Heska Corp (HSKA) 10-K Annual Report February 2023

LOVELAND, CO, February 28, 2023 -- Heska Corporation (NASDAQ: HSKA; “Heska” or “Company”), a leading global provider of advanced veterinary diagnostic and specialty products, reported financial results in two segments (North America and International) for its fourth quarter and full year ended December 31, 2022.

Fourth Quarter and Full Year 2022 and Year Over Year ("YOY") Metrics

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


	Q4 ($)	Q4 (%) YOY	FY ($)	FY (%) YOY
Consolidated Revenue	$66.3	(2.5)%	$257.3	1.4%

	Q4 (%)	Q4 YOY bps1	FY (%)	FY YOY bps1
Consolidated Gross Margin	41.9%	100	43.2%	150
Net Margin2	(5.8)%	(560)	(7.2)%	(730)
Adjusted EBITDA Margin3	9.4%	(130)	10.6%	(110)

	Q4 ($)	Q4 (%) YOY	FY ($)	FY (%) YOY
Net loss attributable to Heska	$(4.2)	NM4	$(19.9)	NM4
Net loss	$(3.9)	NM4	$(18.4)	NM4
Adjusted EBITDA3	$6.2	(14.7)%	$27.2	(8.5)%
EPS, Diluted	$(0.41)	NM4	$(1.92)	NM4
Non-GAAP EPS, Diluted3	$0.55	57.1%	$1.58	(1.9)%

1Basis Points is “bps”. 2Net margin represents the ratio of net loss to revenue. 3See “Use of Non-GAAP Financial Measures” and related reconciliations provided below. 4“NM” is not meaningful.

Report Highlights

•Full year consolidated revenue increased 1.4% on a reported basis and 5.4% on a constant currency basis (see “Use of Non-GAAP Financial Measures”) to $257.3 million, driven by North America Point-of-Care (“POC”) Lab Consumables up 8.7% (up 9.0% in constant currency), POC Lab Instruments & Other up 10.1% (up 16.7% in constant currency), and POC Imaging & Informatics up 7.8% (up 13.0% in constant currency).

The following information was filed by Heska Corp (HSKA) on Tuesday, February 28, 2023 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 - Earnings Highlight
The increase in gross profit and gross margin for both periods is driven by increased revenue, excluding foreign exchange impacts, as well as favorable product mix, particularly within POC laboratory consumables.

Financial - Earnings Highlight
The increase in both gross profit and gross margin percentage is driven by higher sales of consumables relative to total sales, which are our highest margin products, further strengthened by product rationalization and transition effort within our International segment and overall annual price increases.
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 our quarterly analyses of our operating results to our senior management team, our annual budget and related goal setting and other performance measurements.
Revenue - Geography Highlight
North America Segment North America segment revenue increased 1.8% to $161.8 million for the year ended December 31, 2022, compared to $158.9 million for the year ended December 31, 2021 driven by a 9.9% increase in POC laboratory instruments and consumables, in part as a result of continued rollout of Element AIM, as well as increased capital lease placements and favorable price on consumables due to annual price escalators.
Financial - Expense Highlight
The increase is driven by the $3.9 million provision for credit losses on a convertible note receivable, increased costs related to recent acquisitions and higher non-recurring items of $6.1 million, and increased cash and stock-based compensation costs, partially offset by lower incentive compensation and favorable foreign exchange impacts.
Financial - Income
The income approach involves making...Read more
Financial - Earnings
(2) See "Non-GAAP Financial Measures"...Read more
Financial - Earnings
The increase in gross profit...Read more
Financial - Earnings
See "Non-GAAP Financial Measures" for...Read more
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The loss in the year...Read more
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(4) Represents income tax expense...Read more
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Gross margin percent expanded to...Read more
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The non-GAAP financial measures presented...Read more
Revenue - Product
The increase in revenue is...Read more
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Our portfolio includes POC diagnostic...Read more
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Material Cash Requirements The Company...Read more
M & A - Other
The acquisition of VetZ also...Read more
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If the net carrying value...Read more
Revenue - Product
International Segment International revenue was...Read more
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Revenue Total revenue increased 1.4%...Read more
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-36- The Company has financial...Read more
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Our experience has been that...Read more
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Research and development expenses increased...Read more
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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 4.2: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 10.31: Material Contract

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: 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: 0001038133-23-000007
Submitted to the SEC: Tue Feb 28 2023 1:27:32 PM EST
Accepted by the SEC: Tue Feb 28 2023
Period: Saturday, December 31, 2022
Industry: Biological Products No Disgnostic Substances