UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||||||||
Washington, D.C. 20549 | ||||||||||||||||||||
FORM | ||||||||||||||||||||
(Amendment No.) | ||||||||||||||||||||
CURRENT REPORT | ||||||||||||||||||||
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 | ||||||||||||||||||||
Date of Report (Date of earliest event reported) | ||||||||||||||||||||
(Exact name of Registrant as specified in its charter) | ||||||||||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant's telephone number, including area code | ( | |||||||||||||||||||
Not Applicable (Former name or former address, if changed since last report) | ||||||||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||||||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||||||||
Emerging Growth Company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | ||||||||||||||||||||
Exhibit Number | Description | |||||||
Press Release dated May 5, 2023. | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
HESKA CORPORATION, a Delaware corporation | |||||
Dated: May 5, 2023 | By: /s/ Catherine Grassman Catherine Grassman Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) |
Heska Corporation | |||||||||||
Jon Aagaard | |||||||||||
Investor Relations | |||||||||||
970.619.3033 | |||||||||||
investorrelations@heska.com |
Q1 ($) | Q1 (%) YOY | |||||||
Consolidated revenue | $62.4 | (3.7)% | ||||||
Q1 (%) | Q1 YOY bps1 | |||||||
Consolidated gross margin | 43.9% | (110) | ||||||
Net loss margin2 | (15.7)% | (90) | ||||||
Adjusted EBITDA margin3 | 5.2% | (670) | ||||||
Q1 ($) | Q1 (%) YOY | |||||||
Net loss attributable to Heska | $(10.1) | (1.4)% | ||||||
Net loss | $(9.8) | (1.8)% | ||||||
Adjusted EBITDA3 | $3.3 | (57.6)% | ||||||
EPS, Diluted | $(0.97) | —% | ||||||
Non-GAAP EPS, Diluted3 | $0.17 | (37.0)% |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenue, net | $ | 62,381 | $ | 64,800 | ||||||||||
Cost of revenue | 34,982 | 35,655 | ||||||||||||
Gross profit | 27,399 | 29,145 | ||||||||||||
Operating expenses: | ||||||||||||||
Selling and marketing | 12,449 | 11,997 | ||||||||||||
Research and development | 3,088 | 12,456 | ||||||||||||
General and administrative | 22,285 | 16,146 | ||||||||||||
Total operating expenses | 37,822 | 40,599 | ||||||||||||
Operating loss | (10,423) | (11,454) | ||||||||||||
Interest and other (income) expense, net | (272) | 359 | ||||||||||||
Loss before income taxes and equity in losses of unconsolidated affiliates | (10,151) | (11,813) | ||||||||||||
Income tax (benefit) expense: | ||||||||||||||
Current income tax expense | 690 | 158 | ||||||||||||
Deferred income tax benefit | (1,065) | (2,366) | ||||||||||||
Total income tax benefit | (375) | (2,208) | ||||||||||||
Net loss before equity in losses of unconsolidated affiliates | (9,776) | (9,605) | ||||||||||||
Equity in losses of unconsolidated affiliates | (349) | (381) | ||||||||||||
Net loss attributable to Heska Corporation | $ | (10,125) | $ | (9,986) | ||||||||||
Basic loss per share attributable to Heska Corporation | $ | (0.97) | $ | (0.97) | ||||||||||
Diluted loss per share attributable to Heska Corporation | $ | (0.97) | $ | (0.97) | ||||||||||
Weighted average outstanding shares used to compute basic loss per share attributable to Heska Corporation | 10,390 | 10,273 | ||||||||||||
Weighted average outstanding shares used to compute diluted loss per share attributable to Heska Corporation | 10,390 | 10,273 |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents | $ | 125,209 | $ | 156,618 | ||||||||||
Accounts receivable, net of allowance for losses of $1,190 and $1,129, respectively | 26,054 | 29,493 | ||||||||||||
Inventories | 64,183 | 60,050 | ||||||||||||
Net investment in leases, current, net of allowance for losses of $190 and $182, respectively | 8,173 | 7,433 | ||||||||||||
Prepaid expenses | 6,239 | 5,514 | ||||||||||||
