Covetrus Announces Financial Results for Third Quarter of 2020
- Third quarter GAAP net sales of
$1.13 billion , an increase of 11% year-over-year; non-GAAP organic net sales increased 12% year-over-year
- Third quarter GAAP net loss of
$35 million ; third quarter non-GAAP adjusted net income of$30 million , an increase of 58% year-over-year
- Third quarter non-GAAP adjusted EBITDA of
$59 million , an increase of 20% year-over-year
- Ended the third quarter of 2020 with more than
$650 million in available liquidity, including$355 million in cash and cash equivalents on the balance sheet
- Full year 2020 non-GAAP adjusted EBITDA guidance increased to a range of
$213 million to$218 million
“Around the globe, the
Summary Operating Results (Unaudited)
Three Months Ended |
Nine Months Ended |
||||||||||||||||
(In millions, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net sales | $ | 1,126 | $ | 1,018 | $ | 3,217 | $ | 2,968 | |||||||||
Income (loss) before taxes | $ | (32 | ) | $ | (969 | ) | $ | (8 | ) | $ | (992 | ) | |||||
Net income (loss) attributable to |
$ | (35 | ) | $ | (959 | ) | $ | (15 | ) | $ | (982 | ) | |||||
Diluted earnings (loss) per share (EPS) | $ | (0.33 | ) | $ | (8.56 | ) | $ | (0.18 | ) | $ | (9.26 | ) | |||||
Non-GAAP Measures: (a) | Pro Forma | ||||||||||||||||
Net sales | $ | 1,126 | $ | 1,018 | $ | 3,217 | $ | 2,992 | |||||||||
Organic net sales growth | 12 | % | 9 | % | |||||||||||||
Adjusted EBITDA | $ | 59 | $ | 49 | $ | 170 | $ | 151 | |||||||||
Adjusted net income | $ | 30 | $ | 19 | $ | 80 | $ | 60 |
(a) Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for non-GAAP financial items to the most directly comparable GAAP financial items are provided under Reconciliation of Non-GAAP Financial Measures at the end of this release.
Third Quarter 2020 Results
Net sales for the third quarter of 2020 were
Net loss attributable to
Non-GAAP adjusted EBITDA was
Non-GAAP adjusted net income was
Nine-Month 2020 Results
Net sales for the first nine months of 2020 were
Net loss attributable to
Non-GAAP adjusted EBITDA was
Non-GAAP adjusted net income was
Third Quarter 2020 Segment Financial Highlights
The Company’s operations are organized and reported by geography —
APAC & Emerging Markets
APAC & Emerging Markets segment net sales for the third quarter ended
APAC & Emerging Markets segment adjusted EBITDA for the third quarter ended
Financial Position and Liquidity
At quarter-end, the Company had
Updated 2020 Financial Guidance
Covetrus’ updated fiscal year 2020 financial guidance range is as follows, which assume no material incremental supply chain disruption or widespread economic impact related to COVID-19:
- Non-GAAP adjusted EBITDA in the range of
$213 million to$218 million ; this is an increase from the Company’s prior guidance range of$200 million to$210 million .
The Company has not reconciled its non-GAAP adjusted EBITDA guidance to GAAP net income attributable to
Conference Call
The Company will host a conference call to discuss these results and recent business trends at
Benjamin Wolin , president and chief executive officerMatthew Foulston , executive vice president and chief financial officer
To access the live webcast and the accompanying slide presentation, individuals can visit the Investor Relations page of the
The conference call can also be accessed by dialing 866-789-2492 for
Upcoming Investor Events
- Credit Suisse 29th Annual
Virtual Healthcare Conference onNovember 11, 2020
Audio webcasts will be available live and archived on the Company’s Investor Relations website at https://ir.covetrus.com/investors/events-and-presentations. A complete listing of upcoming events for the investment community is available on the Company’s Investor Relations website.
