Inspire Veterinary Partners Reports Full Year 2023 Financial Results
- Full year 2023 revenue surged by 70% to $16.7 million.
- Active pipeline of acquisition opportunities in the pet health sector.
- Cost reduction measures in place for operational efficiency.
- Anticipated SG&A savings of $1 million by end of 2024.
- Successful acquisition of Valley Veterinary Service in Pennsylvania.
- None.
Insights
The reported 70% year-over-year revenue growth for Inspire Veterinary Partners, Inc. is a significant indicator of the company's expansion and market penetration, particularly in the context of the pet health sector. This sector is known for its resilience and has been growing steadily, driven by an increase in pet ownership and spending on pet health and wellness. Inspire's focus on acquisitions, as highlighted by the recent purchase of Valley Veterinary Service, demonstrates an aggressive growth strategy that can capitalize on this trend.
From a financial perspective, the company's initiative to reduce SG&A expenses by at least $1 million is a proactive move to enhance profitability. Investors often scrutinize SG&A as a measure of a company's operational efficiency. The savings are expected to be fully realized by the end of 2024, which could lead to improved margins and potentially higher earnings. However, it's important to monitor whether these cost reductions will affect the quality of service or employee morale.
When assessing the pet health care industry, it's clear that Inspire Veterinary Partners is positioning itself to meet the growing demand for high-quality pet care services. The company's strategy of acquiring and integrating new facilities, such as Valley Veterinary Service, can be seen as a move to expand its geographical footprint and service offerings. This could potentially increase the company's market share and brand recognition.
However, the success of such acquisitions hinges on seamless integration and maintaining the high level of care that clients expect. It's also vital to consider the competitive landscape, as other players may also be pursuing similar growth strategies. The company's focus on keeping clients and pets at the center of its mission is commendable and may contribute to customer loyalty and repeat business, which are important factors for sustainable growth.
The pet health sector is not just growing; it's evolving with a greater emphasis on convenience and quality of care. Inspire Veterinary Partners' emphasis on these aspects, as evidenced by their mission statement and recent acquisition, suggests an understanding of the market's direction. The integration of new acquisitions, such as Valley Veterinary Service, is a critical step for Inspire to ensure that it maintains its reputation for quality care while expanding its reach.
Additionally, the company's focus on operational efficiency and cost reduction initiatives could allow it to invest more in advanced medical technologies and staff training. This could enhance the overall customer experience and patient care, which is essential in an industry where trust and service quality are paramount. On the flip side, there is always the risk that cost-cutting measures could lead to understaffing or reduced service quality if not managed carefully.
Full year 2023 revenue increases approximately
Outlook for growth in the pet health sector remains attractive with active pipeline of acquisition opportunities
Implemented cost reduction initiatives to maximize operational efficiency to deliver profitable growth
Major reduction of consultant fees and other discretionary expenses post IPO
SG&A savings of at least
VIRGINIA BEACH, VA / ACCESSWIRE / April 8, 2024 / Inspire Veterinary Partners, Inc. (NASDAQ:IVP) ("Inspire" or the "Company"), an owner and provider of pet health care services throughout the U.S., today reported financial results for its full year ended December 31, 2023.
"We are pleased to report strong year end 2023 top-line results as a newly public company with revenue growing 70 percent year-over-year, driven by acquisitions made during the past 12 months and organic revenue growth" said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "We enter 2024 as a stronger company in a category that remains resilient and growing; and our experienced and dedicated team is executing to deliver purpose driven performance. Keeping our clients and pets at the center of everything we do is core to our mission of becoming a trusted destination for pet parents seeking high-quality and convenient pet health and wellness. Our acquisition of Valley Veterinary Service animal hospital, our first facility in the state of Pennsylvania, closed in the fourth quarter. The Valley team has done an incredible job integrating with our Inspire team while continuing to provide the highest level of care to its clients and pets. We're excited about our opportunities to fuel growth with our existing base of business and believe that the pipeline of attractive animal hospital acquisition candidates in both existing and new states remains active."
