Heska Corp (HSKA) 10-Q Quarterly Report May 2020

LOVELAND, CO, May 7, 2020 -- Heska Corporation (NASDAQ: HSKA; “Heska” or “Company”), a leading provider of advanced veterinary diagnostic and specialty products, today reported financial results for its first quarter ended March 31, 2020. The Company reports two segments: Core Companion Animal (“CCA”) and Other Vaccines & Pharmaceuticals (“OVP”). The Company forecast provided during the February 25, 2020 release is referred to as "2020 Outlook".

First Quarter 2020 and Year Over Year ("YOY") Metrics

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



	Q1 ($)	Q1 (%) YOY
Consolidated Revenue	$30.7	3.9%
CCA Revenue	$27.3	10.5%
Lab Consumables	$14.2	15.7%
Instruments: Lab & Other	$2.2	(22.3)%
Instruments: Infusion Pumps	$0.6	(20.3)%
Imaging	$4.9	(10.3)%
PVD⁽¹⁾	$5.4	60.1%
OVP Revenue	$3.3	(30.2)%

	Q1 (%)	Q1 YOY bps⁽²⁾
Consolidated Gross Margin	43.9%	+135
Adjusted EBITDA margin⁽³⁾	3.0%	(460)

	Q1 ($)	Q1 (%) YOY
Net Loss Attributable to Heska	$(5.3)	(749.6)%
EPS, Basic	$(0.70)	(735.2)%
EPS, Diluted	$(0.70)	(798.7)%
Non-GAAP EPS, Diluted⁽³⁾	$(0.14)	(260.1)%

⁽¹⁾"PVD" is Pharmaceuticals, Vaccines and Diagnostic, and includes Tri-Heart^®heartworm. ⁽²⁾ "bps" is basis points. ⁽³⁾ See “Use of Non-GAAP Financial Measures” and the related reconciliations provided below.

Note: Numbers may not foot due to rounding.

The following information was filed by Heska Corp (HSKA) on Thursday, May 7, 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-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:

Financial - Earnings Highlight
The increase in both gross profit and gross margin percentage was driven primarily by favorable product mix related to increased revenue from consumable sales.

Financial - Income Highlight
Represents income tax expense utilizing an estimated effective tax rate that adjusts for non-GAAP measures including: acquisition-related and other one-time costs, restructuring costs, amortization of debt discount and issuance costs, and stock-based compensation.
Financial - Earnings Highlight
Despite these headwinds, we believe we are well positioned because: (1) our customers and products are essential, (2) our main Point of Care laboratory business continues to show healthy consumables use and margin, (3) our subscriptions model metrics continue to show solid performance, (4) our vaccines and pharmaceuticals business continues to perform with minimal disruption, (5) our balance sheet is strong, and (6) our employees, logistics, supply chain, and operations continue to operate well in the current environment and they are fully prepared for both a phased return and an instant return to full capacity.
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, of this Quarterly Report on Form 10-Q and in Part I, Item 1A of our Annual Report on Form 10-K that could cause actual results to differ materially from those projected.
Financial - Earnings Highlight
We also present first quarter 2019 net income attributable to Heska, earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, and the effective tax rate, which are non-GAAP measures.
Financial - Shares
The following tables reconcile our...Read more
Other - Other
We believe that adequate liquidity...Read more
M & A - Other
The increase in cash used...Read more
Revenue - Geography
Effect of currency translation on...Read more
Financial - Cash Flow
We believe that our cash,...Read more
Other - Other
Net cash used in investing...Read more
Other - Other
Net cash provided by financing...Read more
Financial - Earnings
The decrease in cash from...Read more
Financial - Earnings
In addition to financial measures...Read more
Revenue - Product
The increase in Other CCA...Read more
Financial - Earnings
Gross margin increased to 43.9%...Read more
Other - Other
The non-GAAP financial measures presented...Read more
M & A - Other
The change was driven primarily...Read more
Other - Other
The $2.6 million increase was...Read more
Revenue - Product
Approximately $2.4 million and $3.3...Read more
Revenue - Product
Our primary source of liquidity...Read more
Financial - Debt
Non-cash transactions impacting cash used...Read more
Other - Other
Our belief may prove to...Read more
Financial - Earnings
The difference between this line...Read more
Financial - Earnings
Net loss attributable to Heska...Read more
Revenue - Product
Since items in this area...Read more
Revenue - Product
CCA segment revenue increased 10.5%...Read more
Other - Other
Our future capital requirements and...Read more
Financial - Shares
The Company recognized $0.3 million...Read more
Revenue - Product
Our experience has been that...Read more
Financial - Earnings
Gross profit increased 7.2% to...Read more
Financial - Income
In the three months ended...Read more
Financial - Income
In the three months ended...Read more
Financial - Expense
General and administrative expenses increased...Read more
Revenue - Product
CCA Segment Revenue from Point...Read more
Financial - Expense
Research and development expenses increased...Read more
Financial - Expense
The increase was primarily driven...Read more
Financial - Debt
In addition, there was approximately...Read more
Financial - Expense
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 3.2: Articles Of Incorporation

Exhibit 10.1: Material Contract

Exhibit 10.2: Material Contract

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: 0001038133-20-000055
Submitted to the SEC: Fri May 08 2020 12:23:24 PM EST
Accepted by the SEC: Fri May 08 2020
Period: Tuesday, March 31, 2020
Industry: Biological Products No Disgnostic Substances