Heska Corp. (HSKA) 9 Aug 202020 Q2 Earnings call transcript

Good day, and welcome to the Heska Corporation Second Quarter 2020 Earnings Call. [Operator Instructions] At this time, I'd like to turn the conference over to Jon Aagaard. Please go ahead.

Thank you, and good morning, everyone. Welcome to Heska Corporation's earnings call for the second quarter of 2020. of for Head Aagaard, Jon Investor Heska. Relations I'm statements quarter would the financial like to certain of discussing remind performance I second Heska's forward-looking make may during Prior of to the or results, you call, we future company. regarding events this future course that to statements results uncertainties expectations materially need known and those be We forward-looking and caution and which our expressed on unknown by that you based to and may involve actual cause current performance such risks that implied from any are beliefs different and or statements. forward-looking cause contribute filings Heska could Corporation's that the differences Factors release, in quarterly and elsewhere. or with are writing detailed in annual earnings SEC such morning's this and to they intend to events does are made, statements such forward-looking to forward-looking the Any and time and or was intention disclaims statement time not any update obligation any occur after reflect statements made. speak only that the specifically Heska at

Officer Heska's over is us with Kevin Wilson Grassman have We surrounding It Wilson, Financial will open Kevin? Officer. and we pleasure the provide questions. and Heska's turn the and to will Executive this CEO and for call Mr. Ms. then details my Kevin call Wilson, Catherine President. Grassman, reported Chief results now Chief the and morning Heska's President; to

Okay. Thanks, Jon, and good morning, everybody.

that take While Catherine things will Heska. few driving moments a quarter, to comment cover the to some want of the the are specifics I on of second

their in performing safe, posture, and First and our our to our are in continuity ability our know remain teams and intact. mission our and shape. and people, our people work families plans the business great are remote healthy it's foremost, meet morale critical prospects are and are service We to and business strongly that productive. a of our health Heska

what held nicely owners normal, we minor veterinarians, in human capital of true same reverted returned largely to in look ordering expected, demand patterns rather business Any for pet and domestically is up our variation The and pets. products light normal. internationally. and End-user has broadly, of healthy. and is Our has recent our to

still their way there use are through, are there our patterns, large no occasional movers. While ordering working added

in disruptions, good improved quarter largely throughout in supply the which was chain some with second shape first the quarter. Our

As in entered our in the the its in the condition no are is bumps and quarter, the doing best we we year, second chain supply well. we on half. major schedule during also road Commercially, of anticipate

strategies. to challenged environment results are this be solid. We than Subscription's in have new on rather focusing great mitigation ourselves just

increase have call, to customer In measure and the unprecedented teams work value. with total numbers chance of of number of Heska, currently, second subscription amount with did committed reported product, second value subscriptions our of an while of quarter, go on we Put record the marketing, noted Contract challenging the subscription more in in grew and the XX% up internal support power in it business pleased business solid through super the and Heska of simple terms, in customer relationships. retention our scoring future and I'm the teams. our to sales, put value quarter. near is customers. achieved our total deeper last subscriptions we contract and it's performance April, we we it longer to new In While wider, again. current June, as taken and the a mix

together Our markets, Germany, in Scil we Xst, On to of play retention and acquisition key France, Canada and closed have begun April we to offense. defensive continue and come including capabilities Care our companies, effective, Spain, and Italy. Animal are

love to this acquisition, review do I we If encourage you and haven't presentations had so, this a chance releases our deal. you to around

cash grow and believe of in our new international to stronger in strategy, reaffirmed businesses. the to and days were markets, on is nearly these my half has the enlarged and quarter during excitement Our around work are in XXXX, new million, our January. fruits improve $XX we newly we our of our to rapidly hand of Heska rosier With XXXX, strategic resilient in continue we teams work of our positioned XXXX harvest with capabilities, cycle. today past end our the much early this than our markets, ability second five-year wonderful

it's simple, it's concise do to clear. strategy and but Our not It's so it's clear. is concise simple, and easy,

serve, we this of met first target. to pillar geographies and double our The the plan we was customers have

pillar lines plan of and offer. to is the our second revenue double products The we

We expect to accomplish this target soon.

