Earnings call transcript Q2 2023

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Operator

Good day and welcome to the PetIQ Inc.

Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Katie Turner, Investor Relations. ahead. go Please

Katie Turner

you XXXX Thank us PetIQ's on Good conference for call quarter earnings and second afternoon. joining webcast.

Officer. Zvi For today's and Chief and Chairman Cord from Financial Glasman, prepared remarks, Chief we'll Executive hear Christensen, Officer;

materially this that Before we begin, Securities actual meaning these may beliefs remember from current that laws. the involve could These forward-looking within and the based and call on expectations those course statements management's or during make of described management statements. the forward-looking please differ of uncertainties Federal statements risks events are and in

on Please in time-to-time XX-K actual results refer risks any to Exchange press the implied company's materially Securities a differ today. the to today other Annual Commission from the those Report detailed filed issued could the expressed of or company's Form forward-looking release that reports cause and from made and and statements with for discussion

will certain today's on to non-GAAP refer note measures. financial call, Please management

information will believes company to in the While a is isolation accordance not financial presented with or this substitute be in useful these the GAAP. intended considered information as financial measures presentation of the information for provide for non-GAAP investors,

today's comparable financial of a for to the with measures most Please reconciliation to measures refer accordance release in prepared non-GAAP GAAP.

has PetIQ a addition posted its reference. on In supplemental website for presentation

I'd to that, to turn like with Cord And the call Christensen. over

Cord Christensen

begin financial Zvi I'll We outlook. financial joining since today us our for results. our an key everyone. second you good quarter appreciate results you, afternoon quarter and and review Thank Katie to discuss overview will record the highlights with of

your be will Finally, and available Zvi, I John answer questions. to Michael,

full adjusted job across raise us growth which to their of we our products services both a able excellent hard our to record and an work enabled the during and did of both executing And better-than-expected strategic second EBITDA, XXXX quarter our be results, dedication second initiatives, outlook. report are year the sales expectations segment operational result pleased our our and net XXXX. for and exceed to QX and of team quarter, as Our year-to-date

the A outlook of net $XXX approximately highlights reported we $XXX above net quarter million. second million million, from The few include: sales key to second sales result our an of $XXX.X of was increase XX%. quarter

broad-based We investments with profit promotional of dollars in strong and growth the support across had solid in with our business. increase advertising key business the improved a expenses our and even spend gross of SG&A our growth to leverage

versus $XX EBITDA EBITDA for $XX.X This million $XX helped our to quarterly adjusted of of ahead us achieve million million, of quarter, second a of and XX% record adjusted guidance XXXX. the increase quarter second

from working the Our X.X times higher record and XXXX. achieve company's second as cash XXth, reduced quarter earnings and net improved leverage operations, us June helped to capital of we

XX.X%. the the contributed positive million, year-over-year products channels was detail. When look to during of segment in category in products The an Turning strongest over-the-counter the segment tick at and more XX of that flea combined, growth sales our sales months $XXX.X at XXXX quarter we've in XX% seen increase year compared you all period. second the to consumption last of net the a prior

category continue and In dramatically tick amount quarter our and generated PetIQ's the second nearly flea as were share the online. second of disproportionate by sales of And portfolio this growth of quarter results. of evidenced year, XX% category over-the-counter brands importantly, capture this outperform to broader a

products segment in our to Turning detail. more

Animal acquisition XXXX. financial category parents flea since tick mentioned, broader Health products PetIQ's PetIQ winning I business, enable which most The in and manufactured pet quarter our is the Perrigo of results of saw its to manufactured category. our our As outperformed best critical over

flea XX.X% and XXth, gains a These our sales looking both channels weeks June of of driven positive the grew versus of basis our share. of by XX the for XX.X%, positive growth brands points gain all Capstar XXXX, positive ended in were brands. When growth a a tick to PetArmor leading XX market's OTC Plus and a at tick brands, and our over-the-counter flea portfolio

business Our saw second year grew and our than expansion XX.X% more category the last has prior prior years the accelerated quarter the in see the compared to year. category portfolio surpassed has portfolio. segment quarter, and over growth largest of pet XX.X% supplement as The continues consumption the also to we four as our flea positive manufactured compete XXXX category in over in period. tick the fast-growing as a doubled gained the OTC within This significant

us along rates in maintain growth for is need trends penetration category many PetIQ broader the household and with confidence states share will category. expanded to come, very to high well years in gain continue double-digit gives Strong that to the this to category positioned important continue

the gained to and XX% treat addition, category. which outperform continued Minties the treat share growth In dental positive our by business XX points dog of within via grew the also our was This brand, business led basis category.

