-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UP5aODOTAKWiypCYaUrXygEr0CsCi22sRjmrZ+ZVe0w1EU39wn0LxpBNS/ihaRn5 5ayE1WI4qj4ZNmbArE5WOA== 0001011438-97-000026.txt : 19970228 0001011438-97-000026.hdr.sgml : 19970228 ACCESSION NUMBER: 0001011438-97-000026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970227 ITEM INFORMATION: Other events FILED AS OF DATE: 19970227 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: VETERINARY CENTERS OF AMERICA INC CENTRAL INDEX KEY: 0000817366 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE SERVICES [0700] IRS NUMBER: 954097995 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19935 FILM NUMBER: 97545587 BUSINESS ADDRESS: STREET 1: 3420 OCEAN PARK BLVD STE 1000 CITY: SANTA MONICA STATE: CA ZIP: 90405 BUSINESS PHONE: 3103929599 MAIL ADDRESS: STREET 1: 3420 OCEAN PARK BLVD STE 1000 CITY: SANTA MC STATE: CA ZIP: 90405 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ Form 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 18, 1997 VETERINARY CENTERS OF AMERICA, INC. (Exact Name of Registrant as Specified in Charter) Delaware 1-10787 95-4097995 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 3420 Ocean Park Boulevard, Suite 1000 Santa Monica, California 90405 (Address of Principal Executive Offices) (310) 392-9599 (Registrant's Telephone Number) ITEM 5. OTHER EVENTS ------------ Reference is made to the press release of Registrant, issued on February 18, 1997, which contains information meeting the requirements of this Item 5, and which is incorporated herein by this reference. A copy of this press release is attached to this Form 8-K as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. February 21, 1997 VETERINARY CENTERS OF AMERICA, INC. By: /s/Tomas Fuller -------------------------------- Tomas W. Fuller Chief Financial Officer, Vice President and Assistant Secretary EXHIBIT INDEX Exhibits Page Number - -------- ----------- 99.1 Press Release dated February 18, 1997. EX-99.1 2 VETERINARY CENTERS OF AMERICA, INC. REPORTS FOURTH QUARTER AND YEAR END FINANCIAL RESULTS SANTA MONICA, CA, February 18, 1997 -- VETERINARY CENTERS OF AMERICA, INC. ("VCA") (NASDAQ NM Symbol: VCAI), Tuesday announced that revenues for the fourth quarter and the fiscal year ended December 31, 1996 hit record levels. The Company reported revenues of $52.3 million for the fourth quarter and $182.2 million for the full year. This represents an increase for the quarter and year of 71.1% and 69.1%, respectively, over revenues of $30.6 million and $107.7 million in the comparable periods in the prior year. The increases in revenues for the quarter and the year were attributable primarily to the Company's aggressive acquisition program. VCA's current and historical operating results include the results of Pets' Rx, Inc., which was acquired through a pooling-of-interests merger on June 19, 1996. In addition, on July 19, 1996, the Company acquired The Pet Practice, Inc. The Company acquired over 100 animal hospitals primarily through these acquisitions. In addition, the Company completed the acquisition of six veterinary diagnostic laboratories in 1996. In the third quarter of 1996, the Company began to implement its plan to integrate the operations of the acquired hospitals. This plan included the write-off of certain redundant assets, the closure or sale of unprofitable hospitals and the termination of certain personnel. As a result, the Company recorded charges of $2.9 million in the fourth quarter and $15.2 million for the year. The charges, net of tax, represents $0.10 and $0.89 per share, respectively. The Company reported a net loss for the fourth quarter of $2.6 million or $0.14 per share, compared to a net loss of $1.8 million or $0.16 per share in 1995. Excluding the after-tax effect of restructuring and asset write-down charges in 1996 and 1995, the Company posted a loss for the fourth quarter of 1996 of $806,000 or $0.04 per share, compared with income of $371,000 or $0.03 per share for the fourth quarter of 1995. The Company reported a net loss for 1996 of $14.6 million or $0.92 per share, compared to a net loss of $1.2 million or $0.13 per share in 1995. Excluding the after-tax effect of restructuring and asset write-down charges in 1996 and 1995, the Company recorded income of $2.3 million or $0.15 per share in 1996, compared with income of $1.6 million or $0.17 per share in 1995. Bob Antin, President and Chief Executive Officer, stated: "1996 was a year of tremendous growth. The hospital division more than doubled in size, adding more than 100 locations to solidify our position as the largest provider of veterinary medicine in the United States. We now have over 150 hospitals in 23 states." "We also developed the largest veterinary exclusive diagnostic laboratory network in the country. Our laboratory network, now operating under the name Antech Diagnostics, has the ability to provide same-day or next-day results to approximately 90% of the country." "Vet's Choice, our