PetIQ(US:PETQ)2022-05-04 21:39Financial Performance - Consolidated net sales increased by $21.3 million, or 8.4%, to $275.7 million for the three months ended March 31, 2022, compared to $254.3 million for the same period in 2021[88]. - Product sales rose by $17.7 million, or 7.7%, to $247.8 million for the three months ended March 31, 2022, driven by new product launches and growth in existing products[89]. - Services revenue increased by $3.6 million, or 14.9%, to $27.9 million for the three months ended March 31, 2022, with same-store sales up by $0.8 million, or 4.1%[90]. - Gross profit increased by $9.8 million, or 20.6%, to $57.6 million for the three months ended March 31, 2022, with gross margin improving to 20.9% from 18.8%[91][92]. - For the three months ended March 31, 2022, net income was $3.16 million, compared to $2.39 million for the same period in 2021, representing a year-over-year increase of approximately 32.3%[108]. - Adjusted EBITDA for the three months ended March 31, 2022, was $31.6 million, up from $26.9 million in the same period of 2021, reflecting a growth of about 17.5%[108]. Expenses and Costs - Selling, general and administrative expenses rose by $7.6 million, or 18.6%, to $48.2 million for the three months ended March 31, 2022, representing 17.5% of net sales[93]. - Interest expense, net, increased by $1.3 million to $6.1 million for the three months ended March 31, 2022, due to additional debt outstanding[96]. - An increase of 1% in interest rates would have raised interest expenses by approximately $0.8 million for the three months ended March 31, 2022[121]. Cash Flow and Working Capital - As of March 31, 2022, cash and cash equivalents were $51.1 million, down from $79.4 million as of December 31, 2021, indicating a decrease of approximately 35.5%[110]. - Working capital increased to $234.6 million as of March 31, 2022, compared to $200.6 million as of December 31, 2021, marking an increase of about 16.9%[111]. - Net cash used in operating activities was $45.4 million for the three months ended March 31, 2022, a decrease from $57.4 million in the same period of 2021, showing an improvement of approximately 20.8%[113]. - Net cash used in investing activities decreased to $5.7 million for the three months ended March 31, 2022, compared to $8.3 million in the same period of 2021, reflecting a reduction of about 31.3%[116]. - Net cash provided by financing activities was $22.9 million for the three months ended March 31, 2022, down from $43.2 million in the same period of 2021, indicating a decline of approximately 47.1%[117]. - The company anticipates that operating cash flow and cash on hand will be sufficient to meet its operating, investing, and financing needs for the foreseeable future[112]. Segment Performance - Adjusted EBITDA for the Products segment increased by $9.1 million, or 23.5%, to $47.9 million for the three months ended March 31, 2022[97]. - Services segment Adjusted EBITDA rose by $1.0 million to $3.1 million for the three months ended March 31, 2022, benefiting from optimized scheduling[99]. - Non same-store sales in the Services segment increased by $2.8 million, or 64.3%, to $7.2 million for the three months ended March 31, 2022, attributed to the opening of approximately 98 additional wellness centers[90]. Distribution and Operations - The company operates over 60,000 points of distribution across retail channels, including veterinary services, supported by a manufacturing facility in Omaha, Nebraska[84].