ahead brands Another Rocco in The growth which the growth a second brand, projections. The for in January acquired saw we newest & a expanded XX%. in XXXX us our Roxie, driver XX.X% by rates. which of also of quarter quarter, member of treats was PETLOVE & our grew double-digit positive well Rocco the our positive Roxie portfolio,

we business for recovered achieved have the and first of without in lost these were determined are parts their to strategic and half of us that still better-than-expected growth XXXX several sales a contribution. exited not sales pleased We fit the

very see premium also the brand. has other in core stain begin into with we are we brand to our within seeing premium expand exceeded to share categories success. gains Our to the category This pet the items and contributed pet the are odor and expectations, encouraged

of Sales of manufactured the PetIQ XX.X% ahead increased products our expectations.

XX.X% of will continue to growth manufactured allow manufactured in sales run This QX half products Our in products for back of of XXXX to year sales XXXX. and the QX in our own build-in compared our our rate dollar net represented segment XX.X% products XXXX. of will the achieve

be as portfolio product of likely to and expectations our brands has from of contributing from XX% significantly segment sales forecasts. recovered will come year distributed we in below the our is products our the above model manufactured prior PetIQ our However, XXXX

That overall said, pie product outperformance larger to we than be manufactured we previously will revenue of of our against PetIQ a but portfolio, expect do continue this forecasted.

Now, the focusing on services segment.

Our of services $XX.X ahead reported net million, XXXX revenue expectations. compared increase as quarter XX.X% period of segment year second to prior of and the our an

second operational solid We which cancellation average average and per in per the allowed improved of XXXX. clinic dollar experienced rates revenue during increases for quarter served pet and improvements,

to addition to the we exciting centers segment. new to We test this centers converted quarter, wellness four continue hygiene and services in the will

we prudent Moving of location new remainder forward, with XXXX. will remain our the growth for

the already Pearson's Importantly, our additional services centered these visits the locations of around last experienced since leadership, select joined. result segment Most significant recently, number services. improvement year a has under team with John in he has services new hygiene, executed regional successfully has the of pet pricing tested services a and increasing as

vet also second parents new know a tech. convenient or launched the see to and they pet quarter, book a During allowing tool when virtual vet can we easily walk or appointments in

last the from year the have innovation We've generated and quarter segment results of second ahead. we since services been opportunities to pace the and pleased look forward with

Xnd, would Executive newly Manufactured Vice created the August Products, call John President, Before to congratulate I a to promotion to I Services effective role XXXX. Pearson Zvi, his and turn like on

Michael John to new for to sales will maintaining continue his portfolio, and current the In Smith, will PetIQ's and Operating responsibility of marketing inclusive He while role, directly responsibilities report the Chief product gain Officer. segment. for manufactured teams, company's its Services President

and are for help as and leadership for a behalf On and smarter growth John to parents we thrilled our pets new of foundation we deliver way into strong pet the Board this build for step to best team, live lives. our upon their to their continue profitability role

XXXX. We second growth remain segment to-date across our PetIQ channels across opportunities the is continues sales show Products about all categories. of in for well in the QX data that And for optimistic performing our to half

office, we our work appreciate financial for dedication as us closing, and employees and well manufacturing our to to corporate commitment operational their and hard in distribution mission helping values these and of the as facilities achieve our core In our results. in

to turn over like now overview, I call that would With to the Zvi.