Related party convertible note receivable, net | 2,312 | — | ||||||||||||
Other current assets | 6,451 | 5,926 | ||||||||||||
Total current assets | 238,621 | 265,034 | ||||||||||||
Property and equipment, net | 55,030 | 32,171 | ||||||||||||
Operating lease right-of-use assets | 13,101 | 6,897 | ||||||||||||
Goodwill | 145,403 | 135,918 | ||||||||||||
Other intangible assets, net | 65,813 | 62,393 | ||||||||||||
Deferred tax asset, net | 31,483 | 23,684 | ||||||||||||
Net investment in leases, non-current | 29,605 | 27,499 | ||||||||||||
Investments in unconsolidated affiliates | 592 | 3,959 | ||||||||||||
Related party convertible note receivable, net | — | 2,224 | ||||||||||||
Promissory note receivable from investee, net | — | 13,511 | ||||||||||||
Other non-current assets | 13,067 | 12,526 | ||||||||||||
Total assets | $ | 592,715 | $ | 585,816 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 12,246 | $ | 16,403 | ||||||||||
Accrued liabilities | 20,866 | 15,149 | ||||||||||||
Operating lease liabilities, current | 4,049 | 2,944 | ||||||||||||
Deferred revenue, current, and other | 5,137 | 5,081 | ||||||||||||
Total current liabilities | 42,298 | 39,577 | ||||||||||||
Convertible note, non-current, net | 84,579 | 84,467 | ||||||||||||
Notes payable | 11,130 | 11,130 | ||||||||||||
Deferred revenue, non-current | 5,422 | 4,096 | ||||||||||||
Operating lease liabilities, non-current | 9,674 | 4,528 | ||||||||||||
Deferred tax liability | 16,629 | 16,438 | ||||||||||||
Other liabilities | 5,312 | 3,372 | ||||||||||||
Total liabilities | 175,044 | 163,608 | ||||||||||||
Total stockholders' equity | 417,671 | 422,208 | ||||||||||||
Total liabilities and stockholders' equity | $ | 592,715 | $ | 585,816 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net loss(1) | $ | (9,776) | $ | (9,605) | |||||||
Income tax benefit | (375) | (2,208) | |||||||||
Interest (income) expense, net | (423) | 440 | |||||||||
Depreciation and amortization | 3,974 | 3,300 | |||||||||
EBITDA | $ | (6,600) | $ | (8,073) | |||||||
Acquisition-related and other non-recurring/extraordinary costs(2) | 7,135 | 11,032 | |||||||||
Stock-based compensation | 3,077 | 5,110 | |||||||||
Equity in losses of unconsolidated affiliates | (349) | (381) | |||||||||
Adjusted EBITDA | $ | 3,263 | $ | 7,688 | |||||||
Net loss margin(3) | (15.7) | % | (14.8) | % | |||||||
Adjusted EBITDA margin(3) | 5.2 | % | 11.9 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
GAAP net loss attributable to Heska per diluted share | $ | (0.97) | $ | (0.97) | |||||||
Acquisition-related and other one-time costs(1) | 0.68 | 1.04 | |||||||||
Amortization of acquired intangibles(2) | 0.24 | 0.21 | |||||||||
Purchase accounting adjustments related to fixed asset step-up(3) | 0.05 | 0.05 | |||||||||
Stock-based compensation | 0.29 | 0.48 | |||||||||
Loss on equity investee transactions | 0.03 | 0.04 | |||||||||
Estimated income tax effect of above non-GAAP adjustments(4) | (0.15) | (0.58) | |||||||||
Non-GAAP net income per diluted share | $ | 0.17 | $ | 0.27 | |||||||
Shares used in diluted per share calculations | 10,521 | 10,605 |
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Cover Page |
May 05, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 05, 2023 |
Entity Registrant Name | HESKA CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 000-22427 |
Entity Tax Identification Number | 77-0192527 |
Entity Address, Address Line One | 3760 Rocky Mountain Avenue |
Entity Address, City or Town | Loveland |
Entity Address, State or Province | CO |
Entity Address, Postal Zip Code | 80538 |
City Area Code | 970 |
Local Phone Number | 493-7272 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, $0.01 par value |
Trading Symbol | HSKA |
Security Exchange Name | NASDAQ |
Entity Central Index Key | 0001038133 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
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