joint venture with H.J. Heinz, reached a milestone with profitable months in December 1996 and January 1997." "The growth was accompanied by significant integration problems which became apparent during the fourth quarter. The Company has developed a plan which includes selling, closing or merging hospitals which do not fit our operating model, continuing our acquisition program, strengthening our management team, and completing the systems integration process." "We also altered the Vet's Choice partnership, allowing Heinz Pet Products to provide the day-to-day management of Vet's Choice which allows our management team to focus on our hospital and laboratory businesses." "We believe that Heinz Pet Products will be able to combine our products' marketing and distribution efforts with those of Nature's Recipe and other Heinz Pet Products pet-food companies, leveraging marketing, distribution and logistics and, most importantly, the value of our 50.5% ownership. Heinz Pet Products has an option to purchase our interest in three years based on a multiple of revenues." "Additionally, VCA and Heinz Pet Products have entered into a separate agreement in which VCA will continue to provide support services to Heinz Pet Products and assist them in their efforts to penetrate the worldwide hospital market. Heinz Pet Products of the United States and Canada will pay VCA $15.3 million for these services, which will be recognized over a three-year period." Antin concluded, "While the improvements are ongoing, we expect to substantially complete our efforts by the end of April 1997." VETERINARY CENTERS OF AMERICA, INC. owns and operates a nationwide network of veterinary hospitals and veterinary clinical laboratories. The Company currently provides goods and services to approximately 9,000 animal hospitals nationwide. In addition, VCA is a partner of Vet's Choice, a joint venture with Heinz Pet Products, an affiliate of H.J. Heinz Company (NYSE Symbol: HNZ), which markets and distributes a complete line of specialty pet foods. With the exception of the historical information, the matters discussed above include forward-looking statements that involve risks and uncertainties. Among the important factors that could cause actual results to differ from those indicated in the forward-looking statements are that the success of the Company's acquisition program is dependent upon identifying potential acquisition candidates, successfully negotiating favorable terms in the related acquisition agreements and successfully integrating and profitably operating the businesses once acquired. The failure of any of these steps would cause actual results to differ materially from the forward-looking statements discussed above. These and other risk factors are discussed in the Company's recent filings with the Securities and Exchange Commission on Forms 8-K, 10-Q and 10-K and the reader is directed to these reports for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. Veterinary Centers of America Inc. Consolidated Statements of Operations (Unaudited -- In Thousands)
Three Months Ended Twelve Months Ended Dec. 31, Dec. 31, 1996 1995 1996 1995 Revenues: Animal Hospital $36,595 $19,402 $120,842 $67,059 Laboratory 14,511 10,121 56,774 37,606 Pet Food 2,553 1,649 8,674 4,756 Eliminations (1,338) (594) (4,130) (1,727) 52,321 30,578 182,160 107,694 Direct Costs 43,163 23,191 139,586 80,099 Gross Profit: Animal Hospital 3,471 3,000 17,858 11,767 Laboratory 4,558 3,890 21,184 14,277 Pet Food 1,129 497 3,532 1,551 9,158 7,387 42,574 27,595 General & Administrative: Corporate 3,584 1,573 10,450 6,029 Laboratory 1,010 933 4,619 3,569 Pet Food 1,183 974 4,666 4,086 5,777 3,480 19,735 13,684 Depreciation & Amortization 2,512 1,377 7,496 4,144 Restructuring Charges 2,851 2,148 15,213 3,234 Merger Costs -- -- 2,901 -- Operating (Loss) Income (1,982) 382 (2,771) 6,533 Interest Expense, Net 845 716 3,325 2,549 (Loss) Income Before Minority Interest and Income Taxes (2,827) (334) (6,096) 3,984 Minority Interest Expense 1,539 878 6,577 2,960 (Benefit) Provision for Income Taxes (1,747) 565 1,959 2,238 Net (Loss) Income $(2,619) $(1,777) $(14,632) $(1,214) (Loss) Earnings Per Share (14 cents) (16 cents) (92 cents) (13 cents) Shares Used for Computing EPS 19,055 11,364 15,942 9,233 Components of Net (Loss) Income Per Share: Net, Excluding Charges $(806) $371 $2,338 $1,579 Restructuring and Asset Writedown Charges (1,813) (2,148) (14,175) (2,793) Merger Costs -- -- (2,795) -- Net (Loss) Income $(2,619) $(1,777) $(14,632) $(1,214) Components of Net (Loss) Income Per Share: Net, Excluding Charges (4 cents) 3 cents 15 cents 17 cents Restructuring and Asset Writedown Charges (10 cents) (19 cents) (89 cents) (30 cents) Merger Costs -- -- (18 cents) -- Net (Loss) Income Per Share (14 cents) (16 cents) (92 cents) (13 cents) CONTACT: Veterinary Centers of America Inc., Santa Monica Bob Antin or Tom Fuller, 310/392-9599 [/FN] [/TABLE] -----END PRIVACY-ENHANCED MESSAGE-----