Carr, continued, "Over the past few years, we have invested in building a talented leadership and field team, adding technology that enhances the organizations integration and capabilities, and strengthening the infrastructure required to support our expanding family of animal hospitals as we continue to execute our growth strategy. Notably in 2023, we transitioned all hospitals to unified financial reporting systems aimed at enhancing speed of monthly reporting and maintaining our compliance with audit and regulatory requirements. We also launched enterprise-wide metric measurement systems which give us granular analysis of KPIs in each of our locations. This allows our field leader teams to coach each day, celebrating wins as our hospitals grow and the creation of detailed plans for the improvement of each lever which drives our business. Also completed in 2023, was the migration of every Inspire location to one practice management system which allows cloud-based oversight of patient records, client schedules, financial data and treatment plans for each pet under our care. Moving the Inspire portfolio to one ‘PIMs' provides a unified set of behaviors at hospital level, creating a consistency for coaching by our field leaders and allows our medical teams to provide case guidance whether on site or thousands of miles away. As we continue to advance in 2024, the work completed in 2023 means much of the organizational infrastructure is in place and should allow us to scale the business while adding only a modest amount of operating expense in the years ahead. On this front, 2023 was a standout year for bringing processes in house based on several changes implemented which were both cost-favorable to the company while bringing additional efficiency. We remain committed to redefining the industry through our differentiated offering and demonstrating the attractiveness of our operational strategy powered by a very passionate team in veterinary care. Looking ahead, we are focused on what is within our control and capitalizing on the secular trends of the resilient pet category to drive long-term, profitable growth. Toward that aim, we remain committed and focused on growth, business fundamentals and taking excellent care of team and pets as a means to bring value to our shareholders."
"In fiscal year 2023, we delivered solid top line results," said Inspire CFO Richard Frank. "While we are pleased with this growth, since our IPO, we have heightened our focus on execution, operational excellence, and improved efficiencies while we continue our strategy to grow revenues in existing animal hospitals and through acquisitions. We believe the implementation of numerous operational efficiency measures will improve organizational integration, accountability and efficiency, and drive meaningful margin improvement in both the near and the long term, which should set Inspire on a trajectory to achieve stronger, more predictable results and value creation for all stakeholders."
Recent Business Highlights Since IPO
- Added three veteran leaders to further strengthen its medical, operational and financial expertise in support of its future growth and development: Dr. Chuck Dunn, as Director of Medical Operations; Kimberly King as Director of Field Operations; and Debbe Bastian, Finance Controller.
- Completed the acquisition of Valley Veterinary Service, Inc. animal hospital located in Pennsylvania, Inspire's first entry in that state. Valley Veterinary Service's 2022 gross revenues were in excess of
$1.7 million . - Opened newly located Family Pet Care animal hospital in Lakeside Town Center, Sugarland, Texas, designed to enhance customer service and improve staff support. Custom-built animal hospital, centered around the needs of IVP's care team and clients, represents the first of a new model of state-of-the-art companion animal hospitals Inspire expects to replicate as it expands existing and new clinics throughout the U.S.
- Introduced new benefit for its employees with BetterHelp.com, a provider of professional, affordable, and personalized therapy in a convenient online format. Starting April 1, 2024, all Inspire team members will have access to convenient and professional therapy online.
Full Year 2023
Total revenue was
General and administrative expenses were
Net loss was
Balance Sheet
As of December 31, 2023, the Company had cash and cash equivalents of approximately
About Inspire Veterinary Partners, Inc.
Inspire Veterinary Partners is an owner/operator of veterinary hospitals in the US. As the Company expands, it expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.
For more information, please visit: www.inspirevet.com.
Connect with Inspire Veterinary Partners, Inc.
https://www.facebook.com/InspireVeterinaryPartners/
https://www.linkedin.com/company/inspire-veterinary-partners/
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company's current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the satisfaction of customary closing conditions related to anticipated acquisitions, or factors that result in changes to the Company's anticipated results of operations related to acquisitions. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Investor Contact
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
General Inquires
Morgan Wood
Mwood@inspirevet.com
Inspire Veterinary Partners, Inc.
