Heska Corp. (HSKA) 28 Feb 232022 Q4 Earnings call transcript

Greetings. Welcome to the Heska Corporation Fourth Quarter and Full-Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

the to turn Aagaard. host now will conference your over Jon I

may You begin.

good to XXXX. everyone. call you, morning, Thank and Welcome fourth and for quarter Heska full-year of the earnings Corporation’s

recorded. details Officer. As today’s Grassman, President; provide of Relations Grassman Heska’s the we Heska, a at and Chief Mr. Heska’s reported, Ms. and morning, John with will this Kevin conference being Catherine Investor us reminder, and Wilson have results Aagaard, and I surrounding we call is Executive Head Financial open will am Chief to Wilson, and Officer questions. then the

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

reconciliation visiting of of earnings in be most to Relations GAAP accepted please we otherwise equivalent to measures principles and these section call, A the this will is may be with generally non-GAAP compared references website. measures directly discussing our period accounting refer provided in or release, prior prepared growth financial accordance financial to GAAP. full-year during certain by reviewing comparable found which year fourth Also also the not noted. In the quarter to XXXX growth, results, note our Investor all our measures unless

Before Kevin, to release. Resources to supplement I today's I Please Investor to a call presentation as turn over company's Relations Heska’s view the found earnings on of mention want slides earnings Investor website. the the page the

the my And that, it Wilson, call is with President. to pleasure Kevin Heska’s Kevin? now turn and over CEO to

and Hey, thanks good everyone. morning, Jon

now. like and helpful morning's Before participants you to unnecessarily I'll release. to reading I from it encourage It's begin, to try review I'd detailed refrain to this and

will results Catherine cover As usual, quarter. from the the financial

brief with this I'll of last thoughts our So my own call. morning, be some echo which will

smiling To I'm this morning. begin,

good momentum key We subscription investment, the and have growth Heska got in and share, greatly XXXX a amount market improved entering good we our solid gained We XXXX. execution work preparation XX% like margin for amazing to an and great and a release, had across outlook. delivered board metrics. of QX done in XX% we gross again basically

placements, into wonderful quarter the performance Supporting great particularly competitive had in premium XX% fourth were this placing our a in With another year which subscriber subscription growth analyzers year-over-year. analyzer and Heska base. up accounts into chemistry

our the road AIM. hit and in bumps working our stride international supply training We and launches. through also on team accounts in corporate After in-person chain delays Element

are in consumables the In designed. which over utilization contribution urine working both great feedback operation, quarter, fecal nicely. alone. steadily. is Margin were the to over December got with XXX in of economic of positive, we AIM's Systems activated XXXX is profiles and growing and rolling fourth finally Customer finished in and Element as month analyzers XX are is momentum growing

AIM significant view our Heska continue competitive and market. as for in growth a visible Element differentiator contributor a to and years to very important for We as to a come

that ability Vet to per tests soon and pet also LightDeck, to online to Screen making to now completion proprietary innovation our we new platform, on a proprietary state-of-the-art immunoassay point-of-care minutes Heska. immunoassay will a Heska and in following Heska With Element with and platform key which Heska the Monitor. now include plant this for Other platforms veteran $XX. acquisition the X year, exclusively is very key the million market have at small a tests up in Longmont, in and for manufacturing now cancers. on blood differentiators by manufacture menu the Nu.Q Colorado revolutionary coming against This Cancer launch for our Element is are for wholly-owned i+ sample month are Heska's difference manufacturer. under of highlights of this the the Available exciting battle i+

