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Animal Health International, Inc. Reports Its Second Quarter Of Fiscal 2011 Earnings

WESTLAKE, Texas, Feb. 8, 2011 (GLOBE NEWSWIRE) -- Animal Health International, Inc. (Nasdaq:AHII), a leading distributor of animal health products in the United States and Canada, today reported its financial results for the Company's second fiscal quarter, which ended December 31, 2010.

Results include the following highlights.

Three Months Ended December 31, 2010

  • Net sales increased 16.3%, to $198.2 million, compared to $170.5 million for the same period a year ago. The increase in net sales was primarily attributable to improving economics in the beef market as well as continued growth in our veterinary business.
  • Gross margin increased $3.1 million for the quarter, with $4.5 million due to higher sales volume partially offset by a shift in mix to lower margin products of $0.9 million and a special one-time promotional rebate received last year of $0.5 million. Margin for the quarter was 16.4% of net sales, compared to 17.3% last year.
  • Selling, General and Administrative (SG&A) expenses declined to 12.5% of sales this year compared to 13.8% in the same period last year. SG&A expenses increased $1.3 million from the same period last year largely due to increased sales.
  • Adjusted earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) increased by 29.8% or $1.9 million to $8.1 million for the quarter, compared to $6.2 million last year.  
  • Net income increased 52.5% to $1.9 million, or $0.07 per fully diluted share, compared to $1.2 million or $0.05 per fully diluted share in last year's second quarter. The net income for the quarter included a one-time adjustment for the completion of the FY2010 Canadian tax provision of $0.4 million. Net income excluding this adjustment would have been $2.3 million and an 87.1% increase over last year. Earnings per share would have been $0.09 without the one-time tax provision.

Fiscal Year to Date December 31, 2010

  • Net sales for the year to date were $374.7 million, an increase of 12.9% compared to $331.8 for the same period a year ago. Sales to beef producers and veterinarians led the increase.
  • Gross margin increased $4.5 million, compared to the same period last year, with $7.2 million due to the increase in volume, offset $2.0 million by a shift in mix to lower margin product and a special one-time promotional rebate received last year of $0.5 million. Margins for the first half were 16.0% of net sales, compared to 16.7% last year.
  • SG&A expenses declined to 13.2% of sales compared to 14.0% last year. SG&A increased $3.3 million from the same period last year primarily due to increased sales volume.
  • Adjusted EBITDA for the first half of the fiscal year increased 16.7% or $1.6 million to $11.2 million, compared to $9.6 million in the same period last year.
  • Net income was $1.3 million or $0.05 per fully diluted share, compared to last year's net income of $0.5 million or $0.02 per fully diluted share. The net income for the year to date included a one-time adjustment for the completion of the FY2010 Canadian tax provision of $0.4 million. Net income excluding this adjustment would have been $1.8 million. Earnings per share would have been $0.07 without the one-time tax provision.

Jim Robison, Chairman and Chief Executive Officer, stated, "We are executing well and pleased with our second quarter results. With the refinancing of our debt completed during the quarter and good results, we are optimistic about the year."

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