Heska Corp (HSKA) 10-K Annual Report February 2020

LOVELAND, CO, February 25, 2020 -- Heska Corporation (NASDAQ: HSKA; “Heska” or “Company”), a provider of advanced veterinary diagnostic and specialty products, today reported financial results for its fourth quarter and full year ended December 31, 2019. The Company reports results in two segments: Core Companion Animal (“CCA”) and Other Vaccines & Pharmaceuticals (“OVP”). The Company forecast provided during the February 25, 2019 release is referred to as "2019 Outlook".

Fourth Quarter, Full Year ("FY"), Year Over Year ("YOY"), and 2019 Outlook Comparison

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



	Q4 ($)	Q4 (%) YOY	FY ($)	FY (%) YOY	2019 Outlook
Consolidated Revenue	$33.8	(0.9)%	$122.7	(3.8)%	$123.0
CCA Revenue	$30.8	8.9%	$106.6	(2.2)%	$105.0
Lab Consumables	$14.0	29.7%	$53.6	19.7%	$50.0 to $52.5
Instruments: Lab & Other	$2.9	27.5%	$10.5	6.1%	$10.7
Instruments: Infusion Pumps	$0.6	(42.3)%	$3.0	12.2%	$2.0
Imaging	$9.7	36.8%	$25.7	12.4%	$27.7
PVD	$3.6	(49.4)%	$13.8	(52.0)%	$13.5
OVP Revenue	$3.0	(48.7)%	$16.1	(13.1)%	$18.0

Consolidated Gross Margin	46.9%	1.5%	44.4%	—%	44.4%
CCA Gross Margin	51.0%	4.2%	50.3%	2.0%	50.1%
OVP Gross Margin	4.6%	(33.9)%	5.0%	(16.8)%	10.0%
GAAP Operating Margin	2.3%	(7.4)%	0.3%	(2.7)%
Non-GAAP Operating Margin⁽¹⁾	4.3%	(6.1)%	0.8%	(8.0)%	0.1%

Net Loss Attributable to Heska	$(1.7)	(149.8)%	$(1.5)	(125.0)%
EPS, Basic	$(0.23)	(148.9)%	$(0.20)	(124.7)%
EPS, Diluted	$(0.23)	(152.3)%	$(0.20)	(127.0)%
Non-GAAP EPS, Diluted⁽¹⁾	$0.07	(87.3)%	$0.37	(77.4)%

⁽¹⁾ See “Use of Non-GAAP Financial Measures” and the related reconciliations provided below.

Point of Care (“POC”) Lab Diagnostics for 2019

Heska’s POC Lab Consumables grew 19.7%, which was strongly above 2019 Outlook (12% - 17%). Heska outperformed 2019 Outlook in nearly all key blood diagnostics goals. Highlights include:

(1)Heska’s sixth year of net market share gains in end-user hospitals

The following information was filed by Heska Corp (HSKA) on Tuesday, February 25, 2020 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-K Annual 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-K Annual Report:

Financial - Income Highlight
Represents income tax expense utilizing an estimated effective tax rate that adjusts for non-GAAP measures including: acquisition-related costs, litigation and other one-time costs, amortization of debt discount and issuance costs, and stock-based compensation.

Financial - Income Highlight
The following table sets forth, for the periods indicated, certain data derived from our Consolidated Statements of Income (in thousands): The following tables set forth, for the periods indicated, segment data derived from our Consolidated Statements of Income (in thousands): Total revenue decreased 4% to $122.7 million in 2019 compared to $127.4 million in 2018.
Revenue - Product Highlight
Commitments and Contingencies in our Consolidated Financial Statements included in Item 8 of this Form 10-K) and a $5.1 million decrease in cash provided by inventories, due to the timing of purchases and lower sales in the current year.
Revenue - Geography Highlight
Net cash provided by operating activities increased due to significant working capital fluctuations such as a $19.9 million increase in cash provided by inventories, due to the timing of inventory purchases in 2017; a $7.5 million increase in cash provided by accrued liabilities, largely due to a preliminary settlement agreement relating to outstanding litigation in the amount of $6.8 million which we paid in the first half of 2019 (see Note 14.
M & A - Other Highlight
This was partially offset by $1.2 million increase in cash used for the Optomed real estate asset acquisition; and $0.9 million increase in acquired cash from the acquisition of CVM.
Other - Other
We believe that adequate liquidity...Read more
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Net cash provided by operating...Read more
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These factors were partially offset...Read more
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The non-GAAP financial measures presented...Read more
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Net loss attributable to Heska...Read more
Legal - Other
The increase was driven by...Read more
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These types of agreements include...Read more
Financial - Debt
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Revenue - Product
Approximately $12.1 million, $10.8 million...Read more
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Our primary sources of liquidity...Read more
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Revenue - Product
CCA segment revenue increased 4%...Read more
Other - Other
Specific allowances are maintained for...Read more
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Our experience has been that...Read more
Financial - Income
In 2019, we had total...Read more
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General and administrative expenses increased...Read more
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Gross margin percent decreased to...Read more
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If necessary, we would calculate...Read more
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Revenue from Point of Care...Read more
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Research and development expenses increased...Read more
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The Company has not entered...Read more
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We had no impairments of...Read more
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For example, we are actively...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Heska Corp provided additional information to their SEC Filing as exhibits

Exhibit 2.1: Plan Of Acquisition, Reorganization, Arrangement, Liquidation Or Succession

Exhibit 4.2: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 10.16: Material Contract

Exhibit 10.26: Material Contract

Exhibit 10.35: Material Contract

Exhibit 10.39: Material Contract

Exhibit 10.57: Material Contract

Exhibit 10.68: Material Contract

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 23.2: Consents Of Experts And Counsel

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-K Annual Report
Accession Number: 0001038133-20-000013
Submitted to the SEC: Fri Feb 28 2020 12:51:37 PM EST
Accepted by the SEC: Fri Feb 28 2020
Period: Tuesday, December 31, 2019
Industry: Biological Products No Disgnostic Substances