VCA Inc. (NASDAQ:WOOF) Q4 2015 Earnings Conference Call - Final Transcript

Feb 11, 2016 • 09:00 am ET

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VCA Inc. (NASDAQ:WOOF) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the VCA Incorporated Fourth Quarter 2015 Conference Call and Webcast. At this time all participants are in a listen-only mode. Later, we will 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 with a statement regarding forward-looking information. The information contained in this presentation includes forward-looking statements that involve risks and uncertainties.

Such statements appear in a number of places in this presentation and include statements regarding our intent, our belief in current expectations with respect to our revenues and operating results in future periods, our expansion plans and our business strategy and ability to successfully execute on that strategy. We caution you not to place undue reliance on such forward-looking statements. Such statements are not guarantees of our future performance and involve risks and uncertainties.

Our actual results may differ materially from those projected in this presentation. For the reasons among others discussed in our filings with the Securities and Exchange Commission. The information in this presentation concerning our forecast for future periods represents our outlook only as of today's date February 11th, 2016 and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new developments or otherwise.

Listeners should also be aware that today's discussion includes reference to non-GAAP financial measures which management believes are useful to an understanding of our business. A reconciliation of these non-GAAP measures to the most comparable GAAP measure will be included with our earnings release and posted 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. I would now like to turn the call over to your host for today's conference Mr. Tom Fuller, CFO. Sir, you may begin.

Executive
Thomas Fuller

Thank you, Chelsea, thank you all for joining us on a 6 o'clock West Coast time. Great way to start the week, a spectacular quarter, 35% increase in adjusted diluted earnings per share to $0.50 per share. But beyond all the qualitative measures that we look at, I know, all you look at internal growth rates, volume trends, margin expansion and our core hospital lab businesses were outstanding in the quarter.

Lab internal growth was up 8.2% on 5.1% volume growth, adjusted operating margin up 240 basis points. Our hospital division same-store growth was 7.4% on 3.1% volume and terrific margin expansion, 140 basis points same-store gross profit margin improvement. On reporting basis, we reported GAAP earnings of $0.78 per share, which included a previously released gain on the sale of Vetstreet at the end of the month.

A $43 million gain or $0.32 per share after tax, deducting that and adding back the amortization of acquisition related amortization expense brings the adjusted earnings per share to $0.50 per share, which