x
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QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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02-0620757
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(State of Incorporation)
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(I.R.S. Employer Identification Number)
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3041 W. Pasadena Dr.
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Boise, ID
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83705
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(Address of principal executive offices)
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(Zip Code)
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(208) 955-8930
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(Registrant’s telephone number, including area code)
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
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o (Do not check if a smaller reporting company)
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Smaller reporting company
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o
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PART I.
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Item 1.
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3
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4
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5
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6
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15
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Item 2.
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16
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Item 3.
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21
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Item 4.
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21
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PART II.
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21
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Item 1.
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22
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Item 1A.
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23
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Item 2.
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23
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Item 3.
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24
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Item 4.
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24
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Item 5.
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24
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Item 6.
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24
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PART I. FINANCIAL INFORMATION
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Item 1. Financial Statements
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MWI VETERINARY SUPPLY, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Dollars and shares in thousands, except per share data
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(unaudited)
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Three months ended December 31,
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2011
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2010
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Revenues:
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Product sales
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$
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442,597
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$
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347,737
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Product sales to related party
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15,558
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14,723
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Commissions
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3,746
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3,714
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Total revenues
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461,901
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366,174
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Cost of product sales
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399,387
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316,102
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Gross profit
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62,514
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50,072
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Selling, general and administrative expenses
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38,907
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31,047
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Depreciation and amortization
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2,192
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1,489
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Operating income
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21,415
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17,536
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Other income (expense):
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Interest expense
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(183)
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(182)
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Earnings of equity method investees
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77
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73
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Other
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188
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135
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Total other income (expense), net
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82
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26
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Income before taxes
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21,497
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17,562
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Income tax expense
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(8,301)
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(6,734)
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Net income
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$
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13,196
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$
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10,828
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Earnings per common share:
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Basic
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$
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1.05
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$
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0.87
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Diluted
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$
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1.05
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$
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0.87
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Weighted average common shares outstanding:
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Basic
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12,581
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12,415
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Diluted
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12,605
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12,483
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See Notes to Condensed Consolidated Financial Statements.
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MWI VETERINARY SUPPLY, INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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Dollars and shares in thousands, except per share data
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(unaudited)
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December 31,
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September 30,
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2011
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2011
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Assets
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Current Assets:
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Cash and cash equivalents
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$
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551
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$
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606
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Receivables, net
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237,880
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215,861
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Inventories
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235,167
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170,065
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Prepaid expenses and other current assets
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6,133
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10,079
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Deferred income taxes
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1,700
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1,672
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Total current assets
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481,431
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398,283
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Property and equipment, net
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34,838
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25,209
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Goodwill
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54,792
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49,041
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Intangibles, net
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45,236
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24,894
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Other assets, net
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7,149
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6,792
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Total assets
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$
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623,446
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$
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504,219
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Liabilities And Stockholders’ Equity
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Current Liabilities:
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Credit facilities
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$
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51,563
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$
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2,907
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Accounts payable
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230,139
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182,594
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Accrued expenses and other current liabilities
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18,339
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16,385
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Current portion of capital lease obligations
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898
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909
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Total current liabilities
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300,939
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202,795
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Deferred income taxes
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6,442
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5,989
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Long-term capital lease obligations
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351
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354
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Other long-term liabilities
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2,529
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2,271
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Commitments and contingencies (see Note 14)
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Stockholders’ Equity
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Common stock $0.01 par value, 40,000 authorized; 12,720 and
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12,618 shares issued and outstanding, respectively
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127
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126
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Additional paid in capital
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141,562
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133,759
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Retained earnings
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172,684
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159,488
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Accumulated other comprehensive income
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(1,188)
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(563)
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Total stockholders’ equity
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313,185
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292,810
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Total liabilities and stockholders’ equity
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$
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623,446
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$
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504,219
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See Notes to Condensed Consolidated Financial Statements.
