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): October 26, 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) | (I.R.S. Employer Identification Number) |
12401 West Olympic Blvd., Los Angeles, CA 90064 |
(Address of Principal Executive Offices) (Zip Code) |
310-571-6500
(Registrant's telephone number, including area code)
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 October 26, 2016, VCA Inc. issued a press release which included earnings for the third quarter of fiscal year 2016. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits99.1 Press release dated October 26, 2016, regarding earnings for the third quarter of fiscal year 2016.
SIGNATURE
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.
VCA Inc. | ||
Date: October 26, 2016 | /s/ Tomas W. Fuller | |
By: Tomas W. Fuller | ||
Its: Chief Financial Officer | ||
EXHIBIT INDEX
Exhibits | ||
99.1 | Press release dated October 26, 2016, regarding earnings for the third quarter of fiscal year 2016. |
EXHIBIT 99.1
VCA Inc. Reports Third Quarter 2016 Results and Re-Affirms Financial Guidance for 2016
LOS ANGELES, Oct. 26, 2016 (GLOBE NEWSWIRE) -- VCA Inc. (NASDAQ:WOOF), a leading animal healthcare company in the United States and Canada, today reported financial results for the third quarter ended September 30, 2016, as follows: revenue increased 19.1% to a third quarter record of $656.9 million; gross profit increased 13.7% to $156.6 million; operating income increased 10.2% to $107.0 million; net income increased 6.2% to $58.2 million; and diluted earnings per common share increased 6.0% to $0.71. Excluding transaction expenses related to the acquisition of Companion Animal Practices, North America (“CAPNA”), and acquisition-related amortization expense, our results for this quarter are as follows: Non-GAAP operating income increased 19.8% to $117.8 million; Non-GAAP net income increased 15.7% to $64.4 million; and Non-GAAP diluted earnings per common share increased 16.2% to $0.79. Our results for the prior-year quarter included business interruption proceeds of $4.5 million, $2.8 million net of tax, or $0.03 per diluted common share.
We also reported our financial results for the nine months ended September 30, 2016 as follows: revenue increased 17.1% to $1.9 billion; gross profit increased 16.5% to $457.3 million; operating income increased 17.4% to $309.1 million; net income increased 14.3% to $168.5 million; and diluted earnings per common share increased 15.7% to $2.06. Excluding acquisition-related amortization expense and other items detailed in the supplemental tables included in this press release, our financial results for the nine months ended September 30, 2016, on a Non-GAAP basis, are as follows: gross profit increased 17.8% to $482.1 million; operating income increased 22.8% to $339.1 million; net income increased 21.7% to $188.8 million; and Non-GAAP diluted earnings per common share increased 22.9% to $2.31.
Bob Antin, Chairman and CEO, stated, "We had an outstanding quarter highlighted by 16.2% growth in our adjusted diluted earnings per common share. We continue to experience healthy organic revenue growth and increasing gross margins in both our core Animal Hospital and Laboratory businesses. Given our results relative to our expectations and our future acquisition pipeline, we remain optimistic with respect to our results for the full year ended December 31, 2016.
"Animal Hospital revenue in the third quarter increased 25.2%, to $553.4 million, driven by acquisitions made during the past 12 months and same-store revenue growth of 5.4%. Our same-store gross profit margin increased 50 basis points to 17.5%, and our total gross margin remained flat at 17.0%. Excluding acquisition-related amortization expense, our Non-GAAP same-store gross profit margin increased 40 basis points to 18.4%; and Non-GAAP Animal Hospital total gross profit margin increased 50 basis points to 18.5%. During the 2016 third quarter, we acquired 12 independent animal hospitals which had historical combined annual revenue of $38 million bringing our year to date total, excluding CAPNA, to 49 independent animal hospitals with historical combined annual revenue of $146 million.
"Our Laboratory internal revenue in the third quarter increased 5.5% to $105.1 million; laboratory gross profit margin increased 40 basis points to 51.6% and our operating margin increased 60 basis points to 42.3%. Excluding acquisition-related amortization expense, Non-GAAP Laboratory gross profit increased 20 basis points to 51.9%; and Non-GAAP Laboratory operating margin increased 60 basis points to 42.7%."
