Heska Corp (HSKA) 10-Q Quarterly Report May 2023

LOVELAND, CO, May 5, 2023 -- Heska Corporation (NASDAQ: HSKA; “Heska” or “Company”), a leading global provider of advanced veterinary diagnostic and specialty products, reported financial results for its first quarter ended March 31, 2023.

First Quarter 2023 and Year Over Year (“YOY”) Metrics

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


	Q1 ($)	Q1 (%) YOY
Consolidated revenue	$62.4	(3.7)%

	Q1 (%)	Q1 YOY bps1
Consolidated gross margin	43.9%	(110)
Net loss margin2	(15.7)%	(90)
Adjusted EBITDA margin3	5.2%	(670)

	Q1 ($)	Q1 (%) YOY
Net loss attributable to Heska	$(10.1)	(1.4)%
Net loss	$(9.8)	(1.8)%
Adjusted EBITDA3	$3.3	(57.6)%
EPS, Diluted	$(0.97)	—%
Non-GAAP EPS, Diluted3	$0.17	(37.0)%

1Basis Points is “bps”. 2Net loss margin represents the ratio of net loss to revenue. 3See “Use of Non-GAAP Financial Measures” and related reconciliations provided below.

Recent Merger Agreement Announcement

On April 3rd, 2023, Heska and Antech Diagnostics, Inc. (“Antech”), a subsidiary of Mars Incorporated, announced a definitive merger agreement under which Antech will acquire Heska for $120 per share (the “Merger”). As a result, Heska will not host an earnings call to discuss the Company’s financial results for the first quarter ended March 31, 2023. Completion of the Merger is subject to approval by Heska’s shareholders, regulatory approvals, and other customary closing conditions.

The following information was filed by Heska Corp (HSKA) on Friday, May 5, 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-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:

M & A - Other Highlight
Excluding the impact of the acquisition, gross profit and gross margin percentage favorability were driven by increased revenue as a result of higher consumables pricing and favorable idle plant and mix impacts within our OVP business.

Financial - Earnings Highlight
Management uses EBITDA, adjusted EBITDA, adjusted EBITDA margin and non-GAAP net income 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.
Financial - Earnings Highlight
Gross margin percentage, excluding the impact of the acquisition, increased to 46.8%, driven by increased consumable sales as well as favorable idle plant impacts and product mix within our OVP business.
Financial - Expense Highlight
The decrease in tax benefit for the 2023 period versus the 2022 period is due to tax expense from transaction costs and employee stock compensation.
Revenue - Product Highlight
Such statements, which include statements concerning future revenue sources and concentration, international market expansion, gross margin, 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, 2022 that could cause actual results to differ materially from those projected.
Other - Other
-42- Liquidity, Capital Resources and...Read more
Revenue - Product
For the three months ended...Read more
Financial - Expense
The decrease is primarily driven...Read more
Financial - Income
(4) Represents income tax expense...Read more
M & A - Other
The change for the three...Read more
Other - Other
The non-GAAP financial measures presented...Read more
Other - Other
-38- Net Loss Attributable to...Read more
Other - Other
Our portfolio includes Point of...Read more
M & A - Other
The acquisition of LightDeck unfavorably...Read more
Financial - Earnings
The decreases in both gross...Read more
Financial - Expense
Research and development expenses decreased...Read more
Financial - Expense
The Company recognized $0.6 million...Read more
Other - Other
Our belief may prove to...Read more
Revenue - Geography
Inflation, Foreign Currency, Interest Rate...Read more
Revenue - Product
Since items in this area...Read more
Revenue - Geography
North America Segment North America...Read more
Financial - Expense
This incorporates the discrete tax...Read more
Financial - Income
Income Tax Benefit For the...Read more
Financial - Income
In the three months ended...Read more
Revenue - Product
International Segment International segment revenue...Read more
Revenue - Product
Our experience has been that...Read more
Financial - Expense
General and administrative expenses increased...Read more
Financial - Earnings
Gross margin percentage decreased to...Read more
Other - Other
See "Non-GAAP Financial Measures" for...Read more
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Operating Expenses Selling and marketing...Read more
Other - Other
We believe these non-GAAP measures...Read more
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The reduction in operating loss...Read more
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For example, we actively seek...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: 0001038133-23-000023
Submitted to the SEC: Fri May 05 2023 12:50:39 PM EST
Accepted by the SEC: Fri May 05 2023
Period: Friday, March 31, 2023
Industry: Biological Products No Disgnostic Substances