About
Forward-Looking Statements
This press release contains certain statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We may, in some cases use terms such as "predicts," "believes," "potential," "continue," "anticipates," "estimates," "expects," "plans," "intends," "may," "could," "might," "likely," "will," "should," or other words that convey uncertainty of the future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous risks and uncertainties, and actual results could differ materially from those anticipated due to a number of factors including, but not limited to, the effect of the COVID-19 pandemic on our business and the success of any measures we have taken or may take in the future in response thereto, including our ability to continue operations at our distribution centers and pharmacies; the ability to drive growth; the ability to successfully integrate operations and employees; the ability to realize anticipated benefits and synergies of the transactions that created
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share amounts) |
|||||||
2020 |
2019 |
||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 355 | $ | 130 | |||
Accounts receivable, net of allowance of |
498 | 426 | |||||
Inventories, net | 521 | 636 | |||||
Other receivables | 81 | 67 | |||||
Prepaid expenses and other | 45 | 30 | |||||
Assets held for sale | — | 51 | |||||
Total current assets | 1,500 | 1,340 | |||||
Non-current assets: | |||||||
Property and equipment, net of accumulated depreciation of |
108 | 93 | |||||
Operating lease right-of-use assets, net | 118 | 84 | |||||
1,154 | 1,154 | ||||||
Other intangibles, net | 541 | 643 | |||||
Investments and other | 89 | 47 | |||||
Total assets | $ | 3,510 | $ | 3,361 | |||
LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 416 | $ | 520 | |||
Current maturities of long-term debt and other borrowings | 46 | 62 | |||||
Accrued payroll and related liabilities | 73 | 44 | |||||
Accrued taxes | 41 | 18 | |||||
Other current liabilities | 155 | 164 | |||||
Liabilities held for sale | — | 21 | |||||
Total current liabilities | 731 | 829 | |||||
Non-current liabilities: | |||||||
Long-term debt and other borrowings, net | 1,082 | 1,125 | |||||
Deferred taxes | 39 | 47 | |||||
Other liabilities | 139 | 94 | |||||
Total liabilities | 1,991 | 2,095 | |||||
Commitments and contingencies | |||||||
Mezzanine equity: | |||||||
Redeemable non-controlling interests | 15 | 10 | |||||
Redeemable Series A convertible preferred stock, |
88 | — | |||||
Shareholders’ equity: | |||||||
Common stock, |
1 | 1 | |||||
Accumulated other comprehensive loss | (91 | ) | (86 | ) | |||
Additional paid-in capital | 2,567 | 2,381 | |||||
Accumulated deficit | (1,061 | ) | (1,040 | ) | |||
Total shareholders’ equity | 1,416 | 1,256 | |||||
Total liabilities, mezzanine equity, and shareholders’ equity | $ | 3,510 | $ | 3,361 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | 1,126 | $ | 1,018 | $ | 3,217 | $ | 2,968 | |||||||
Cost of sales | 929 | 827 | 2,625 | 2,407 | |||||||||||
Gross profit | 197 | 191 | 592 | 561 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 224 | 210 | 642 | 594 | |||||||||||
— | 939 | — | 939 | ||||||||||||
Operating loss | (27 | ) | (958 | ) | (50 | ) | (972 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest income | — | 1 | 1 | 4 | |||||||||||
Interest expense | (10 | ) | (16 | ) | (38 | ) | (42 | ) | |||||||
Other, net | 5 | 4 | 79 | 18 | |||||||||||
Income (loss) before taxes and equity in earnings of affiliates | (32 | ) | (969 | ) | (8 | ) | (992 | ) | |||||||
Income tax benefit (expense) | (3 | ) | 7 | (6 | ) | 7 | |||||||||
Net income (loss) | $ | (35 | ) | $ | (962 | ) | $ | (14 | ) | $ | (985 | ) | |||
Net (income) loss attributable to redeemable non-controlling interests | — | 3 | (1 | ) | 3 | ||||||||||
Net income (loss) attributable to |
$ | (35 | ) | $ | (959 | ) | $ | (15 | ) | $ | (982 | ) | |||
Earnings (loss) per share attributable to |
|||||||||||||||
Basic | $ | (0.33 | ) | $ | (8.56 | ) | $ | (0.18 | ) | $ | (9.26 | ) | |||
Diluted | $ | (0.33 | ) | $ | (8.56 | ) | $ | (0.18 | ) | $ | (9.26 | ) | |||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 116 | 112 | 113 | 106 | |||||||||||
