Thursday, Animal Health International, Inc. (AHII), a distributor of animal health products, reported a net loss for the fourth quarter hurt by a non-cash impairment charge related to a decline in the company's stock price due to the economic downturn as well as lower sales. The company also provided guidance for the first quarter and fiscal 2010.
Net loss for the quarter was $29.4 million or $1.21 per share compared with net income of $2.7 million or $0.11 per share in the same period last year. On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the most recent quarter include a non-cash, pre-tax $25.2 million impairment charge due to significant decline in stock prices over the year, which decreased the company's market capitalization.
Net sales declined 8.9% to $162.5 million from $178.3 million in the same period last year. Four Street analysts expected the company to report sales of $146.24 million for the quarter. The company attributed the decline to lower spending by production animal customers whose profits have been constrained by fluctuating commodity prices and the general economic slowdown.
For the twelve-month period, net loss was $27.1 million or $1.12 per share compared with a profit of $11.1 million or $0.46 per share in the previous year. Net sales declined to $666.9 million from $716.5 million in the previous year. Analysts expected the company to earn $0.28 per share on sales of $650.81 million.
Looking ahead, the company expects revenue for the fiscal 2010 to be $650 million to $685 million and net income is expected to be $2.3 million to $5.3 million or $0.09 to $0.22 per share. Analysts currently expect the company to earn $0.34 per share on sales of $681.40 million.
Revenue for the first quarter ending September 30, 2009 is expected to be $150 to $155 million and net loss is expected to be $2 million to $1.0 million or $0.08 to $0.04 per share. Street analysts currently expect the company to earn $0.08 per share on sales of $166.53 million.
AHII is currently down $0.25 or 13.23% and trades at $1.63.
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