Heska Corporation (NASDAQ:HSKA) Q3 2019 Earnings Conference Call Transcript

Nov 05, 2019 • 11:00 am ET

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Heska Corporation (NASDAQ:HSKA) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the Heska Corporation Third Quarter 2019 Earnings Call. [Operator Instructions]. At this time, I would like to turn the conference over to Jon Aagaard, Director Investor Relations. Please go ahead, sir.

Executive
Jon Aagaard

Thank you and good morning, everyone. Welcome to Heska Corporation's earnings call for the third quarter of 2019. I am Jon Aagaard, Director of Investor Relations for Heska.

Prior to discussing Heska's third quarter 2019 results, I would like to remind you that during the course of this call, we may make certain forward-looking statements regarding future events or future financial performance of the Company. We need to caution you that any such forward-looking statements are based on our current beliefs and expectations and involve known and unknown risks and uncertainties which may cause actual results and performance to be materially different from that expressed or implied by those forward-looking statements. Factors that could cause or contribute to such differences are detailed in writing in places, including this morning's earnings release and Heska Corporation's annual and quarterly filings with the SEC. Any forward-looking statements speak only as of the time they are made and Heska does not intend and specifically disclaims any obligation or intention to update any forward-looking statements to reflect events that occur after the time such statement was made.

With us this morning we have Kevin Wilson, Heska's Chief Executive Officer and President; Catherine Grassman, Heska's Chief Financial Officer, and Jason Napolitano, Heska's Chief Strategy Officer. Mr. Wilson and Ms. Grassman will provide details surrounding the results reported and then we'll open the call to questions.

At this time, then, it is my pleasure to turn the call over to Kevin Wilson, Heska's CEO and President. Kevin?

Executive
Kevin S. Wilson

Thanks, Jon. Good morning, everybody. Today we're pleased to report another strong quarter that remains in line with our full year outlook, including the timelines that are driving our core business growth and initiatives and major product developments.

Our performance in nearly all key areas again met or exceeded our goals for the period and year-to-date. Strong growth in Core Companion Animal Lab Diagnostics led the way with POC Lab Consumables up 20.9% over the prior year period. Active Subscriptions, Months Under Subscription, Minimum Contract Subscription Value, and Subscription Retentions all continued to progress nicely in line with our full-year outlook. Sales campaigns, test menu expansions, and favorable timing helped drive these strong results, and we anticipate again capturing market share in the lab space for the sixth year in a row.

We achieved in several areas in the period. First, we had healthy commercial performance. Second, our research and development investments are on schedule and delivering good results, especially in our highly anticipated Element UF product. And third, we had positive operating cash trends and we completed our $86.25 million capital raise to help power our offense.

As we look to close out the year and enter an exciting 2020, we sense good momentum that is underpinned by a healthy veterinary market generally and