Covetrus reports $10M Q2 net loss, stock tumbles
Covetrus (Nasdaq: CVET), the Portland-based animal-health company launched in February by the merger of Vets First Choice and the Henry Schein Inc. veterinary products business, today announced financial results for the second quarter of 2019.
The company posted a net loss in the quarter of $10 million, or 9 cents per diluted share, according to a news release Tuesday morning. That result compares to net income of $29 million, or 40 cents per diluted share, in the second quarter of 2018, using pro forma 2018 financial information for Vets First Choice and the Schein business.
The primary driver of the decline in net income year-over-year was a result of the impact from the spin-off and merger, Covetrus said.
Net sales for the second quarter of 2019 were $1.009 billion, which Covetrus called "relatively flat," representing a 4% decline from the 2018 pro forma results. The company said 3% of the decline resulted from the effects of foreign exchange rates.
Organic net sales were driven by strength in the company's prescription management platform in North America, which increased 46% year-over-year and helped offset weaker-than-expected market growth in North America and the United Kingdom, according to the release.
By early Tuesday afternoon, Covetrus' share price was trading at $13.39, after closing Monday at $23.19.
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