Idaho-based pet nutrition giant PetIQ (Nasdaq: PETQ) posted its fourth-quarter 2018 earnings after the closing bell on March 12. In the quarter, PetIQ saw net sales soar 114% to $111 million. Organically, net sales grew 70%.
Net loss widened to $5.3 million from last year’s $3.4 million, while net adjusted income slipped to $1.2 million from $2.6 million a year ago,
Adjusted EBITDA in the quarter jumped 82% to $6.5 million. “Product segment net sales were $95.1 million and Services segment revenues were $15.9 million in the fourth quarter of 2018,” said the company in a statement.
LOOKING FORWARD
In fiscal 2019, PetIQ expects record consolidated net sales of at least $600 million, generating an adjusted EBITDA of $51 million. In addition, the company looks to open a minimum of 80 veterinarian wellness clinics.
For the long-term 2023, the company is looking at an estimated $1 billion, with an adjusted EBITDA margin greater than 15% — with about 1000 wellness center locations.
BAYER LITIGATION
Back in January, PetIQ announced that it “amicably resolved” pharma giant Bayer Healthcare’s patent infringement complaint regarding PetIQ’s selected brand of flea and tick treatments with one of the company’s suppliers.
Then, CEO Cord Christensen said, “Litigation is a component of today’s business environment, and while we do not seek this out, it is our intention to remain vigilant, defending our Company whenever necessary. Our record of accomplishment in this regard speaks for itself and we are pleased to have this matter behind us.” PetIQ then announced it would continue to offer its customers the concerned products.