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MWI VETERINARY SUPPLY, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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Dollars in thousands (unaudited)
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Three months ended December 31,
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2011
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2010
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Cash Flows From Operating Activities:
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Net income
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$
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13,196
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$
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10,828
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Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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2,196
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1,492
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Amortization of debt issuance costs
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12
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17
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Stock-based compensation
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376
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21
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Deferred income taxes
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460
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265
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Earnings of equity method investees
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(77)
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(73)
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Loss on disposal of property and equipment
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23
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-
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Excess tax benefit of exercise of common stock options
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(119)
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(1,389)
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Other
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(41)
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-
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Changes in operating assets and liabilities (net of effects of business acquisitions):
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Receivables
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308
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4,069
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Inventories
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(37,182)
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(3,384)
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Prepaid expenses and other current assets
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4,053
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3,767
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Accounts payable
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22,800
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(24,022)
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Accrued expenses and other current liabilities
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1,272
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2,512
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Net cash provided by/(used in)operating activities
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7,277
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(5,897)
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Cash Flows From Investing Activities:
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Business acquisitions, net of cash acquired
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(53,720)
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-
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Purchases of property and equipment
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(1,823)
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(7,022)
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Other investments
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(444)
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60
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Net cash used in investing activities
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(55,987)
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(6,962)
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Cash Flows From Financing Activities:
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Borrowings on credit facilities
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123,213
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86,329
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Payments on credit facilities
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(74,498)
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(74,141)
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Proceeds from issuance of common stock
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139
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101
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Proceeds from exercise of stock options
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7
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41
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Excess tax benefit of exercise of common stock options
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119
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1,389
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Debt issuance costs
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(111)
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-
