UNITED
STATES
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
11, 2016
VCA
Inc.
(Exact
Name of Registrant as Specified in Charter)
Delaware |
001-16783 |
95-4097995 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
12401 West Olympic Boulevard |
(Address of Principal Executive Offices) |
(310) 571-6500
(Registrant’s Telephone Number)
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:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02: Results of Operations and Financial Condition
On February 11, 2016, VCA Inc. issued a press release which included earnings for the fourth quarter and fiscal year 2015. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
Item 9.01: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 Press release dated
February 11, 2016, regarding earnings for the fourth quarter and fiscal
year 2015.
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 11, 2016 |
VCA Inc. |
|
|
/s/ Tomas W. Fuller |
|
By: |
Tomas W. Fuller |
|
Its: |
Chief Financial Officer |
EXHIBIT INDEX
Exhibits |
||
99.1 |
Press release dated February 11, 2106, regarding earnings for the fourth quarter and fiscal year 2015. |
4
Exhibit 99.1
VCA Inc. Reports Fourth Quarter 2015 Results and Provides Financial Guidance for 2016
LOS ANGELES--(BUSINESS WIRE)--February 11, 2016--VCA Inc. (NASDAQ: WOOF), a leading animal healthcare company in the United States and Canada, today reported financial results for the fourth quarter ended December 31, 2015, as follows: revenue increased 11.2% to a fourth quarter record of $533.7 million; gross profit increased 18.9% to $117.7 million; operating income increased 26.1% to $66.4 million; net income increased 124.2% to $63.6 million and diluted earnings per common share increased 136.4% to $0.78.
Our results for the quarter included a gain of $43.3 million, $26.4 million net of tax, or $0.32 per diluted common share related to the sale of our Vetstreet business. Excluding this item and acquisition-related amortization expense, our Non-GAAP net income increased 29.5% to $41.0 million; and Non-GAAP diluted earnings per share increased 35.1% to $0.50.
We also reported our financial results for the twelve months ended December 31, 2015 as follows: revenue increased 11.2% to $2.1 billion; gross profit increased 14.7% to $510.1 million; operating income increased 33.4% to $329.8 million; net income increased 55.8% to $211.0 million and diluted earnings per common share increased 66.2% to $2.56. Our financial results for the twelve months ended December 31, 2015, on a Non-GAAP basis, are as follows: gross profit increased 14.6% to $533.2 million; operating income increased 18.1% to $348.6 million; net income increased 18.0% to $196.2 million and Non-GAAP diluted earnings per common share increased 25.9% to $2.38.
Our financial results for the twelve months ended December 31, 2015 included the aforementioned gain on the sale of our Vetstreet business and business interruption insurance gain of $4.5 million, $2.8 million net of tax, or $0.03 per diluted common share. Our results for the twelve months ended December 31, 2014 included a non-cash impairment charge of $27.0 million, $17.0 million net of tax, or $0.19 per diluted common share; debt retirement costs of $1.7 million, $1.0 million net of tax, or $0.01 per common share.
Bob Antin, Chairman and CEO, stated, “We had an exceptional fourth quarter, which concluded another strong year. We experienced solid organic revenue growth of 7.4% and 8.2% in our core Animal Hospital and Laboratory business segments, respectively. Our same-store Animal Hospital gross profit margins increased 140 basis points and our Laboratory gross profit margins increased an impressive 280 basis points. The positive momentum in our business has continued from the third quarter to the end of the year and accordingly, we are optimistic about our overall growth prospects in 2016.
“Animal Hospital revenue in the fourth quarter of 2015 increased 12.3%, to $427.5 million, driven by acquisitions made in the past twelve months and same-store revenue growth of 7.4%. Our same-store gross profit margin increased to 14.8% from 13.4% and our total gross margin increased to 14.2%, from 13.2% in the prior-year quarter. During the quarter, we acquired 13 independent animal hospitals which had historical combined annual revenue of $31.7 million, bringing our year to date total to $122.0 million.