Day i+ are products working quarter, very Element is time way this way this is its into expand to to now chemistry launch line rotor our pipeline making well full our commercial poised achieving is to launches RC, teams international the takeoff. commodities and our our in guidance exciting UF and expected arsenal is the Element Element about internationally and quickly its progressing next menu. updated on shipping full Investor new goal. Element for commercial with this premarket at public focused is Our are we November and year. debut make i+'s

base. challenging on is grow are and revenue our even businesses, scale new, offer, lines larger third the into our will we effect environment. our target to And on and and currently which are this much well create a our current products We doubling pillar way and in markets multiplier to customer

plan We remain this and the In trade, strong The day. impact, the On our rest against and year. are of be target. top unseen to this of universe, that, decades-long challenges, numerous believe done and market health, which both wealth defense and of a In There's strategic are summary, know in past resiliency both great highly society fact, current and goals we and race geopolitical and and matter, large that of half confirmed work we seen share wide competition including its spite continue, our the second shifting every effective. animal tensions, again optimistic currency competitive achieve threats the in friction. tax our and this, competitive uncertainties, of COVID-XX of our on in to has the months this for ambitions wonderful nature competition ourselves, will our for U.S. deal election six achievable. and in turn for achieving and to is your ambitions open over the segment you our is With call the on strategic new we'll Catherine Catherine? compelling for reporting, our provide and call focused, information detail I'll in performance then and with to quarter's questions. additional plan, and the international which to

good and Kevin, morning, Thanks, everyone.

report the solid uncertain performance second a times recent the on our on growth these largely mentioned, and for As pleased are revenue benefited XX.X% of contributed Scil legacy Kevin during our business CVM, also grew basis. by strong we while a to Consolidated of XXXX. Heska performance year-over-year quarter to acquisitions

start quarter, Following but to the finished experienced trend, slower strongly. industry's we the a

company's As diagnostic growth now we changed our in North product morning's line, structure in of mentioned acquisitions report strategic results this our segments: focus. as the reporting related of We our also our America a and release, result International. and core these two geographically

statements. reported change. the results reflect of prior segments results our been includes as segment segment Canada and which In countries outside segment year have U.S., consolidated the in our other previously the previously Europe America is reported Changes and structure America, of today. international this manner while do Mexico, of were primarily affects in words, consists comprised reportable recast not and restate of the only North Our company's North to of all

of and comparative sales segment is comparative - expected with this Contributing to and capital X.X% The declined the segment in margin Our of America to XXX gross capital consumable the our North even significant Tri-Heart, in legacy in with contract product performed Heska reduced consumables customer Merck, revenue America this experienced points environment PVD International segment throughout equipment was demonstrating placements. the lease of demand XX.X%. return basis sales grew manufacturing North and for in approximately period sales XXXX. to directionally business. which both expectations, growth resilience X.X%. and with in growth a Consolidated line

negatively anticipated, lower consolidation the profile gross is consolidated business. margin As impacting Scil, of margin a

of the gross margin We in share, share and share, with attributable included and an compensation and other XXX EPS certain acquisition margin expense quarter million see million, is $X.X to X.X% convertible to operating loss expectations. margin as in our segment XXXX. in quarter due acquisitions. in increase $X driven was release, by quarter to gap $X.XX a are in Adjusted note of synergy EBITDA The point primarily onetime the quarter increase X.X% acquisitions in reconciliation had is results Heska. an manage the of $XX.X today's of to costs the for of of about EBITDA for or our of debt million XXXX mainly lower of XX%, XXXX. interest managed $X.X items, margin decrease associated of margin with carefully, GAAP our million, mix. at second XXXX an operating the which per The million second cash recent was non-GAAP are million largely of our this adjusted prior North $X.X second adjusted consolidation quarter increase basis our in the year, from related million. product Total and EPS our a adjusting The bridging $X.XX a from to of detailed stock-based a line We to America of was second expenses to which continue were $X.X of increase $X.X meaningful the activities per EBITDA with for operating decline an continue slightly issuance. expenses compared second attributable of per or is opportunity $X.X

with our liquidity to which Our position plan. the our remains provide is us cash and million, advance to solid flexibility balance sheet of strong, $XX.X strategic continues

acquisitions, previously investors in new of assist now analysts this in is which we of reporting, to and the the prudent light ongoing XXXX our recent Turning to and Xth. In May pandemic, on consideration resulted provided believe segment reported time. it during guidance

