MERIDIAN, ID -- (Marketwire) -- 04/30/09 -- MWI Veterinary Supply, Inc. (NASDAQ: MWIV) (the "Company") announced financial results today for its second quarter ended March 31, 2009 of fiscal year 2009.

Quarter Highlights:

--  Revenues were $214.5 million for the quarter, 10.0% higher than
    revenues for the same period in the prior fiscal year.
--  Gross profit was $31.6 million for the quarter, 11.9% higher than
    gross profit for the same period in the prior fiscal year.  Gross profit as
    a percentage of revenues was 14.7% for the quarter compared to 14.5% for
    the same period in the prior fiscal year.
--  Selling, general and administrative ("SG&A") expenses as a percentage
    of revenues were 10.0% for the quarter, compared to 10.5% for the same
    period in the prior fiscal year.
--  Net income was $5.8 million for the quarter, 32.2% higher than net
    income for the same period in the prior fiscal year.  Diluted earnings per
    share were $0.47 for the quarter, compared to $0.36 for the same period in
    the prior fiscal year, an increase of 30.6%.
--  Internet sales to independent veterinary practices and producers grew
    by approximately 36% for the quarter compared to the same period in the
    prior fiscal year.  Our product sales from the internet as a percentage of
    sales improved to 31% for the quarter as compared to 27% for the same
    period in the prior fiscal year.
    

"I want to thank and congratulate the MWI team for great performance in a challenging environment," said Jim Cleary, President and Chief Executive Officer. "We developed a business plan and then met or exceeded our expectations for revenue, gross margin, operating expenses, earnings and value-added services. We continue our focus on delivering value, efficiency and innovation to our customers and our vendors."

Quarter ended March 31, 2009 compared to quarter ended March 31, 2008

Total revenues increased by 10.0% to $214.5 million for the quarter ended March 31, 2009, compared to $195.0 million for the quarter ended March 31, 2008. Revenues attributable to new customers represented approximately 93% of the growth in total revenues during the quarter ended March 31, 2009. Included in the new customer growth were approximately $2.9 million of revenues attributable to new customers acquired as a result of the acquisition of AAHA MARKETLink on July 1, 2008. Additionally, we had $5.2 million of incremental revenues as a result of the acquisition of AAHA MARKETLink from customers who had previously been purchasing from both MWI and AAHA MARKETLink. Commissions on agency sales increased by 5.0% to $3.8 million for the quarter ended March 31, 2009, compared to $3.6 million for the quarter ended March 31, 2008.

Gross profit increased by 11.9% to $31.6 million for the quarter ended March 31, 2009, compared to $28.3 million for the quarter ended March 31, 2008. Gross profit as a percentage of total revenues was 14.7% for the quarter ended March 31, 2009, compared to 14.5% for the quarter ended March 31, 2008. The increase in gross profit as a percentage of total revenues was due to improved freight costs as a percentage of revenues as well as an improvement in product margin during the quarter, partially offset by a decrease in vendor rebates. Vendor rebates for the quarter ended March 31, 2009 decreased approximately $400,000 compared to the quarter ended March 31, 2008.

Operating income increased by 30.3% to $9.3 million for the quarter ended March 31, 2009, compared to $7.1 million for the quarter ended March 31, 2008. SG&A expenses as a percentage of revenue were 10.0% for the quarter ended March 31, 2009, compared to 10.5% for the quarter ended March 31, 2008, due to operating leverage and cost-control measures. SG&A costs increased by 5.3% to $21.5 million for the quarter ended March 31, 2009, compared to $20.4 million for the quarter ended March 31, 2008. The dollar increase in SG&A expenses was primarily due to increased compensation costs as well as an increase in our allowance for doubtful accounts, partially offset by decreases in fees to outside service providers and travel expenses. Our total headcount decreased by 6 employees as of March 31, 2009, compared to March 31, 2008 due to operational changes made during the quarter. Our sales headcount increased by 19 employees as of March 31, 2009, compared to March 31, 2008 to 187 field sales representatives and 135 telesales representatives.

Net income increased by 32.2% to $5.8 million for the quarter ended March 31, 2009, compared to $4.4 million for the quarter ended March 31, 2008. Diluted earnings per share were $0.47 and $0.36 for the quarters ended March 31, 2009 and March 31, 2008, respectively, an increase of 30.6%.

Six months ended March 31, 2009 compared to six months ended March 31, 2008

Total revenues increased by 12.1% to $446.3 million for the six months ended March 31, 2009, compared to $398.3 million for the six months ended March 31, 2008. Revenues attributable to new customers represented approximately 80% of the growth in total revenues during the six months ended March 31, 2009. Included in the new customer growth were approximately $5.3 million of revenues attributable to new customers acquired as a result of the acquisition of AAHA MARKETLink on July 1, 2008. Additionally, we had $10.7 million of incremental revenues as a result of the acquisition of AAHA MARKETLink from customers who had previously been purchasing from both MWI and AAHA MARKETLink. Commissions on agency sales increased 1.7% to $6.6 million for the six months ended March 31, 2009, compared to $6.5 million for the six months ended March 31, 2008.

Gross profit increased by 12.5% to $65.3 million for the six months ended March 31, 2009, compared to $58.1 million for the six months ended March 31, 2008.