EX-99.1 2 ex99-1.htm PRESS RELEASE ex99-1.htm
Exhibit 99.1
 
 
 
 
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FOR IMMEDIATE RELEASE
 

At Heska Corporation:
Jason Napolitano, Executive Vice President & CFO
(970) 493-7272, Ext. 4105


Heska Announces Q2 2010 Results


Company Has No Long Term Debt Outstanding

LOVELAND, CO, July 20, 2010 -- Heska Corporation (NASDAQ: HSKA, “Heska” or the “Company”) today reported financial results for its second quarter ended June 30, 2010.
 
“Results exceeded our revenue and income guidance,” said Robert Grieve, Heska’s Chairman and CEO.  “As we have previously discussed, this quarter represented a difficult comparison as we are no longer selling our previous handheld blood analysis instrument and affiliated consumables.  Core Companion Animal Health Revenue excluding these handheld instruments and consumables increased in 2010 as compared to the prior year period.  We have been disappointed by the weak economic environment in the United States which we believe is having an impact on our instrument sales.  Despite these challenges, we paid the remaining balance on our long term debt prior to the end of our second quarter, a milestone we have been anticipating for some time.”

Investor Conference Call
Management will conduct a conference call on Tuesday, July 20, 2010 at 9:00 a.m. MDT (11:00 a.m. EDT) to discuss the second quarter 2010 financial results.  To participate, dial (877) 941-6009 (domestic) or (480) 629-9770 (international); the conference call access number is 4329553.  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 3, 2010.  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 3, 2010.

 
 

 

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 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 related to the performance of third parties to whom Heska has granted substantial marketing rights including, but not limited to, Schering-Plough Animal Health Corporation; risks related to obtaining regulatory approval to authorize shipment of Heska’s cattle vaccines; risks related to Heska’s ability to maintain its listing on the NASDAQ Capital Market; uncertainties related to Heska’s ability to market and sell its products successfully and economically; uncertainties related to Heska’s ability to generate profits and cash flow in future periods; uncertainties related to the future success of Heska’s efforts to prevent the production of  non-compliant products in its OVP segment; risks related to Heska’s reliance on third-party suppliers, which is significant; competition;  uncertainties related to Heska’s ablity to maintain all regulatory compliance required to continue to manufacture and sell vaccines and pharmaceuticals; uncertainties related to the impact of transfer restrictions on Heska’s stock, which were approved by Heska stockholders at Heska’s Annual Meeting of Stockholders on May 4, 2010; 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2010.

Financial Table Follows:

 
 

 

Consolidated Statements of Operations
In Thousands, Except per Share Amounts
(unaudited)

   Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2009
   2010  
2009
 
2010
 
Revenue, net:
   
Core companion animal health
16,879
 
13,731
 
$
35,016
 
$
29,523
 
Other vaccines, pharmaceuticals and products
 
1,750
   
1,376
   
3,754
   
3,278
 
Total revenue, net
 
18,629
   
15,107
   
38,770
   
32,801
 
                         
Cost of revenue
 
11,598
   
9,260
   
24,366
   
20,749
 
                         
Gross profit
 
7,031
   
5,847
   
14,404
   
12,052
 
                         
Operating expenses:
                       
Selling and marketing
 
3,622
   
3,656
   
7,380
   
7,692
 
Research and development
  405     
388
   
851
   
845
 
General and administrative
 
1,994
   
2,010
   
4,146
   
4,210
 
Total operating expenses
 
6,021
   
6,054
   
12,377
   
12,747
 
Operating income (loss)
 
1,010
 
 
(207
)  
2,027
 
 
(695
)
Interest and other expense, net
 
41
   
122
   
206
   
295
 
Income (loss) before income taxes
 
969
 
 
(329
)  
1,821
 
 
(990
)  
Income tax expense (benefit)
 
390
 
 
(164
)  
782
 
 
(495
)  
Net income (loss)
$
579
 
$
(165
)
$
1,039
 
$
(495
)  
                         
Basic net income (loss) per share
0.01
 
0.00
 
$
0.02
 
$
(0.01
)
Diluted net income (loss) per share
0.01
 
0.00
 
$
0.02
 
$
(0.01
)
                         
Shares used for basic net income (loss) per share
 
52,012
   
52,166
   
52,012
   
52,163
 
                         
Shares used for diluted net income (loss) per share
 
52,035
   
52,166
   
52,013
   
52,163
 

Balance Sheet Data
In Thousands (unaudited)


   
December 31,
2009
 
June 30,
2010
Cash and cash equivalents
 
$
5,400
 
$
5,564
 
Total current assets
   
28,493
   
27,495
 
Total assets
   
64,134
   
63,261
 
Line of credit
   
4,201
   
5,583
 
Current portion of long-term debt
   
381
   
 
Total current liabilities
   
14,107
   
14,124
 
Stockholders’ equity
   
45,055
   
44,633
 



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