not on forecasting will I this nor that will of environment the today. to guidance is update guidance in of difficulty we quarterly intention based our is and we the on provide as information It have guidance. caution our quarterly Although

guidance year EBITDA provided million, revenue are reaffirming to our X% expectation. X% and XXXX margin We business consolidated with at to EBITDA higher of previously million adjusted our $XXX end of $XXX the the of margin momentum full

acquisition to to million come and we with of guide million to Additionally, $XXX second million XXXX outlook in million on business now at stand-alone of including lowered end growth, was full excludes XXXX, expects based March North from lab the quarter revenue America consumable in basis, point-of-care point-of-care the including is are X, to $XX installed from year for Spain travel segment. Australia, revenue but Scil of COVID-XX On imaging of April proportions XX% new experienced to point-of-care on revenue growth as the our of segment XXXX, estimate OVP approximately and reaffirmed. to France $XX approximately revenue hospital included Heska, and XXXX. the we pressure laboratory anticipate access of which XX, Heska comparable America of million, combined the a prior low $XX XX% North $XXX all fewer guide XX% of former point-of-care million The XX% to revenue $XX consistent due instruments range. XX% our now restrictions,

recast, portion segment point-of-care XXXX attributed the consumable which now is percentage combined North the is of the lab part of segment. the outlook international outside for approximately to growth prior four America, of points derived As

to on the integrate throughout full majority North have income insight expect depreciation stock-based analysts approximately of continue assist approximately charges $X The To provide certain during necessary transformative point-of-care our make million lab of we result, considered this of the of XXXX a in As the for growth approximately little consumable for of for investors our statement rest this $XX million. amortization of and compensation the period, been profile a onetime is the million acquisitions investments, of as year, first X%. but onetime we we America to outlook more half $XX and largely million incurred to XXXX, year. throughout to $X our recast

future valuation which rate the expected is assets other be to changes between be XX% excludes the - effective items, potential of of half on XX%, Our of any remaining in or discrete our benefit any full tax a between realisability to deferred XXXX. to tax year

quarterly stronger European holiday, With company, questions. be for summer with In of our provide than fourth the the your continue our pleased to expect to quarter performance expect call don't experiences experience quarter. to which seasonality a of of region Finally, to sum, do are among Operator? the month like the August, during third that, the Because would to financial we continue we some quarters. in we based second the we primarily acquisition while a up open we quarter. guidance,

first Guggenheim take Westenberg And Please David Instructions] from ahead. question we'll go Securities. from [Operator our

on in taking environment. light and thanks of the congrats question my COVID for Hi, the performance

I'm going I'm and mean, of above maybe to a Scil? getting with start a to we've Heska market growth market going I more you year year component with of it So Or and getting the is growth. major as terms component maybe - share. is of that, that start transition looked see a to a in two? as in next market the year, X% bit with little traditionally, at component next due or Do still of a growth year this share

growth. a of I still think it's component

think had We customers is the a first And of going year. North those we're bias this bias of think and one to be as the number with I up, as year, longer current provider a exists. at the still think player very not much the or in stay net, in Scil we with just the stay America provider. the current for markets to similar number that two hoped is be months beginning lot already. to quite I acknowledging six we'll probably their

strong Spain, And retaining instance, CVM, they're customers. and quite we very because Scil and have for well so in we're in their Spain, both doing players

right question, think don't permanent know net but answers now a I than So gains it's retention that's permanent don't your think everybody. don't think easier I I I if condition. probably a is for that

the is same concept. of follow-up is that no, kind my No, actually because it. on then and Got helpful

in noted the your with you're again, of then about You to extensions Is that, contract prescription due same talking terms exact by driven concept XX% value. that contract in provider? staying

Absolutely.

existing base. So it's easier to your to reach installed out

You have relationship. a

be to have don't you've site. site, been You on on

probably trust. able back add sales we link that, commit our to build and to So of to number the and in to go increased those they extra they want the relationships that with commit term us the add to and that exchange over analyzers, the amount customers want analyzers, value, teams that for And very then good importantly, extra they're more leverage us.

