EX-99.1 2 earnings.htm

 

 

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

At Heska Corporation:

Jason Napolitano, Executive Vice President & CFO

 

(970) 493-7272, Ext. 4105

 

 

Heska Announces Q209 Results

 

 

Over $1 Million in Operating Income for 2nd Consecutive Quarter

 

LOVELAND, CO, August 10, 2009 -- Heska Corporation (NASDAQ: HSKA, "Heska" or the "Company") today reported financial results for its second quarter ended June 30, 2009.

 

"We are pleased to report better than expected financial performance in the second quarter of 2009, with our second consecutive profitable quarter in these difficult economic conditions. We were able to overcome an anticipated, but significant, lower revenue and gross margin result in our Other Vaccines, Pharmaceuticals and Products segment to generate these results. More than half of the year-over-year decrease is from one customer who ordered in the first half of 2008 but not 2009. As we have publicly discussed, this is the last quarter we expect to face such a difficult comparison resulting from this customer's impact," said Robert Grieve, Heska's Chairman and CEO. "A key to our success thus far this year is the careful expense and spending control our operating team continues to exhibit."

 

Investor Conference Call

Management will conduct a conference call on Monday, August 10, 2009 at 9:00 a.m. MDT (11:00 a.m. EDT) to discuss the second quarter 2009 financial results. To participate, dial (877) 941-9205 (domestic) or (480) 629-9835 (international); the conference call access number is 4124348. The conference call will also be broadcast live over the Internet at http://www.heska.com. To listen, simply log on to the web at this address at least ten minutes prior to the start of the call to register, download and install any necessary audio software. Telephone replays of the conference call will be available for playback until August 24, 2009. The telephone replay may be accessed by dialing (800) 406-7325 (domestic) or (303) 590-3030 (international). The webcast replay may be accessed from Heska's home page at www.heska.com until August 24, 2009.

 

 

About Heska

Heska Corporation (NASDAQ: HSKA) sells advanced veterinary diagnostic and other specialty veterinary products. Heska's state-of-the-art offerings to its customers include diagnostic and monitoring instruments and supplies as well as single use, point-of-care tests, pharmaceuticals and vaccines. The company's core focus is on the canine and feline markets where it strives to provide high value products and unparalleled customer support to veterinarians. For further information on Heska and its products, visit the company's website at www.heska.com.

 

Forward-Looking Statements

This announcement contains forward-looking statements regarding Heska's future financial and operating results. These statements are based on current expectations and are subject to a number of risks and uncertainties. Investors should note that there is an inherent risk in using past results, including trends, to predict future outcomes. In addition, factors that could affect the business and financial results of Heska generally include the following: uncertainties regarding overall economic conditions, the affect of these conditions on Heska's business, which may change as compared to historical results, and Heska's accuracy in predicting these and related matters; uncertainties relating to Heska's ability to continue to operate its business at current, or reduced, expense and spending levels without diminishing Heska's prospects and market position; uncertainties related to the anticipated loss, after November 1, 2009, of access to products from Abbott Point of Care Inc., which represent approximately 18% of Heska's revenue for the year ended June 30, 2009, as well as uncertainties related to the loss of exclusive access to these products on May 1, 2009; uncertainties regarding Heska's ability to generate profits in future periods; risks regarding Heska's ability to successfully market, sell and distribute its products in an economically sustainable manner; uncertainties related to Heska's ability to maintain its listing on the Nasdaq Capital Market; competition, including uncertainties regarding the impact of new products competitors have recently launched or may launch in the future; uncertainties regarding Heska's reliance on third parties to whom Heska has granted substantial marketing rights to certain of Heska's existing products and whom may be large Heska customers; risks regarding Heska's reliance on third-party suppliers, which is substantial and could have significant negative consequences if Heska were to lose exclusive rights or access to a product due to a supplier decision or for other reasons; the level of Heska's fixed expense, which is significant, and the corresponding cash flow and liquidity-related risks resulting from unanticipated revenue and gross margin shortfalls; and the risks set forth in Heska's filings and future filings with the Securities and Exchange Commission, including those set forth in Heska's Annual Report on Form 10-K for the year ended December 31, 2008 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2009.

 

Financial Table Follows:

 

Consolidated Statements of Operations

In Thousands, Except per Share Amounts

(unaudited)

 

 

Three Months Ended

June 30,

 

Six Months Ended
June 30,

 

2008

 

2009

 

2008

 

2009

 

Revenue, net:

 

 

 

 

Core companion animal health

$

17,596

 

$

16,879

 

$

35,233

 

$

35,016

 

Other vaccines, pharmaceuticals and products

 

5,019

 

 

1,750

 

 

9,300

 

 

3,754

 

Total revenue, net

 

22,615

 

 

18,629

 

 

44,533

 

 

38,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

14,044

 

 

11,598

 

 

28,226

 

 

24,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

8,571

 

 

7,031

 

 

16,307

 

 

14,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

4,644

 

 

3,622

 

 

9,566

 

 

7,380

 

Research and development

 

417

 

 

405

 

 

956

 

 

851

 

General and administrative

 

2,124

 

 

1,994

 

 

4,622

 

 

4,146

 

Total operating expenses

 

7,185

 

 

6,021

 

 

15,144

 

 

12,377

 

Operating income

 

1,386

 

 

1,010

 

 

1,163

 

 

2,027

 

Interest and other expense, net

 

181

 

 

41

 

 

347

 

 

206

 

Income before income taxes

 

1,205

 

 

969

 

 

816

 

 

1,821

 

 

Income tax expense

 

539

 

 

390

 

 

376

 

 

782

 

 

Net income

$

666

 

$

579

 

$

440

 

$

1,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

$

0.01

 

$

0.01

 

$

0.01

 

$

0.02

 

Diluted net income per share

$

0.01

 

$

0.01

 

$

0.01

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for basic net income per share

 

51,595

 

 

52,012

 

 

51,538

 

 

52,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for diluted net income per share

 

53,961

 

 

52,035

 

 

54,401

 

 

52,013

 

 

Balance Sheet Data

In Thousands (unaudited)

 

 

 

December 31,

2008

 

June 30,

2009

Cash and cash equivalents

 

$

4,705

 

$

5,324

 

Total current assets

 

 

31,290

 

 

28,591

 

Total assets

 

 

70,438

 

 

65,974

 

Line of credit

 

 

11,042

 

 

6,985

 

Current portion of long-term debt

 

 

770

 

 

719

 

Total current liabilities

 

 

22,228

 

 

17,084

 

Long-term debt, net of current portion

 

 

381

 

 

46

 

Stockholders' equity

 

 

42,523

 

 

43,693

 

 

 

###