Covetrus sees FY19 pro forma organic net sales growth of low single-digits
Revenue consensus $4.04B. Sees pro forma organic net sales growth, a non-GAAP financial metric, of low single-digits versus 3% to 5% previously to reflect changes in market growth in North America and Brexit-disruption in the U.K. Pro forma organic net sales growth includes Vets First Choice in both periods, excludes the impact of foreign exchange fluctuations, mergers and acquisitions and normalizes for net sales adjustments for manufacturer switches from direct to agency sales in the U.S. The previously announced customer loss in North America and loss of a manufacturer relationship in APAC is still expected to negatively impact organic growth by more than 2% in 2019. Sees enrollments on the Vets First Choice prescription management platform of more than 3,000 in North America, unchanged versus the prior outlook. The company said, "We expect to end 2019 with more than 10,000 practices on our prescription management platform in North America." Sees pro forma adjusted EBITDA, a non-GAAP financial metric, of at least $200 million versus the range of $235 million to $250 million previously. The company said, "We now expect to spend $40 million of the planned approximately $100 million in infrastructure investments in 2019, of which $10 million to $15 million are recurring expenses and now included in our presentation of adjusted EBITDA. The balance of the reduction is tied to the impact of certain end-market softness."