PetIQ(US:PETQ)2024-05-08 21:55Financial Performance - Total net sales for Q1 2024 reached $308.443 million, a 6.5% increase from $290.471 million in Q1 2023[18] - Gross profit for Q1 2024 was $74.543 million, compared to $62.261 million in Q1 2023, reflecting a 19.7% increase[18] - Net income attributable to PetIQ, Inc. for Q1 2024 was $14.907 million, up from $9.699 million in Q1 2023, representing a 53.5% increase[18] - Operating income for Q1 2024 was $24.334 million, compared to $18.935 million in Q1 2023, indicating a 28.4% increase[18] - For the three months ended March 31, 2024, the net income was $15.027 million, compared to $9.781 million for the same period in 2023, representing a year-over-year increase of 53.0%[29] - Basic earnings per share increased to $0.51 for the three months ended March 31, 2024, compared to $0.33 in 2023[57] - Net income for the three months ended March 31, 2024, was $15,027,000, compared to $9,781,000 in the same period of 2023, reflecting a 53.3% increase[75] Balance Sheet and Cash Flow - Cash and cash equivalents decreased to $25.374 million as of March 31, 2024, down from $116.369 million at the end of 2023[16] - Accounts receivable increased to $191.862 million in Q1 2024 from $142.511 million at the end of 2023, a 34.5% increase[16] - Total current liabilities decreased to $183.998 million in Q1 2024 from $189.529 million at the end of 2023[16] - The company reported a net cash used in operating activities of $85.144 million for Q1 2024, compared to $43.327 million in Q1 2023[24] - The company’s total assets increased to $875.236 million as of March 31, 2024, compared to $868.226 million at the end of 2023[16] - The balance of accumulated deficit decreased from $162.733 million on January 1, 2023, to $145.695 million by March 31, 2024, indicating an improvement in the company's financial position[29] - The company reported total equity of $237.850 million as of March 31, 2024, up from $223.149 million a year earlier, reflecting a growth of 6.6%[29] Debt and Interest - The company has a Senior Secured Asset-Based Revolving Credit Facility with a borrowing capacity of $125 million, with no amounts outstanding as of March 31, 2024[42][43] - The interest rate on the Term Loan B was 10.17% as of March 31, 2024, with a principal amount of $300 million and quarterly amortization payments of 0.25%[44][45] - As of March 31, 2024, total long-term debt is $436,423,000, a slight decrease from $437,820,000 as of December 31, 2023[48] - The estimated future maturities of long-term debt include $281,100,000 due in 2028 and $147,324,000 due in 2026[48] - The company had variable rate debt of approximately $291.8 million, with a potential interest expense increase of $0.7 million for a 1% rate hike[119] - Interest expense for Q1 2024 was $9.106 million, slightly up from $8.732 million in Q1 2023[18] Operational Highlights - The company operates over 2,600 community clinic locations and wellness centers across 39 states, providing veterinary services and related product sales[35] - The Products segment distributes pet medication and health products through more than 60,000 points of distribution in the U.S.[34] - The company focuses on innovative, proprietary value-branded products for pets, including Rx medications and wellness products[34] - The company closed 149 underperforming wellness centers during 2023, leaving 133 operational as of March 31, 2024[80] Other Financial Metrics - The effective tax rate from continuing operations was 2.1% for the three months ended March 31, 2024, compared to 4.4% for the same period in 2023[53] - The total unrecognized compensation cost related to unvested RSUs was $28,000,000, expected to vest over a weighted average of 3.1 years[62] - The Company recorded $0.3 million of expense associated with the settlement of a lawsuit during the three months ended March 31, 2024[70] - The Company has two operating segments: Products and Services, with performance evaluated based on Segment Adjusted EBITDA[72] - The Company owned a weighted average of 99.2% of HoldCo for the three months ended March 31, 2024[68] - Product sales increased to $276,891,000 in Q1 2024, up 6.9% from $258,993,000 in Q1 2023[74] - Segment Adjusted EBITDA for Products was $34,605,000, an increase of 7.5% from $32,196,000 in the prior year[75] - The company recorded asset charges of $7.7 million related to the sale of its foreign subsidiary, Mark & Chappell, which was classified as held for sale as of March 31, 2024[41] - The company sold its foreign subsidiary M&C for approximately $4.0 million in net cash proceeds on April 30, 2024, and will incur a loss of about $1.7 million in Q2 2024[87] - The company reported no restructuring expenses for the three months ended March 31, 2024[82] - Total outstanding restructuring liability as of March 31, 2024, was $916,000, down from $2,835,000 at the end of 2023[82] - Annual policy premiums for insurance policies were $7.2 million in 2024, up from $6.9 million in 2023[83]