Zvi Glasman

you, Thank Cord.

second are ability guidance quarter XXXX strong results. results financial financials based year-to-date Today, and with and our for in more and detail annual to on I outlook very our year quarterly our raise XXXX. our QX our full pleased We discuss will the

net an increase as QX sales year, compared from the $XXX.X record both sales reported segments and approximately Roxie. & the in We addition well segment to by of products of an of increase Rocco QX XX% as driven of last million,

categories. broad-based growth across all mentioned, channels we strong Cord and As had product sales

through sales margin carry the quarter margin to XX.X% of contributed representing XXX QX within gross products products Second decline basis cost shift $XX.X more wellness segment the of year. timing in compared million, quarter increased XXXX, a the a health gross XX.X% a of of XXXX mix to point to that profit as and lower last increases second and dollars

million the XX.X%. QX of decreased prior $XX.X million $XX.X SG&A expenses points was to sales in $XX.X million were second Adjusted basis quarter XXXX XXX $XX.X compared of a SG&A the of compared as the QX to XXXX year. SG&A to last of quarter for in second year. percentage for of net million

continued period. the points of The costs of leverage for a SG&A prior was the and was business the efficiencies basis to percentage XXX compared a sales, expense net XX.X%, As quarter. relative of sales due in adjusted growth year mainly to decrease increased decrease to

support worth brands that also manufactured growing to investments in of noting the It our while quarter A&P long-term health SG&A is our the portfolios. we leveraged

$X.XX, adjusted we for of million $X.XX. of quarter of profit income perspective, income with Adjusted QX million was year. From and EPS XXXX QX a compared second increase last $XX.X of EPS was net or reported net XX.X% of the an $X.X

was reported million increase second year of of of prior representing $XX.X the EBITDA basis $XX.X period. XX $XX.X an increase adjusted million, compared XX.X% increase EBITDA of million, of compared an QX in adjusted $XX.X We QX to million XX.X%, an QX points to EBITDA quarter XX.X% of to in year, an margin last compared record XXXX.

for nature sheet liquidity June cash the from benefits quarter and earnings of $XX.X million. result quarter $XX.X the equivalents increased of generated the second the total well was million $XX.X cash million This XXXX, balance of operations ended seasonal cash driven XXXX. by for our of of The capital a company as the to from business. had and XXth, Turning working company as as

with year generation range end and will now million. we first this the We've guidance half free in the top our flow $XX $XX the of believe annual million to be towards been cash of cash pleased company's of

loan, XXth, June XXXX. million of The and capital leases of company's as which ABL, $XXX.X convertible debt, term comprised is debt, its total was

on is to undrawn limit addition has In million cash availability. credit our revolving company's hand, of and $XXX the

plus hand million as availability on cash as define we debt was which XXth, XXXX. liquidity, Total of June $XXX.X

of that have would additional we is we credit our no While making ample flexible. intention facilities borrowings, and note our are liquidity

calculated credit working capital. in Our quarter net versus was period, second our higher end as and X.X the year prior the under improved at facilities of X.X of leverage, earnings by times of driven times terms XXXX the

ability We are at continue the the pleased end leverage XXXX than lower with net believe to our be end at our leverage to reduce will and of XXXX. of

that free in debt. consistent remains drive build from cash well the confident segment down and paying cash future positions in the improvement the Our ongoing as products to as contribution and the our well growth segment company opportunistically services flow the addition team to

to Now, guidance. our turning

of I XXXX. ended our when to and increases net prior December midpoint when as the the XXst, will sales raising For guidance. Note, adjusted we of reference guidance compared QX discussing the to compared percentage year are the in period EBITDA the XXXX, year ranges

release approximately expect now with and is earnings what to $X.XX presentation. of billion, XX% This today's as to billion net We XXXX. is increase of $X.XXX compared press presented consistent an sales in

representing approximately For the of range $XX as XXXX. to XX% million, to to adjusted compared EBITDA, $XX we million increased increase an

third XXXX, period. of expect net an quarter $XXX million, the the year to For sales approximately to million of increase prior we XX% $XXX of compared as

on benefit $XX outlook the expect the increase to success raised incremental million the remainder compared the for adjusted consumption marketing million, year of beyond. of prior approximately our year. million XX% our awareness an investments year-to-date, and to EBITDA Based $X initiatives of of in to now And brand and includes we XXXX $XX of an as A&P

net year of fourth EBITDA that quarter. consistent lowest prior XXXX in the mind contribution will adjusted periods, the Keep quarter be sales and with

of we development year, addition, certain in is In and to SG&A expect support this important that next it brands of note position strategic to start investments in make of continued well our the to year. QX us growth the for growth and

an implied today the see have quarter these communicated expectations for you growth this So, growth third items, the lower of versus rate based year on of will XXXX. we in QX year-over-year

our quarter X results growth months the team for our we will remains reported and in team At of and second strong XXXX, our execute In initiatives PetIQ, for closing, affordable mission our health opportunities of about execute strategic to parents. optimistic continue of first for all stakeholders value to the for on convenient on deliver we XXXX. wellness and and as our pet smarter,