|
||
|
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Payment on capital lease obligations
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(142)
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(912)
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Net cash provided by financing activities
|
|
48,727
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|
12,807
|
|
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|
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Effect of Exchange Rate on Cash and Cash Equivalents
|
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(72)
|
|
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(6)
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|
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|
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Decrease in Cash and Cash Equivalents
|
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(55)
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|
|
(58)
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Cash and Cash Equivalents at Beginning of Period
|
|
606
|
|
|
911
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Cash and Cash Equivalents at End of Period
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$
|
551
|
|
$
|
853
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See Notes to Condensed Consolidated Financial Statements.
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2012
|
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2011
|
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Cash
|
|
$
|
2
|
|
$
|
-
|
|
Receivables
|
|
|
22,680
|
|
|
4,041
|
|
Inventories
|
|
|
28,203
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3,594
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|
Other current assets
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|
104
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|
|
-
|
|
Property and equipment
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|
9,102
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|
|
1,900
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|
Goodwill
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|
5,856
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1,823
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Intangibles
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20,910
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|
140
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Investments
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|
199
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|
-
|
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Total assets acquired
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|
|
87,056
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|
11,498
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Accounts payable
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|
24,976
|
|
|
4,498
|
|
Accrued expenses and other liabilities
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|
|
1,200
|
|
|
-
|
|
Total liabilities assumed
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|
|
26,176
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|
|
4,498
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|
|
|
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Net assets acquired
|
|
$
|
60,880
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|
$
|
7,000
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|
|
|
|
|
|
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Micro's operations included in MWI's results
|
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Revenues
|
|
$
|
46,161
|
|
|
Net Income
|
|
$
|
1,223
|
|
|
|
|
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|
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|
|
|
|
|
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|
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Unaudited Pro Forma Consolidated Results
|
|
||||||
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Three months ended December 31,
|
|
||||||
|
|
|
|
2011
|
|
|
|
2010
|
|
|
Revenues
|
|
$
|
483,831
|
|
|
$
|
426,417
|
|
|
Net Income
|
|
$
|
13,290
|
|
|
$
|
12,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
||
|
|
2011
|
|
2011
|
|
||
|
Trade
|
$
|
217,132
|
|
$
|
203,038
|
|
|
Vendor rebates and programs
|
|
23,370
|
|
|
15,404
|
|
|
|
|
240,502
|
|
|
218,442
|
|
|
Allowance for doubtful accounts
|
|
(2,622)
|
|
|
(2,581)
|
|
|
|
$
|
237,880
|
|
$
|
215,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
||
|
|
2011
|
|
2011
|
|
||
|
Land
|
$
|
1,754
|
|
$
|
1,723
|
|
|
Building and leasehold improvements
|
|
14,071
|
|
|
13,427
|
|
|
Machinery, furniture and equipment
|
|
31,296
|
|
|
20,979
|
|
|
Computer equipment
|
|
6,082
|
|
|
5,864
|
|
|
Construction in progress
|
|
1,480
|
|
|
2,203
|
|
|
|
|
54,683
|
|
|
44,196
|
|
|
Accumulated depreciation
|
|
(19,845)
|
|
|
(18,987)
|
|
|
|
$
|
34,838
|
|
$
|
25,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill as of September 30, 2011
|
|
|
|
$
|
49,041
|
|
|
|
|
Acquisition activity
|
|
|
|
|
5,856
|
|
|
|
Foreign currency adjustments
|
|
|
|
|
(105)
|
|
|
Goodwill as of December 31, 2011
|
|
|
|
$
|
54,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
||
|
|
|
Useful Lives
|
|
2011
|
|
2011
|
|
||
|
Amortizing:
|
|
|
|
|
|
|
|
|
|
|
Customer relationships
|
|
9-20 years
|
|
$
|
26,978
|
|
$
|
24,981
|
|
|
Covenants not to compete
|
|
1-5 years
|
|
|
1,096
|
|
|
808
|
|
|
Technology
|
|
11 years
|
|
|
11,930
|
|
|
-
|
|
|
Other
|
|
2-7 years
|
|
|
1,056
|
|
|
455
|
|
|
|
|
|
|
|
41,060
|
|
|
26,244
|
|
|
Accumulated amortization
|
|
|
|
|
(5,827)
|
|
|
(5,109)
|
|
|
|
|
|
|
|
35,233
|
|
|
21,135
|
|
|
Non-Amortizing:
|
|
|
|
|
|
|
|
|
|
|
Trade names and patents
|
|
|
|
|
10,003
|
|
|
3,759
|
|
|
|
|
|
|
$
|
45,236
|
|
$
|
24,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
Remainder of 2012
|
$
|
2,226
|
|
|
2013
|
|