Just to million detected with especially appear in be good the XX% rate dogs detection more rate year, XX% canine peer canine detected developing dogs come. hemangiosarcoma the lymphosarcoma is that pets published in of recent diagnosed XX% is all with age each alone cancer otherwise leading an reviewed the United to charge. papers X in are over XX the Early Heska disease. key, States and of at and over and health nearly there's In and at Nu.Q a screening

management together Rounding Element clinical and share Heska's growth new announced in screening gains related big beyond. other a need that release point-of-care profitability, important with urgent Heska's monitoring series software and veterinarians and XXXX single products which out quickly drivers for meet XXXX are new differentiation, can competitiveness affordably driving upcoming and our and from our the i+ of tests, software cloud-based use is and scalability, and unannounced rapid Heska see practice and projects, true of information we and at for with high Nu.Q confidence. This and

cost we and headwinds foreign expected and our are year to XXXX. improve. delays, moderate the prior are neutrals many now mentioned exchange in in XXXX patient that into our probability experienced Heska to last oddities positives or I are are that and year-over-year dynamics exercise, on inputs a set flip trends comparables and As currency visits to of favorable, the forward extent Pricing hospital in call, doing

new good. growth we exciting and are Our hematology. drivers lines the have over the long-term and is momentum chemistry like in timing competition And

we our communicated Heska our and behind to phase unique For and nearly have win five five-year very build transition at us, phase that and at to XXXX. and we and assembled is an amazing is XXXX win five-year worked asset scale at years, we've in targeting innovation planned, invested at heavily XXXX was from to publicly innovation. have win win scale here

and I'll So time. the Catherine before turn to over our detail Q&A our full-year to to with that, quarter we Catherine? move the call

Thanks, full-year quarter good everyone. XXXX. XXXX our of pleased take Kevin, and along morning, and with overview an outlook through our I'm to results fourth you for

finished strongly and $XXX.X Heska and full-year million $XX.X quarter year with the of fourth respectively. reported revenue million

reported outlook. Our when ahead adjusting million currency approximately XXXX revenue of our X.X%, $XX of for headwinds updated and for grew annual was slightly

North X.X% quarter in segment prior year with the grew for the Our in line revenue full-year. and the fourth America was

consumable instrument were approximately declines X% and increased including growth POC revenue Offsetting placements newly drove products as to double-digit both contract growth periods, portfolio, launched contributed sales our products. of subscriptions, in periods. as gains Lab on of in both growth. POC well AIM, consumable Net manufacturing, price of For Element sales imaging

reset as Excluding growth grew XXXX the Europe. the were significant and for of The in to a program driver increased VetZ FX in quarter segment of our as in international acquisition continue impact, revenue transition was XX.X% subscriptions we our X.X% on of full-year. execute January

Consumables consumer macro were in spending. basis vet prior a improved as the even and on environment region slightly European constant visits impacted from year currency the

a focus initially. term subscription we dampening and is effort program margin. XXXX, to customers which on throughout be for gross in in existing share which the exchange price impact continue to revenue contracts, seen improved succeeding longer discounts transitioning This can Additionally, we in to has

XXX points full-year. for gross XX.X% basis to to XXX quarter basis and Fourth improved consolidated approximately XX.X% points the margin

in full-year gross to with XX.X%. margin was North year While prior the gross in our XX.X% expanded fourth America margin quarter line segment, at

were quarter in margin both International Net XX.X%, increased to and XX.X% instrument lower price expanded products. gains among the year -- margin placements the by variations and both and respectively. other offset gross in transition, yielding subscription One, reset the the were: which to of rationalization points. Two XXX expansion product expansion program, key customers of and transition on full-year basis this includes drivers Heska's work

Screen the operating X% acquisition-related The costs And was charges, for other two, VetZ. the just an of mainly develop test. quarter decline exclusive monitoring X.X%, a is year of million $XX XXX one-time the ago. tests a respectively. payment Nu.Q most margin prior quarter point-of-care, the Vet Heska spoke Cancer by which acquisition was the XXXX basis driven year Total about significant versus and the non-recurring and screen of negative of cancer to moment points to Kevin agreement for and and in negative the The first related

adjusted ongoing Additionally, investment of X.X%. for about margin reported full-year the points. the expansion and rapid quarter as other million to our opportunities Adjusted true that of solution and are ongoing deemed the $X.X invest such we the recurring growth cloud-based continued a in adjusted PIMS portfolio. EBITDA development was was EBITDA $XX.X XXX spoke was across The million a I current and XX.X% in margin growth Adjusted decline was EBITDA for in of margin the basis just future year. EBITDA

we approximately $XXX the million. with January strong of closed approximately of million LightDeck is sheet year, acquisition $XX balance in of On Our utilizing this cash cash. X

financial Now for for our outlook XXXX.