subscriptions larger good is benefits, have and the that news bad the a model. players and who news smaller players So obviously,

of I a think it little who culture subscription, players leaves those culture we more do. maybe a without have subscription-like a than it stronger strong make bit for

quarter Catherine, But terms line, my OpEx fairly kind the model we you off there representative one much. in rate? And can terms for be need Thank run very maybe than this forward? different is OpEx expect I you being of it. to Got admit the was out this is Or any in of of specifically G&A. things what going as that called is

Yes.

we clearly, onetime the out think, I charges. called

throughout perhaps of about of which level had quarter, continue the we will year. at that million So have, we $X.X charges onetime but not to the in rest the

second costs exclusive of close. through of We the quarter quarter. So by there the those uptick. onetimes costs is as that of we offset see some a overall, directionally, were slight did But will second lower say, some be have operating slightly those I'd relatively operating cost We controlling still. should

Got I'll it. much. in back Thank very jump you queue.

you. Thank

take Mah our And from Piper Please from question Sandler. next go Steven ahead. we'll

taking Thanks and congrats questions the for quarter. on the

I So a the margins. question on gross got

caused So it the a decline to Could any which particular primarily bit reagents? did? QX, it you we're to mean, or Or as us you as more color? gross a little of supplies well. for for events example, much off in bit Scil? due maybe was on little Were margin as there pay did that give I

take this Kevin, one, I can I Yes. think.

a margin lower American we In than basis, that If margin. par not we prior light charge inventory North with inventory level, the a charge, something on not largely on expected took at reserve as segment basis, an normally reserves clearly, we So of can result for our expected slightly that that's margin, consolidated Scil. been on comparative was recurring. and in gross I in of lower not directionally, for a would we COVID. given But have adjust year non-GAAP are quite this

That's Okay. you. Thank helpful.

point long-term. would investor's out I for And

we capture bridge Scil, well we we that One of can ours, with synergies the we lower think we're margins aware that the can than are gap. gross think that

expected. job margin margins, improving much good do was gross I very think consolidated that the work, their we'll get as to of And gap. So a we bridging

was of kind the of in? Okay. part of synergies next the expect Scil Yes, that and integration what question my the we sort is, frame to should kick for time the and margins

Yes.

Again, two-pronged. be to it's would you market you're say I realistic have that in in. So probably the

to travel So America we saw especially restrictions, Europe.

a doing. health make its is the sure as stand-alone the its that and business it's to business, step So growth first which retains

The integration like making in pre-travel not all it's bit second that that but And year, optimization. longer, have may of third progress. and meaning quarter would be second this more take been little we I step a maybe then would and over we're the restrictions, think

So I It see margins would quarters improve. will things gross probably those take a of you'll before say, improve. couple will

start year, to through. the see think next early So you'll some of I pull

have first You inventory at also first out. in

So gross happening. rationalization and you current have margins at product with inventory

So a few it's going quarters. take to

Okay. appreciate a And additional you you more I us on bit a more And briefly fecal color little on question could the little No, mentioned give the is, color. expectations? analyzer? wanted launch just next about and bit color urine my

Yes.

last time So I table. we are on schedule for our

viewing And think think commercial full a public in year, we November Day. this our of so And we around time right launch. will kind have it Investor have next we'll probably

on able November. and work But time the to hands frame. be watch that's it in people will so And get it their

So time lunch. product like August the it since a for long sounds

Okay. questions. appreciate taking for I All right. it. the Thanks

Thank you.

ahead. Haynor Please Ben Alliance from question go Global We'll take from next our Partners.

questions. taking morning, thanks for Good guys, the

guide understand in me, kind just to the point-of-care lab wanted the change for First consumables. off for of

decline the a XX% on system to into what's call, that? kind to think about decline about installs. QX Is in consumable of talked good changed a way that's you lab think guidance? that goes Or XX% that something in the the I

So if jump I'll the let Catherine start, in needed. I'll peanut gallery and is

Yes. Yes.

decline was range. that. that built definitely, is XX% it So And part into of to XX% that

call then in the a reconfirming beginning holistically, more and portion back looking point the June, of segment range, guide. but the having the and we of And for the higher to now results clearly that it in lower especially somewhat we at different reaffirmed just just end than so potentially obviously, to then whereas of a we we're on toward And a more had in at just out recovery, on that came when previously. year, wanted based April higher a end, make is a a out quarter, not going I'm clear in May the it We sure ending stronger were growth sitting up. to where we're lower the of and come a May

jumps gallery Catherine, How quick, in that mentioned the half peanut the I Real that have in. of QX, reclassified would half, the there. over to we the into of shifted much X% guide was the much how But growth before much if look the at international? we'll the first you first how to did how year-end? or see come shifts look know international that