“Laboratory internal revenue in the fourth quarter of 2015 increased 8.2% to $90.9 million, driven by an increase in requisitions of 5.1%. Our Laboratory gross profit margin increased to 48.8% from 46.0% and our operating margin increased to 37.9% from 35.8%."
2016 Financial Guidance
We provide the following financial guidance for the full year 2016:
Non-GAAP Financial Measures
We believe investors’ understanding of our total performance is enhanced by disclosing Non-GAAP financial measures including Non-GAAP net income, Non-GAAP gross profit, Non-GAAP operating income and Non-GAAP diluted earnings per common share. We define these adjusted measures as the reported amounts, adjusted to exclude certain significant items and amortization of intangibles acquired in acquisitions.
Management believes these adjusted measures are useful to management and investors in evaluating the Company's operational performance and their use provides an additional tool for evaluating the Company's operating results and trends. As a result, these Non-GAAP financial measures help to provide meaningful comparisons of our overall performance from one reporting period to another and meaningful assessments of related trends.
There is a material limitation associated with the use of these Non-GAAP financial measures: our adjusted measures exclude the impact of these significant items, and as a result, our computation of adjusted diluted earnings per common share does not depict diluted earnings per common share in accordance with GAAP.
To compensate for the limitations in the Non-GAAP financial measures discussed above, our disclosures provide a complete understanding of all adjustments found in Non-GAAP financial measures, and we reconcile the Non-GAAP financial measures to the GAAP financial measures in the attached financial schedules titled “Supplemental Operating Data.”
Conference Call
We will discuss our fourth quarter 2015 financial results during a conference call today, February 11th, at 9:00 a.m. Eastern Time. A live broadcast of the call may be accessed by visiting our website at investor.vca.com. The call may also be accessed by dialing (888) 311-3471. Interested parties should call at least ten minutes prior to the start of the call to register. Replay of the webcast will be available for ninety days by visiting the company's website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Among the forward-looking statements in this press release are 2016 Financial Guidance and other statements addressing our plans, expectations, future financial position and results of operation. These forward-looking statements are not historical facts and are inherently uncertain and out of our control. Any or all of our forward-looking statements in this press release may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Actual future results may vary materially. Among other factors that could cause our actual results to differ from this forward-looking information are: our ability to execute on our growth strategy and to manage acquired operations; changes in demand for our products and services; fluctuations in our revenue adversely affecting our gross profit, operating income and margins; and the effects of the other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2014, reports on Form 10-Q and our other filings with the SEC.
About VCA Inc.
We own, operate and manage the largest networks of freestanding veterinary hospitals and veterinary-exclusive clinical laboratories in the country. We also supply diagnostic imaging equipment to the veterinary industry.
VCA Inc. | ||||||||||||||||
Condensed, Consolidated Income Statements | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue: | ||||||||||||||||
Animal hospital | $ | 427,544 | $ | 380,694 | $ | 1,697,870 | $ | 1,514,878 | ||||||||