3,018
|
|
|
2014
|
|
2,845
|
|
|
2015
|
|
2,569
|
|
|
2016
|
|
2,472
|
|
|
Thereafter
|
|
22,103
|
|
|
|
$
|
35,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
||
|
|
|
|
2011
|
|
|
2011
|
|
|
Revolving credit facility, 1.10% interest as of December 31, 2011
|
$
|
45,400
|
|
$
|
-
|
|
|
|
Sterling revolving credit facility, 1.76% interest as of December 31, 2011
|
|
6,163
|
|
|
2,907
|
|
|
|
Capital lease obligations (1)
|
|
1,249
|
|
|
1,263
|
|
|
|
Total debt and capital lease obligations
|
|
52,812
|
|
|
4,170
|
|
|
|
|
Less: Long-term capital lease obligations
|
|
(351)
|
|
|
(354)
|
|
|
Total debt included in current liabilities
|
$
|
52,461
|
|
$
|
3,816
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The capital lease obligations have varying maturity dates.
|
|
||||||
|
|
|
|
|
|
|
|
|
·
|
Level 1 – observable inputs such as quoted prices in active markets;
|
·
|
Level 2 – inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and
|
·
|
Level 3 – unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
|
|
2002 Stock Plan
|
|
2005 Stock Plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
||||||||||
|
|
|
2011
|
|
2010
|
||||||||
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||
|
Net income
|
$
|
13,196
|
|
$
|
13,196
|
|
$
|
10,828
|
|
$
|
10,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
12,581
|
|
|
12,581
|
|
|
12,415
|
|
|
12,415
|
|
|
Effect of diluted securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options and restricted stock
|
|
|
|
|
24
|
|
|
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
|
12,605
|
|
|
|
|
|
12,483
|
|
|
Earnings per share
|
$
|
1.05
|
|
$
|
1.05
|
|
$
|
0.87
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anti-dilutive shares excluded from calculation
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
||||
|
|
2011
|
|
2010
|
|
||
|
Supplemental Disclosures
|
|
|
|
|
|
|
|
Cash paid for interest
|
$
|
142
|
|
$
|
120
|
|
|
Cash paid for income taxes
|
|
822
|
|
|
1,380
|
|
|
Non-cash Activities
|
|
|
|
|
|
|
|
Issuance of restricted common stock for asset acquisition
|
|
7,158
|
|
|
-
|
|
|
Capital lease asset additions and related obligations
|
|
140
|
|
|
-
|
|
|
Equipment acquisitions financed with accounts payable
|
|
235
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
||||
|
|
|
2011
|
|
2010
|
|
||
Net income
|
$
|
13,196
|
|
$
|
10,828
|
|
||
Other comprehensive income (loss):
|
|
|
|
|
|
|
||
|
Foreign currency translation
|
|
(625)
|
|
|
(1,048)
|
|
|
|
|
Total comprehensive income
|
$
|
12,571
|
|
$
|
9,780
|
|
|
|
|
|
|
|
|
|
|
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
|
|
|
Three months ended December 31,
|
|
|||||||||
|
|
|
2011
|
|
%
|
|
2010
|
|
%
|
||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Product sales
|
$
|
442,597
|
|
95.8
|
%
|
|
$
|
347,737
|
|
95.0
|
%
|
|
|
Product sales to related party
|
|
15,558
|
|
3.4
|
%
|
|
|
14,723
|
|
4.0
|
%
|
|
|
Commissions
|
|
3,745
|
|
0.8
|
%
|
|
|
3,714
|
|
1.0
|
%
|
|
|
|
Total revenues
|
|
461,901
|
|
100.0
|
%
|
|
|
366,174
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
|
399,387
|
|
86.5
|
%
|
|
|
316,102
|
|
86.3
|
%
|
||
Gross profit
|
|
62,514
|
|
13.5
|
%
|
|
|
50,072
|
|
13.7
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
38,907
|
|
8.4
|
%
|
|
|
31,047
|
|
8.5
|
%
|
||
Depreciation and amortization
|
|
2,192
|
|
0.5
|
%
|
|
|
1,489
|
|
0.4
|
%
|
||
Operating income
|
|
21,415
|
|
4.6
|
%
|
|
|
17,536
|
|
4.8
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest expense
|
|
(183)
|
|
-
|
%
|
|
|
(182)
|
|
-
|
%
|
|
|
Earnings of equity method investees
|
|
77
|
|
-
|
%
|
|
|
73
|
|
-
|
%
|
|
|
Other
|
|
188
|
|
-
|
%
|
|
|
135
|
|
-
|
%
|
|
|
|
Total other income (expense), net
|
|
82
|
|
-
|
%
|
|
|
26
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
21,497
|
|
4.6
|
%
|
|
|
17,562
|
|
4.8
|
%
|
||
Income tax expense
|
|
(8,301)
|
|
(1.8)
|
%
|
|
|
(6,734)
|
|
(1.8)
|
%
|
||
Net income
|
$
|
13,196
|
|
2.8
|
%
|
|
$
|
10,828
|
|
3.0
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Basic
|
$
|
1.05
|
|
|
|
|
$
|
0.87
|
|
|
|
|
|
Diluted
|
$
|
1.05
|
|
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Basic
|
|
12,581
|
|
|
|
|
|
12,415
|
|
|
|
|
|
Diluted
|
|
12,605
|
|
|
|
|
|
12,483
|
|
|
|
·
|
the impact of vendor consolidation on our business;
|
·
|
changes in or availability of vendor contracts or rebate programs;
|
·
|
transitional challenges associated with acquisitions, including the failure to achieve anticipated synergies;
|
·
|
vendor rebates based upon attaining certain growth goals;
|
·
|
changes in the way vendors introduce/deliver products to market;
|
·
|
exclusivity requirements with certain vendors that may prohibit us from distributing competing products manufactured by other vendors;
|
·
|
risks associated with our international operations;
|
·
|
financial risks associated with acquisitions;
|
·
|
the impact of general economic trends on our business;
|
·
|
the recall of a significant product by one of our vendors;
|
·
|
extended shortage or backorder of a significant product by one of our vendors;
|
·
|
seasonality;
|
·
|
the timing and effectiveness of marketing programs or price changes offered by our vendors;
|
·
|
the timing of the introduction of new products and services by our vendors;
|
·
|
our intellectual property rights may be inadequate to protect our business;
|
·
|
the ability to borrow on our revolving credit facility, extend the terms of our revolving credit facility or obtain alternative financing on favorable terms or at all;
|
·
|
risks from potential increases in variable interest rates;
|
·
|
the impact of tightening credit standards and/or access to credit on behalf of our customers and suppliers;
|
·
|
unforeseen litigation;
|
·
|
a disruption caused by adverse weather or other natural conditions or disasters;
|
·
|
inability to ship products to the customer as a result of technological or shipping disruptions; and
|
·
|
competition.