That for now questions. John, available I concludes and are my financial review. Michael, Operator? Cord, your

Operator

now We the Instructions] begin will session. question-and-answer [Operator

The first question Oppenheimer. with from Rupesh Please ahead. Parikh comes go

Rupesh Parikh

Good and quarter. congrats and question a for strong thanks afternoon taking my very on

just I start to with performance. your out QX So, wanted

by the So topline, you obviously, like strong million. very high than beat end be a looks it more $XX

the rank sources upside Just your you versus, of range? curious guess, if I guidance Thanks. can

Cord Christensen

outperformed. Michael overall categories We accelerate second which of in was beat? because sources can better strong Probably quarter answer from quarter. which trends through consumption also very -- you Michael, talk Thanks But this, why for first comment don't saw the quarter, a the just on the we he question.

Michael Smith

Yes, Rupesh, I was would very a say broad beat. it

key the Obviously, per pack the the If necessarily a category se. you overperformance but carried They topline, look one on on our little also bottom-line. only categories, kind of at flea not to in bit that outperformed tick the there's not weight. helps massively and lead all the of

We a share also not there expectations, for had that the amount beat in second versus the to we able quarter. up our the were only but pick category, significant of

business. business, strong really had our treats also out our dental of supplements We results

from results business Roxie Rocco portfolio odor distributed overperformed & then expectations the and our as better-than-expected under our stain of saw acquisition well. We and

key our each meaningful really, of beats had expectations. the So, segments business of versus

Rupesh Parikh

a there's for line something curious conservatism but into versus there's Great. and else if moderation come there QX And more then play? looking the I at on QX if And sales know -- play, imply QX. guidance, does comparisons it at maybe seasonality or just

Cord Christensen

that think to QX, in from mean, general, our I QX start I and businesses. always contribution seasonal Rupesh, know less we we see

to definitely And the we've stronger what's then see anticipate consumption so happening. been what that to. to anticipate have also continue QX guided we we'll we've of a kind than conservative running it is, If we way

overall know what season the based responsible of it's on from we But performance out on business. historical the just

we And some of that QX, categories get account, so tick you QX, right contribution commentary, if from the look in we've overperforming less flea taken in that same others at are know and and we QX, now. the

we've have conservative place, in again, to super is premium the recovery And We've but -- also, as been a so or in in areas. pets just their the general, in decided care we're a consumption great good. well. spending right parents of Pet seen take

take we are off. as as know so contribution to it and season we're don't making to what overreading QX, to drop in And starts starts also have in not we of sure when general, that weather we the with seasonal taper off, just into the kind happens account just QX

could what happen being us about there. And also concerned so, potentially that's

could So, to based the guidance. But what outperform. now, our we've do right it's if right everything done and see with thing goes I right, think on we

Rupesh Parikh

question, Great. margins. And then just my on last gross

shift the weigh rate mix So, on margin did during gross your quarter.

thinking you're and about how back the in curious the specialty for margin mix? of takes gross Just the year half puts

Zvi Glasman

of grew the Yes, a performed that that thing manufacturing margin. margin lower faster down healthy quarter than this the slightly but categories was categories, exceptionally, categories our in manufactured grew that a lot health carry main and is Zvi. fact faster our very drove the but gross the categories those wellness -- The with

the drove margin down quarter. And the in so percentage that

of expect pointing a continue that is to We worth an anomaly. also out -- bit it's QX

for year-on-year XX bps. bps, a of the year, be probably margins to XXX The to expect basis do we XXX close to up rest on

have margins. percentage those probably So, I but margin we of only dollars. outperform, would the sight down will margin of upside categories good think to is be line happen to only pretty The some with total other way the if that

Rupesh Parikh

again. Congrats you. Thank Great.