Yes. Yes.

half back X.X%, the the in first percentage America for was it was should was the reported that. the quarter take in North first We exact it, North in America. about first at me half, let it in X% go first growth So what for we the reported that and But quarter. look I

So if have growth segment. International remaining the that been recasted I would think in you it

Got it.

you on install the Kevin, to anything system Sorry, add update? did have

of context. couple just would Yes. I a I in mean, of terms things add

I'd It the thing that's is, reclass. and just intact, point is think is the still important. first to So as I X%

to I think facts. the also important it's acknowledge

running year-over-year X%, a first we're supply the months in of COVID basis, the six half. in effects I all on including performance. think since And first great chain that's delays the So roughly the a

development. at really bit continuity business we're doing product little good development, that's think I good business time, this

just we closer we at year the it's to to the the down range. say, guidance. to I the didn't it. pull We're didn't talk We that XX, not of trending about XX. say to oh, we important think But started we where were XX are So bottom bringing to

the prudent it's first the think four for if reclassification. say in I to you're drop you're to X% points half, going

is a I think number. prudent X%

encouraged So do by I'm the you that's not, but and we is what guys market looks it. we you do It why like do, what do.

And obviously, sense. business makes resilient that the that's all developed. given been mean, I has quite Well,

able sales on metrics more curious you restrictions are that ones that any that also, or of fewer share be differences personnel. to of kind might than in had And visits there the states had restrictions? have any account in your Just the terms by have contacts

restrictions really Now are more clinic the based.

And sometimes they're busy. just

don't we and on people sometimes, put want on airplanes. And just little put people in We to hotels I'm to cautious want a that. don't perhaps,

demonstrating care that it. flows treating and I them And your we and customers. is your people think your this protecting business through brand for great well, hospitals your people ironically, veterinary they a those see It's loyalty, company. to about is and it for in human, flows for through to great hospitals, the very

company. So any cut brand, asking at we're we asking the cut them for level, vacations, And healthy protect stay great to And take think is be we're to do. it's I for we asking thing that. the and right benefits, people on long-term, just to haven't pay, great we're and it's them home, that the and haven't to just

that. on focused we So

restrictions, In a can't just We saying, terms in I web get do to lot a COVID of of Texas." clinic "Hey, demos.

our been activity We marketing lack of seminars, and basically team X,XXX from and trade veterinarians of there these. phenomenal. three the active just I think are Our of leads And educational backfilled hundreds over or all last events quarter. hundreds with attending in just four has show

that things working. and to online and seems on it opposed way doors donuts, So we've to trade bringing moved and knocking as shows and do adjusted to be

Heska. stabilizes provider, much doing And which that's the going the think for I great. six business that well. it's it is as at think, great for for Scil with don't obviously, current Scil XX just or I us months, good It's as is the that it's us, next and So be bias stay to it to

little So helps rambling it's I hope a but a the long answer, you bit. color

helpful, thanks Well, lot. have I for a all that's that's definitely today. Guys

Ben. Thanks

question Cooper We'll from James. from go Andrew ahead. take next Raymond Please our

sort Thanks to for think end can you the XX%. much much and low the one, thinking new How in, questions. that hair the assumed consumables? of I already that? think How just back sort of fewer can that in of put about of about of XQ. XQ us about and, new of having installs. half activity helps really, if help the about been in Or Is guess, the kind that base guide XX% we most I think a that, we in there guess, should maybe install