|
Issuer Purchases of Equity Securities
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Number of
|
|
Maximum Number (or
|
|
|
Total
|
|
|
|
|
Shares Purchased
|
|
Approximate Dollar
|
|
|
Number
|
Average
|
|
as Part of Publicly
|
|
Value) of Shares that May
|
||
|
|
of Shares
|
Price Paid
|
|
Announced Plans
|
|
Yet Be Purchased Under
|
||
Period
|
|
Purchased
|
|
per Share
|
|
or Programs
|
|
the Plans or Programs
|
|
October 1 to October 31, 2011
|
|
936
|
(1)
|
$
|
69.64
|
|
—
|
|
—
|
November 1 to November 30, 2011
|
|
—
|
|
|
—
|
|
—
|
|
—
|
December 1 to December 31, 2011
|
|
—
|
|
|
—
|
|
—
|
|
—
|
Total
|
|
936
|
|
$
|
69.64
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These shares were withheld upon the vesting of employee stock grants in connection with payment of required withholding taxes.
|
2.1
|
Asset Purchase Agreement dated September 20, 2011 by and among MWI Veterinary Supply, Inc., MWI Veterinary Supply Co. and Micro Beef Technologies, Ltd, incorporated herein by reference to Exhibit 2.2 of the Company’s Annual Report on Form 10-K, filed November 28, 2011
|
|
10.1
|
Third Amendment to Credit Agreement dated November 1, 2011 by and among MWI Veterinary Supply, Inc., MWI Veterinary Supply Co., Memorial Pet Care, Inc., Bank of America, N.A. and Wells Fargo Bank, N.A., incorporated herein by reference to Exhibit 10.17 of the Company’s Annual Report on Form 10-K, filed November 28, 2011
|
|
10.2
|
Non-competition and Confidential Information Agreement dated September 20, 2011, by and between MWI Veterinary Supply Co. and William C. Pratt, incorporated herein by reference to Exhibit 10.18 of the Company’s Annual Report on Form 10-K, filed November 28, 2011
|
|
10.3
|
Non-competition and Confidential Information Agreement dated September 20, 2011, by and between MWI Veterinary Supply Co. and Mark Shaw, incorporated herein by reference to Exhibit 10.19 of the Company’s Annual Report on Form 10-K, filed November 28, 2011
|
|
15
|
Letter re: Unaudited Interim Financial Information
|
|
31.1
|
Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31.2
|
Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
|
101
|
Financials in XBRL format
|
MWI Veterinary Supply, Inc.
|
|||
(Registrant)
|
|||
Date: February 2, 2012
|
/s/ Mary Patricia B. Thompson | ||
Mary Patricia B. Thompson
|
|||
Senior Vice President of Finance and Administration, Chief Financial Officer
|
/s/ DELOITTE & TOUCHE LLP
|
|
Boise, Idaho
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 2, 2012
|
/s/ James F. Cleary, Jr. | |
James F. Cleary, Jr.
President and
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of MWI Veterinary Supply, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 2, 2012
|
/s/ Mary Patricia B. Thompson |
Mary Patricia B. Thompson
Senior Vice President of Finance and Administration,
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange
Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company as of the dates and for the periods expressed in the Report.
|
/s/ James F. Cleary, Jr. | |
James F. Cleary, Jr.
