SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 28, 1998
VETERINARY CENTERS OF AMERICA, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-10787 95-4097995
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
3420 Ocean Park Boulevard, Suite 1000
Santa Monica, California 90405
(Address of Principal Executive Offices)
(310) 392-9599
(Registrant's Telephone Number)
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ITEM 5. OTHER EVENTS
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Reference is made to the press release of Registrant, issued on April 28,
1998, which contains information meeting the requirements of this Item 5, and
which is incorporated herein by this reference. A copy of this press release
is attached to this Form 8-K as Exhibit 99.1.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
May 4, 1998 VETERINARY CENTERS OF AMERICA, INC.
By: /s/Tomas Fuller
--------------------------------
Tomas W. Fuller
Chief Financial Officer,
Vice President and
Assistant Secretary
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EXHIBIT INDEX
EXHIBITS PAGE NUMBER
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99.1 Press Release dated April 28, 1998.
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Veterinary Centers of America Inc.
Reports First Quarter Financial Results; Company Reports a 57 Percent
Increase in EPS on Record First Quarter Earnings and Revenues.
SANTA MONICA, Calif.--April 28, 1998--Veterinary Centers of America Inc.
(NASDAQ/NM:VCAI) Tuesday reported financial results for the first quarter ended
March 31, 1998.
Earnings per share for the first quarter ended March 31, 1998, increased
57 percent to 11 cents per share (basic and diluted) from 7 cents per share
(basic and diluted) in the first quarter of 1997.
Revenues in the first quarter of 1998 increased 13 percent to a record
$63,312,000 from $56,023,000 in the first quarter of last year. Net income for
the quarter increased 64 percent to $2,307,000, compared with $1,410,000 in the
corresponding quarter in 1997.
Bob Antin, chairman and chief executive officer, stated: "We are pleased
to report significant growth in our net income and earnings per share in the
first quarter ended March 31, 1998. The company continued to make significant
advances throughout all of its operations during the first quarter.
"Our operating income in the first quarter of 1998 increased 38 percent to
$6,781,000 from $4,926,000 in the first quarter of 1997. EBITDA for the first
quarter increased 30 percent to $9,917,000, or 46 cents per diluted share,
compared to $7,654,000, or 37 cents per diluted share, in the prior year
quarter."
Antin concluded: "Thus far in 1998, Antech Diagnostics further expanded
its national laboratory network with the acquisition of Laboratory Corp. of
America's $10 million veterinary laboratory business, and our hospital division
expanded by three hospitals and a kennel.
In addition, we recently completed our $5 million strategic investment in
Veterinary Pet Insurance, the nation's largest pet health insurance company."
Veterinary Centers of America owns and operates the largest network of
free-standing veterinary hospitals and one of the largest networks of
veterinary-exclusive clinical laboratories in the country.
In addition, VCA owns a partnership interest in Vet's Choice, a joint
venture with Heinz Pet Products, an affiliate of H.J. Heinz Co. (NYSE:HNZ),
which markets and distributes a complete line of specialty pet foods, as well
as an investment in Veterinary Pet Insurance, the nation's largest pet health
insurance company.
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With the exception of the historical information, the matters discussed
above include forward-looking statements that involve risks and uncertainties.
Actual results may vary substantially as a result of a variety of factors.
Among the important factors that could cause actual results to differ are the
level of direct costs and the ability of the company to maintain gross
revenues at a level necessary to maintain gross profit margins; the level of
selling, general and administrative costs; the effects of competition; the
continued success of the company's integration process; the effects of the
company's recent acquisitions and its ability to effectively manage its growth;
the continued implementation of its management information systems; pending
litigation and governmental investigations; and the results of the company's
acquisition program. These and other risk factors are discussed in the
company's recent filings with the Securities and Exchange Commission on Forms
8-K, 10-Q and 10-K, and the reader is directed
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to these reports for a further discussion of important factors which could
cause actual results to differ materially from those in the forward-looking
statements.
NOTE: News releases, Form 10-Ks and Form 10-Qs can be obtained from the
company's Web site at www.vcai.com.
Page 2
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VETERINARY CENTERS OF AMERICA INC.
Consolidated Statements of Operations
(Unaudited - In Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
1998 1997
<S> <C> <C>
Revenues:
Animal Hospital $ 45,584 $ 39,939
Laboratory 19,102 16,246
Pet Food -- 1,064
Eliminations (1,374) (1,226)
63,312 56,023
Direct Costs 48,507 43,520
Gross Profit:
Animal Hospital 8,716 7,224
Laboratory 6,089 5,561
Pet Food -- (282)
14,805 12,503
General & Administrative:
Corporate 3,622 3,489
Laboratory 1,266 960
Pet Food -- 400
4,888 4,849
Depreciation & Amortization 3,136 2,728
Operating Income 6,781 4,926
Interest Expense, Net 2,284 1,798
Income Before Minority Interest
and Income Taxes 4,497 3,128
Minority Interest Expense 155 171
Provision for Income Taxes 2,035 1,547
Net Income $ 2,307 $ 1,410
Basic Earnings Per Share $ 0.11 $ 0.07
Diluted Earnings Per Share $ 0.11 $ 0.07
Shares Used for Computing Basic EPS 20,205 19,444
Shares Used for Computing Diluted EPS 21,402 20,699
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CONTACT: Veterinary Centers of America, Santa Monica
Bob Antin/Tom Fuller, 310/392-9599
310/392-7464 (fax)
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