MWI Veterinary Supply Inc., a distributor of animal health products to veterinarians across the United States, reports solid increases in its financial results for first quarter ended Dec. 31, 2009.
The Meridian, Idaho-based company exceeded expectations for earnings, margins, expense control, Internet sales and hiring of sales representatives, said Jim Cleary, president and chief executive officer. “Our revenue growth for companion animal products was very strong while our production animal revenues were impacted by a vendor contract change and unfavorable economic conditions for livestock producers.”
This change in the mix of product revenues contributed to increased profits during the quarter. Additionally, he said MWI delivered record earnings by providing excellent service to customers and vendors, while controlling expenses.
Among the highlights: Internet sales to independent veterinary practices and producers grew by approximately 34 percent for the quarter compared to the same period in the prior fiscal year. Product sales from the Internet as a percentage of sales increased to 32 percent for the quarter as compared to 27 percent for the same period in the prior fiscal year.
The company also hired new sales representatives near the end of the quarter to bring the total to 204 field sales representatives and 143 telesales representatives as of Dec. 31, 2009, compared to 189 and 141, respectively, as of Sept. 30, 2009.
Total revenues were $236.1 million for the quarter, 2 percent higher than revenues for the same period in the prior fiscal year.
Revenues from companion animal products continued to grow in line with MWI’s historical double-digit growth rates. However, production animal revenues decreased because of a change in a livestock contract with one of the company’s largest vendors and unfavorable economic conditions for livestock producers.
MWI’s cash balance as of Dec. 31, 2009 was $10.8 million and the company reported it had no outstanding borrowings on its $70 million credit line. The company continues to expect revenues from $1.0 billion to $1.035 billion, which represents growth of 6 percent to 10 percent compared to revenues in fiscal year 2009.