2016 Guidance
We reaffirm our previously provided guidance as follows:
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 third quarter 2016 financial results during a conference call today, October 26th, 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 (877) 293-5492 (domestic) or (720) 545-0007 (international) and referring to conference ID 82975258. Interested parties should call at least five minutes prior to the start of the call to register. Replay of the webcast will be available for one year 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 statements addressing our 2016 guidance and 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: the continued effects of the economic uncertainty prevailing in regions in which we operate; 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; a material adverse change in the financial condition or operations of the company; the ability to successfully integrate CAPNA into VCA and achieve expected operating synergies following the acquisition; and the effects of the other factors discussed in our Annual Report on Form 10-K, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue: | ||||||||||||||||
Animal hospital | $ | 553,378 | $ | 441,924 | $ | 1,552,377 | $ | 1,270,326 | ||||||||
Laboratory | 105,140 | 100,309 | 323,927 | 300,503 | ||||||||||||
All other | 22,987 | 30,838 | 65,797 | 93,734 | ||||||||||||
Intercompany | (24,651 | ) | (21,354 | ) | (68,319 | ) | (64,608 | ) | ||||||||
656,854 | 551,717 | 1,873,782 | 1,599,955 | |||||||||||||
Direct costs | 500,277 | 414,051 | 1,416,477 | 1,207,580 | ||||||||||||
Gross profit: | ||||||||||||||||
Animal hospital | 94,136 | 74,941 | 262,232 | 203,810 | ||||||||||||
Laboratory | 54,206 | 51,408 | 171,469 | 156,093 | ||||||||||||
All other | 8,921 | 11,761 | 24,748 | 34,574 | ||||||||||||
Intercompany | (686 | ) | (444 | ) | (1,144 | ) | (2,102 | ) | ||||||||
156,577 | 137,666 | 457,305 | 392,375 | |||||||||||||
Selling, general and administrative expense: | ||||||||||||||||
Animal hospital | 15,541 | 10,677 | 41,903 | 32,351 | ||||||||||||
Laboratory | 9,728 | 9,542 | 29,726 | 27,894 | ||||||||||||
All other | 6,064 | 7,660 | 17,385 | 24,088 | ||||||||||||
Corporate | 18,010 | 16,981 | 58,647 | 49,410 | ||||||||||||
49,343 | 44,860 | 147,661 | 133,743 | |||||||||||||
Business interruption insurance proceeds, net | — | (4,523 | ) | — | (4,523 | ) | ||||||||||
Net loss (gain) on sale or disposal of assets | 236 | 250 | 528 | (234 | ) | |||||||||||
Operating income | 106,998 | 97,079 | 309,116 | 263,389 | ||||||||||||
Interest expense, net | 9,300 | 5,455 | 24,262 | 15,396 | ||||||||||||
Debt retirement costs | — | — | 1,600 | — | ||||||||||||
Other (income) expense | (121 | ) | 59 | (985 | ) | 88 | ||||||||||
Income before provision for income taxes | 97,819 | 91,565 | 284,239 | 247,905 | ||||||||||||
Provision for income taxes | 37,040 | 35,097 | 109,312 | 95,961 | ||||||||||||
Net income | 60,779 | 56,468 | 174,927 | 151,944 | ||||||||||||
Net income attributable to noncontrolling interests | 2,548 | 1,614 | 6,419 | 4,490 | ||||||||||||
Net income attributable to VCA Inc. | $ | 58,231 | $ | 54,854 | $ | 168,508 | $ | 147,454 | ||||||||
Diluted earnings per share | $ | 0.71 | $ | 0.67 | $ | 2.06 | $ | 1.78 | ||||||||
Weighted-average shares outstanding for diluted earnings per share | 81,812 | 81,795 | 81,695 | 82,744 | ||||||||||||
VCA Inc. Condensed, Consolidated Balance Sheets (Unaudited) (In thousands) | ||||||||
September 30, 2016 | December 31, 2015 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 72,914 | $ | 98,888 | ||||
Trade accounts receivable, net | 82,166 | 76,634 | ||||||
