Heska Corp (HSKA) 10-Q Quarterly Report November 2019

LOVELAND, CO, November 5, 2019 -- Heska Corporation (NASDAQ: HSKA - News; “Heska” or the “Company”), a provider of advanced veterinary diagnostic and specialty healthcare products, today reported financial results for its third quarter ended September 30, 2019. The Company reports results in two segments: Core Companion Animal (“CCA”) and Other Vaccines and Pharmaceuticals (“OVP”). Point of Care is referred to in this release as “POC”. The Company forecast for 2019 from the February 26, 2019 earnings call and release is referred to in this release as “Outlook”.

2019 Third Quarter and Year Over Year ("YOY") Metrics

$ in Millions except Earnings Per Share ("EPS")



	Q3 ($)	Q3 (%) YOY
Consolidated Revenue	$31.2	0.9%
CCA Revenue	$26.3	(3.1)%
POC Lab Consumables	$14.0	20.9%
POC Instruments: Lab & Other	$2.5	6.0%
POC Instruments: Infusion Pumps	$1.0	59.0%
POC Imaging	$5.3	0.2%
PVD¹	$3.5	(52.2)%
OVP Revenue	$4.9	30.1%

	Q3 (%)	Q3 YOY bps²
Consolidated Gross Margin	43.7%	(410)
CCA Gross Margin	51.7%	+225
OVP Gross Margin	1.2%	(3,500)
Operating Margin	0.6%	+1,220

	Q3 ($)	Q3 (%) YOY
Net Loss Attributable to Heska	$(0.3)	81.4%
EPS, Basic	$(0.04)	82.6%
EPS, Diluted	$(0.04)	82.6%

¹"PVD" is Pharmaceuticals, Vaccines and Diagnostic, and includes Tri-Heart^® heartworm. ² “bps” is basis points.

Note: Numbers may not foot due to rounding.

The following information was filed by Heska Corp (HSKA) on Tuesday, November 5, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Heska Corp's 10-Q Quarterly Report:

Revenue - Product Highlight
These factors were partially offset by a $7.2 million increase in the cash provided by the aggregate of accounts payable, accounts receivable, related party balances, deferred revenue and other non-current assets, due to the timing of collections and payments in the ordinary course of business, as well as a $0.5 million increase in lease receivables.

Revenue - Product Highlight
Such statements, which include statements concerning future revenue sources and concentration, international market expansion, gross profit margins, selling and marketing expenses, remaining minimum performance obligations, research and development expenses, general and administrative expenses, capital resources, financings or borrowings and additional losses, are subject to risks and uncertainties, including, but not limited to, those discussed under the caption "Risk Factors" contained in Part II, Item 1A, below of this Quarterly Report on Form 10-Q that could cause actual results to differ materially from those projected.
Financial - Debt Highlight
The increase in cash provided by financing activities was driven primarily by convertible debt proceeds of $86.3 million (see Note 16 of this Form 10-Q).
Other - Other Highlight
We believe that adequate liquidity and cash generation is important to the execution of our strategic initiatives.
Financial - Earnings Highlight
The decrease in gross profit and gross margin for both periods was mainly driven by lower Tri-Heart revenue and the timing of contractual take or pay arrangements and product mix within our OVP segment, partially offset by favorable margins in Point of Care laboratory and imaging products.
Revenue - Geography
Effect of currency translation on...Read more
Other - Other
Net cash provided by financing...Read more
Other - Other
Net loss attributable to Heska...Read more
Financial - Cash Flow
We believe that our cash,...Read more
Financial - Expense
The decrease was driven primarily...Read more
Revenue - Product
Our primary sources of liquidity...Read more
Financial - Expense
General and administrative expenses decreased...Read more
Financial - Expense
General and administrative expenses decreased...Read more
Other - Other
Our belief may prove to...Read more
Financial - Earnings
The difference between this line...Read more
Financial - Income
In the three months ended...Read more
Revenue - Product
Since items in this area...Read more
Financial - Shares
Non-cash transactions impacting cash used...Read more
Financial - Earnings
Additionally, net cash from operating...Read more
Financial - Expense
The increase in other expense...Read more
Revenue - Product
OVP segment revenue increased 30.1%...Read more
Revenue - Product
OVP segment revenue increased 3.1%...Read more
Financial - Debt
This was partially offset by...Read more
Revenue - Product
We view OVP reported revenue...Read more
Financial - Shares
The Company recognized $0.1 million...Read more
Financial - Shares
The Company recognized $1.5 million...Read more
Revenue - Product
Our experience has been that...Read more
Revenue - Product
This was partially offset by...Read more
Financial - Income
In the three months ended...Read more
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In the nine months ended...Read more
Financial - Income
In the nine months ended...Read more
Financial - Earnings
Gross margin decreased to 43.7%...Read more
Financial - Earnings
Gross margin decreased to 43.4%...Read more
Financial - Expense
Research and development expenses increased...Read more
Financial - Expense
Research and development expenses increased...Read more
Revenue - Product
Net cash from operating activities...Read more
Other - Other
The Company has not entered...Read more
Revenue - Product
The majority of revenue from...Read more
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We view this facility as...Read more
M & A - Other
For example, we are actively...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Heska Corp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: HSKA
CIK: 1038133
Form Type: 10-Q Quarterly Report
Accession Number: 0001038133-19-000067
Submitted to the SEC: Wed Nov 06 2019 12:15:37 PM EST
Accepted by the SEC: Wed Nov 06 2019
Period: Monday, September 30, 2019
Industry: Biological Products No Disgnostic Substances