One-time settlement causes Heska to miss on Q3 earnings

LOVELAND — Heska Corp. (Nasdaq: HSKA) posted a third-quarter loss per share of 23 cents, missing analyst expectations by 57 cents.

The Northern Colorado company, which specializes in diagnostic veterinary equipment, had a net loss of $1.67 million. It’s a significant blow from the third quarter of 2017, when the company had a net income of $3.1 million. In Q3 2017 Heska had an earnings per share of 40 cents.

Heska was hard-hit by a non-recurring $7.1 million charge. In October, the company settled on a class action claim related to legacy marketing faxes, although it strongly denies the claims.

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When the non-recurring $7.1 million charge is excluded, the company had a net income of $3.4 million, or 43 cents per share.

Heska had revenue of $30.96 million, up 2 percent year-over-year but missing analyst expectations by about $900,000.

“Heska continues to ‘punch above its weight’ with its exceptional combination of technology, programs, people and influential customers,” Kevin Wilson, Heska CEO and president, said in a prepared statement. The company is partnering with Ethos Veterinary Health to be the sole provider of key point-of-care diagnostic equipment and consumables.

“After considering several options, we chose Heska’s high-caliber point-of-care testing for its quality, ease of use and pricing,” Timothy Smith, chief medical officer of Ethos, said in a prepared statement. “It will allow us to standardize and integrate our systems across our hospitals. We are excited for what the future of this collaboration holds for our patients and clients.”

Heska said it is focused on making the investments needed to make the rest of 2018 and the upcoming years a success.

“The global animal and pet healthcare industry continues to see favorable, broad-based trends that are increasingly driving meaningful investment and strategic activity,” Wilson said.  “As a leading provider and innovator in the space, Heska’s customer base, product portfolio, product pipeline, expertise and growth opportunities are Heska-specific strengths that point toward an important and rapidly scalable role for Heska in the race to serve animals and pets of all types and nationalities.”