Cord Christensen

Thanks Rupesh.

Operator

Andersen with Jon comes Blair. ahead. question go next Please The from William

Jon Andersen

Hi, the the ask I about to thank services business. wanted you for questions.

on four performance XX kind you hygiene over what's might you a are what out Cord, the bit centers future? months? think, of you're What that talk kind mentioned locations. your about going conversions of I you to of towards there, seeing little hygiene next and play approach as for more wellness the XX Can how the plans shift to

Cord Christensen

Thanks.

what we've without profile drive a yet, general, great by hygiene very encouraged bad in about the services list but declaring talked of it. us. it. revenue to that labor. it think I it's definitely We're conference. adds obviously a lot, not for The -- is and victory the significant we're beating margin location because We're addition testing measuring We're

on really with ability there the We're learning. is We're to we base need move optimization at, We're able definitely through six focus up going testing. to to locations. an present. growing our we're there. We're great when those. vet which We're what that's the subscription We're

of our a for end the think revenue still to us. thing We early more at opportunities But it's it's great and But for is margin the for decision it the expand need opportunity indications day, significantly. all box. to the We the in it's add business. right

And so it. we're excited about

But the always And to thing enough of let victory, to in in general, I layer test we'll think market going said think again, we're with for what's it's people a again, know. think once base we I the on in right But vets. general, measure. going the declare we really we've get

the bunch kind group a of thing testing across have start across to that that and demographics PetIQ a base it's thing. broader a of for different and and growing we we're think where right measuring at We we're place excited stores of

doing we're seeing. what process, we're but optimistic when every giving still early But So, very we'll quarter you encouraged declare again, let you we we're the and know. by how we'll victory, in on be updates

Jon Andersen

centers is term? doing you're hygiene overall one approach this Is broader with of any with formats? Are follow-up that particular of longer doing service across different Is anything the on model, And something the considering the a that a customers requested? second customers that, center that. And then customer? with kind there it to kind the you

Cord Christensen

that. first EBITDA think holding well. is we've the I events. growth extremely significant. clinic there and margin foremost, Yes, is number our significant see which doing profile, community We're with contribution expanding We're of model, margins, forever, that's had We

perspective, hygiene a to it do it From anywhere we'll sense do makes it.

option are It and a seeing. we're centers that need customers and to to a think with I the service the tables adds people encouraged So, it. again, wellness what box. we're all all on But lot monthly. deal It's

And so XX times think be X.X out that, works, on contribution. to versus it's a there really it's a a hard pet year needs it I to difference on not a a much so vet when monthly basis, great times it's figure not service,

now, how put all we've testing, helps helps of in, hygiene all in part research And help right services deals towards these saying that and of the thing all potentially their things we're no, And the we're is care, the work. measuring which kind would to, working health committed general also it's pet, contribute. health that the care

continuing we're definitely path. victory kind really we're And yet, again, declared just of not and to so it's encouraged. head we're early down the But but

Jon Andersen

two-parter Just costs. one more,

was margin think a lower part I of mentioned the Zvi shift. rate mix gross the quarter in

was explanation or whether there's but around get more also I are bit something bigger a was the little those part, that to of and mentioned else? timing cost increases, transitory think just hoping that

fourth investment the do additional And of, to as invest to you quarter, see I what will how business the to what -- opportunity guess, longer-term be the investment you the directed behind A&P of in that additional part then look more on growth? kind and

Zvi Glasman

Yes.

that. Let me take

buy for well. that way were price before costs year, of terms this pricing to we that were up. impact them a price cost dynamic We a commodities lower There sold like we things environment a as a Last paid things at times going had increase, is the that no increase. where were cost, in pretty at obviously we and with in where but So, there year. try

is no a year. last this little there year, benefit was So, there -- just of impact bit

part can don't if the to invested know more Michael In but provide the terms it's of detail I any details, our the And manufactured marketing, business. add has Michael of to in that.

Michael Smith

I brand it's not that Yes, health our of it's one single build reinvestment tactics initiative, a long-term would or just really portfolio. to into awareness against the more really, say

designed different a the in tactics of business do half. of We incremental the more We benefit, to XX obviously have variety hope a but outcomes, long-term a next brands putting the invest to XX to the some that the be is over to different we're of for investment benefit near-term months. variety back into but

Jon Andersen

a congrats and Thanks nice quarter. on Great.

