operating activities of $14.4 million for the six months ended June 30, 2023, compared to a net cash used of $65.4 million in the same period of 2022[24]. - The company had working capital of $230.7 million as of June 30, 2023, compared to $220.6 million as of December 31, 2022[131]. - Cash provided by operating activities was $14.4 million for the six months ended June 30, 2023, a significant improvement from $65.4 million used in the same period of 2022[134]. - The company anticipates meeting its operating, investing, and financing needs for at least the next 12 months through operating cash flow and available credit[133]. Debt and Liabilities - Total current liabilities increased to $191.7 million as of June 30, 2023, from $149.5 million at the end of 2022, indicating higher short-term obligations[15]. - The company’s long-term debt, less current installments, was $440.6 million as of June 30, 2023, slightly down from $443.3 million at the end of 2022[15]. - The interest rate on the Senior Secured Term Loan B was 9.46% as of June 30, 2023, following an amendment to replace the interest rate benchmark from LIBOR to SOFR[47][48]. - The company had variable rate debt of approximately $305.1 million as of June 30, 2023, with a potential interest expense increase of $0.7 million for a 1% rate hike[138]. Acquisitions and Investments - The company completed a business acquisition for $27.6 million during the six months ended June 30, 2023[24]. - The Company completed the acquisition of Rocco & Roxie Supply Co, LLC for $26.5 million, expanding its product portfolio to include premium dog supplements and jerky treats[41]. - The total purchase price allocation for the R&R Acquisition was $27.6 million, with $20.8 million allocated to goodwill, of which approximately $19.5 million is not tax deductible[42][43]. - Net cash used in investing activities was $31.8 million for the six months ended June 30, 2023, primarily due to the acquisition of R&R[135]. Equity and Stock Compensation - The total equity as of June 30, 2023, was $235.603 million, up from $211.793 million at the beginning of the year, reflecting an increase of about 11.2%[30]. - The company reported stock-based compensation expense of $2.743 million for the three months ended June 30, 2023[30]. - Stock-based compensation expense for the three months ended June 30, 2023, totaled $0.4 million, down from $0.9 million in the same period of 2022[65]. - Total unrecognized compensation cost related to unvested stock options as of June 30, 2023, was $2.6 million, expected to be recognized over a weighted-average period of 1.5 years[65]. - As of June 30, 2023, total unrecognized compensation cost related to unvested RSUs was $24.9 million, expected to vest over a weighted average period of 3.2 years[68]. - The company had 1,604 thousand nonvested RSUs outstanding at June 30, 2023, with a grant date fair value of $14.94[71]. Taxation - The effective tax rate from continuing operations was 2.0% for the three months ended June 30, 2023, compared to 11.4% for the same period in 2022[55]. - The effective tax rate was 3.2% for the six months ended June 30, 2023, compared to 8.5% for the same period in 2022, with a tax expense of $0.6 million[121]. Operational Highlights - The company operates over 60,000 points of distribution across retail and e-commerce channels, enhancing its market reach[35]. - PetIQ's national service platform operates in over 2,600 retail partner locations across 41 states, providing veterinary wellness services[35]. - The Products segment includes manufacturing and distribution, while the Services segment encompasses veterinary and wellness services[36]. - The company has not reported any significant changes to its accounting policies that would materially impact its financial statements during the reporting period[40]. - The financial results for the interim periods are not necessarily indicative of the results that may be expected for the full year[38]. - Maintenance capital expenditures have typically been less than 1.0% of net sales, with potential for additional expenditures to support growth[131]. - The company is exploring opportunities to optimize its capital structure as part of its long-term liquidity strategy[133].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38163 PetIQ, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 230 E. Riverside Dr. 83616 Eagle, Idaho (Zip Code) For the quarterly period ended March 31, 2023 ¨ TRANSITION REPORT PURS ...