Inventory | 60,811 | 51,523 | ||||||
Prepaid expenses and other | 33,905 | 30,521 | ||||||
Prepaid income taxes | — | 24,598 | ||||||
Total current assets | 249,796 | 282,164 | ||||||
Property and equipment, net | 582,840 | 507,753 | ||||||
Other assets: | ||||||||
Goodwill | 2,063,494 | 1,517,650 | ||||||
Other intangible assets, net | 209,095 | 97,377 | ||||||
Notes receivable | 2,142 | 2,194 | ||||||
Other | 101,695 | 93,994 | ||||||
Total assets | $ | 3,209,062 | $ | 2,501,132 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 32,512 | $ | 33,623 | ||||
Accounts payable | 54,150 | 52,337 | ||||||
Accrued payroll and related liabilities | 70,213 | 75,519 | ||||||
Income tax payable | 8,359 | — | ||||||
Other accrued liabilities | 85,607 | 70,828 | ||||||
Total current liabilities | 250,841 | 232,307 | ||||||
Long-term debt, net | 1,246,122 | 832,718 | ||||||
Deferred income taxes | 127,104 | 131,478 | ||||||
Other liabilities | 39,509 | 36,084 | ||||||
Total liabilities | 1,663,576 | 1,232,587 | ||||||
Redeemable noncontrolling interests | 12,079 | 11,511 | ||||||
VCA Inc. stockholders’ equity: | ||||||||
Common stock | 81 | 81 | ||||||
Additional paid-in capital | 32,958 | 19,708 | ||||||
Retained earnings | 1,443,715 | 1,275,207 | ||||||
Accumulated other comprehensive loss | (41,028 | ) | (50,034 | ) | ||||
Total VCA Inc. stockholders’ equity | 1,435,726 | 1,244,962 | ||||||
Noncontrolling interests | 97,681 | 12,072 | ||||||
Total equity | 1,533,407 | 1,257,034 | ||||||
Total liabilities and equity | $ | 3,209,062 | $ | 2,501,132 | ||||
VCA Inc. Condensed, Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 174,927 | $ | 151,944 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 74,072 | 60,634 | |||||
Amortization of debt issue costs | 1,247 | 1,306 | |||||
Provision for uncollectible accounts | 4,949 | 6,723 | |||||
Debt retirement costs | 1,600 | — | |||||
Net loss (gain) on sale or disposal of assets | 528 | (234 | ) | ||||
Share-based compensation | 13,669 | 12,086 | |||||
Excess tax benefit from share-based compensation | (7,588 | ) | (8,008 | ) | |||
Other | 7,668 | (431 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable | (8,033 | ) | (20,568 | ) | |||
Inventory, prepaid expense and other assets | (11,684 | ) | (931 | ) | |||
Accounts payable and other accrued liabilities | 11,142 | (2,451 | ) | ||||
Accrued payroll and related liabilities | (7,783 | ) | 18,892 | ||||
Income taxes | 36,168 | 28,054 | |||||
Net cash provided by operating activities | 290,882 | 247,016 | |||||
Cash flows from investing activities: | |||||||
Business acquisitions, net of cash acquired | (599,655 | ) | (119,336 | ) | |||
Property and equipment additions | (90,546 | ) | (61,470 | ) | |||
Proceeds from sale of assets | 1,699 | 6,469 | |||||
Other | (7,634 | ) | (434 | ) | |||
Net cash used in investing activities | (696,136 | ) | (174,771 | ) | |||
Cash flows from financing activities: | |||||||
Repayment of long-term debt | (1,263,394 | ) | (20,174 | ) | |||
Proceeds from issuance of long-term debt | 1,255,000 | — | |||||
Proceeds from revolving credit facility | 465,000 | 97,000 | |||||
Repayment of revolving credit facility | (65,000 | ) | — | ||||
Payment of financing costs | (3,817 | ) | — | ||||
Distributions to noncontrolling interest partners | (4,752 | ) | (3,810 | ) | |||
Purchase of noncontrolling interests | (4,239 | ) | (1,493 | ) | |||
Proceeds from issuance of common stock under stock option plans | 3,949 | 1,571 | |||||
Excess tax benefit from share-based compensation | 7,588 | 8,008 | |||||
Repurchase of common stock | (9,887 | ) | (161,117 | ) | |||
Other | (1,310 | ) | 2,210 | ||||