Cord Christensen

Jon. Thanks

Operator

[Operator Instructions] ahead. Chappell Bill question The from with Truist Please next comes Securities. go

Bill Chappell

Good Thanks. afternoon.

it I of to the seasonal a flea guess, terms season Just know year-over-year, compares a mean, tick but and follow-up company? overall benefit weather from it a that from in I if the and versus some seemed it compares an heated other don't we a or what just the season. was I on cooler cover, the spring you're then slower to just stocks up, of start start really how is how this expecting, stronger-than-expected of outperformance

Cord Christensen

you want do kind clean after. go first? up to Michael, of I'll

Michael Smith

and average more year favorable Yes. modeled favorable year more weather-driven conditions it's to that On favorable largely seeing demand than and more last category going tick, are we than be than expected. the definitely had that flea tied and we are and to and this is year dynamics look, a

then a growth as frame gaining see that And basis time points expected upon between growth. you seeing category, outperforming category XXX at. the low-double of We're share digit and on what So, high-single we're for we mid-single category. look low digit to top digit the XXX to depending and to

double the portion results to that also in we I are So, the expect, of that portfolio. to say, are in translating leading not over-deliverance we also that we be our outperforming, elements there's did is that our pie candid, a seeing would of of But we growth a, but posted. to of are kind and strategy positive the the

Cord Christensen

that's consumers I'd still their expect their definitely a be of conservative. budgets the consumer I'd seen to We've also pets. only adjusted take Bill, care The is very think that we to thing add,

They're we on happen spending of expected, is bottomed the distribute and was what high their consumers finally happening what again, better spending end have the performing kind pets. which economy, going with the definitely than with that says we out is they've expectations returned with the whatever was also of to to

that And part's overperformed. so

are Our definitely overperformed. categories

We marketing team share did have that benefit. things, and to more and positioning expected. able some to why definitely worked our it's what his has than we been Michael And take

for to that general, in weather, good it's with with So, happened measure a but it's category hard the all noise the other consumer.

And positioned so this radio of win. We're we've I that we're like always -- think every better said, come together business is we're than kind And year we to it's expected. day. all a definitely

Bill Chappell

new same guess over a I they've pet years? And pets do of I this is quarters, of much think longer term post-pandemic a population their you two four how or gotten consumers and it. past dividend a, the on more mean, good instead Got one and of pets spending of on kind three, that vein, higher

Cord Christensen

the that year market and think have first doing not how. to with where time, what trying why the in definitely we anomalies I who's and a deal normalized for we're and kind of

educate We're and this consumer definitely our to well. company responding out, we And to how level things. and year convert where turns good people stuff. The basic have just communicate, and a so nice of kind has as weather reach at do look, a been But is place that to that's been consumption for categories. know

place we ROI its understand to because the take We in working so we're all it's stuff how we're it well dental that finally company's measure on pays I tick well for company, trying and to not continue think, outside going or and in the we're are dividends. and apologize some we're a it's able or because to that's general, flea wellness health that it's or whether making distributed, where positioned extremely a And as of control. investments

a XXXX. control, we're great And levers we year when of great have they're think so a the the half back you'll we're and see in I working. them pulling And

Bill Chappell

Got And sneak sure. follow-up. it. one in I'll Yes,

Michael Smith

done, not factor, want look, going this I just huge behavior I changes category more things in add team us is some and a but retailer was around to behavior touch get that. for has real don't on to that the our and weather is of credit consumer that some worth there's noting. to because

to in and Animal animal they pet environment continue health customers retail something a and and more to an to a with getting a attention to rise point which as continues win that emphasis seeing. OTC to and bolder over way. seek health higher contributor performance is be the we're support, is our One, partners of be focus

us that is where the and a to shifts to seeing sizes reversion tell treat. some seeing We're compliance waiting preventively also back and we're to we reversion a an consumers year, the in were bigger But being driven. preventative see seeing behavior pack would then pet. consumer dosing the back on They last mindset their started that greater compliance of not treat every month they and issue pet

and As now good back lot a size is purchased, those in is smaller consumer that pack when to month it to home, the the the gets look longer seeing tailwinds come do And trends a organic the of dosing. support category miss be there's product of utilized sticking. can you term

period, have an the looks way And it were over consumer that, a this category. QX course, two-year, three-year and the of and of like to anomaly, engages traditionally corrected back we've, we in seen QX XXXX