$XXX consolidated revenue currency growth reported $XXX range and to within of to of million, X% the million XX%. constant We reflects expect which

as range and $XXX canine growing approximately gains, to All second POC million. moderation diagnostic successful $XXX includes price resulting placement visit monitoring relating Expanding continued guide as assay of Element analyzers. well AIM XXX underlying cancer in rapid a menu in of continuation fundamentals lab anticipated Our include subscription-based tests expansion. of test in our half, XX%, favorable million vet to screening other the trends to

estimating of million million imaging. are $XX to a $XX POC range for We

our macro see to in products, growth headwinds imaging. which continue solutions of to against net imaging-related capital PIMS POC of We relating will sales

remain levels. PVD some with expect in XXXX while expected relatively products are Group, We growth consistent Products OVP to

the environment, product From of acceleration of half, trends the late beginning we impact anticipate in second remainder current timing the industry certain placements of a of year. XXXX second macro in OVP. quarter the is revenue the throughout in moderation variation and expected of with ramping the cadence on launches, timing based within and the This standpoint,

includes the currency reported America Lab range consumable points. North to total XX% of by revenue of total Lab POC POC consumable segment comprise an expect remaining includes of XX% to The estimated estimated with XX% of XX%. basis International rate XX% impacting revenue, XXX rate to approximately XX% We growth which our approximately growth an in

new as XXXX reset offerings well new continuation be in customer focus in of will a acquisition. existing placement of Our locations, customer transition, subscription as

gross points, expect our XXX not We the points impact including of basis to XXX to acquisition. expand basis margin LightDeck between the

expand The EBITDA XXXX margin basis XX%. the XXX to points line margin as at to expectation LightDeck adjusted of Our adjusted XXXX acquisition will around is without compress XXX EBITDA with in acquisition to Heska's be points basis or well. LightDeck

a Heska's long-term strategic as capabilities. development as well is expanding LightDeck investment, manufacturing our and research capabilities,

product proprietary for is further team. technologies. we management are and Plant priority utilization planning top also develop to New pipeline underway efforts as look the Heska rationalization a cost

and LightDeck generate million. while million Further, expect to approximately of Interest benefit to purchase accounting the of $XX of $XX million. completed expense million X% expense tax depreciation not approximately to acquisition, to million expense $XX compensation and we have amortization our we we $XX a preliminarily XX%. of yet $X expect Stock for

Heska for recent improvements such a other as our to as Investment cash number plans of acquisition. initiatives, and to new of relating acquisitions. CapEx in operations including headquarters the utilize LightDeck specifically projects part XXXX In the

all Additionally, capital. of about investments continue in use $XX make other million $XX we million will to a to growth, approximating to of

as period performance XXXX. we close, position confident we of XXXX are begin we final and with mentioned, our and are To outlook as Kevin in the our pleased in

would like With your the open Operator? that, to questions. we call for

proceed Please Our time line you. Instructions] first Westenberg comes your session. Piper David a we’ll question-and-answer at conducting from [Operator Thank this the with with question of question. Sandler. And

for [Technical you Thank Difficulty] Hi. question.

off So I quite guard, guidance, I'd follow probably good. caught on incredible me because it questions that, and was my

to or [Technical -- know of want in around to weakness switching in was a in the seeing And this constant Europe -- given international double-digit that, there been I Just Difficulty] number. has just thought in of particularly economic really I the the release subscription your I kind I’m a Difficulty] growth good particularly confident what on currency lot there's be press switching -- to is that we subscription. really, is and discounting [Technical I'm

more Difficulty] of the question. international of kind [Technical description growth But in just the asking that factors mentioned. than guess confidence I you know, I'm all is, I given So the of that that that

Hey, David.

