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Selected Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data (Unaudited)
Quarterly Results

The following table sets forth selected unaudited quarterly results for the eight quarters commencing January 1, 2012 and ending December 31, 2013 (in thousands):

 
 
2013 Quarter Ended
 
2012 Quarter Ended
 
 
Dec. 31
 
Sept. 30(1)
 
Jun. 30
 
Mar. 31(2)
 
Dec. 31(3)
 
Sept. 30
 
Jun. 30(4)
 
Mar. 31(5)
Revenue
 
$
435,453

 
$
464,055

 
$
465,255

 
$
438,606

 
$
418,192

 
$
433,613

 
$
438,372

 
$
409,465

Gross profit
 
$
87,486

 
$
110,677

 
$
114,294

 
$
96,923

 
$
81,807

 
$
99,181

 
$
100,607

 
$
93,379

Operating income (loss)
 
$
45,923

 
$
72,039

 
$
75,701

 
$
55,351

 
$
(83,553
)
 
$
61,186

 
$
61,498

 
$
53,805

Net income (loss)
 
$
25,728

 
$
41,911

 
$
43,460

 
$
31,823

 
$
(57,025
)
 
$
35,642

 
$
35,778

 
$
36,321

Net income (loss) attributable to VCA Antech, Inc.
 
$
24,717

 
$
40,647

 
$
41,662

 
$
30,485

 
$
(58,051
)
 
$
34,037

 
$
34,320

 
$
35,245

Basic earnings (loss) per common share
 
$
0.28

 
$
0.46

 
$
0.47

 
$
0.34

 
$
(0.66
)
 
$
0.39

 
$
0.39

 
$
0.41

Diluted earnings (loss) per common share
 
$
0.28

 
$
0.45

 
$
0.46

 
$
0.34

 
$
(0.66
)
 
$
0.38

 
$
0.39

 
$
0.40


 
(1) 
Included in the third quarter is a non-cash physical inventory adjustment in our Animal Hospital business segment which resulted in a $2.8 million credit adjustment to direct costs, or $0.02 per diluted share.

(2) 
Included in the first quarter we recorded a write-down to net realizable value of $1.8 million, or $0.01 per diluted share, related to a vacant property that was held for sale and accrued costs totaling $2.0 million, or $0.01 per diluted share related to a vacant leased property.

(3) 
Included in 2012 fourth quarter operating income is a $123.6 million, non-cash goodwill and long-lived asset impairment charge, or $0.90 per diluted share. The charge is primarily related to our Vetstreet reporting unit, see Note 5, Goodwill.

(4) 
Included in 2012 second quarter gross profit is a $3.1 million depreciation expense adjustment, or $0.02 per diluted share, related to acquired capital leases.

(5) 
Included in 2012 first quarter net income is a $5.7 million business combination adjustment gain, or $0.06 per diluted share, related to the acquisition of AVC, see Note 4, Acquisitions.


16.
Selected Quarterly Financial Data (Unaudited), continued

Although not readily detectable because of the impact of acquisitions, our operations are subject to seasonal fluctuation. In particular, our Animal Hospital and Laboratory revenue historically has been greater in the second and third quarters than in the first and fourth quarters.

The demand for our veterinary services is significantly higher during warmer months because pets spend a greater amount of time outdoors, where they are more likely to be injured and are more susceptible to disease and parasites. In addition, use of veterinary services may be affected by levels of infestation of fleas, heartworms and ticks, and the number of daylight hours. A substantial portion of our costs for our veterinary services are fixed and do not vary with the level of demand. Consequently, our operating income and operating margins generally have been higher for the second and third quarters than that experienced in the first and fourth quarters.