Laboratory | 93,397 | 84,004 | 393,900 | 360,396 | ||||||||||||
All other | 33,254 | 33,871 | 126,988 | 115,785 | ||||||||||||
Intercompany | (20,475 | ) | (18,642 | ) | (85,083 | ) | (72,576 | ) | ||||||||
533,720 | 479,927 | 2,133,675 | 1,918,483 | |||||||||||||
Direct costs | 416,024 | 380,909 | 1,623,604 | 1,473,842 | ||||||||||||
Gross profit: | ||||||||||||||||
Animal hospital | 60,525 | 50,128 | 264,335 | 230,801 | ||||||||||||
Laboratory | 45,609 | 38,661 | 201,702 | 175,808 | ||||||||||||
All other | 12,128 | 10,871 | 46,702 | 38,624 | ||||||||||||
Intercompany | (566 | ) | (642 | ) | (2,668 | ) | (592 | ) | ||||||||
117,696 | 99,018 | 510,071 | 444,641 | |||||||||||||
Selling, general and administrative expense: | ||||||||||||||||
Animal hospital | 11,960 | 10,761 | 44,311 | 39,022 | ||||||||||||
Laboratory | 10,181 | 8,641 | 38,075 | 33,550 | ||||||||||||
All other | 9,481 | 9,674 | 33,569 | 33,456 | ||||||||||||
Corporate | 18,630 | 18,267 | 68,040 | 65,478 | ||||||||||||
50,252 | 47,343 | 183,995 | 171,506 | |||||||||||||
Impairment of goodwill and other long-lived assets | — | — | — | 27,019 | ||||||||||||
Business interruption insurance gain, net | — | — | (4,523 | ) | — | |||||||||||
Net loss (gain) on sale of assets | 1,063 | (979 | ) | 829 | (1,152 | ) | ||||||||||
Operating income | 66,381 | 52,654 | 329,770 | 247,268 | ||||||||||||
Interest expense, net | 5,680 | 5,215 | 21,076 | 17,779 | ||||||||||||
Debt retirement costs | — | — | — | 1,709 | ||||||||||||
Other expense | 271 | 41 | 359 | 219 | ||||||||||||
Gain on sale of business, net | (43,306 | ) | — | (43,306 | ) | — | ||||||||||
Income before provision for income taxes | 103,736 | 47,398 | 351,641 | 227,561 | ||||||||||||
Provision for income taxes | 39,582 | 17,489 | 135,543 | 86,878 | ||||||||||||
Net income | 64,154 | 29,909 | 216,098 | 140,683 | ||||||||||||
Net income attributable to noncontrolling interests | 559 | 1,550 | 5,049 | 5,245 | ||||||||||||
Net income attributable to VCA Inc. | $ | 63,595 | $ | 28,359 | $ | 211,049 | $ | 135,438 | ||||||||
Diluted earnings per share | $ | 0.78 | $ | 0.33 | $ | 2.56 | $ | 1.54 | ||||||||
Weighted-average shares outstanding for diluted earnings per share | 81,461 | 85,121 | 82,414 | 87,825 | ||||||||||||
VCA Inc. | ||||||||
Condensed, Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
(In thousands) |
||||||||
December 31, 2015 |
December 31, 2014 |
|||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 98,888 | $ | 81,383 | ||||
Trade accounts receivable, net | 76,634 | 60,482 | ||||||
Inventory | 51,523 | 56,050 | ||||||
Prepaid expenses and other | 30,521 | 36,924 | ||||||
Prepaid income taxes | 24,598 | 18,277 | ||||||
Total current assets | 282,164 | 253,116 | ||||||
Property and equipment, net | 507,753 | 468,041 | ||||||
Other assets: | ||||||||
Goodwill | 1,517,650 | 1,415,861 | ||||||
Other intangible assets, net | 97,377 | 88,175 | ||||||
Notes receivable, net | 2,194 | 2,807 | ||||||
Deferred financing costs, net | 6,133 | 7,874 | ||||||
Other | 93,994 | 65,815 | ||||||
Total assets | $ | 2,507,265 | $ | 2,301,689 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 33,623 | $ | 19,356 | ||||
Accounts payable | 52,337 | 46,284 | ||||||
Accrued payroll and related liabilities | 75,519 | 64,359 | ||||||
Other accrued liabilities | 70,828 | 67,219 | ||||||
Total current liabilities | 232,307 | 197,218 | ||||||
Long-term debt, less current portion | 838,851 | 775,412 | ||||||
Deferred income taxes | 131,478 | 73,171 | ||||||
Other liabilities | 36,084 | 33,190 | ||||||
Total liabilities | 1,238,720 | 1,078,991 | ||||||
Redeemable noncontrolling interests | 11,511 | 11,077 | ||||||
VCA Inc. stockholders’ equity: | ||||||||
Common stock | 81 | 83 | ||||||
Additional paid-in capital | 19,708 | 155,802 | ||||||