Diluted | 116 | 112 | 113 | 106 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
Nine Months Ended |
|||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (14 | ) | $ | (985 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 124 | 113 | |||||
Amortization of right-of-use assets | 18 | 16 | |||||
— | 939 | ||||||
Operating lease right-of-use asset impairment | 8 | — | |||||
Gain on divestiture of a business | (72 | ) | — | ||||
Share-based compensation expense | 30 | 35 | |||||
Benefit for deferred income taxes | (7 | ) | (19 | ) | |||
Amortization of debt issuance costs | 4 | — | |||||
Loss on managed exit of a business | 8 | — | |||||
Other | 1 | (2 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable, net | (77 | ) | (25 | ) | |||
Inventories, net | 99 | (23 | ) | ||||
Other assets and liabilities | (42 | ) | (36 | ) | |||
Accounts payable and accrued expenses | (69 | ) | 21 | ||||
Net cash provided by operating activities | 11 | 34 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (40 | ) | (30 | ) | |||
Payments related to equity investments and business acquisitions, net of cash acquired | (13 | ) | (26 | ) | |||
Proceeds from divestiture of a business, net | 104 | — | |||||
Proceeds from sale of property and equipment | 4 | — | |||||
Net cash provided by (used for) investing activities | 55 | (56 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility | 190 | — | |||||
Repayment of revolving credit facility | (190 | ) | — | ||||
Proceeds from issuance of debt | — | 1,220 | |||||
Principal payments of debt | (62 | ) | (43 | ) | |||
Debt issuance and amendment costs | (5 | ) | (24 | ) | |||
Issuance of common shares in connection with share-based compensation plans | 6 | 3 | |||||
Dividend paid to Former Parent | — | (1,174 | ) | ||||
Net transfers from Former Parent | — | 165 | |||||
Proceeds from issuance of Series A preferred stock | 250 | — | |||||
Series A preferred stock issuance costs | (6 | ) | — | ||||
Series A preferred stock dividend | (6 | ) | — | ||||
Acquisition payment | (17 | ) | (9 | ) | |||
Acquisitions of non-controlling interests in subsidiaries | — | (74 | ) | ||||
Net cash provided by financing activities | 160 | 64 | |||||
Effect of exchange rate changes on cash and cash equivalents | (1 | ) | 3 | ||||
Net change in cash and cash equivalents | 225 | 45 | |||||
Cash and cash equivalents, beginning of period | 130 | 23 | |||||
Cash and cash equivalents, end of period | $ | 355 | $ | 68 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) (Continued) |
|||||||
Nine Months Ended |
|||||||
2020 | 2019 | ||||||
Supplemental disclosure of cash paid for: | |||||||
Interest | $ | 32 | $ | 35 | |||
Income taxes | $ | 17 | $ | 16 | |||
Amounts included in the measurement of operating lease liabilities | $ | 20 | $ | 18 | |||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Conversion of Series A preferred stock | $ | 156 | $ | — | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 60 | $ | 91 | |||
Deconsolidation of a subsidiary | $ | 15 | $ | — | |||
Segment Adjusted EBITDA
The Company provides adjusted EBITDA by segment as a supplemental measure to GAAP. Adjusted EBITDA by segment is not a pro forma metric and in 2019 reflects the operations of Vets First Choice only for the period from
The following tables summarize adjusted EBITDA by segment:
Three Months Ended | ||||||||||||||||||
(In millions) | $ Change | % Change | ||||||||||||||||
$ | 45 | $ | 39 | $ | 6 | 15 | % | |||||||||||
19 | 15 | 4 | 27 | |||||||||||||||
APAC & Emerging Markets | 8 | 5 | 3 | 60 | ||||||||||||||
Corporate | (13 | ) | (10 | ) | (3 | ) | NA | |||||||||||
Total Adjusted EBITDA | $ | 59 | $ | 49 | $ | 10 | 20 | % |
Nine Months Ended | ||||||||||||||||||
(In millions) | $ Change | % Change | ||||||||||||||||
$ | 141 | $ | 117 | $ | 24 | 21 | % | |||||||||||
53 | 50 | 3 | 6 | |||||||||||||||
APAC & Emerging Markets | 20 | 13 | 7 | 54 | ||||||||||||||
Corporate | (44 | ) | (27 | ) | (17 | ) | NA | |||||||||||
Total Adjusted EBITDA | $ | 170 | $ | 153 | $ | 17 | 11 | % | ||||||||||
Reconciliation of Non-GAAP Financial Measures
In addition to the financial information presented in accordance with
The following tables reconcile non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.
