Segments (Tables)

3 Months Ended

Mar. 31, 2020

Segments

Summary of financial information relating to the Company’s operating segments

$'s in 000's					Unallocated
March 31, 2020	Products		Services		Corporate		Consolidated
Net Sales	$	166,280	$	20,498	$	—	$	186,778
Adjusted EBITDA		24,279		1,989		(11,810)		14,458
Depreciation expense		1,316		848		709		2,873
Capital expenditures		1,673		2,833		569		5,075

$'s in 000's					Unallocated
March 31, 2019	Products		Services		Corporate		Consolidated
Net Sales	$	126,084	$	22,352	$	—	$	148,436
Adjusted EBITDA		13,556		5,277		(7,961)		10,872
Depreciation expense		553		524		576		1,653
Capital expenditures	$	462	$	281	$	154	$	897

Summary of reconciles segment adjusted ebitda to pretax net income

	For the three months ended
$'s in 000's	March 31, 2020		March 31, 2019
Adjusted EBITDA:
Product	$	24,279	$	13,556
Services		1,989		5,277
Unallocated Corporate		(11,810)		(7,961)
Total Consolidated		14,458		10,872
Adjustments:
Depreciation		(2,873)		(1,654)
Amortization		(2,242)		(1,279)
Interest		(4,704)		(1,937)
Acquisition costs(1)		(586)		(576)
Stock based compensation expense		(2,558)		(1,544)
Non same-store revenue(2)		2,282		1,516
Non same-store costs(2)		(6,400)		(3,252)
Fair value adjustment of contingent note(3)		—		680
Integration costs and costs of discontinued clinics(4)		(454)		—
Clinic launch expenses(5)		(676)		—
Litigation expenses		(49)		—
Pretax net (loss) income	$	(3,802)	$	2,826
Income tax benefit (expense)		1,169		(500)
Net (loss) income	$	(2,633)	$	2,326

(1) Acquisition costs include legal, accounting, banking, consulting, diligence, and other out-of-pocket costs related to completed and contemplated acquisitions. 

(2) Non same-store revenue and costs relate to Services segment and are from wellness centers, host partners, and regions with less than six full trailing quarters of operating results.

(3) Fair value adjustment on the contingent note represents the non cash adjustment to mark the 2019 Contingent Note to Fair value.

(4) Integration costs and costs of discontinued clinics represent costs related to integrating the acquired businesses, such as personnel costs like severance and signing bonuses, consulting work, contract termination, and IT conversion costs. These costs are primarily in the Products segment and the Corporate segment for personnel costs, legal and consulting expenses, and IT costs.

(5) Clinic launch expenses relate to our Services segment and represent the nonrecurring costs to open new veterinary wellness centers, primarily employee costs, training, marketing, and rent prior to opening for business.

Summary of net book value of property plant and equipment, net by location

	Three months ended March 31, 2020
$'s in 000's	U.S.		Foreign		Total
Products segment sales	$	165,072	$	1,208	$	166,280
Services segment revenue		20,498		—		20,498
Total net sales	$	185,570	$	1,208	$	186,778
	Three months ended March 31, 2019
$'s in 000's	U.S.		Foreign		Total
Products segment sales	$	124,451	$	1,633	$	126,084
Services segment revenue		22,352		—		22,352
Total net sales	$	146,803	$	1,633	$	148,436

Property, plant, and equipment by geographic location is below.

	March 31, 2020		December 31, 2019
United States	$	53,129	$	51,397
Europe		1,111		1,128
Total	$	54,240	$	52,525