Retained earnings | 1,275,207 | 1,064,158 | ||||||
Accumulated other comprehensive loss | (50,034 | ) | (19,397 | ) | ||||
Total VCA Inc. stockholders’ equity | 1,244,962 | 1,200,646 | ||||||
Noncontrolling interests | 12,072 | 10,975 | ||||||
Total equity | 1,257,034 | 1,211,621 | ||||||
Total liabilities and equity | $ | 2,507,265 | $ | 2,301,689 | ||||
VCA Inc. | ||||||||
Condensed, Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
(In thousands) |
||||||||
Twelve Months Ended December 31, |
||||||||
2015 | 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 216,098 | $ | 140,683 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Impairment of goodwill and other long-lived assets | — | 27,019 | ||||||
Gain on sale of business | (43,306 | ) | — | |||||
Depreciation and amortization | 81,688 | 79,427 | ||||||
Amortization of debt issue costs | 1,741 | 1,391 | ||||||
Provision for uncollectible accounts | 8,401 | 6,248 | ||||||
Debt retirement costs | — | 1,709 | ||||||
Net loss (gain) on sale of assets | 829 | (1,152 | ) | |||||
Share-based compensation | 16,264 | 17,200 | ||||||
Deferred income taxes | 56,722 | 8,853 | ||||||
Excess tax benefit from stock based compensation | (11,089 | ) | (6,241 | ) | ||||
Other | 2,159 | 531 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable | (28,720 | ) | (3,900 | ) | ||||
Inventory, prepaid expense and other assets | (19,268 | ) | (22,897 | ) | ||||
Accounts payable and other accrued liabilities | 7,532 | 11,597 | ||||||
Accrued payroll and related liabilities | 11,323 | 6,782 | ||||||
Income taxes | 4,339 | 2,960 | ||||||
Net cash provided by operating activities | 304,713 | 270,210 | ||||||
Cash flows from investing activities: | ||||||||
Business acquisitions, net of cash acquired | (151,586 | ) | (147,507 | ) | ||||
Property and equipment additions | (91,954 | ) | (72,948 | ) | ||||
Proceeds from sale of assets | 6,762 | 3,904 | ||||||
Proceeds from sale of business | 48,000 | — | ||||||
Other | (2,042 | ) | (2,691 | ) | ||||
Net cash used in investing activities | (190,820 | ) | (219,242 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of debt | (35,017 | ) | (568,011 | ) | ||||
Proceeds from issuance of long-term debt | — | 600,000 | ||||||
Proceeds from revolving credit facility | 97,000 | 135,000 | ||||||
Payment of financing costs | — | (7,987 | ) | |||||
Distributions to noncontrolling interest partners | (4,962 | ) | (5,009 | ) | ||||
Purchase of noncontrolling interest | (2,500 | ) | (326 | ) | ||||
Proceeds from issuance of common stock under stock option plans | 2,683 | 2,859 | ||||||
Excess tax benefit from stock based compensation | 11,089 | 6,241 | ||||||
Repurchase of common stock | (165,607 | ) | (255,108 | ) | ||||
Other | 2,041 | (1,424 | ) | |||||
Net cash used in financing activities | (95,273 | ) | (93,765 | ) | ||||
Effect of currency exchange rate changes on cash and cash equivalents | (1,115 | ) | (849 | ) | ||||
Increase (decrease) in cash and cash equivalents | 17,505 | (43,646 | ) | |||||
Cash and cash equivalents at beginning of period | 81,383 | 125,029 | ||||||
Cash and cash equivalents at end of period | $ | 98,888 | $ | 81,383 | ||||
VCA Inc. | ||||||||||||||||
Supplemental Operating Data | ||||||||||||||||
(Unaudited - In thousands, except per share amounts) |
||||||||||||||||
Table #1 | ||||||||||||||||
|
Three Months Ended |
Twelve Months Ended December 31, |
||||||||||||||
Reconciliation of net income attributable to VCA Inc., to Non-GAAP net income attributable to VCA Inc.(1) |
||||||||||||||||
|
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributable to VCA Inc. | $ | 63,595 | $ | 28,359 | $ | 211,049 | $ | 135,438 | ||||||||
Impairment of goodwill and other long-lived assets (2) | — | — | — | 27,019 | ||||||||||||
