Heska Corp (HSKA) 10-Q Quarterly Report May 2022

LOVELAND, CO, May 9, 2022 -- Heska Corporation (NASDAQ: HSKA; “Heska” or the “Company”), a leading global provider of advanced veterinary diagnostic and specialty solutions, reported financial results in two segments (North America and International) for its first quarter ended March 31, 2022.

First Quarter 2022 and Year Over Year ("YOY") Metrics

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


	Q1 ($)	Q1 (%) YOY
Consolidated Revenue	$64.8	7.1%
North America Revenue	$37.4	0.3%
International Revenue	$27.4	18.1%

	Q1 (%)	Q1 YOY bps
Consolidated Gross Margin	45.0%	290
Net Margin1	(14.8)%	(1,820)
Adjusted EBITDA Margin1,2	11.9%	(200)

	Q1 ($)	Q1 (%) YOY
Net loss attributable to Heska	$(10.0)	NM
Net loss	$(9.6)	NM
Adjusted EBITDA2	$7.7	(8.5)%
EPS, Diluted	$(0.97)	NM
Non-GAAP EPS, Diluted2	$0.27	(54.2)%

1Net margin and adjusted EBITDA margin represents the ratio of net (loss) income and adjusted EBITDA, respectively, to revenue. 2See “Use of Non-GAAP Financial Measures” and related reconciliations provided below.

Report Highlights

•Element AIMTM installations in line with Company target and schedule.

•Year over year gross margin: Consolidated up 290 bps to 45.0%, International up 670 bps to 41.0%, and North America up 90 bps to 47.9%.

•Heska Nu.Q® Vet Cancer Screen Test projected to be first-ever point of care cancer screen.

The following information was filed by Heska Corp (HSKA) on Monday, May 9, 2022 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 gross margin percentage was due to favorable product mix, increased pricing, and the acquisition of VetZ.

Financial - Earnings Highlight
Management -36- 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 is driven by favorable product mix, particularly within POC Lab Consumables.
Financial - Income Highlight
The operating income for the three months ended March 31, 2022 is driven by higher revenue and gross margin.
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 I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021 that could cause actual results to differ materially from those projected.
Financial - Income
Net (Loss) Income Attributable to...Read more
Financial - Expense
The change is due to...Read more
Financial - Earnings
Gross margin was 47.9% for...Read more
Other - Other
Liquidity, Capital Resources and Financial...Read more
Financial - Earnings
The increase in gross profit...Read more
Revenue - Geography
Effect of currency translation on...Read more
Financial - Earnings
The increase in gross profit...Read more
Financial - Earnings
Gross margin increased to 45.0%...Read more
Other - Other
Our financial position remains strong...Read more
Other - Other
The non-GAAP financial measures presented...Read more
M & A - Other
The acquisition of VetZ also...Read more
Financial - Earnings
The increase in gross profit...Read more
Financial - Income
(4) Represents income tax expense...Read more
Financial - Income
-35- Income Tax (Benefit) Expense...Read more
Revenue - Product
The increase in revenue is...Read more
Other - Other
Our belief may prove to...Read more
Revenue - Product
Since items in this area...Read more
Revenue - Product
-34- Revenue Total revenue increased...Read more
Revenue - Product
The increase in the three...Read more
Revenue - Geography
North America Segment North America...Read more
Financial - Shares
The Company recognized $0.6 million...Read more
Revenue - Product
Our experience has been that...Read more
Financial - Earnings
Gross Profit Gross profit increased...Read more
Financial - Income
In the three months ended...Read more
Financial - Expense
General and administrative expenses increased...Read more
Financial - Expense
The loss in the current...Read more
Other - Other
The variance is primarily related...Read more
Financial - Income
See "Non-GAAP Financial Measures" for...Read more
Other - Other
We believe these non-GAAP measures...Read more
Financial - Expense
Research and development expenses increased...Read more
Other - Other
The tax benefit for the...Read more
Financial - Expense
We view this facility as...Read more
Revenue - Product
This is mostly offset by...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: 0001038133-22-000024
Submitted to the SEC: Mon May 09 2022 12:09:13 PM EST
Accepted by the SEC: Mon May 09 2022
Period: Thursday, March 31, 2022
Industry: Biological Products No Disgnostic Substances