Financial Performance & Guidance - PetIQ's first quarter net sales and adjusted EBITDA exceeded company guidance[14] - The company reported record quarterly net income and adjusted EBITDA[14] - FY23 Net Sales Guidance is ~$970 million - $103 billion[57] - FY23 Adjusted EBITDA Guidance is ~$86 million - $92 million[57] - Q2 2023 Net Sales Guidance is ~$270 million - $280 million[66] - Q2 2023 Adjusted EBITDA Guidance is ~$24 million - $26 million[66] Strategic Initiatives & Market Position - PetIQ captured a disproportionate amount of market share and outperformed the broader product categories in which they compete[2] - PetIQ is the only animal health company 100% partnered with USA retailers[19] - PetIQ completed the acquisition of Rocco & Roxie on January 13, 2023, to expand its offerings[14] Product Segment & Brands - PetIQ's manufactured brand sales are expected to reach ~32% of total products segment net sales in 2023[25] - PetIQ brands within e-commerce continued to outpace and gain share vs the category[31] Services Segment - The Services Segment achieved its highest profit contribution quarter since Q4 2019, reflecting improved operating efficiencies and the maturation of wellness centers[14]

And if you do get to 32% in 2023, what are you kind of shooting for longer term? Could this be 40% of the product portfolio over time? Just trying to get a sense of how you're thinking about that longer term as well. Elliot Wilbur And I'm curious, you continue to see sort of this trade-down effect as consumers start to tighten the pocketbooks a little bit in terms of at least retail takeaway, not sure how evident that is necessarily on the services side, but certainly seeing higher ticket prices negatively ...

Market Overview - By year-end 2022, approximately 52% of total U.S. households owned a dog or cat, projected to increase to 55% by 2026[19] - U.S. consumers spent $122.8 billion on pet products and services in 2021, up from $53.7 billion in 2010, representing a CAGR of 8.5%[19] - The total U.S. pet products and services market is projected to grow at a CAGR of 7.3% from 2021 to 2026[19] - Veterinary channel sales of pet medications grew from $6.7 billion in 2018 to $8.3 billion in 2021, with overall retail and veterinary channel sales estimated to grow from $9.7 billion in 2018 to $12.6 billion in 2021[19] - U.S. retail sales of pet medications reached $11.6 billion in 2021, projected to grow to $13.8 billion by 2026[20] Company Growth and Strategy - The Services segment, which includes veterinary services, grew from $28.5 billion in 2018 to $32.3 billion in 2020[23] - The company plans to open approximately 1,000 wellness centers to address the $10.0 billion underserved veterinary market[23] - The company has invested in research and development to expand its proprietary value-branded portfolio and develop next-generation products[34] - The company offers over 350 SKUs of popular pet Rx medications, competing with national veterinary brands[26] - The company's marketing strategy focuses on building awareness and educating pet owners about its brands and products through television, digital marketing, social media, and in-store promotions[53] Financial Performance - Total net sales for 2022 were $921.5 million, a slight decrease of 1.1% from $932.5 million in 2021[257] - Product sales decreased to $800.3 million in 2022 from $825.4 million in 2021, representing a decline of 3.4%[257] - Services revenue increased to $121.2 million in 2022, up 13.1% from $107.1 million in 2021[257] - The net loss for 2022 was $48.6 million, compared to a net loss of $16.4 million in 2021, indicating a significant increase in losses[260] - Gross profit for 2022 was $209.7 million, up from $186.4 million in 2021, reflecting a gross margin improvement[257] Assets and Liabilities - Total current assets increased to $370.1 million in 2022 from $298.7 million in 2021, with cash and cash equivalents rising to $101.3 million[255] - Total liabilities decreased slightly from $564.4 million in 2021 to $607.1 million in 2022, while total equity fell from $255.2 million to $211.8 million[255] - The company had variable rate debt of approximately $295.5 million as of December 31, 2022, with a 1% increase in interest rates potentially raising interest expenses by $2.9 million[239] - PetIQ's total assets were reported at $818.9 million as of December 31, 2022, compared to $819.6 million in 2021[255] Compliance and Safety - The company maintains a Veterinary Prescription Drug Wholesale Distributor license in Florida, ensuring compliance with safety standards through regular inspections[48] - The food safety program at the Utah plant is certified at Safe Quality Food ("SQF") Level II, ensuring compliance with food safety specifications and preventing cross-contamination[46] - The company has received high marks for compliance with current good manufacturing practices ("cGMPs") and maintains certifications as required[50] - The company is subject to a broad range of laws and regulations intended to protect public health and safety, including those from the FDA and EPA[58] Employment and Talent Management - As of December 31, 2022, PetIQ employed approximately 1,888 people, with 1,338 in the Services division and 1,555 independent contractor veterinarians[65] - The company aims to attract and retain key talent through competitive pay and benefits, focusing on internal talent mobility and technology investment[66] Inventory and Receivables - Total accounts receivable, net as of December 31, 2022, was $118.004 million, compared to $113.947 million as of December 31, 2021, reflecting an increase of 3.7%[284] - Total inventories as of December 31, 2022, were $142.605 million, up from $96.440 million as of December 31, 2021, representing an increase of 47.9%[285] - Trade receivables due from customers were $104.612 million as of December 31, 2022, down from $108.049 million as of December 31, 2021, indicating a decrease of 4.0%[284] Debt and Financing - The Company issued $143.8 million in aggregate principal amount of 4.00% Convertible Senior Notes due 2026, with net proceeds of $137.9 million[337] - The Term Loan B agreement provides senior secured term loans of $300 million, with an interest rate of 8.57% as of December 31, 2022[334] - Future maturities of long-term debt total $288.9 million thereafter as of December 31, 2022[354] Goodwill and Impairment - The company recorded a goodwill impairment of $47.3 million for the Services reporting unit due to a significant decline in market capitalization and slowed expansion plans[250] - Goodwill as of December 31, 2022, was $183.3 million, a decrease from $231.1 million in 2021 due to impairment[330] Taxation - Total income tax expense for 2022 was $1,214,000, a decrease from $3,869,000 in 2021[367] - The effective income tax rate for 2022 was (2.6)%, significantly improved from (30.9)% in 2021[370] - Deferred tax assets totaled $75.6 million as of December 31, 2022, with a full valuation allowance against these assets[362]