Bill Chappell

color. the for it. much so Thanks Appreciate

Operator

next ahead. The go with comes Please Lawrence John question Benchmark. from

John Lawrence

on generate promotion. that of a and some when and insight on to of talk side, just as Could John, the in place the heavy Congrats role Yes, you services Good the the on afternoon give you results? lifting talk you congrats about some things quarter. on little put of guys. kind services year these the about the last your came business that to into

John Pearson

John. Thanks

dollars towards to putting me, we ago, a most affordable improve goes business model, it's at that back model, services it access when year our customer when joined for to the and frankly to our and side. assessed yes, value customer was on and I customer the we over team propositions care look what And is it So, the convenient customer value just were all really we want our from other hasn't. -- business about our where us,

we leaning frankly, towards where that most need customer. our to on haven't to things -- matter we of do focus it's resources us for our put proven the And really to and an so assessment

focused appropriate best our in return. we generate so getting improving right, cancellations, the And our staffing the on where finding markets we bets

it capabilities community to and to the And the really this on matters clinic different tech it's other journey the with through levers and several accessible to the model has deliver care. factors what as is or team mentioned, the reimagination, center then we're be about that have about, the as what to P&L been assessing affordable more similar I we've able to customer which, enablement wellness cares And excited customer now that and well. is as enabled deliver

John Lawrence

talk would grow that in and And like Cord, product as And us looks Thanks. category? you've that speak changes remind you to some continue as broader Great. XXXX, the get what about will to we I portfolio? coming you -- got know the that. offerings obviously,

Cord Christensen

working will against the and they've made a make very both has Well, deliver grow, portfolio. about EPA as we will excited very I continued we portfolio are that think about significant our robust the XXXX ability some distributed in R&D work. that the happen have things optimistic that significant think we're value it been very, that portfolio that add to in launches value XXXX, through both our we to have We've FDA and general, launches we

we're all And exceeding stride relates standpoint. hitting a then our are portfolio, to from I think those growth Minties, current seen, PetArmor, VetIQ, our Capstar, our as brands expectations as you've it

the our manufactured track you'll margin it. you brands find with profile in of think as performance the I

We we're times now best portfolio deliver. growth with and of into regulatory have be great our starting the process a R&D one come base great to going to all able with through the to

right optimistic but the never a PetIQ. to we're up So, up the to be going line it's about always with It's future. right, the to straight

pets, just as where going back distributed. job getting Everything in hard excited has of of pet deliver prioritize is we've work take get And we've of so services, the life. a think indicative we're business, it's And taking are where is things we'll quarter leverage about all care aspects the care those people excited our continue this just I results. and seen personal done good manufactured, of to really the able been to parents and they the and to of type about

a still So, rest of great the I back half. got we're for a we're great we've also year. -- got the Obviously, being the conservative think guidance we And quarter. for raised We've significantly year-to-date.

John. yes, So, been a it's great quarter,

John Lawrence

Thanks. Good luck.

Operator

Christensen would conference over our closing This question-and-answer for like session. Cord turn concludes I the any to remarks. to back

Cord Christensen

where to inventory like the been where that's think in retailers just we're the through thank The able the at consumer, last with I different a we can to everyone of on you and aren't an call few the issues. market, have see anomalies. having company be there's And market. perform been stabilized place not environment operate how the I lot a can can when a to us finally great years, it's

great a been it's year. So,

great as appreciate all Our employees thin We us offer aspects pet to and the year across that's for and an the been continue a for has great great we've company, PetIQ a thick all parents and for of grow and have job deliver the year and country. a business. been definitely year we for for with to continue great across XXXX talked us as with but value parents done continued us pet results, convenience here through everyone to amazing to

with and being look you. So, time us, thanks spending for we to with forward

Operator

concluded. has attending today's Thank conference for you The now presentation.

You may now disconnect.

PetIQ (PETQ) 8 Aug 232023 Q2 Earnings call transcript