CPI So price six-year And we of European couple working things happen, contracts. on subscriptions. a we than throughout running been in a regions has out, I'll United roughly customers discount the and you positive to start to been share these lot in based exchange in CPI A point price most increases of States. for broadly, hotter, we've as convert cases get XX%, even XX%

can you kind So X%, increases. at price look of XX% those are like

so those And we're and some first price for lapping of getting they're time. the

helpful. So that's

is thing users volume already. larger moved the second we through The

that consumables And across effect. consumers new less the consumables to use have tackle subscriptions the already will those so -- aggregate, to dampening use so of but each the less to first-half of as that board, in we've the look subscription, we half, not and a a switched of second than less than we'll

And then tailwind out third a we'll going the that trūRapids have I launch execute our would didn't so really season, year last and May. that rationalization. execution point becomes product thing selling into of, like on think April, We we and things in is the our better kind

some and certain we've of baked over as that some headwinds happen years So in last fully don't rationalize the of now and are they couple products away walked those or again. from those products we lost of

I a I know I harder a we out. do some So yes, know, macro if through. them to of helps Catherine, those basis. more Europe that see I all. don't difficult called don't have is got It's But just on little

yes. Yes,

think you I all of them. had

AIM, chemistry what there I analyzer mean products by is that, of, contribution us in guess switching I'll here, I'm this noticing guess, it's have analysts? give rapid, is premium that versus What kind -- non-premium. market and for guidance, products there switching switching the you're other Element to there I out from and dealing new way the the don't whether is that since guess Element the frame versus breaking of I mean, if -- I the versus U.S. I skill do any, you total but to exactly an and and you you new by was, stop some know

No.

So it. kind think say looks I we with a how it's little bit in industry when at of premium, line the

products have I'll a what kind and have then that. of point-of-care that main on around go anchor You lab, of products you'll kind call satellite

will look to, virtually of, kind So our testing all segments. subscriptions main of

we that would So urine be call chemistry, hematology, would and fecal.

coagulation, commitments. So kind blood then And of, have kind of you'll gas, the like utilization bigger monthly smaller analyzers. things

necessarily we so of kind of satellite a coagulation lab core hematology don't a small And has unit, analyzer lab chemistry, want that piece much piece of a with a a just know, utilization. to conflate, lower you like

we what that's by think that. I So mean

new the Sorry and on contribution? product

Yes, a that I lot calling have specifically. as a don't think we we're -- And it lot out them. is of of

we've coming in bringing been to new now and a and they're products market So to yes, are pretty of market. investing them we there call out, so those lot heavily

are don't that well, to point. discreetly out as want I know tailwinds definitely this those at but those we break So

great Got And congrats print. it. and the on

David. you, Thank

from proceed next the of Schott JPMorgan. Please line Our with your Chris question question. with comes

is [Ekaterina] two for for (ph) taking Thank so me. this Chris. much Hey, your and questions you on for

question comments just America. of, Europe, your So kind wanted to previous ask same kind the building first, around North in the prices in on of

North from some the with you question. consumables as benefit how last move that's out the price in you're about So first that kind pricing XX% think we point-of-care how we CPI? now And to much what of America of year? of increases the versus XX% year embedded that? is As price So seeing should through lap number, growth dynamic

around question is second The visits. just vet

saw are on just shortages more it you of seeing So perhaps market labor you're the the the and vet like last we from of in to front you. what what guidance capacity visit a when vet Thank year? seeing visit your in comes generally some and terms growth in

you take price? You're to do want And take I'll welcome. visits. Catherine,

Sure. Yes.