It's believe think get call on I we're it's to here. question. that opinion COVID, of to go called I COVID, great for my strategy in not the a nobody relevant lot I'll number. on a in hopeless that but There's

we're very, think XX months, very a for I in least. long another at slog six to

assumed. And what we've so that's

second step-ups half on we hope. big assumed the in based So haven't

COVID assumed to we're solves going normal. We that to haven't and return

model have be new So in that's and type of of if you or point a that of don't of XXX, would thought in no, that hundred first. hospitals maybe XXX lose we installs a you couple using, instead steps thing, two growth, new installs,

to get to and big right start our again. built not So no, share market able for haven't and every number. after be And we're a changes. into COVID, step-up clinic going planned into we taking big now That's

different maybe of to months for be for sticking vet your front resilient, theme customers, programs guys at on free sort of think they that that done been little feeling in periods, past, then period the have add that of especially remainder to or or but to to so And least, as pain. consumables least little year, there a about of with kind we you new probably there or bit month should the were a at seem a out where helpful. In in XQ super have Was thinking on That's call year, bit. for the was anything customers. there extend of I six Great. Okay. a

move call terms relative as So there last forward? to anything out to we in year of

there any No, yes, to of April were And don't most offered were really just and customers I deals. But it. forbearance. frame. kind need think customers did people time of out said, some was We candidly, reach scared. And don't that I kind

customers So no, driven We by the little current on contracting, and go And with the and it It product focus. that. was they that. it I counter. don't think bit to more really responded was line lighter decided a will terms in a focus our certainly, on of of longer to

wouldn't So say be swings. big I don't I there'll

about note you maybe there a at would XXXX, Okay. and than anything the those should some When the of the on point launch adding different investment sort some for you're last philosophy, more and items bit we there that on And about obviously, are things? as of in me, that just think it's one thinking iPlus you exciting global on investments Great. more of menu counter. a U.S. wider marketing parts? track handful and or you sort more the of through, we Has anything expansion thinking back on whether even little about terms probably of your of prior? high those some Is but of into sales that XXXX of level a moving with prioritize of of changed how half kind were and

not I remind am Andrew. I aware. don't if have me, any, Catherine,

still to true. think intact. having a intact. plan plan and surprising. that we right, R&D executing be to that intact. the and modify just much offer that pretty little and want little issues. a was And still haven't to our it our to is lot say plan, I is is I development because macro not that's I to happens mean there's surprising just plan of be a that plan, The It's right the menu We're not a I

exactly changed any plan I have... the last about that on know have if been we're good haven't don't feel Catherine, you really priorities. I no, So I the and on quarters. pretty don't for several

and experience think rate I triggered something David Yes. question question but about bit and with great great of it's a XXXX, because run timing thinking half it I was expense maybe a is expense on that the this spend and actually, in the off, that's did thought I about second thinking This as that of functions. slowdown would we acceleration and R&D operating through there throughout during a remaining a this expenses. we really question, sales activities, have the half associated and just prior an not then for the development a reaffirmed, have I'm as increase the and little we But clearly a and asked about a Kevin year. will But to activity included operating is in marketing and the G&A clearly, the of will actually has an R&D. associated of quarter question bit relates still

So about I the of to around kind more, maybe way and right on or of things some of because done, executing it? of the like that the bit R&D, no timeline little think assume, timing time to get you move no completion Is that. some a but shift couldn't anything actual

That's correct.

thanks. Great,

Thanks Andrew.

Please from question Sidoti go ahead. Sidoti Company. next Jim from Our &

Glad well. doing Good morning. to Hi. is hear everybody there

you? are Thanks, Jim. How

think going but be good, okay, Well, quiet it's New to York, it. things still I are very very a in worth

you is a there? just to wanted that million, business When Heska is I couple. Scil there Scil. is $XX.X revenue international the in break guess, the clear, all theme of on revenue? portion be almost of I out a legacy Just that Or at

is our of portion such and previously, of CVM. as legacy acquisition completed French recently, then more but a There existing Australian, business Heska

So right? CVM does So include it that. in was present QX,

XXXX? revenue Can me the in you then tell from the two was what acquired acquisitions

specific, I safe but don't that out majority is the acquired. think it's say we're to giving

very that's organic well product imaging France in that of acquired know, lab that doing the in PSC And in line, a the sense imaging effort. was you lab primarily been the Australia then you PSC as and gives the segment. part As so was international versus on of

about that question, got Okay. throughout of you're well million the It then like contract maintain Is did rest think business we looks going quarter. very in $X the to level a manufacturing And the year? the second year-over-year. you

a almost lumpiness. purchase year full That I has business think is the year Jim. full worth get always guidance intact, orders. We

had into we good So business. visibility that

out of So there's change. call. within much I for be pretty would a reaffirmed think take guess original don't and reaffirmed We reaffirmed that. Actually, I any good think everything. the that its today side. came everything. we've I the really on range We

because Jim period-over-period think piece, I to consistent. the relatively XX, the XX you you're to OVP and what the asking Yes, is comparison

range. think for say, of I our the think you're and the kind last And that return specifically of reaffirmed like portion, asking on $X-ish $XX I the about between around, calls, PVD this product million two million $X million we've year, Tri-Heart.

