VCA Antech’s Same-Store Revenue Drops 2%



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VCA Antech Inc.’s animal hospital division today reported revenue of $267.6 million for its second quarter ended June 30, compared to revenue of $261.3 million in the year-ago period.

The 2.4 percent increase was driven by acquisitions made in the past twelve months, said Bob Antin, chairman and chief executive officer.

Same-store revenue declined by 2 percent and same-store gross profit margin declined to 18.6 percent from 20.4 percent, according to the Los Angeles-based company. During the quarter, VCA Antech acquired seven animal hospitals which the company said had historical combined annual revenue of $9.5 million.

Year to date, the animal hospital division reported revenue of $514.3 million, compared to revenue of $499.6 million in the year-ago period.

The company’s laboratory division reported revenue of $83 million for its second quarter, compared to revenue of $83.2 million in the year-ago period. Year to date, the division reported revenue of $161.2 million, compared to revenue of $161 million in the year-ago period.

The company’s medical technology division reported revenue of $14.6 million for its second quarter, compared to revenue of $10.3 million in the year-ago period. Year to date, the division reported revenue of $30.4 million, compared to $19 million in the year-ago period.

Overall, VCA Antech reported net income of $39.4 million on revenue of $353.9 million for its second quarter, compared to net income of $39 million on revenue of $344.9 million.

Year to date, the company reported net income of $72.3 million on revenue of $684.7 million, compared to net income of $71.8 million on revenue of $660.7 million in the year-ago period.
“We continued to grow revenue during the quarter as a result of acquisitions,” Antin said.

“However, the economy continues to negatively impact internal revenue growth in both our animal hospital and laboratory business segments. The pace of the economic recovery slowed during the second quarter which impacted both our animal hospital and laboratory business segment’s organic growth.

“We remain optimistic with respect to our ability to grow revenue through acquisitions. On July 1st, we acquired a majority interest in Pet DRx Corporation, which operated 23 animal hospitals in California.”

VCA Antech revised its financial guidance: diluted earnings per common share from $1.43 to $1.53. The company noted that the guidance is based on its capital structure after the effect of its debt refinancing, which the company expects to have about $0.01 to $0.02 negative impact on diluted earnings per common share.

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