Tax benefit on impairment charge (2) | — | — | — | (9,978 | ) | |||||||||||
Business interruption insurance gain, net (4) | — | — | (4,523 | ) | — | |||||||||||
Tax expense on business interruption gain, net (4)(6) | — | — | 1,771 | — | ||||||||||||
Debt Retirement costs (3) | — | — | — | 1,709 | ||||||||||||
Tax benefit from debt retirement costs (3)(6) | — | — | — | (669 | ) | |||||||||||
Gain on sale of business, net (5) | (43,306 | ) | — | (43,306 | ) | — | ||||||||||
Tax expense from gain on sale of business,net (5)(6) | 16,950 | — | 16,950 | — | ||||||||||||
Acquisitions related amortization (1) | 6,201 | 5,434 | 23,396 | 21,039 | ||||||||||||
Tax benefit from acquisitions related amortization (1)(6) | (2,427 | ) | (2,127 | ) | (9,157 | ) | (8,235 | ) | ||||||||
Non-GAAP net income attributable to VCA Inc. | $ | 41,013 | $ | 31,666 | $ | 196,180 | $ | 166,323 | ||||||||
Table #2 |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
Reconciliation of diluted earnings per share to Non-GAAP diluted earnings per share (1) | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Diluted earnings per share | $ | 0.78 | $ | 0.33 | $ | 2.56 | $ | 1.54 | ||||||||
Impact of goodwill and other long-lived assets | ||||||||||||||||
impairment, net of tax (2) | — | — | — | 0.19 | ||||||||||||
Impact of business interruption insurance gain, net of tax | — | — | (0.03 | ) | — | |||||||||||
Impact of debt retirement costs, net of tax (3) | — | — | — | 0.01 | ||||||||||||
Impact of gain on sale of business, net of tax | (0.32 | ) | — | (0.32 | ) | — | ||||||||||
Impact of acquisitions related amortization, net of tax (1) | 0.05 | 0.04 | 0.17 | 0.15 | ||||||||||||
Non-GAAP diluted earnings per share (7) | $ | 0.50 | $ | 0.37 | $ | 2.38 | $ | 1.89 | ||||||||
Shares used for computing | ||||||||||||||||
diluted earnings per share | 81,461 | 85,121 | 82,414 | 87,825 | ||||||||||||
Table #3 |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
Reconciliation of consolidated gross profit to Non-GAAP consolidated gross profit (1) | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Consolidated gross profit | $ | 117,696 | $ | 99,018 | $ | 510,071 | $ | 444,641 | ||||||||
Impact of acquisitions related amortization (1) | 6,140 | 5,374 | 23,153 | 20,780 | ||||||||||||
Non-GAAP consolidated gross profit | $ | 123,836 | $ | 104,392 | $ | 533,224 | $ | 465,421 | ||||||||
Non-GAAP consolidated gross profit margin | 23.2 | % | 21.8 | % | 25.0 | % | 24.3 | % | ||||||||
Table #4 |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
Reconciliation of consolidated operating income to Non-GAAP consolidated operating income (1) | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Consolidated operating income | $ | 66,381 | $ | 52,654 | $ | 329,770 | $ | 247,268 | ||||||||
Impact of goodwill and other long-lived assets impairment (2) | — | — | — | 27,019 | ||||||||||||
Impact of business interruption proceeds | — | — | (4,523 | ) | — | |||||||||||
Impact of acquisitions related amortization (1) | 6,201 | 5,434 | 23,396 | 21,039 | ||||||||||||
Non-GAAP consolidated operating income | $ | 72,582 | $ | 58,088 | $ | 348,643 | $ | 295,326 | ||||||||
Non-GAAP consolidated operating margin | 13.6 | % | 12.1 | % | 16.3 | % | 15.4 | % | ||||||||
_________________________________________________
(1) Management believes that investors' understanding of our performance is enhanced by disclosing adjusted measures as the reported amounts, adjusted to exclude certain significant items and acquisition-related amortization. Non-GAAP net income, Non-GAAP diluted earnings per common share, Non-GAAP consolidated gross profit and Non-GAAP consolidated operating income measures are not, and should not be viewed as substitutes for U.S. generally accepted accounting principles (GAAP) net income, its components and diluted earnings per share.
