Covetrus (CVET) Misses Q4 EPS by 20c, Revenues Beat

Covetrus (NASDAQ: CVET) reported Q4 EPS of ($0.04), $0.20 worse than the analyst estimate of $0.16. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.06 billion.

Fourth quarter 2020 net sales of $1.1 billion, an increase of 11% year-over-year, and reported GAAP net loss of $4 million

• Non-GAAP organic net sales increased 12% year-over-year
• Non-GAAP adjusted EBITDA increased 19% year-over-year to $56 million
• Non-GAAP adjusted net income increased 40% year-over-year to $28 million

Full-year 2020 net sales of $4.3 billion, an increase of 9% year-over-year, and reported GAAP net loss of $19 million

• Non-GAAP pro forma organic net sales increased 10% year-over-year
• Non-GAAP adjusted EBITDA increased 13% year-over-year to $226 million
• Non-GAAP adjusted net income increased 35% year-over-year on a pro forma basis to $108 million

Ended December 31, 2020 with approximately $590 million in available liquidity, including $290 million in cash and cash equivalents on the balance sheet

Reiterates 2021 non-GAAP adjusted EBITDA guidance in the range of $240 million to $250 million

“Throughout 2020, veterinarians and animal healthcare providers did not skip a beat despite the uncertainty and impact created by COVID-19, and neither did Covetrus. As an essential business, we worked to meet and support our customers’ increased volumes and changing needs, including supporting them with our innovative online pharmacy service and the introduction of our telehealth capability in order to enable uninterrupted patient care,” said Ben Wolin, Covetrus president and chief executive officer. “We have responded and exceeded expectations across all elements of our strategic plan, and we enter 2021 energized by our customers’ growth, increased opportunities to drive better health outcomes, and the momentum we have created for ourselves in the market.”

2021 Financial Guidance

Covetrus’ fiscal year 2021 financial guidance range is as follows:

• Adjusted EBITDA, a non-GAAP financial metric, of $240 million to $250 million, unchanged from the Company's prior outlook established on January 13, 2021.

For earnings history and earnings-related data on Covetrus (CVET) click here.

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