Zoetis Announces 2015 Q2 Results

Zoetis Chief Financial Officer, Paul Herendeen said, “With our operational efficiency initiative, we have begun the process to re-shape our business around the key products, markets and manufacturing sites that will make us an even stronger and more profitable leader in animal health. Execution of these plans is underway. We are pleased to see continued efficiency and expense control in this quarter’s results, along with excellent sales growth, and we are updating our full year guidance for 2015 and reaffirming our long-term goals for 2016 and 2017.”

Summarized results of Zoetis' second quarter: 

• Delivers 11% Operational Revenue Growth and 20% Operational Growth in Adjusted Net Income, Excluding Foreign Exchange
• Records $263 Million in Charges Related to Comprehensive Operational Efficiency Initiative, Resulting in Net Loss of $37 Million, or Net Loss per Diluted Share of $0.07
• Second Quarter 2015 Revenue of $1.2 Billion Increased 1%
• Second Quarter 2015 Adjusted Net Income of $216 Million, or Adjusted Diluted EPS of $0.43, Increased 14% and 13%, Respectively
• Updates Full Year 2015 Revenue Guidance to $4.700 - $4.775 Billion
• Updates Full Year 2015 Adjusted Diluted EPS Guidance to $1.63 - $1.68

The full report may be found here.

Zoetis Chief Executive Officer, Juan Ramón Alaix said, “In the second quarter, we generated operational revenue growth of 11% based on the strength and diversity of our business. Our adjusted net income grew 20% operationally, and we continue delivering our long-term value proposition to shareholders -- growing adjusted net income faster than sales. The growth this quarter was driven by the positive performance of our portfolio in both companion animal and livestock products, the addition of Abbott Animal Health products, the growth of APOQUEL® and other new products, and the continued discipline on operating expenses. Our broad portfolio, proven business model and dedicated Zoetis colleagues enabled us to deliver these results as we began implementing significant changes to become more competitive and profitable. We remain committed to maintaining our commercial, R&D and manufacturing strengths, while reducing complexity in our business and achieving our efficiency goals.”

What are the Results of the 2015-2016 Nation Pet Owners Survey?

Bob Vetere, President and CEO of the American Pet Products Association (APPA), has announced the results of their biennial 2015-2016 National Pet Owners Survey. The survey reached 79.7 million households with pets. One important survey discovery was that there are increased numbers of new and young pet owners. New pet owners populate approximately 10% of the total pet owner population. This represents an increase of almost eight million new pet owners. Vetere states, “These numbers demonstrate huge potential for the industry to grow with up-and-coming, new pet owners.”

The newest generation of pet owners purchase more expensive animals, seek veterinary care more often, and buy more items for their pets. “This generation also likes high-tech gadgets like pet cams and electronic health monitoring collars, and convenience products to take their pets with them or care for them while they’re gone,” said Vetere. “This opens the door for innovation in products and services as well.” Pets and pet products are increasingly being sourced online and by using social media networks.

In previous surveys, the largest population of pet owners was the Baby Boomers. However, Baby Boomers are reaching life stages where they are reducing pet ownership. Vetere is not worried, he states, “In fact, the growing incidence of pet owners among the younger generations is so encouraging, we are extremely optimistic about the future of pet ownership and the industry that stands to serve those pets and their owners.”

The Survey also found that more businesses are becoming pet-friendly. 

• 8% of pet owners are allowed to bring their dogs to work. 
• 28% of pet owners have taken their dog to a hotel. 
• 9% of pet owners have taken their pet to a restaurant.

More people also believe that pets are good for their health. In fact, for 64% of pet owners, owning a pet has positive health benefits that are important to the owner. Vetere states, “Studies now exist that show pets can help improve our cardiovascular health, improve immunity in young children and assist with therapy for autistic children and people suffering from PTSD. Our desire to take better care of our pets and the joys and benefits they provide are continuing to work together to grow pet ownership and keep this great industry strong.”

  READ THE FULL ARTICLE HERE

PetSmart reports first quarter 2011 results

PetSmart, Inc. (NASDAQ: PETM) today reported earnings of $0.61 per share, up 33% compared to $0.46 per share in the first quarter of 2010. Net income totaled $71 million in the first quarter of 2011, compared to $56 million in the first quarter of 2010.

Total sales for the first quarter of 2011 increased 6.8% to $1.5 billion. The increase in net sales was partially impacted by $4 million in favorable foreign currency fluctuations. Comparable store sales, or sales in stores open at least a year, grew 5.0%, benefitting from comparable transactions growth of 2.7%. Services sales, which are included in total sales, grew 9.0% to $167 million.

During the first quarter, the company generated $96 million in operating cash flow, spent $31 million in capital expenditures, distributed $14 million in dividends, and repurchased $102 million of PetSmart stock. The Company ended the quarter with $290 million in cash, cash equivalents and restricted cash and zero borrowings on its credit facility.

"We are pleased to report another quarter of solid earnings growth," said Bob Moran, Chief Executive Officer and President. "Our performance in the first quarter reflects the continued momentum in our business and represents another step forward on our journey to becoming a best-in-class specialty retailer."

"For all of 2011, we expect comparable store sales growth in the low- to
mid-single digit range, and total sales growth in the mid-single digit range. We are raising our earnings per share guidance from a previous range of $2.23 to $2.35 to our current expectations of $2.32 to $2.42," said Chip Molloy, Senior Vice President and Chief Financial Officer.

"For the second quarter of 2011, we are expecting comparable store sales growth in the mid-single digit range, and earnings per share between $0.47 and $0.51."

About PetSmart
PetSmart, Inc. (NASDAQ: PETM) is the largest specialty pet retailer of
services and solutions for the lifetime needs of pets. The company employs approximately 48,000 associates and operates more than 1,192 pet stores in the United States, Canada and Puerto Rico, over 184 in-store PetSmart(R) 
PetsHotel(R) dog and cat boarding facilities and is a leading online provider of pet supplies and pet care information.

PetSmart provides a broad range of competitively priced pet food and pet products; and offers dog training, pet grooming, pet boarding, PetSmart Doggie Day Camp℠ day care services and pet adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)(3) non-profit animal welfare
organization and the largest funder of animal welfare efforts in North America, has provided more than $134 million in grants and programs benefiting animal welfare organizations. Through its in-store pet adoption partnership with PetSmart Charities(R), PetSmart has helped save the lives of more than 4.4 million pets.