evenly Ekaterina. the in relative throughout contribute how agreement. based to and our price contractual Hi, North we increase distributed on fairly to good. year X% about Yes, America our Sounds we prices to expect X% or

Yes.

add for there’s there a price, just on positive us So one I'll as thing that well. more

if that more. have So year, competitors to X% bridge, we our the value. we in that value more show think gap, which of taken X%, terms last we get value In improves just think we pricing,

So we think that's just a us net competitiveness. of positive in terms for

can't the of types comps normalizing. those visits, to we the about In are terms get I some effects the easier. till Things a not things. of pandemic vet where of much world of we're and wait talking are

that of inconsistent other we in we're getting back some some years. do novo labor participants is are more half. we're normalizing. to many regard. the that many, seen positive clinics think and getting de see seeing don't in but see of year-over-year to I than So do the in I've market There neutral We still And with constraints, also

starting new clinics brand up. So

technician And technician and quarter. technician in opened schools opening, last one their we're the acceleration just in class training, San seeing hiring, Diego in first graduated

I So it, industry for efficiency something then solving think we're as is that’s well. and good the

So think pushing through we're and will and especially so we regard XXXX practice think faster than push testing. more the that difficult the is We're market be. to in all I efficiency, works software XXXX starting

Great. Thank you so much.

You're welcome.

of question. line with with the Erin Stanley. Please proceed from comes question next Our Wright Morgan your

taking for question. my Thanks Great. Great.

to of quarterly that placement XXX the cadence? installed in AIM. targeting, should rate with placements placements versus the the And think quarters? to on in for also AIM, the coming from accelerate base implied trying guess, here America of placement should mix Thanks. the So North about we international reconcile run I a terms how with you Or about think way that here from is right I'm and AIM XX the originally just quarter were trends was that

You're welcome.

So really North didn't as called certainly not less We international really we out, launch activity get getting $XXX this of which year, million. our until international part the installed, America. was, good the of certainly quarter fourth to in that was

it I XX, think I we think over total said XX. number, the was

precise. So to I'm be trying

miss by one or either So I give grace in if there. direction, two some you

cycle so our base, meaning can both can we an product. -- we can look we to with are and then product, in say entire install that them on and domestically. internationally the the that engage sales can quarter, effect sales get fourth pitch the commit at product, in to But in the entire we cycle, full the evidence That pipeline, and customers we we was

And so of we in those number. get the things We December, the we to fourth know types without without presales, can without XX. backlogs, quarter know in in

So I more that for annualize if the year. towards think that's the XXX guiding you that, than we're

good about see feel we We evidence-based. think bright So little it's shoots. it. We

other report saw committed I think market of I nice markets. our some of small Australia, in relative a a is very XX to which

So all we that have XXXX those the things fully in released are are that didn't of earlier get markets. ability those now just to in

of And well. those so benefit got as we've the

answered I Erin. I question, your think So

is assumed of Okay. test point. Heska contribution Can pricing you economics at remind Nu.Q Great, now that what and yes. thereon? Thanks, terms around for this in and of guidance Thanks. us test the

You're welcome.

which things be line Pricing, numbers. that let economics on gross good. veterinarian. with So our are They're that like are in Catherine compares to then -- under the to better margin margin, tend be do reference the favorably we think lab of options kind consumables to numbers, are think quantity which We I'll high that $XX higher. And will guide that.

don't I Catherine, is? discretely, So we're what contribution Nu.Q if out calling know

out growth, to specifically. not meaningful XXXX. for guide haven't Yes, consumable know, it It yes, we overly this you contributor but a in is called

Element quarterly, take thereafter. quarters and we're AIM of launches -- little we're it time throughout as to on launch, more think Nu.Q I to a update Aaron, when going progress probably on the and going based the

more adjusted that question. Okay, this that to? in mentioned operational excluding thanks. think was related Thanks. But investment? just you're nature? something from in housekeeping you Is could And Was if sneak that Or in profit. one I R&D what that is -- -- is $XX licensing of more a million spend I

Yes.

couldn't of adjusted to and capitalized Nu.Q from quarter in So the it from $XX screening from accounting a that payment an in relation and of to had immediately is monitoring be million the EBITDA licensing be cancer test and that just was we're that product. excluding an on first amortized. -- XXXX, expensed accounting But the standpoint but standpoint,

thank Okay, you.

from with proceed comes the Please Ben Haynor Global question of Alliance next with Our Partners. your line question.