Unaudited Condensed Consolidated Balance Sheets
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 178,961 | $ | 444,253 | ||||
Accounts receivable, net | 28,573 | - | ||||||
Due from former owners | 32,519 | 269,883 | ||||||
Inventory | 571,512 | 582,019 | ||||||
Refundable income tax | 151,796 | 192,139 | ||||||
Prepaid expenses and other current assets | 388,759 | 253,795 | ||||||
Total current assets | 1,352,120 | 1,742,089 | ||||||
Restricted cash - non-current | 200,000 | - | ||||||
Property and equipment, net | 7,949,144 | 7,323,050 | ||||||
Right-of-use assets | 1,616,198 | 746,973 | ||||||
Other intangibles, net | 2,513,028 | 2,729,574 | ||||||
Goodwill | 8,147,590 | 7,614,553 | ||||||
Other assets | 12,895 | 29,456 | ||||||
Total assets | $ | 21,790,975 | $ | 20,185,695 | ||||
Liabilities and Stockholder's Deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,206,594 | $ | 1,018,931 | ||||
Accrued expenses | 858,334 | 690,740 | ||||||
Cumulative Series A preferred stock dividends payable | 92,322 | - | ||||||
Operating lease liabilities | 141,691 | 91,152 | ||||||
Loan payable, net of discount | 1,713,831 | - | ||||||
Bridge note, net of discount | - | 3,899,156 | ||||||
Convertible debentures, net of issuance costs | 100,000 | - | ||||||
Notes payable, net of discount | 1,469,043 | 1,549,861 | ||||||
Total current liabilities | 7,581,815 | 7,249,840 | ||||||
Operating lease liabilities, non-current | 1,514,044 | 666,179 | ||||||
Convertible debentures, net of issuance costs | - | 3,688,805 | ||||||
Notes payable - noncurrent | 13,483,375 | 13,716,352 | ||||||
Total liabilities | 22,579,234 | 25,321,176 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 12) | ||||||||
STOCKHOLDER'S EQUITY (DEFICIT) | ||||||||
Common stock - Class A, | 705 | 98 | ||||||
Common stock - Class B, | 389 | 430 | ||||||
Convertible series A preferred stock, | 40 | - | ||||||
Additional paid in capital | 20,425,864 | 1,107,439 | ||||||
Accumulated deficit | (21,215,257 | ) | (6,243,448 | ) | ||||
Total stockholder's equity (deficit) | (788,259 | ) | (5,135,481 | ) | ||||
Total liabilities and stockholder's equity (deficit) | $ | 21,790,975 | $ | 20,185,695 | ||||
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
Service revenue | $ | 11,879,934 | $ | 7,032,800 | ||||
Product revenue | 4,795,459 | 2,801,978 | ||||||
Total revenue | 16,675,393 | 9,834,778 | ||||||
Operating expenses | ||||||||
Cost of service revenue (exclusive of depreciation and amortization, shown separately below) | 9,700,963 | 5,308,104 | ||||||
Cost of product revenue (exclusive of depreciation and amortization, shown separately below) | 3,420,515 | 1,981,046 | ||||||
General and administrative expenses | 9,476,287 | 5,467,642 | ||||||
Debt extinguishment loss | 16,105 | - | ||||||
Depreciation and amortization | 1,252,539 | 596,124 | ||||||
Total operating expenses | 23,866,409 | 13,352,916 | ||||||
Loss from operations | (7,191,016 | ) | (3,518,138 | ) | ||||
Other income (expenses): | ||||||||
Interest income | 21 | 1,021 | ||||||
Interest expense | (2,538,710 | ) | (1,425,260 | ) | ||||
Loss on debt modification | (927,054 | ) | - | |||||
Beneficial conversion feature | (4,137,261 | ) | - | |||||
Other income | 1,134 | 357 | ||||||
Total other expenses | (7,601,870 | ) | (1,423,882 | ) | ||||
Loss before income taxes | (14,792,886 | ) | (4,942,020 | ) | ||||
Benefit for income taxes | - | 30,094 | ||||||
Net loss | (14,792,886 | ) | (4,911,926 | ) | ||||
Dividend on convertible series A preferred stock | (271,245 | ) | - | |||||
Net loss attributable to class A and B common stockholders | $ | (15,064,131 | ) | $ | (4,911,926 | ) | ||
