Covetrus Announces Financial Results for Second Quarter of 2019

  • Net sales of $1,009 million, relatively flat year-over-year, non-GAAP pro forma organic net sales declined 1% year-over-year
  • In North America, net sales of $552 million, or a 6% increase year-over-year; prescription management platform net sales growth of 46% year-over-year and 22% sequentially; ended Q2 with more than 8,700 practices on the prescription management platform
  • Gross margin of 19.8%, 160 basis points year-over-year improvement on a GAAP basis, reflecting increased sales contribution from our higher margin technology platform
  • Net loss of $10 million, non-GAAP pro forma adjusted net income of $14 million, down 28% year-over-year, and non-GAAP pro forma adjusted EBITDA of $53 million, down 15% year-over-year
  • Non-GAAP 2019 pro forma adjusted EBITDA guidance revised to at least $200 million on certain end-market softness and the inclusion and timing of infrastructure investments; still anticipates more than 3,000 new prescription management practice enrollments in 2019

PORTLAND, Maine (August 13, 2019) — Covetrus (Nasdaq: CVET), a global leader in animal-health technology and services, today announced financial results for the second quarter of 2019, which ended June 30, 2019.

“We have made significant progress over the last six months in creating a new global platform to better support the evolving needs of our veterinary community and to unlock new health and financial outcomes,” said Benjamin Shaw, Covetrus president and CEO. “Our momentum in our technology platform is robust, and we are encouraged by the accelerating pace of engagement in these early innings of our transformation journey. While end-market factors and the timing of certain infrastructure investments are creating delays to our timeline, my conviction in our ability to drive accelerated growth remains unchanged due to our market opportunity and our differentiated global value proposition.”

Read the full press release here: https://ir.covetrus.com/news-releases/news-release-details/covetrus-announces-financial-results-second-quarter-2019

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