VCA Antech weathers the storm

Despite reports the companion animal industry is 'recession proof', VCA Antech saw sales revenues per hospital (those open more than a year) decline for 10 consecutive quarters from 2009 to 2011, according to a research report by investment firm William Blair and Co. 

An analysis of the company's financial history in the LA Times earlier this month reported that VCA's earnings plummeted to $50.7 million in 2012, it's fourth consecutive year of decline after peaking at $137 million in 2008. 

"If our pets are sick, we'll spend the money," said Robert L. Antin, the company's co-founder and CEO. "If they're well and it's a bad economic time, they may say, 'we  don't need to see the vet.' So the economy has hurt us, just like it's hurt everybody else." 

VCA Antech has grown through a series of acquisitions, helping to boost revenue even as visits to existing hospitals fell. The pet hospital firm nearly doubled in size from 2006 to 2012. 

Antin told the LA Times the company's acquisitions have left it well-postioned to thrive as the economy recovers and pet owners' discretionary income increases.  Reports show a slight increase in sales per hospital (those open for more than a year) for the past six quarters. 

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About VCA Antech
VCA Antech owns or manages more than 600 veterinary hospitals in the US and Canada, with more than 3,000 veterinarians on staff. It also owns a network of diagnostic laboratories and sells radiography and ultrasound imaging equipment to veterinarians. 

Economy - Non-Manufacturing Index Shows Growth in October

Economic activity in the non-manufacturing sector grew in October for the 34th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business(R).

The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. "The NMI? registered 54.2 per cent in October, 0.9 percentage point lower than the 55.1 per cent registered in September. This indicates continued growth this month at a slightly slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 55.4 per cent, which is 4.5 percentage points lower than the 59.9 per cent reported in September, reflecting growth for the 39th consecutive month. The New Orders Index decreased by 2.9 percentage points to 54.8 per cent. The Employment Index increased by 3.8 percentage points to 54.9 per cent, indicating growth in employment for the third consecutive month. The Prices Index decreased 2.5 percentage points to 65.6 percent, indicating prices increased at a slower rate in October when compared to September. According to the NMI, 13 non-manufacturing industries reported growth in October. The majority of the respondents' comments reflect a positive but guarded outlook on business conditions and the economy." 

Thirteen industries reporting growth in October are: Agriculture, Forestry, Fishing & Hunting; Construction; Other Services; Management of Companies & Support Services; Finance & Insurance; Professional, Scientific & Technical Services; Accommodation & Food Services; Transportation & Warehousing; Real Estate, Rental & Leasing; Health Care & Social Assistance; Information; Educational Services; and Retail Trade.

Five industries reporting contraction in October are: Mining; Arts, Entertainment & Recreation; Wholesale Trade; Utilities; and Public Administration.

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Wireless Sector Contributes $43 Billion to Canadian Economy

New report provides economic assessment on benefits of the wireless telecommunications industry  

The Canadian Wireless Telecommunication Association (CWTA) released a report, June 4, 2012, by UK-based Ovum Consulting who examined the economic impact of Canada's wireless sector, more specifically, the gross of domestic product (GDP), investment and employment.

Through this data, Ovum determined the wireless communications services industry directly contributed $18 billion to Canada’s GDP and provided an additional $15.66 billion of economic flow to contributing suppliers in the supply chain. 

The report also stated:

• The sector generated a consumer surplus of $9.31 billion.
• In 2010, the industry deployed $2.5 billion in capital expenditures, which represented more than 14% of aggregate Canadian mobile operators’ revenues. This level of capital intensity was greater than the average for North America, which was 13.3% in 2010.
• Wireless industry supported more than 260,000 jobs in 2010.
• Wireless sector offers high value employment, with an average salary level of more than $64,000, compared to the Canadian average salary of just over $44,000.

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2012-2013 Urban Animal Report Underway

The annual benchmark report of, and for, the companion animal industry in Canada has commenced.  Expected to range in the area of $194,000, the Urban Animal Report has been allocated the largest budget in its seven year history.


The report documents the trends and industry metrics, supports many important conversations and is foundation intelligence for the Canadian Industry:

• Retailers, veterinarians and other national, regional and municipal service providers use the numbers to support their forecasts of economic activity.
• National agencies use the numbers and opinions gathered in the report to gain a sense of the priorities they should bring forward.
• Advocates, government agencies and support groups comb the report to gain a sense of the issues confronting industry.
• Alumni and associates of the Summit for Urban Animal Strategies use the report as the evidence and facts base illuminating their conversations at the October summit.
• Large national and regional brands contribute funding and more frequently data as their contribution to the industry and their member/clients. 

In 2012-2013 the Urban Animal Report will look at specific areas of the industry that were identified by Summit alumni and thought leaders over the past six months.  Among the trends and metrics to be examined are these:

• Are the numbers of cats and dogs in Canadian homes declining?
• Where do the animals entering our communities come from?
• How widespread are kitten and puppy mills now?
• What percentage of animals are sourced from backyard breeders?
• What is the impact of the internet on sourcing pets?
• How many prospective pet owners plan to acquire a pet in the next year?
• Where do pet owners purchase their supplies?
• How many pet owners use the Internet to acquire products and services?
• Why are veterinary visits declining?
• Have the numbers of medicalized pets declined?
• Has the number of adoptions declined across the entire industry or just in some locals?
• What changes will need to be made to business models to accommodate these new trends?

Three very important modifications have also been engineered into the 2012/2013 Urban Animal Report:

1. The associate editor component has been expanded to include other  researchers working in the Canadian industry.
2. The sponsorship registry has been expanded to include all reputable brands and national agencies in the Canadian industry.
3. The distribution of the report will be through the sponsors and national agencies so they accrue goodwill in the relationships they already have.

In 2006, PetLynx and industry allies associated with the Summits for Urban Animal Strategies conducted research to establish the facts base that would support industry conversations. In 2010 this process was further refined with the publishing of the 2010-2011 Urban Animal Report. The 2012-2013 edition of the Urban Animal Report will benefit from 7 years of back data and will be the most useful report yet published by PetLynx and industry collaborators.

Contact Judi Cannon, if you are not involved in the 2012-2013 edition 705.749.6607  or  judi.cannon@petlynxmail.com