Good Thanks for morning, taking questions. the guys.

might you reception me, First off you can And Nu.Q the of days. of announced memory timing kind kind what just are expect launch? products, like for projects, refresh what disclosed the early our or investors color and of I and launched? Nu.Q then Kevin, can the true on announced any know is there of it's when on beyond Rapids those the initial the should be then those provide

You bet.

in So was just Veterinary attended one with got our top the of Nu.Q, the Nu.Q Western focuses several and one and done booth. of we Vegas Las conferences our extraordinarily Conference, well, two talks it on at

we had of coming by. hundreds so hundreds And veterinarians and

The fantastic. is being is reception is the and think coming we additional good, data peer-reviewed peer-reviewed published published. So data

-- be an important could it's product, cancer one not of we so most is extremely for to it's just screening able just the you And important do. think technologically things like think we financially,

of it's screening care for We and a tends screening so cancer function the drive to things a And think what you important things like for size the very kidney that things. like of think those so which types is big market, of about prevalent opportunity. and veterinary heartworm, if lot is

up terms that products, have to we gen single so -- we busy many unannounced product. In happening just don't of every we and so we got things want

just product we haven't stopped just menu current So expansion basic still on line. on our

hematology. for can you like think features things So new

for just spike they're like little things bit fairway of are big that a down can not definitely additive, there more the middle movers. the You they're but new immunoassay think menu that

our with about out. fourth the want Rapids be disciplined. going in to the so And don't the PIMS acceleration launch and with with I'm one, a that to try I quarter, the to AIM positives little so step coming -- just Rapids Nu.Q in because talking we cloud We're and avoid many to bit the

So don't of to movers over needle that message. want lot we a have we just

So…

makes is, sense. accounts of level in enough. or just America it's whatever number When Catherine. the that for it's Is you say, And That percent contracted and Fair international? greater level? the is then contractual figure that x of the their utilization any what discrepancy North implies, versus of at utilization in probably utilization look level than levels Okay. that in is of there sense? Or the similar roughly value. contracted -- one terms utilization kind let's there it whatever If that makes

your don't America. Yes, trending North now say think I I we're seem vary program Europe, we I understand question. And reset -- into but doesn't at would wise, really in significantly from the to have all X.X-years it just

even tend yes, achievable contract minimums our that to by -- can be customers. we and So that exceeded are

good I segments. think So we're in a spot pretty in both

to a too set is say, to or be don't bit too want the there? So you close to want utilization, actual to two, the between high little strategy the room there effective you of

you utilization. You want force do. you and minimums There don't don't scary, to really them be to clinical want are

or and yourselves So years you're partners, we're point more, XX ideally is we're growing right, so six with customer. align with And alongside renewals. for really them we're trying helping that the the and and we're them to and to align friendly

best the And getting and them out putting pressure not of strategy. through on generally is so contract ahead them minimums

obviously, And more kind -- in of each you've is XXX-ish potentially do years, like that? down North the accounts of you one sneak road? the whatever in. you for guide could the the accelerate net that past or added see couple America. down And Okay. sense. new that taken year. point that's That In But I so year. what what X.X It line makes do of What can share think accelerating accelerate that's know this maybe looks number?

