VCA Antech Reports Fourth Quarter 2008 Results and Provides Financial Guidance for 2009
* Fourth quarter revenue increased 6.7% to $303.2 million
* Fourth quarter gross profit increased 6.6% to $73.9 million
* Fourth quarter diluted earnings per share increased 3.4%
The report says this has been a hard year for them and they have not been able to sustain the growth of previous years. But with $73.9 million in profit on $303.2 millions in income, their profit margin is 24.4%!!
Imagine, 25% profit in a deep recession. AND, revenues were still up over the year before. Yes, the vet profession is suffering badly, isn't it?
The CEO also stated:
"Although our same-store revenue remained essentially flat during the quarter, our same-store gross profit margin increased to 18.3% compared to 16.2%." This purportedly was caused by cost cutting and each vet having more clients due to "consolidation of operations."
I don't doubt the cost cutting part, but the "expanded revenue base" probably means they are either charging more for each procedure, or performing more procedures for each patient, or both.
Also, they bought 8 vet operations out in the 4th quarter, with an average practice income of $4 million dollars.