LOS ANGELES, California, April 26, 2012 - VCA Antech, Inc. (NASDAQ: WOOF), a leading animal healthcare company in the United States and Canada, today reported financial results for the first quarter ended March 31, 2012 as follows: revenue increased 15.3% to a first quarter record of $409.5 million; gross profit increased 17% to $93.4 million; net income was $35.2 million and diluted earnings per common share was $0.40.
The first quarter of 2012 included a gain of $5.7 million on our 20% interest in Associate Veterinary Clinics ("AVC") held at the time we became the sole non-veterinarian shareholder of AVC. Excluding the gain, adjusted diluted earnings per common share was $0.34.
Bob Antin, Chairman and CEO, stated, "I am extremely pleased with our results for the quarter. This is the third consecutive quarter of improved organic revenue growth in both our Animal Hospital and Laboratory segments. In addition, we experienced margin expansion in each of these segments. Given these positive results, we remain optimistic with respect to our outlook for 2012.
"Animal Hospital revenue in the first quarter of 2012 increased 17.1% to $316.1 million driven by acquisitions made in the past twelve months and same-store revenue growth of 3.5%. Our Animal Hospital gross margin decreased slightly to 14.4%, compared to 14.7%, for the prior year quarter, and our Animal Hospital operating margin declined to 12.0%, compared to 12.4%, for the prior-year quarter. Our same-store gross profit margin increased to 14.9%, from 14.8%. During the quarter, we increased our investment in AVC which had historical annual revenue of $96.0 million. We also acquired nine independent animal hospitals which had historical combined annual revenue of $12.2 million.
"Laboratory revenue in the first quarter increased 6.5% to $84.7 million driven by both an increase in the number of requisitions and the average revenue per requisition. Our Laboratory gross profit margin increased by 1.7% to 47.9% and our operating margin increased 1.1% to 38.9%.
"Revenue from our other operations reported in our All Other segment increased $7.2 million in the first quarter to $26.3 million, which related primarily to the acquisition of Vetstreet in August 2011."
We will discuss our first quarter 2012 financial results during a conference call today, April 26th, at 4:30 p.m. Eastern Time. A live broadcast of the call may be accessed by visiting our website at http://investor.vcaantech.com. The call may also be accessed by dialing (877) 293-5492. Interested parties should call at least ten minutes prior to the start of the call to register. Replay of the webcast will be available for ninety days by visiting the company's website.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Among the forward looking statements is our statement of optimism about our outlook for 2012 and other statements in this press release addressing our plans, expectations, future financial position and results of operation. These forward-looking statements are not historical facts and are inherently uncertain and out of our control. Any or all of our forward-looking statements in this press release may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Actual future results may vary materially. Among other factors that could cause our actual results to differ from this forward-looking information are: the continued effects of the economic uncertainty prevailing in regions in which we operate; our ability to execute on our growth strategy and to manage acquired operations (including Vetstreet); changes in demand for our products and services; fluctuations in our revenue adversely affecting our gross profit, operating income and margins; and the effects of the other factors discussed in our Annual Report on Form 10-K, Reports on Form 10-Q and our other filings with the SEC.
About VCA Antech
We own, operate and manage the largest networks of freestanding veterinary hospitals and veterinary-exclusive clinical laboratories in the country and we provide the largest online communication, professional education and marketing solution to the veterinary community. We also supply diagnostic imaging equipment to the veterinary industry.
Chief Financial Officer