Yes.

some under So majority contract are vast somebody. the market of with constraints. there is Remember, the

And so some just is constraint. mathematical of it

clinics going a population a best the You several competitor. or has a that out could of available either of with come years to large are ever. in the product Heska be with with left percentage And contract world's

So natural a you there's around. to do get patients cadence that just have

just wants to if and cellphone similar can't switch. So just somebody they stop switch contractor, a

So a that that tends some moderator to of on number. be

So grind why part you forward. of see a slow that's

are those larger an get because vast Corporate off in contract certainly in are the accounts day contract and don't consolidators majority you one and not of XXX% opportunity, higher binary go even they them. on bulk though,

that's people natural should be that limiter So of. just aware a

growth product New the their Element about existing cancer think We think though, so on we lab Nu.Q just can with is i+, that anybody's it impinging without alongside especially that up earn a us, that nose that's when think for so for I core test. it's And business. driver the but speak, of certainly, the compelling sit point-of-care contract to come the also contract. tent, a under rest does to

our of So strategy. little more bit that's a

the Okay, Thanks taking for questions. great. Well, quarter. congrats the on

you. Thank Ben. Hey,

the & with question. from Sidoti Jim Sidoti Company. Please line comes proceed question next with your our of And

in taking the and morning. question. few was Catherine, what for then LightDeck. currency good impact a Kevin for one A again on quarter. the Hi, the Catherine quick Thanks for of

Can Sorry, me? you hear Jim.

Yes, can. I

Okay.

Sorry that. about

Is what that you're... impact quarter line. top of for Okay, the on so currency

Right, right.

was consolidated a about or -- about we're probably -- the a about -- little for probably X% over flat on about when It growth, quarter yes.

been have would X% currency you So on growth a basis? constant

Yes, if yes. not for currency,

testing. those right. things water that Kevin. LightDeck, Okay. of the then Are you'll projects? a underway of weren't status They had bet-related, All projects human-related lot continue? What's those And on

extremely menu business to have we to focus case-by-case are and development that compelling. other directly that want On wanted accelerate reasons one that like of company. accelerate we think, was but veterinary that own things the to then of Jim, we we're a product And a we are, the basis, Nu.Q. And

we And distracted So our focus that. would be from is menu. get a that I doubtful veterinary

back that would Abbott. partner interested been day, certainly Abaxis by human. a with find Now has And in to road the way in partnered or a be water partner interested forward we in traded

You'll see it partners with go Blood the gas. other direction, Abbott Zoetis and

really think is so in who's partner, compelling. veterinary have they're menu. is forward big a But way because until medical probably be to primary products I And a would focus interested then, better and they're that to these out get our

Understood.

LightDeck, Okay. I $XX And million $XX for you said, a Catherine, cash think, then, purchase price payment the was million. but

is a next year later year? the are that So payments due in there contingency or

So a portion reacquisition of made we years, the over for so is yes. investments the have cash of of debt -- debt, existing a price previous the portion actually forgiveness like purchase

capital million LightDeck? for on Okay. the for million or million. addition then $X to And $X that the is include use that your Does that LightDeck in year, to $XX

No, that includes LightDeck.

of capital R&D balance and that is of the spending type And combination there things? spending? that capital a Or is

It's going to combination. be a

And one for the then me. last Okay.

You expense, in due what said reason that it XXXX. rising seems interest double $X million for the rates? of that? like which what's to Or Is was

little about a bit really million hedging of but it's just -- to interest expense. $X rates, $X million It's on so on

you alright. much. Thank Okay, very

You’re Jim. welcome,

we the remarks. closing the turn session. end reached over question-and-answer And the I'll for of call to Wilson have now Kevin

good, Thanks, of a of Thanks, very questions the just we joined year a work, us. to thank asset. models the but is thoughtful lot who heavily, operator. invested we is execution call. you and ascend, a lot for And We've XXXX think And company. for great everybody, analysts think following to of capital our building what for and a

as then, forward look thanks we until confidence we work. our And to your update. for So Heska, with and your our participation for do next

So everybody, have a day. good

today's your conference, concludes this your Thank participation. time. may disconnect lines at you this for And and you