These non-GAAP financial measures have limitations as an analytic tool and should not be considered in isolation or as a substitute for net income or any other measure of financial performance reported in accordance with GAAP. Covetrus’ non-GAAP measures may be calculated differently than similarly named measures reported by other companies. In addition, using non-GAAP measures may have limited value as they exclude certain items that may have a material impact on reported financial results and cash flows. When analyzing Covetrus’ performance, it is important to evaluate each adjustment in the reconciliation tables and use adjusted measures in addition to, and not as an alternative to, GAAP measures.
Non-GAAP
Organic net sales growth is a non-GAAP measure that
The following tables summarize non-GAAP net sales and non-GAAP organic net sales growth for
Three Months Ended |
Three Months Ended |
||||||||||||||||
(In millions) | |||||||||||||||||
Net sales: | $ | 1,126 | $ | 1,018 | |||||||||||||
618 | 543 | ||||||||||||||||
403 | 384 | ||||||||||||||||
APAC & Emerging Markets | 108 | 94 | |||||||||||||||
Eliminations | (3 | ) | (3 | ) | |||||||||||||
Nine Months Ended |
Nine Months Ended |
||||||||||||||||
(In millions) | Historical Animal Health |
Historical Vets First Choice (a) |
Non-GAAP Pro Forma Combined |
||||||||||||||
Net sales: | $ | 3,217 | $ | 2,968 | $ | 24 | $ | 2,992 | |||||||||
1,771 | 1,592 | 24 | 1,616 | ||||||||||||||
1,166 | 1,114 | — | 1,114 | ||||||||||||||
APAC & Emerging Markets | 288 | 270 | — | 270 | |||||||||||||
Eliminations | (8 | ) | (8 | ) | — | (8 | ) |
(a) Historical Vets First Choice - 2019 - from
Non-GAAP Organic
Three Months Ended |
|||||||||||||||||
2020 | 2019 | ||||||||||||||||
(In millions) | Y/Y Growth |
% Change from FX |
% Change from Mergers and Acquisitions |
% Change from Divestitures |
Non-GAAP Organic Net Sales Growth |
||||||||||||
Net sales: | $ | 1,126 | $ | 1,018 | 11 | % | 1 | % | — | % | (3 | )% | 12 | % | |||
618 | 543 | 14 | % | — | % | — | % | (1 | )% | 14 | % | ||||||
403 | 384 | 5 | % | 4 | % | — | % | (7 | )% | 8 | % | ||||||
APAC & Emerging Markets | 108 | 94 | 15 | % | (2 | )% | 1 | % | — | % | 16 | % | |||||
Eliminations | (3 | ) | (3 | ) | |||||||||||||
Nine Months Ended |
|||||||||||||||||
2020 | 2019 | ||||||||||||||||
(In millions) | Non-GAAP Pro Forma Combined |
Non-GAAP Pro Forma Y/Y Growth |
% Change from FX |
% Change from Mergers and Acquisitions |
% Change from Divestitures |
Non-GAAP Pro Forma Organic Growth |
|||||||||||
Net sales: | $ | 3,217 | $ | 2,992 | 8 | % | (1 | )% | 1 | % | (2 | )% | 9 | % | |||
1,771 | 1,616 | 10 | % | — | % | — | % | — | % | 10 | % | ||||||
1,166 | 1,114 | 5 | % | (1 | )% | 4 | % | (4 | )% | 6 | % | ||||||
APAC & Emerging Markets | 288 | 270 | 7 | % | (7 | )% | 1 | % | — | % | 14 | % | |||||
Eliminations | (8 | ) | (8 | ) | |||||||||||||
Non-GAAP EBITDA, Pro Forma EBITDA, Adjusted EBITDA, Pro Forma Adjusted EBITDA, Adjusted Net Income (Loss) and Pro Forma Adjusted Net Income (Unaudited)
