|Over a week ago|
PetIQ price target raised to $44 from $33.50 at Guggenheim » 07:0706/2506/25/20
Guggenheim analyst David…
Guggenheim analyst David Westenberg raised the firm's price target on PetIQ (PETQ) to $44 from $33.50 and keeps a Buy rating on the shares. The analyst, who sees the stock having among "the largest upside/downside asymmetry" of the animal health stocks he covers, notes "a large valuation disconnect" between PetIQ and what he views as its closest comp, Covetrus (CVET). Westenberg thinks PetIQ will benefit meaningfully from accelerating adoption of veterinary telemedicine and consumer movement to online channels in a post-COVID-19 world, he added.
|Over a month ago|
Covetrus appoints Arman Samani as chief product officer » 08:4706/0106/01/20
Covetrus has named Arman…
Covetrus has named Arman Samani to the role of chief product officer. The company said in a release, "Arman will be responsible for developing and driving the vision, roadmap and innovation strategy across Covetrus software products to fuel the company's future growth. Arman will lead global product teams, reporting into Georgia Wraight, executive vice president and president, Global Technology Solutions. Arman was most recently the chief operating officer of AdvancedMD."
Covetrus upgraded to Buy from Hold at Spin-Off Research » 10:1105/1805/18/20
Spin-Off Research upgraded Covetrus to Buy from Hold with a $15 price target.
Fly Intel: After-Hours Movers » 19:1105/1405/14/20
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Covetrus reports Q1 EBITDA $48M versus $50M in Q1 last year » 16:2405/1405/14/20
Reports Q1 revenue…
Reports Q1 revenue $1.07B, consensus $1.04B. "I am so proud of our team's accomplishments and their tireless efforts to support our customers across the globe, as we all navigate and adapt to the COVID-19 pandemic. Our strong first quarter results are evidence of the early progress we have achieved by focusing on the core drivers of our business," said Ben Wolin, Covetrus president and chief executive officer. "Veterinary care remains an essential service, and while practices experienced significantly lower client visits during late March and early April, we are encouraged by the moderately improving trends we are beginning to see across many of our customers. As the recovery in our end-market continues, I believe the combination of our strengthened financial profile and organizational health position us well to accelerate growth and create long-term shareholder value." The primary driver of the year-over-year decline was a result of increased selling, general and administrative expense, including transaction-related and strategic consulting costs, and higher interest expense, which offset the increase in gross profit driven by the stronger net sales performance during the first quarter.
Covetrus names Matthew Foulston new CFO » 16:0705/1405/14/20
Covetrus announced three…
Covetrus announced three additions to its senior leadership team, including global chief financial officer, president of its North American distribution business and global chief information officer. Matthew Foulston will become Covetrus' global chief financial officer effective June 1, 2020, replacing Stuart Gleichenhaus, who has been serving in that role on an interim basis since December 2019. Matthew Malenfant is the incoming president for Covetrus' North American distribution business, effective May 18, 2020. Recently, Malenfant was CEO of Saxco International, a leader in the packaging sector for beverage products. Steve Palmucci joined Covetrus on May 4, 2020 as global chief information officer, replacing Larry Rowland, who had been serving as a consultant and interim CIO since 2018.
Covetrus announces $250M convertible preferred equity investment by CD&R » 09:0504/3004/30/20
Covetrus announced a $250…
Covetrus announced a $250 million investment from Clayton, Dubilier & Rice. This additional capital significantly strengthens the Company's financial profile and enables management to execute against strategic growth objectives. The $250 million in proceeds from the perpetual convertible preferred equity investment will be used to repay a portion of the Company's revolver borrowings, provide additional short-term liquidity, and support general corporate purposes. CD&R will purchase $250 million of perpetual convertible preferred stock that carries a 7.50% dividend, which will be payable in cash or in-kind, at Covetrus' option. The preferred stock will be convertible into shares of Covetrus common stock at a conversion price of $11.10 per share, representing a premium of 40% to Covetrus' thirty-trading day volume-weighted average price and 11% to the five-trading day VWAP. The Company's stock price has increased by 43% since release of preliminary first quarter 2020 results and provision of a business and operational update regarding the COVID-19 pandemic on April 22, 2020. On an as-converted basis, together with CD&R's existing common shares of Covetrus, CD&R will now own approximately 25% of pro forma common shares outstanding. However, the terms of the preferred stock limit CD&R's voting interest to 19.99% of the then-outstanding voting interests in the Company. Under the terms of the transaction agreements, CD&R will have the right to appoint two designees to the Covetrus board of directors.
Covetrus takes additional actions to improve cash flow » 08:1104/2204/22/20
The company said,…
The company said, "Covetrus ended the first quarter of 2020 with $204M in cash and cash equivalents, $1.185B in term loan debt, and $190M drawn on the company's $300M credit facility. In light of market conditions, timing of certain year-end payables and other seasonal working capital dynamics, the Company drew down on its revolver during the first quarter of 2020 to manage its cash position and to maintain additional liquidity in today's uncertain market environment. When financial results are finalized, the Company expects to be in full compliance with its credit agreement as of March 31, 2020. Subsequent to quarter-end, Covetrus announced, on April 1, 2020, the closing of its divestiture of scil animal care to Heska Corporation for $110M or approximately $100M net of deal-related fees and other transaction items. Covetrus used $45M of the proceeds to pre-pay its remaining quarterly term loan principal amortization payments for 2020. Adjusting for these, the Company would have had approximately $259M in cash and cash equivalents and $1.14B in term loan debt. With additional cash outflows expected near-term tied to investing activities and intra-quarter working capital dynamics as well as the unknown impact from COVID-19, the Company is taking additional proactive actions to improve cash flow, including reducing capital expenditures and discretionary spending."
Covetrus withdraws 2020 financial guidance » 08:0904/2204/22/20
The company said,…
The company said, "In light of the uncertain demand outlook caused by COVID-19, Covetrus is withdrawing its previously issued 2020 financial guidance. Among other things, the potential impact of the pandemic on Covetrus' results include: the likelihood of a negative impact on supply chain net sales, particularly in companion animal-related sales as wellness-related veterinary practice visits decline as a result of COVID-19; net sales into the companion animal market represent approximately 75% of the Company's supply chain net sales; the likelihood of a negative impact on certain software-related sales as customers may defer certain purchasing decisions; sales of software solutions represented approximately 2.5% of the Company's net sales in 2019; and the likelihood of a positive impact on prescription management net sales as demand for home delivery services accelerates alongside social distancing measures; prescription management represented approximately 7% of pro forma net sales in 2019. Covetrus plans to provide an additional business update, including the latest COVID-19-related developments, and more details on its first quarter results on its earnings call scheduled for next month."
Covetrus says all distribution centers, pharmacies remain open operationally » 08:0804/2204/22/20
The company said,…
The company said, "Operationally, all of the Company's distribution centers and pharmacies currently remain open as veterinary medicine has been deemed an essential service in most geographies around the globe. Additionally, the Company's supply chain operations continue to work with manufacturers and suppliers across the globe to provide access to critical supplies and quality products, with only personal protective equipment facing significant supply constraints. However, as net sales have weakened over the last four weeks as a result of the impact of COVID-19 on many of the Company's customers, management has taken certain measures to help better align the Company's cost structure near-term, including executive, board and other senior-level employee compensation reductions, employee furloughs in certain European countries, certain shift eliminations, a hiring freeze and discretionary spending deferrals."