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PETIQ Smarter Pet Health PetIQ , Inc. Reports Record First Quarter 2021 Financial Results May 5 , 2021 First Quarter 2021 Net Sales Increase 36.2 % Year - Over - Year to $ 254.3 Million EAGLE , Idaho , May 05 , 2021 ( GLOBE NEWSWIRE ) PetIQ , Inc. ( " PetIQ " or the " Company " ) ( Nasdaq : PETQ ) , a leading pet medication and wellness company , today reported financial results for the three months ended March 31 , 2021 . -- Cord Christensen , PetIQ's Chairman & CEO commented , " Our record start to the year demonstrates the strength and momentum across our pet health and wellness business . The first quarter financial results reflect continued robust growth from both our manufactured and distributed pet products across all sales channels and we experienced an important inflection point in our Services business as the headwinds from the pandemic have started to abate . We remain excited about the future trajectory of our diversified business model and are well positioned to continue to benefit from the favorable pet health and wellness industry tailwinds . Going forward , we will continue to execute on our strategic growth objects and believe PetIQ's mission of delivering smarter options for pet parents to help enrich their pets ' lives through convenient and affordable access to veterinarian products and services has never been stronger . " First Quarter 2021 Highlights Compared to Prior Year Period • Record net sales of $ 254.3 million compared to $ 186.8 million , an increase of 36.2 % • Product segment net sales of $ 230.0 million compared to $ 166.3 million , an increase of 38.3 % • Product adjusted EBITDA increased 59.8 % to $ 38.8 million , representing an adjusted EBITDA margin of 16.9 % , an increase of 230 basis points • Services Segment net revenues of $ 24.3 million compared to $ 20.5 million , an increase of 18.6 % , reflecting new wellness centers sales contribution , as well as lapping COVID - 19 related closures that started in March 2020 , partially offset by COVID - 19 related impact • 13 new wellness center openings in the first quarter of 2021 • Gross margin increased 160 basis points to 18.8 % ; adjusted gross margin increased 130 basis points to 20.7 % • Net income improved $ 5.1 million to $ 2.4 million compared to net loss of $ 2.6 million • Adjusted net income of $ 10.4 million compared to adjusted net income of $ 4.6 million , an increase of 124.9 % ● Adjusted EBITDA of $ 26.9 million compared to $ 14.5 million , an increase of 85.8 % • Adjusted EBITDA margin increased 290 basis points to 10.6 % • Subsequent to quarter end the Company entered into new $ 425 million credit facilities to replace existing facilities . The credit facilities provide more favorable terms including a 125 - basis point decrease in the Company's annual interest rate on its term loan and greater financial flexibility to support future growth , representing total liquidity of $ 125.0 million as of April 19 , 2021 First Quarter 2021 Financial Results Record net sales of $ 254.3 million for the first quarter of 2021 , increased 36.2 % , compared to $ 186.8 million for the same period in the prior year . First quarter net sales were driven by continued Product segment growth including contribution from Capstar® , and a benefit of approximately $ 15.0 million from a shift in the timing of a seasonal flea and tick product sales to the first quarter of 2021 from the second quarter of 2021. Product segment sales were $ 230.0 million and Services segment revenues were $ 24.3 million in the first quarter of 2021. The Services segment generated significant improvements as headwinds from COVID - 19 reached an inflection point during the quarter . Management estimates the Services Segment would have contributed approximately $ 3.9 million of additional net revenue if all existing Services locations did not have COVID - 19 - related impacts in the first quarter .