Net cash provided (used) in financing activities | 379,138 | (77,805 | ) | ||||
Effect of currency exchange rate changes on cash and cash equivalents | 142 | (831 | ) | ||||
Decrease in cash and cash equivalents | (25,974 | ) | (6,391 | ) | |||
Cash and cash equivalents at beginning of period | 98,888 | 81,383 | |||||
Cash and cash equivalents at end of period | $ | 72,914 | $ | 74,992 | |||
VCA Inc. Supplemental Operating Data (Unaudited - In thousands, except per share amounts) | |||||||||||||||||||||||
Table #1 | |||||||||||||||||||||||
Reconciliation of net income attributable to | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
VCA Inc., to Non-GAAP net income attributable | September 30, | September 30, | |||||||||||||||||||||
to VCA Inc. (1) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Net income attributable to VCA Inc. | $ | 58,231 | $ | 54,854 | $ | 168,508 | $ | 147,454 | |||||||||||||||
Adjustments to Other Long-term liabilities, net of tax (2) | — | — | 2,040 | — | |||||||||||||||||||
Discrete tax items (3) | — | — | 1,045 | — | |||||||||||||||||||
Transaction costs related to the CAPNA acquisition, net of tax (4) | 89 | — | 817 | — | |||||||||||||||||||
Debt retirement costs, net of tax (5) | — | — | 974 | — | |||||||||||||||||||
Business interruption proceeds, net of tax (6) | — | (2,752 | ) | — | (2,752 | ) | |||||||||||||||||
Acquisitions related amortization, net of tax (1) | 6,030 | 3,537 | 15,449 | 10,465 | |||||||||||||||||||
Non-GAAP net income attributable to VCA Inc. | $ | 64,350 | $ | 55,639 | $ | 188,833 | $ | 155,167 | |||||||||||||||
Table #2 | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
Reconciliation of diluted earnings per share to | September 30, | September 30, | |||||||||||||||||||||
Non-GAAP diluted earnings per share (1) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Diluted earnings per share | $ | 0.71 | $ | 0.67 | $ | 2.06 | $ | 1.78 | |||||||||||||||
Adjustments to Other Long-term liabilities, net of tax (2) | — | — | 0.02 | — | |||||||||||||||||||
Discrete tax items (3) | — | — | 0.01 | — | |||||||||||||||||||
Transaction costs related to the CAPNA acquisition, net of tax (4) | — | — | 0.01 | — | |||||||||||||||||||
Debt retirement costs, net of tax (5) | — | — | 0.01 | — | |||||||||||||||||||
Impact of business interruption proceeds, net of tax (6) | — | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||
Acquisitions related amortization, net of tax (1) | 0.07 | 0.04 | 0.19 | 0.13 | |||||||||||||||||||
Non-GAAP diluted earnings per share (7) | $ | 0.79 | $ | 0.68 | $ | 2.31 | $ | 1.88 | |||||||||||||||
Shares used for computing diluted earnings per share | 81,812 | 81,795 | 81,695 | 82,744 | |||||||||||||||||||
Table #3 | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
Reconciliation of consolidated gross profit to | September 30, | September 30, | |||||||||||||||||||||
Non-GAAP consolidated gross profit (1) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Consolidated gross profit | $ | 156,577 | $ | 137,666 | $ | 457,305 | $ | 392,375 | |||||||||||||||
Acquisitions related amortization (1) | 9,369 | 5,750 | 24,784 | 17,013 | |||||||||||||||||||
Non-GAAP consolidated gross profit | $ | 165,946 | $ | 143,416 | $ | 482,089 | $ | 409,388 | |||||||||||||||
Non-GAAP consolidated gross profit margin | 25.3 | % | 26.0 | % | 25.7 | % | 25.6 | % | |||||||||||||||
Table #4 | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
Reconciliation of consolidated operating income to | September 30, | September 30, | |||||||||||||||||||||
Non-GAAP consolidated operating income (1) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Consolidated operating income | $ | 106,998 | $ | 97,079 | $ | 309,116 | $ | 263,389 | |||||||||||||||
