(Source: PrimeNewswire)WESTLAKE, Texas, Sept. 3, 2009 (GLOBE NEWSWIRE) -- Animal Health International, Inc. (Nasdaq:AHII) announced today that net sales declined 8.9%, or $15.8 million, to $162.5 million for the three months ended June 30, 2009, compared to $178.3 million for the same quarter last year. Net loss was $29.4 million or $1.21 per fully diluted share. Last year, net income for the fourth quarter was $2.7 million or $0.11 per fully diluted share.

    * As a result of the economic downturn, the Company's stock price    declined significantly over the past year. This decline    correspondingly decreased our market capitalization, and was a key    factor that caused the Company to record a non-cash, pre-tax $25.2    million impairment charge in the fourth quarter.  * Selling, General & Administrative (SG&A) expenses included a $2.7    million bad debt provision resulting from a dispute with a    manufacturer regarding a rebate receivable, $1.8 million of    accelerated stock option expense resulting from the voluntary    forfeiture of more than one million options by senior management,    and $0.2 million in severance expense.  * The decrease in net sales was primarily attributable to lower    spending by production animal customers whose profits have been    constrained by fluctuating commodity prices and the general    economic slowdown.  * Gross margin declined $9.6 million, with $3.2 million due to lower    sales volume, and $6.4 million due to lower rebates from vendors.    Margins in the fourth quarter were 16.0% of net sales, compared to    20.0% in the fourth quarter last year.  * SG&A expenses, excluding the above charges, declined $3.6 million    from the same period last year as a result of lower variable    selling expense and cost reductions.  * Earnings before interest, tax, depreciation and amortization    (EBITDA) for the quarter was $0.2 million, a decrease of $8.9    million compared to the same period last year. EBITDA adjusted for    the severance and the bad debt provision was $3.1 million, a $6.0    million decline from last year. 

Net sales for the year declined 6.9%, or $49.6 million, to $666.9 million. Net loss was $27.1 million or $1.12 per fully diluted share. Last year, the net income for the year was $11.1 million or $0.46 per fully diluted share.

    * The Company recorded a non-cash, pre-tax impairment of goodwill of    $25.2 million  * SG&A expenses included a $2.7 million bad debt provision resulting    from a dispute with a manufacturer regarding a rebate receivable,    $1.8 million of accelerated stock option expense resulting from the    voluntary forfeiture of more than one million options by senior    management, and $0.7 million in severance expense.  * As in the quarter, the decrease in net sales for the year was    primarily attributable to lower spending by production animal    customers whose profits have been constrained by fluctuating    commodity prices and the general economic slowdown.  * Gross margin declined $23.1 million for the year, and was 17.1% of    net sales compared to 19.1% last year. Lower volume reduced gross    margin by $9.5 million and lower rebates reduced gross margins by    $14.3 million.  * SG&A expenses for the year, excluding the above charges, decreased    $5.6 million from the same period last year.  * EBITDA for the fiscal year was $17.5 million, a decrease of $20.0    million when compared to the same period last year. EBITDA adjusted    for the severance and bad debt provision was $20.9 million.  * The Company repaid $16.5 million of debt during the fiscal year, as    well as $2.9 million paid for purchase price adjustments associated    with prior acquisitions. 

At June 30, 2009, the Company's availability under its Revolver totaled $31.7 million, and the Company is in compliance with all of its financial covenants.

Fiscal Year 2010 Guidance

The following statements are based on current information and the Company assumes no obligation to update them. These statements are forward-looking and inherently uncertain.

The Company believes that the economic factors affecting our industry will improve in the next twelve months. Although the exact timing of a recovery is difficult to predict, the Company is currently projecting that conditions will improve in the third quarter of fiscal year 2010. Revenue for the fiscal year ending June 2010 is expected to be $650 to $685 million. EBITDA is estimated to be $22 to $27 million and net income is expected to be $2.3 to $5.3 million or $0.09 to $0.22 per share.

The Company does not expect a significant improvement in its end markets in the first fiscal quarter. Revenue for the first quarter ending September 30, 2009 is expected to be $150 to $155 million. EBITDA is estimated to be $2.5 to $3.5 and net loss is expected to be $2.0 to $1.0 million or $0.08 to $0.04 per share.

Conference Call

The Company plans to host its investor conference call today at 10:00 a.m. Eastern Time to discuss these results and its business outlook. You can access the conference call by dialing 877-407-9205. Participants will be required to register their name and company affiliation for the conference call. Audio replay will be made available by accessing the Company's web site at www.ahii.com under the Investor Relations tab.