Net loss per Class A and B common shares: | ||||||||
Basic and diluted | $ | (2.25 | ) | $ | (0.95 | ) | ||
Weighted average shares outstanding per Class A and B common shares: | ||||||||
Basic and diluted | 6,692,515 | 5,160,182 | ||||||
Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (14,792,886 | ) | $ | (4,911,926 | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,252,539 | 595,627 | ||||||
Bad debt provision | 123,513 | - | ||||||
Amortization of debt issuance costs | 128,583 | 189,414 | ||||||
Amortization of debt discount | 864,350 | 689,554 | ||||||
Amortization of operating right of use assets | 162,298 | 13,958 | ||||||
Debt extinguishment loss | 16,105 | - | ||||||
Issuance of warrants to CEO | 2,701 | - | ||||||
Issuance of class A common stock for services | 397,892 | 216,252 | ||||||
Loss on debt modification | 927,054 | - | ||||||
Beneficial conversion feature | 4,137,261 | - | ||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||||||
Accounts receivable | (152,086 | ) | - | |||||
Due from former owners | 237,364 | (233,898 | ||||||
Inventory | 84,912 | (230,125 | ||||||
Refundable income tax | 40,343 | - | ||||||
Prepaid expenses and other current assets | (134,964 | ) | (187,931 | |||||
Other assets | 16,561 | - | ||||||
Accounts payable | 2,187,663 | 974,040 | ||||||
Accrued expenses | 813,144 | 230,326 | ||||||
Operating lease liabilities | (133,119 | ) | (3,600 | |||||
Net cash used in operating activities | (3,820,772 | ) | (2,658,309 | |||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (383,729 | ) | (134,971 | |||||
Purchase of intangible assets | - | (41,819 | ||||||
Payment for acquisition of businesses | (1,485,800 | ) | (14,511,804 | |||||
Advances for target acquisitions | - | 21,798 | ||||||
Net cash used in investing activities | (1,869,529 | ) | (14,666,796 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of class A common stock in connection with initial public offering, net of offering costs | 5,439,571 | - | ||||||
Net proceeds from loan payable | 2,038,531 | - | ||||||
Payments on loan payable | (1,923,474 | ) | - | |||||
Proceeds from note payable, net of discount | - | 12,253,585 | ||||||
Debt issuance costs | - | (260,611 | ||||||
Repayment of note payable | (329,620 | ) | (494,034 | |||||
Proceeds from issuance of bridge notes | - | 2,600,000 | ||||||
Proceeds from issuance of convertible debentures | 650,000 | 1,612,000 | ||||||
Repayment of convertible debentures | (250,000 | ) | - | |||||
Net cash provided by financing activities | 5,625,009 | 15,710,940 | ||||||
Net increase (decrease) in Cash, cash equivalents and restricted cash | (65,292 | ) | (1,614,165 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 444,253 | 2,058,418 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 378,961 | $ | 444,253 | ||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Interest payments during the year | $ | 1,316,378 | $ | 239,430 | ||||
Income tax refund | $ | - | $ | 192,139 | ||||
Noncash investing and financing activity | ||||||||
Acquisition of assets through operating leases | $ | 1,031,523 | $ | 760,931 | ||||
Series A Preferred Stock Dividend | $ | 271,245 | $ | - | ||||
Issuance of common stock in connection with business acquisition | $ | 400,000 | $ | - | ||||
Issuance of convertible series A preferred stock due to conversion of bridge notes | $ | 4,440,688 | $ | - | ||||
Issuance of class A common stock due to conversion of convertible debentures | $ | 4,414,317 | $ | - | ||||
SOURCE: Inspire Veterinary Partners, Inc.
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FAQ
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