|
|
Chief Executive Officer
|
|
/s/ Mary Patricia B. Thompson | |
Mary Patricia B. Thompson
|
|
Chief Financial Officer
|
Debt (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2011
|
Sep. 30, 2011
|
---|---|---|
Line of Credit Facility [Line Items] | ||
Capital Lease Obligations | $ 1,249 | $ 1,263 |
Debt and Capital Lease Obligations | 52,812 | 4,170 |
Long Term Debt And Capital Lease Obligations Non Current | 351 | 354 |
Total debt included in current liabilities | 52,461 | 3,816 |
Revolving credit facility
|
||
Line of Credit Facility [Line Items] | ||
Amount Outstanding | 45,400 | 0 |
Sterling revolving credit facility
|
||
Line of Credit Facility [Line Items] | ||
Amount Outstanding | $ 6,163 | $ 2,907 |
Other Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Other Comprehensive Income Details [Abstract] | ||
Net Income | $ 13,196 | $ 10,828 |
Other Comprehensive Income | ||
Foreign Currency Translation | 625 | 1,048 |
Total Comprehensive Income | $ 12,571 | $ 9,780 |
Cash Flows, Supplemental and Noncash Disclosures (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Supplemental Disclosures [Abstract] | ||
Cash Paid For Interest | $ 142 | $ 120 |
Cash Paid for Income Taxes | 822 | 1,380 |
Noncash Activities [Abstract] | ||
Issuance Of Restricted Common Stock For Asset Acquisition | 7,158 | 0 |
Capital lease asset additions and related obligations | 140 | 0 |
Equipment Acquisitions Financed With Accounts Payable | $ 235 | $ 92 |
Acquisitions, Segment Results (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Acquisitions Pro Forma Consolidated Results [Abstract] | ||
Business Acquisition, Pro Forma Revenue | $ 483,831 | $ 426,417 |
Business Acquisition, Pro Forma Net Income (Loss) | 13,290 | 12,090 |
Actual Impact Of Acquisition [Abstract] | ||
Business Acquisition, Revenue | 46,161 | |
Business Acquisition, Net Income (Loss) | $ 1,223 |
Intangibles (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Goodwill Details [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] |
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Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] |
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Schedule of Expected Amortization Expense [Table Text Block] |
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Earnings Per Common Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Earnings Per Common Share Details [Abstract] | ||
Net Income | $ 13,196 | $ 10,828 |
Weighted Average Number of Shares Outstanding, Basic | 12,581 | 12,415 |
Weighted Average Number of Shares Outstanding, Diluted, Adjustment | 24 | 68 |
Weighted Average Number of Shares Outstanding, Diluted | 12,605 | 12,483 |
Basic EPS | $ 1.05 | $ 0.87 |
Diluted EPS | $ 1.05 | $ 0.87 |
Intangibles, Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Sep. 30, 2011
|
Dec. 31, 2011
Customer Relationships [Member]
Amortizing [Member]
|
Sep. 30, 2011
Customer Relationships [Member]
Amortizing [Member]
|
Dec. 31, 2011
Customer Relationships [Member]
Amortizing [Member]
Maximum [Member]
years
|
Dec. 31, 2011
Customer Relationships [Member]
Amortizing [Member]
Minimum [Member]
years
|
Dec. 31, 2011
Noncompete Agreements [Member]
Amortizing [Member]
|
Sep. 30, 2011
Noncompete Agreements [Member]
Amortizing [Member]
|
Dec. 31, 2011
Noncompete Agreements [Member]
Amortizing [Member]
Maximum [Member]
years
|
Dec. 31, 2011
Noncompete Agreements [Member]
Amortizing [Member]
Minimum [Member]
years
|
Dec. 31, 2011
Technology [Member]
Amortizing [Member]
|
Sep. 30, 2011
Technology [Member]
Amortizing [Member]
|
Dec. 31, 2011
Technology [Member]
Amortizing [Member]
Maximum [Member]
years
|
Dec. 31, 2011
Technology [Member]
Amortizing [Member]
Minimum [Member]
years
|
Dec. 31, 2011
Other Intangible Assets [Member]
Amortizing [Member]
|
Sep. 30, 2011
Other Intangible Assets [Member]
Amortizing [Member]
|
Dec. 31, 2011
Other Intangible Assets [Member]
Amortizing [Member]
Maximum [Member]
years
|
Dec. 31, 2011
Other Intangible Assets [Member]
Amortizing [Member]
Minimum [Member]
years
|
Dec. 31, 2011
Trade Name And Patents [Member]
Non Amortizing [Member]
|
Sep. 30, 2011
Trade Name And Patents [Member]
Non Amortizing [Member]
|
|
Intangible Assets [Line Items] | ||||||||||||||||||||
Finite-Lived Intangible Assets, Gross | $ 26,978 | $ 24,981 | $ 1,096 | $ 808 | $ 11,930 | $ 0 | $ 1,056 | $ 455 | ||||||||||||
Accumulated Amortization | 5,827 | 5,109 | ||||||||||||||||||
Indefinite-lived Intangible Assets | 10,003 | 3,759 | ||||||||||||||||||
Intangible Assets, Net | $ 45,236 | $ 24,894 | ||||||||||||||||||
Finite-Lived Intangible Assets, Useful Life | 20 | 9 | 5 | 1 | 11 | 11 | 7 | 2 |
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