EBITDA, adjusted EBITDA, pro forma EBITDA, pro forma adjusted EBITDA, adjusted net income, and pro forma adjusted net income are non-GAAP financial measures used to: (i) aid management and investors with year-over-year comparability, (ii) determine management performance under the Company’s compensation plans, (iii) plan and forecast, (iv) communicate the Company’s financial performance to its board of directors, shareholders, and investment analysts, and (v) understand the Company’s operating performance without regard to items we do not consider a component of the Company’s core ongoing operating performance. Such measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Non-GAAP adjusted EBITDA adjustments include share-based compensation, strategic consulting, transaction costs, formation of
A reconciliation of EBITDA, adjusted EBITDA and adjusted net income to net income (loss) attributable to
Non-GAAP Adjusted EBITDA and Adjusted Net Income Reconciliation (Unaudited) | |||||||
Three Months Ended | |||||||
(In Millions) | |||||||
Net income (loss) attributable to |
$ | (35 | ) | $ | (959 | ) | |
Plus: Depreciation and amortization | 41 | 41 | |||||
Plus: Interest expense, net | 10 | 16 | |||||
Plus: Income tax (benefit) expense | 3 | (7 | ) | ||||
EBITDA | 19 | (909 | ) | ||||
Plus: Share-based compensation | 11 | 10 | |||||
Plus: Strategic consulting | 3 | — | |||||
Plus: Transaction costs (a) | 1 | — | |||||
Plus: Separation programs and executive severance | 2 | 1 | |||||
Plus: IT infrastructure | 1 | 2 | |||||
Plus: Formation of |
4 | 13 | |||||
Plus: Equity method investment and non-consolidated affiliates (c) | 1 | — | |||||
Plus: Operating lease right-of-use asset impairment | 8 | — | |||||
Plus: |
8 | — | |||||
Plus: |
— | 939 | |||||
Less: Minority interest in goodwill impairment | — | (3 | ) | ||||
Plus: Other items, net | 1 | (4 | ) | ||||
Adjusted EBITDA | 59 | 49 | |||||
Depreciation and amortization | (41 | ) | (41 | ) | |||
Amortization of acquired intangibles | 34 | 34 | |||||
Interest expense, net | (10 | ) | (16 | ) | |||
Adjusted income before taxes | 42 | 26 | |||||
Adjusted income tax expense | (12 | ) | (7 | ) | |||
Adjusted net income attributable to |
$ | 30 | $ | 19 | |||
(a) Includes legal, accounting, tax, and other professional fees incurred in connection with acquisitions and divestitures. | |||||||
(b) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing |
|||||||
(c) Includes the proportionate share of the adjustments to EBITDA of consolidated and non-consolidated affiliates where |
|||||||
(d) Includes |
Non-GAAP Adjusted EBITDA and Adjusted Net Income Reconciliation (Unaudited) | |||
(In Millions) | Nine Months Ended |
||
Net income (loss) attributable to |
$ | (15 | ) |
Plus: Depreciation and amortization | 124 | ||
Plus: Interest expense, net | 37 | ||
Plus: Income tax (benefit) expense | 6 | ||
EBITDA | 152 | ||
Plus: Share-based compensation | 30 | ||
Plus: Strategic consulting | 13 | ||
Plus: Transaction costs (a) | 8 | ||
Plus: Separation programs and executive severance | 4 | ||
Plus: IT infrastructure | 3 | ||
Plus: Formation of |
17 | ||
Plus: Capital structure | 2 | ||
Plus: Equity method investment and non-consolidated affiliates (c) | 1 | ||
Plus: Operating lease right-of-use asset impairment | 8 | ||
Plus: |
8 | ||
Plus: Other items, net (e) | (76 | ) | |
Adjusted EBITDA | 170 | ||
Depreciation and amortization | (124 | ) | |
Amortization of acquired intangibles | 101 | ||
