Heska Q3 revenue, loss up

LOVELAND — Heska Corp (Nasdaq: HSKA) reported consolidated revenue of $60.2 million and a net loss of $1.6 million in its third quarter ending Sept. 30. Its consolidated revenue rose 6.4% as its net loss widened by 69.5%, compared with the same period last year.

Heska makes and sells veterinary diagnostic and specialty products.

A press release on its quarterly results highlighted North American growth in lab products and point-of-care imaging, higher gross margins, and acquisitions to increase products and services to veterinarians.

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In the third quarter, Heska bought Italy-based veterinary lab BiEsseA SRL for $7.7 million on July 1 and Maryland-based Biotech Laboratories USA LLC on Sept. 1 on undisclosed terms. Biotech makes rapid point-of-care diagnostic tests for infectious and parasitic diseases in animals.

On Nov. 2, in its fourth quarter, Heska added a Germany-based veterinary practice software maker.

In January it bought Fort Collins-based Lacuna Diagnostics Inc., a telemedicine cytology platform, for $4.3 million.

Last year it spent $110 million to buy a Germany-based lab and imaging diagnostics firm with operations in several countries and $14 million for a blood-testing lab and imaging provider in Spain with 6,000 vet clinic and hospital clients.

Acquisitions historically grow Heska’s revenue and weigh on its net income early on, 2020 Securities and Exchange Commission filings showed. As acquisitions are absorbed the company sees growth. It said the Spanish veterinary lab hit full-year 2021 subscription targets by the end of the third quarter, for instance.

Heska is building “the best combined offering for subscribers,” president and CEO Kevin Wilson said of its buying. Recent buying added diagnostic and imaging products, reference lab services and software for clients.

Heska’s current quarter’s SEC filing detailing recent acquisitions wasn’t yet available.

The company reported cash of $223 million at the end of September.

Heska traded recently at a $2.2 billion market cap.

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