Heska Corp (HSKA) 10-Q Quarterly Report November 2021

LOVELAND, CO, November 4, 2021 -- Heska Corporation (NASDAQ: HSKA; “Heska” or “Company”), a leading provider of advanced veterinary diagnostic and specialty products, reported financial results in two segments (North America and International) for its third quarter ended September 30, 2021. In this release, Point of Care is “POC”, Pharmaceuticals, Vaccines and Diagnostics is “PVD”, Other Vaccines and Pharmaceuticals is “OVP”, contract subscription value is “CSV”, practice information management software is “PIMS”, Biotech Laboratories U.S.A. LLC is “Biotech”, BiEsseA Laboratorio Veterinario Srl is “BiEsseA”, Lacuna Diagnostics, Inc. is “Lacuna”, and scil animal care company GmbH is “scil”.

Third Quarter 2021 and Year Over Year ("YOY") Metrics

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


	Q3 ($)	Q3 (%) YOY
Consolidated Revenue	$60.2	6.4%
North America Revenue	$37.8	9.8%
International Revenue	$22.4	1.1%

	Q3 (%)	Q3 YOY bps(1)
Consolidated Gross Margin	41.9%	60
Net loss margin	(2.6)%	660
Adjusted EBITDA Margin(2)	9.4%	(590)

	Q3 ($)	Q3 (%) YOY
Net loss attributable to Heska	$(1.9)	63.6%
Net loss	$(1.6)	69.5%
Adjusted EBITDA(2)	$5.6	(34.8)%
EPS, Diluted	$(0.19)	66.7%
Non-GAAP EPS, Diluted(2)	$0.20	150.0%

(1) "bps" is basis points. (2) See “Use of Non-GAAP Financial Measures” and related reconciliations provided below.

The following information was filed by Heska Corp (HSKA) on Thursday, November 4, 2021 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
The increase for the nine months ended September 30, 2021 is due to favorable product mix, primarily due to increased sales of higher margin POC Lab Consumables, and increased margin from POC Imaging.

Financial - Earnings Highlight
Management uses EBITDA, adjusted EBITDA, adjusted EBITDA margin and non-GAAP net income (loss) per diluted share as key profitability measures, which are included in monthly or quarterly analyses of our operating results to our senior management team, our annual budget and related goal setting and other performance measurements.
Financial - Earnings Highlight
The increase in gross margin percentage for both periods was due to favorable product mix.
Other - Other Highlight
Net Loss Attributable to Heska Corporation Net loss attributable to Heska was $1.9 million in the three months ended September 30, 2021, compared to net loss attributable to Heska of $5.2 million in the three months ended September 30, 2020.
Financial - Earnings Highlight
Despite these headwinds, we believe we are well positioned -37- 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
Such statements, which include statements...Read more
Other - Other
Liquidity, Capital Resources and Financial...Read more
Revenue - Product
The increase in the nine...Read more
Financial - Expense
The decrease for the three...Read more
Revenue - Product
The $24.5 million increase was...Read more
Financial - Income
The difference between this line...Read more
Financial - Earnings
The increase in gross profit...Read more
Financial - Expense
The operating loss for the...Read more
Financial - Earnings
Gross margin increased to 41.9%...Read more
Financial - Earnings
Gross margin increased to 42.0%...Read more
Financial - Expense
The increase in both periods...Read more
Financial - Expense
These costs were incurred primarily...Read more
Other - Other
The non-GAAP financial measures presented...Read more
Financial - Earnings
The increase in gross profit...Read more
Financial - Earnings
The increase in gross margin...Read more
Other - Other
Net loss attributable to Heska...Read more
Financial - Expense
These costs were incurred primarily...Read more
Financial - Earnings
The increase in gross profit...Read more
M & A - Other
The nine months ending September...Read more
Financial - Expense
Research and development expenses decreased...Read more
Financial - Expense
Research and development expenses decreased...Read more
Financial - Income
Income Tax (Benefit) Expense For...Read more
Revenue - Product
The increases in revenue are...Read more
Financial - Income
(4) Represents income tax expense...Read more
Other - Other
Our belief may prove to...Read more
Revenue - Product
Since items in this area...Read more
Revenue - Product
Revenue Total revenue increased 6.4%...Read more
Financial - Expense
The increase is also impacted...Read more
Revenue - Geography
-43- North America Segment North...Read more
Revenue - Geography
North America segment revenue increased...Read more
Revenue - Product
Total revenue increased 39.6% to...Read more
Revenue - Product
The increase in the nine...Read more
Financial - Expense
The majority of the increases...Read more
Financial - Shares
The Company recognized $1.7 million...Read more
Financial - Shares
The Company recognized $0.7 million...Read more
Revenue - Product
Our experience has been that...Read more
Financial - Earnings
Gross Profit Gross profit increased...Read more
Financial - Earnings
Gross profit increased 42.5% to...Read more
Financial - Income
For the nine months ended...Read more
Financial - Expense
General and administrative expenses increased...Read more
Financial - Expense
General and administrative expenses increased...Read more
Other - Other
Our primary source of liquidity...Read more
Financial - Income
The decrease in interest and...Read more
Financial - Income
See "Non-GAAP Financial Measures" for...Read more
Other - Other
We believe these non-GAAP measures...Read more
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The variance is related to...Read more
Financial - Expense
We view this facility as...Read more
Other - Other
For example, we actively seek...Read more
Other - Other
We will continue to 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: 0001038133-21-000054
Submitted to the SEC: Thu Nov 04 2021 12:11:47 PM EST
Accepted by the SEC: Thu Nov 04 2021
Period: Thursday, September 30, 2021
Industry: Biological Products No Disgnostic Substances