PetIQ has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to price its 5.67 million shares in the range of $14 to $16, with an overallotment option for an additional 850,000 shares. At the maximum price, the entire offering is valued up to $104.27 million. The company intends to list its shares on the Nasdaq under the symbol PETQ.
The underwriters for the offering are Jefferies, William Blair, Oppenheimer, Raymond James and SunTrust Robinson Humphrey.
This company is a rapidly growing distributor and manufacturer of veterinarian-grade pet prescription medications, over-the-counter flea and tick preventatives and health and wellness products for dogs and cats.
PetIQ pioneered and is the leading seller to the retail channel of pet products that were previously available for purchase primarily from veterinary clinics. PetIQ enables customers to offer pet owners choice, affordability and convenience on products from leading national brands as well as proprietary value-branded alternatives.
In the filing the company detailed:
Consumer behavior supports our continuing growth: pet owners are increasingly migrating their purchases away from veterinarians’ offices to the channels we serve. In addition, pet owners are shifting their retail purchases from non-veterinarian-grade products, previously the only products available in the retail channel, to the premium veterinarian-grade products that we sell. We believe we are well positioned to capitalize on these changes in consumer behavior because of our category leadership, broad product portfolio, value proposition and strong customer relationships. The end markets we serve are large and growing: U.S. sales of pet medications have grown to an estimated $7.4 billion in 2016 and are estimated to reach $8.9 billion by 2019, representing a compound annual growth rate (“CAGR”) of 6% between 2016 and 2019, according to Packaged Facts.
Financial highlights included:
- Net sales growth from $31.8 million in fiscal year 2011 to $214.9 million for the last twelve months (“LTM”) ended March 31, 2017, representing a CAGR of approximately 44%
- Net income improvement from a loss of $11 million in fiscal year 2014 to income of $1.2 million for the LTM ended March 31, 2017
- Adjusted EBITDA growth from $(5.4) million in fiscal year 2014 to $12.6 million for the LTM ended March 31, 2017
- Net sales growth from $52.3 million for the three months ended March 31, 2016 to $67.0 million for the three months ended March 31, 2017, representing a 28.2% growth year over year increase
- Net income growth from a loss of $(0.3) million for the three months ended March 31, 2016 to $4.3 million for the three months ended March 31, 2017.
The company intends to use the net proceeds from the offering to pay down its debt, as well as for working capital and general corporate purposes.