(2) In the third quarter of 2014, we recognized a non-cash impairment charge of $27.0 million related to the write-down of goodwill and other long- lived assets in our Vetstreet business.
(3) Also in the third quarter of 2014, we incurred debt retirement costs of $1.7 million related to the refinancing of our senior credit facility.
(4) In the third quarter, we received insurance proceeds related to the fire that damaged the headquarters of our Medical Technology business resulting in a net gain of $4.5 million.
(5) We recognized a gain of $43.3 million related to the sale of our wholly-owned subsidiary, Vetstreet, Inc.
(6) The rate used to calculate the tax benefit is the statutory rate of the applicable year.
(7) Amounts may not foot due to rounding.
VCA Inc. | ||||||||||||||||
Supplemental Operating Data (continued) | ||||||||||||||||
(Unaudited - In thousands, except per share amounts) |
||||||||||||||||
As of | ||||||||||||||||
Table #5 |
December 31, 2015 |
December 31, 2014 |
||||||||||||||
Selected consolidated balance sheet data | ||||||||||||||||
Debt: | ||||||||||||||||
Senior term notes | $ | 585,000 | $ | 600,000 | ||||||||||||
Revolving credit | 232,000 | 135,000 | ||||||||||||||
Other debt and capital leases | 55,474 | 59,768 | ||||||||||||||
Total debt | $ | 872,474 | $ | 794,768 | ||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
Table #6 | ||||||||||||||||
Selected expense data | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Rent expense | $ | 19,933 | $ | 18,463 | $ | 76,694 | $ | 69,747 | ||||||||
Depreciation and amortization included | ||||||||||||||||
in direct costs: | ||||||||||||||||
Animal hospital | $ | 17,042 | $ | 15,822 | $ | 65,850 | $ | 60,395 | ||||||||
Laboratory | 2,754 | 2,649 | 10,606 | 10,358 | ||||||||||||
All other | 926 | 824 | 3,797 | 5,731 | ||||||||||||
Intercompany | (554 | ) | (514 | ) | (2,156 | ) | (1,931 | ) | ||||||||
$ | 20,168 | $ | 18,781 | $ | 78,097 | $ | 74,553 | |||||||||
Depreciation and amortization included in selling, | ||||||||||||||||
general and administrative expense | 886 | 987 | 3,591 | 4,874 | ||||||||||||
Total depreciation and amortization | $ | 21,054 | $ | 19,768 | $ | 81,688 | $ | 79,427 | ||||||||
Share-based compensation included in direct costs: | ||||||||||||||||
Laboratory | $ | 217 | $ | 216 | $ | 685 | $ | 653 | ||||||||
Share-based compensation included in | ||||||||||||||||
selling, general and administrative expense: | ||||||||||||||||
Animal hospital | 715 | 721 | 2,696 | 2,132 | ||||||||||||
Laboratory | 405 | 440 | 1,511 | 1,513 | ||||||||||||
All other | 493 | 237 | 1,119 | 842 | ||||||||||||
Corporate | 2,348 | 3,352 | 10,253 | 12,060 | ||||||||||||
3,961 | 4,750 | 15,579 | 16,547 | |||||||||||||
Total share-based compensation | $ | 4,178 | $ | 4,966 | $ | 16,264 | $ | 17,200 | ||||||||
Source: VCA Inc.
CONTACT:
VCA Inc.
Tomas Fuller
Chief Financial Officer
(310)
571-6505