Interest expense, net | (37 | ) | |
Adjusted income before taxes | 110 | ||
Adjusted income tax expense | (30 | ) | |
Adjusted net income attributable to |
$ | 80 | |
(a) Includes legal, accounting, tax, and other professional fees incurred in connection with acquisitions and divestitures. | |||
(b) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing |
|||
(c) Includes the proportionate share of the adjustments to EBITDA of consolidated and non-consolidated affiliates where |
|||
(d) Includes |
|||
(e) Includes a pre-tax gain of |
Non-GAAP Pro Forma Adjusted EBITDA and Adjusted Net Income Reconciliation (Unaudited) | |||||||||||||||
Nine Months Ended |
|||||||||||||||
(In Millions) | Vets First Choice ( to |
Spin-Off and Other Pro Forma Adjustments |
Purchase Price and Related Pro Forma Adjustments |
Pro Forma |
|||||||||||
Net loss attributable to |
$ | (982 | ) | $ | (9 | ) | $ | (5 | ) | $ | (4 | ) | $ | (1,000 | ) |
Plus: Depreciation and amortization | 113 | 2 | — | 9 | 124 | ||||||||||
Plus: Interest expense, net | 41 | 1 | 6 | — | 48 | ||||||||||
Plus: Income tax (benefit) expense | (7 | ) | — | (1 | ) | (2 | ) | (10 | ) | ||||||
EBITDA | (835 | ) | (6 | ) | — | 3 | (838 | ) | |||||||
Plus: Share-based compensation | 35 | — | — | 3 | 38 | ||||||||||
Plus: Transaction costs | — | 6 | — | (6 | ) | — | |||||||||
Plus: Formation of |
26 | — | — | — | 26 | ||||||||||
Plus: Separation programs and executive severance | 1 | — | — | — | 1 | ||||||||||
Plus: Carve-out operating expense | 5 | — | — | — | 5 | ||||||||||
Plus: IT infrastructure | 4 | — | — | — | 4 | ||||||||||
Plus: |
939 | 939 | |||||||||||||
Less: Minority interest in goodwill impairment | (3 | ) | (3 | ) | |||||||||||
Less: Other items, net | (19 | ) | (2 | ) | — | — | (21 | ) | |||||||
Adjusted EBITDA | 153 | (2 | ) | — | — | 151 | |||||||||
Depreciation and amortization | (124 | ) | |||||||||||||
Amortization of acquired intangibles | 102 | ||||||||||||||
Interest expense, net | (48 | ) | |||||||||||||
Adjusted income before taxes | 81 | ||||||||||||||
Adjusted income tax expense | (21 | ) | |||||||||||||
Pro Forma adjusted net income attributable to |
$ | 60 | |||||||||||||
(a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing |
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Numbers in table may not foot or cross-foot due to rounding. | |||||||||||||||
Non-GAAP Free Cash Flow (Unaudited)
Free cash flow is a non-GAAP financial measure and should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Free cash flow is the cash the Company produces through its operations, less the cost of expenditures on property and equipment. The Company believes that it is an important measurement since it shows how efficient a company is at generating cash.
Free Cash Flow (Unaudited) | |||||||
Nine Months Ended |
|||||||
(In millions) | 2020 | 2019 | |||||
Net cash provided by operating activities | $ | 11 | $ | 34 | |||
Less: Purchases of property and equipment | (40 | ) | (30 | ) | |||
Free cash flow | $ | (29 | ) | $ | 4 |
ContactsNicholas Jansen | Strategy and Corporate Development 207-550-8106 | nicholas.jansen@covetrus.com Kiní Schoop | Public Relations 207-550-8018 | kini.schoop@covetrus.com
Source: Covetrus