couple, between And great. in expenses, Right, are are G&A onetime they the those G&A? spread the Or primarily and then Okay. margin? last gross

sorry. I'm you that repeat Can part question, Jim? of the first

just expenses about quarter. in million You forward? said the of you onetime I'm And going to had $X trying model

Yes.

primarily generic... that Is

Yes.

Okay.

in yes. margin. would generic, gross in be Nothing Primarily

reiterate, Okay. you Then can you just is? of the force said today? size As sales the of

know am of I why hearing. bit a I'm don't having a sorry, I difficulty

You are repeat just for can you a that me? muffled, little

the of tell you Can me right sales force better. is size this the Maybe Yes. now?

sales Kevin, force. of the do that? have size you Oh,

Jim, We Yes. have couple, it's probably think don't I added changed. ironically. a

we management. or senior who except two expanded are to I people promoted maybe management, But same, We about our numbers net have for regional have one two. think are and the the

exact numbers you update we with can we there. get as So

right. last one me. for then All And

you quicker Can that? have than What you U.S.? European the in a the pretty characterize You here business considerable do recovery now. are seeing there

that is, than think So I question internationally recovery you faster are question? probably the the U.S.? the seeing Was

Right. Right. Yes.

lumpy. a little I it's consistent. would No, it's I say And also say would

and I look GDP. is is XX%. France Germany around mean, Some around Italy markets so think Spain in XX%. up XX%. XX%, almost was just around right at I mid-teens, is

Just are numbers. GDP, think those broad I right the macro

bounced been hasn't same, the same. country country hit hasn't every back every the so And

well, surprising we I imaging We affected. Obviously, affected. well. me haven't is haven't consumables held think has have up been to what's been been not saying held we've off. It's ripped up really been

recovery. said, no, I use is think So word, she when going to not Catherine the

then most of business to markets. better I And second companies to that of just world, are damaged are COVID under Netflix, continues think there to be in companies actually same, bucket. to market, the definitely hard some been to in grow doing do by it'll where think then the are I and that be I not it, think grow, these Veterinarians structurally largely on Zoom, the companies better. filler I current doing obviously, their a pockets think in pretty that really third investors, do the COVID; that's under and there companies going continues are three is, we're healthy this bucket, But we're types say steady faster. think we're actually of in part say would are sentiment it's And I well. the here and

little it's got as doing is held And a up of business we Our well. well. bit and well, survivor skill probably

lot. And so kind of around we bounced a really

So answer, the Again, I'm the maybe is the with these not word right long of sure the concept I'm to for rambling but helpful. that is kind markets. sorry recovery necessarily choose

right, the or not all is Article bottom my, it and to you to Yeah, top only really in name have universe cost thank line you. year The estimates. Okay, had make impressive. my

company impressive the very the feature is that in So of market.

Yeah. Thanks, Jim.

to back have call closing Thank like would further or I Kevin questions. you. turn for And over we to no the additional remarks. any now

of our we're and doubled and half and XXXX. done who Thank the make COVID, lot will reiterate, to you, call. because managed and lot in just got a first the our base. got chain thanks, geographic for I work we everybody, of quick, our I track supply customer development. do. a everybody's on operator, business joined know We it R&D We additional I in

we a we just we place, in in than were company So a in we're definitely like and January. stronger August good we're very feel

our or our our And that, good in so cast. it's We're I person everybody I'll seeing look going next about to think with in something happy we other Bye-bye. take Have good the U.S. be Signing thanks to blessings, pet be look nice. at interest, please, a some and cautious, of and your veterinarian, Okay. volumes the whether Day, Investor November things. on it's day day. do I it, Until to very a call off, it's because and sign for excited your be forward off. then, video safe,

conclude Thank call. And today's that your participation. you for does

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