VCA Inc. (NASDAQ:WOOF) Q4 2014 Earnings Conference Call - Final Transcript
Feb 11, 2015 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to VCA fourth quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session and instructions will be given at that time (Operator Instructions).
Before we commence the discussion, I would like to preface the comments made today, the statement regarding (Forward-Looking Cautionary Statements)
Our earnings in guidance releases are available on our website at investor.vca.com. Our earnings and guidance releases are available on our website at investor.vca.com In addition, an audio file of this conference call will be available on our website for a period of three months.
At this time, I would now like to turn the call over to Mr. Tom Fuller, Chief Financial Officer. Sir, you may proceed.
conference call will be available on our website for a period of 3 months. At this time, I would like to hand the conference over to Mr Tom Fuller, Chief Financial Officer. Sir, you may begin.
Tomas W. Fuller
Thank you (inaudible) And welcome to the early addition of the fourth quarter 2014 with earnings call. Today, reported GAAP diluted earnings per share of $0.33 in after earning back $0.04 for acquisition related amortization expense. Adjusted diluted earnings per share of $0.37 versus 19.4% increase off of the $0.31 in the fourth quarter of last year.
There were no other adjustments, but the amortization so that's what in our adjusted diluted earnings per share this and last quarter.
Great quarter, 19.4% increase. Starting to see a thicker[ph] trend that this second consecutive quarter with over 19% growth in nice improvement after the 10% growth in the second quarter and the 5% growth in the first quarter 2014. All coming on strong fundamentals. Our Lab and Hospital are also doing well. Both were still and improving trends, our lab conscious stable Household counts are improving and in both divisions, very good margin performance. In the lab, 5.1% internal growth. So stable is 5% that we see in the past couple quarters.
Excellent margin performance accounted 40 basis points in the hospitals to ensure growth was 4.4% little acceleration after 4.1% we saw in the third quarter 2014 and double therefore, we saw in the second quarter 2014, 2.2%, some nice growth in exleration and same-store growth in hospitals in on net 4.4% growth, 70 basis point margin improvement. So quantitative, I think, great quarter. Nice trend, a 19% increase in adjusted to earnings per share and qualitatively the metrics we look at our internal growth and margin expansion and both growing nicely.
On a consolidated basis 10.2% increase due to internal growth and hospital acquisitions on that gross operating income increasing 14.6% operating margins at 50 basis points to 12.1%, adjusted net income increased 14.6%. And with the creation of a share buyback program adjusted diluted earnings per share increased to 19.4% to cover the 5% boosting growth rate due to the share buyback for the year $89. So we are seeing growth in adjusted EPS