S m a r t e r P e t H e a l t h Second Quarter 2020 Earnings Presentation August 6th, 2020 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. | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

PetIQ, Inc. (NASDAQ:PETQ) Q1 2020 Earnings Conference Call May 7, 2020 4:30 PM ET Company Participants Jeff Sonnek - Investor Relations Contact Cord Christensen - Chairman & Chief Executive Officer Susan Sholtis - President John Newland - Chief Financial Officer Conference Call Participants Bill Chappell - SunTrust Robinson Humphrey David Westenberg - Guggenheim Securities Joe Altobello - Raymond James Jon Andersen - William Blair Kevin Grundy - Jefferies Brian Nagel - Oppenheimer Operator Good day and welc ...

S m a r t e r P e t H e a l t h First Quarter 2020 Earnings Presentation May 7, 2020 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. | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - Consolidated net sales increased by $38.3 million, or 26%, to $186.8 million for the three months ended March 31, 2020, compared to $148.4 million for the same period in 2019[148]. - Product sales increased by $40.2 million, or 32%, to $166.3 million for the three months ended March 31, 2020, driven by growth in manufactured products[149]. - Service revenue decreased by $1.9 million, or 8%, to $20.5 million for the three months ended March 31, 2020, primarily due to COVID-19 related closures[152]. - Gross profit increased by $7.4 million, or 30%, to $32.2 million for the three months ended March 31, 2020, attributed to significant growth in product sales[153]. - Same-store sales in the Services segment decreased by $2.6 million, or 13%, to $18.2 million for the three months ended March 31, 2020[152]. - Gross margin increased to 17.2% for the three months ended March 31, 2020, from 16.7% for the same period in 2019, driven by higher margin product sales[154]. - Adjusted EBITDA for the three months ended March 31, 2020, was $14.5 million, compared to $10.9 million for the same period in 2019, reflecting an increase in Adjusted EBITDA margin from 7.3% to 7.7%[173]. Expenses and Costs - General and administrative expenses increased by $11.2 million, or 54%, to $31.7 million for the three months ended March 31, 2020, as a percentage of net sales rising from 13.8% to 17.0%[155]. - Interest expense increased by $2.8 million to $4.7 million for the three months ended March 31, 2020, due to additional debt for the Perrigo Animal Health Acquisition[160]. - Services segment Adjusted EBITDA decreased by $3.3 million, or 62%, to $2.0 million for the three months ended March 31, 2020, compared to $5.3 million for the same period in 2019[164]. - Unallocated corporate expenses have grown due to the Company's expansion, including increased administrative headcount through acquisitions[165]. Cash Flow and Working Capital - Net cash used in operating activities was $68.6 million for the three months ended March 31, 2020, compared to $18.2 million for the same period in 2019, reflecting lower earnings and significant expansion in working capital[180]. - Net cash provided by financing activities was $74.2 million for the three months ended March 31, 2020, compared to $6.9 million for the same period in 2019, primarily driven by the utilization of the revolving credit facility[182]. - Working capital as of March 31, 2020, was $185.9 million, an increase from $112.4 million as of December 31, 2019[177]. - The Company had $72.5 million in cash used in operating activities due to changes in assets and liabilities for the three months ended March 31, 2020[180]. Debt and Financing - The Company executed an Asset Purchase Agreement to acquire U.S. rights to Capstar® and CapAction® for $95 million, contingent upon customary closing conditions[146]. - The Company is in the process of arranging financing to complete the Acquisition of Capstar® and CapAction®, with no assurance that financing will be available on advantageous terms[178]. - As of March 31, 2020, cash and cash equivalents were $28.1 million, with $84.3 million outstanding under a revolving credit facility and $219.5 million under a term loan[176]. - As of March 31, 2020, $84.3 million was outstanding under the Amended Revolving Credit Agreement with a weighted average interest rate of 3.1%[187]. - The A&R Term Loan Credit Agreement was increased from $74.1 million to $220.0 million at an interest rate of Eurodollar rate plus 4.50%[188]. - As of March 31, 2020, $219.5 million was outstanding under the A&R Term Loan Credit Agreement[192]. - The Company has variable rate debt of approximately $303.8 million under its Revolver and Term Loan as of March 31, 2020[197]. - An increase of 1% in interest rates would have increased the interest expense for the three months ended by approximately $1.2 million[197]. - The Company entered into a guarantee note of $10.0 million in connection with the VIP Acquisition, with $27.5 million total payable under related notes[194]. - The Company incurred debt issuance costs of $0.1 million related to the A&R Credit Agreement during the three months ended March 31, 2019[195]. - As of March 31, 2020, the borrowers and guarantors were in compliance with all covenants under the Amended Revolving Credit Agreement and A&R Term Loan Credit Agreement[186][191]. Other Information - The mortgage for a commercial building in Eagle, Idaho, has a principal of $1.9 million at a fixed interest rate of 4.35%[193]. - The Company has not experienced any material impact on its internal controls over financial reporting despite remote work due to the COVID-19 pandemic[200].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ 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: PetIQ, Inc. (Exact name of registrant as specified in its charter) Delaware 35‑2554312 (State or other jurisdiction of incorporation ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Exact name of registrant as specified in its charter) Delaware 35‑2554312 (State or other jurisdiction of incorporation or organization ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 ☐ 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) Delaware 35‑2554312 (State or other juri ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Delaware 35‑2554312 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal years ended December 31, 2018 ☐ 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: PetIQ, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...