PetIQ, Inc. (NASDAQ:PETQ) Q3 2022 Earnings Conference Call November 9, 2022 4:30 PM ET Company Participants Katie Turner - Investor Relations Cord Christensen - Chairman & Chief Executive Officer Zvi Glasman - Chief Financial Officer Michael Smith - President & Chief Operating Officer Conference Call Participants Jon Andersen - William Blair Rupesh Parikh - Oppenheimer Operator Good day and welcome to the PetIQ Inc. Third Quarter 2022 Earnings Conference Call. [Operator Instructions] After today's presentat ...

2Q22 Earnings Presentation August 2022 Our Mission: To deliver a smarter way for pet parents to help their pets live their best lives through convenient access to affordable products and services. FORWARD-LOOKING STATEMENTS This presentation 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 identi ...

PetIQ, Inc. (NASDAQ:PETQ) Q2 2022 Earnings Conference Call August 9, 2022 4:30 PM ET Company Participants Katie Turner - Investor Relations Cord Christensen - Chairman and Chief Executive Officer Zvi Glasman - Chief Financial Officer Michael Smith - President and Chief Operating Officer Conference Call Participants Jon Andersen - William Blair Rupesh Parikh - Oppenheimer Bill Chappell - Truist Securities Elliot Wilbur - Raymond James John Lawrence - The Benchmark Company Corey Grady - Jefferies Operator Goo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38163 PetIQ, Inc. (Exact name of registrant as specified in its charter) Securities registered pursuant to Section 12(g) of ...

1Q22 Earnings Presentation MAY 2022 Our Mission: To deliver a smarter way for pet parents to help their pets live their best lives through convenient access to affordable products and services. FORWARD-LOOKING STATEMENTS This presentation 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 ...