Adjustments to Other Long-term liabilities (2) | — | — | 1,954 | — | |||||||||||||||||||
Transaction costs related to the CAPNA acquisition (4) | 146 | — | 1,343 | — | |||||||||||||||||||
Impact of business interruption proceeds (6) | — | (4,523 | ) | — | (4,523 | ) | |||||||||||||||||
Acquisitions related amortization (1) | 10,682 | 5,811 | 26,709 | 17,195 | |||||||||||||||||||
Non-GAAP consolidated operating income | $ | 117,826 | $ | 98,367 | $ | 339,122 | $ | 276,061 | |||||||||||||||
Non-GAAP consolidated operating margin | 17.9 | % | 17.8 | % | 18.1 | % | 17.3 | % | |||||||||||||||
_______________________________________________ | |||||||||||||||||||||||
(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 first quarter of 2016, we recorded a non-cash charge to adjust certain long-term liabilities for $3.4 million, or $2.0 million net of tax. $2.0 million of this amount relates to compensation and $1.4 million relates to interest accretion. | |||||||||||||||||||||||
(3) In the first quarter of 2016, we recorded a tax adjustment to our income tax liabilities for $1.0 million. | |||||||||||||||||||||||
(4) As of the end of the third quarter, we have recorded transaction costs of $1.3 million or $817,000 net of tax related to our acquisition of CAPNA. | |||||||||||||||||||||||
(5) We incurred debt retirement costs of $1.6 million, or $974,000 net of tax, in connection with our new credit facility, entered into on June 29, 2016. | |||||||||||||||||||||||
(6) In the third quarter of 2015, 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. | |||||||||||||||||||||||
(7) Amounts may not foot due to rounding. | |||||||||||||||||||||||
As of | |||||||||||||||
Table #5 | September 30, 2016 | December 31, 2015 | |||||||||||||
Selected consolidated balance sheet data | |||||||||||||||
Debt: | |||||||||||||||
Senior term notes | $ | 874,500 | $ | 585,000 | |||||||||||
Revolving credit | 340,000 | 232,000 | |||||||||||||
Other debt and capital leases | 71,236 | 55,474 | |||||||||||||
Total debt | $ | 1,285,736 | $ | 872,474 | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Table #6 | |||||||||||||||
Selected expense data | 2016 | 2015 | 2016 | 2015 | |||||||||||
Rent expense | $ | 23,844 | $ | 19,140 | $ | 68,157 | $ | 56,761 | |||||||
Depreciation and amortization included | |||||||||||||||
in direct costs: | |||||||||||||||
Animal hospital | $ | 21,967 | $ | 16,465 | $ | 60,681 | $ | 48,808 | |||||||
Laboratory | 2,788 | 2,701 | 8,339 | 7,852 | |||||||||||
All other | 701 | 968 | 2,220 | 2,871 | |||||||||||
Intercompany | (622 | ) | (549 | ) | (1,805 | ) | (1,602 | ) | |||||||
$ | 24,834 | $ | 19,585 | $ | 69,435 | $ | 57,929 | ||||||||
Depreciation and amortization included in selling, | |||||||||||||||
general and administrative expense | 2,260 | 886 | 4,637 | 2,705 | |||||||||||
Total depreciation and amortization | $ | 27,094 | $ | 20,471 | $ | 74,072 | $ | 60,634 | |||||||
Share-based compensation included in direct costs: | |||||||||||||||
Laboratory | $ | 201 | $ | 144 | $ | 559 | $ | 468 | |||||||
Share-based compensation included in | |||||||||||||||
selling, general and administrative expense: | |||||||||||||||
Animal hospital | 831 | 644 | 2,339 | 1,981 | |||||||||||
Laboratory | 434 | 364 | 1,270 | 1,106 | |||||||||||
All other | 160 | 226 | 460 | 626 | |||||||||||
Corporate | 2,939 | 2,439 | 9,041 | 7,905 | |||||||||||
4,364 | 3,673 | 13,110 | 11,618 | ||||||||||||
Total share-based compensation | $ | 4,565 | $ | 3,817 | $ | 13,669 | $ | 12,086 | |||||||
Contact: Tomas Fuller
Chief Financial Officer
(310) 571-6505