Page 1

PETIQ Smarter Pet Health PetIQ , Inc. Reports Record Third Quarter 2021 Financial Results November 3 , 2021 Reports Record Third Quarter Net Sales of $ 210.5 Million , an Increase of 29.9 % Year - Over - Year EAGLE , Idaho , Nov. 03 , 2021 ( GLOBE NEWSWIRE ) -- PetIQ , Inc. ( " PetIQ " or the " Company " ) ( Nasdaq : PETQ ) , a leading pet medication and wellness company , today reported financial results for the third quarter and nine months ended September 30 , 2021 . Cord Christensen , PetIQ's Chairman & CEO commented , " We are very pleased with our record third quarter results . The Product segment returned to a more normal sales cadence , and we increased market share on our core manufactured items for the third consecutive quarter this year , helping to fuel the Company's profitability . Our net sales growth was led by the e - commerce sales channel with an increase of 51 % year - over - year and strong contribution from the Company's manufactured brands , driven by the flea and tick category and our health and wellness portfolio . " Christensen continued , " The Services segment also had a solid quarter with double digit growth in pets per clinic and dollars per pet , despite not operating a significant percentage of our clinics due to labor headwinds . Going forward , we continue to expect the strength of our diversified business model to fuel our growth as we deliver smarter options for pet parents to help enrich their pet's lives through convenient and affordable access to veterinarian products and services . " Third Quarter 2021 Highlights Compared to Prior Year Period • Record net sales of $ 210.5 million compared to $ 162.1 million , an increase of 29.9 % • Product segment net sales of $ 181.6 million compared to $ 150.1 million , an increase of 21.0 % • Product segment adjusted EBITDA of $ 33.7 million compared to $ 26.3 million , an increase of 28.0 % • Product segment adjusted EBITDA margin of 18.5 % , an increase of 100 basis points • Services segment net revenues of $ 29.0 million compared to $ 12.0 million , an increase of $ 17.0 million • Services segment adjusted EBITDA of $ 3.8 million compared to an adjusted EBITDA loss of $ 0.2 million • Gross margin increased 10 basis points to 20.0 % ; adjusted gross margin increased 20 basis points to 22.6 % • Net loss , adjusted net income and adjusted EBITDA for the third quarter of 2021 includes a $ 2.0 million R & D milestone payment accrual for a future over - the - counter pet medication launch • Net loss of $ 8.3 million compared to a net loss of $ 71.5 million • Adjusted net income of $ 2.4 million compared to an adjusted net loss of $ 1.3 million • Adjusted EBITDA of $ 16.4 million compared to $ 12.0 million , an increase of 36.3 % • Adjusted EBITDA margin increased 40 basis points to 7.8 % • 12 new wellness center openings in the third quarter of 2021 Nine Month 2021 Highlights Compared to Prior Year Period • Record net sales of $ 735.9 million compared to $ 615.8 million , an increase of 19.5 % • Product segment net sales of $ 654.4 million compared to $ 580.7 million , an increase of 12.7 % • Product segment adjusted EBITDA of $ 120.7 million compared to $ 92.4 million , an increase of 30.5 % • Product segment adjusted EBITDA margin of 18.4 % , an increase of 250 basis points