Total revenue of $4.8 million, a 13% increase compared to the prior year quarter
Same store sales growth, 3% year over year
Cost reduction initiatives implemented to improve cash management and accelerate path to free cash flow
VIRGINIA BEACH, VA / ACCESSWIRE / May 15, 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 its financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Overview
Total revenue of $4.8 million, an increase of 13%
Services revenue of $3.5 million, an increase of 15%
Product revenue of $1.3 million, an increase of 6%
"2024 is off to a good start as we drove solid 13 percent top-line growth and believe our results highlight the broad-based growth and strong pet parent demand for our service and product offerings," said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "In addition to record quarterly revenue, we achieved a positive same store revenue comp of 3%. We saw improvements via our focus on profitability which resulted in enhanced flow through and at clinic level. We've made important strategic decisions to help us increase operating efficiencies and focus our spending on the areas of our business where we are seeing the most favorable returns. Our team is committed to delivering operating discipline and high-quality execution and remains optimistic about our opportunities to increase growth and efficiencies across our business. Our field leaders have collaborated with our hospital teams to build more efficient team schedules which have resulted in high productivity per labor hour and a reduction in excess labor cost. Together with measures we are exploring to bolster our balance sheet, we continue to work to position 2024 as a pivotal year as we strive to achieve sustainable and profitable operations."
Carr added, "We are excited to see the business continue to evolve, and we remain focused on integrating and executing our newly acquired animal hospitals to provide more value to our customers. As we move through 2024,we remain confident in the sustainable, underlying demand for animal health, based on the strength of the human-animal bond and people's willingness to spend on pet health. Furthermore, we are excited about the strategic opportunities ahead and our role in continuing to drive innovation across the pet health category. The pet care industry continues to grow, and we believe we have opportunities to take advantage of that growth and drive higher returns to our shareholders."
First Quarter 2024 Operating Results
Total revenue was $4.8 million for the three months of 2024, an increase of 13% compared to total revenue of $4.3 million in the first three months of 2023, driven by an increase in sales in both Service and Product revenue. Service revenue for the three months of 2024 increased 15% to $3.5 million compared to the first three months of 2023, primarily driven by organic growth in existing clinic and animal hospital services and one new animal hospital acquired in the first quarter of 2023. Product revenue of $1.3 million increased 6% compared to the first three months of 2023 driven primarily by the acquisition of an animal hospital during the fourth quarter of 2023.
General and administrative expenses were $2.9 million for the first three months of 2024 compared to $1.8 million in the prior year period. Approximately $900k of the increased G&A is due to non-cash expenses the Company incurred related to stock/warrants issued for services in lieu of cash.
Net loss was $3.4 million for the first three months of 2024 compared to a net loss of $1.5 million for the prior year period. The increase in net loss was attributable to the operating expenses associated with the Company's animal hospitals and clinics, the cost of its public offering completed in the first quarter of 2024, and other third-party consulting arrangements entered into to increase investor communications, customer outreach and improve operations.
Balance Sheet
As of March 31, 2024, the Company had cash and cash equivalents of approximately $69,000.
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.
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.
Cumulative Series A preferred stock dividends payable
2,250
92,322
Operating lease liabilities
133,113
141,691
Loan payable, net of discount
2,338,067
1,713,831
Bridge note, net of discount
-
-
Convertible note payable
500,000
-
Convertible debentures, net of issuance costs
-
100,000
Notes payable, net of discount
1,501,562
1,469,043
Total current liabilities
8,451,978
7,581,815
Operating lease liabilities, non-current
1,482,514
1,514,044
Notes payable - noncurrent
13,190,668
13,483,375
Total liabilities
23,125,160
22,579,234
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDER'S EQUITY (DEFICIT)
Common stock - Class A, $0.0001 par value, 1 million shares authorized, 742,563 and 70,421 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively.
74
7
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,891,500 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively.
389
389
Convertible series A preferred stock, $0.0001 par value, 2,000,000 shares authorized, 81,142 and 403,640 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively.
8
40
Additional paid in capital
25,118,701
20,426,562
Accumulated deficit
(24,849,319
)
(21,215,257
)
Total stockholder's equity (deficit)
269,853
(788,259
)
Total liabilities and stockholder's equity (deficit)
$
23,395,013
$
21,790,975
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
For the Three Months Ended March 31,
2024
2023
Service revenue
$
3,545,599
$
3,072,885
Product revenue
1,285,968
1,209,630
Total revenue
4,831,567
4,282,515
Operating expenses
Cost of service revenue (exclusive of depreciation and amortization, shown separately below)
2,709,147
2,307,903
Cost of product revenue (exclusive of depreciation and amortization, shown separately below)
1,016,107
879,400
General and administrative expenses
2,873,343
1,801,659
Debt extinguishment loss
728,278
-
Depreciation and amortization
367,197
298,492
Total operating expenses
7,694,072
5,287,454
Loss from operations
(2,862,505
)
(1,004,939
)
Other income (expenses):
Interest income
2
1
Interest expense
(559,289
)
(545,435
)
Other income
-
11,424
Total other expenses
(559,287
)
(534,010
)
Loss before income taxes
(3,421,792
)
(1,538,949
)
Benefit for income taxes
-
-
Net loss
(3,421,792
)
(1,538,949
)
Dividend on convertible series A preferred stock
(214,520
)
-
Net loss attributable to class A and B common stockholders
$
(3,636,312
)
$
(1,538,949
)
Net loss per Class A and B common shares:
Basic and diluted
$
(8.97
)
$
(29.20
)
Weighted average shares outstanding per Class A and B common shares:
Basic and diluted
405,484
52,705
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31,
2024
2023
Cash flows from operating activities:
Net loss
$
(3,421,792
)
$
(1,538,949
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
347,382
298,492
Amortization of debt issuance costs
15,825
70,212
Amortization of debt discount
379,313
242,631
Amortization of operating right of use assets
53,831
59,036
Issuance of warrants to CEO
-
2,701
Issuance of class A common stock for services
286,696
-
Loss on debt modification
728,278
-
Issuance of class A common stock in connection with general release agreement
20,000
-
Issuance of Class A common stock and pre-funded warrants in connection with commitment shares
600,000
-
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable
(312,915
)
(70,553
)
Due from former owners
32,519
37,425
Inventory
25,852
(18,459
)
Prepaid expenses and other current assets
(1,642,552
)
60,414
Other assets
(61,094
)
(70,431
)
Accounts payable
315,165
550,043
Accrued expenses
(403,107
)
118,450
Cumulative Series A preferred stock dividends payable
(92,322
)
-
Operating lease liabilities
(40,108
)
(50,467
)
Net cash used in operating activities
(3,169,029
)
(309,455
)
Cash flows from investing activities:
Purchase of property and equipment
(156,945
)
(14,002
)
Net cash used in investing activities
(156,945
)
(14,002
)
Cash flows from financing activities:
Proceeds from issuance of class A common stock and pre-funded warrants, net of issuance costs
3,375,458
-
Net proceeds from loan payable
549,185
-
Payments on loan payable
(1,032,540
)
-
Proceeds from issuance of convertible series A preferred stock
200,000
-
Proceeds from convertible note payable
500,000
-
Repayment of note payable
(276,013
)
(176,931
)
Proceeds from issuance of convertible debentures
-
650,000
Repayment of convertible debentures
(100,000
)
-
Net cash provided by financing activities
3,216,090
473,069
Net increase (decrease) in cash, cash equivalents and restricted cash
(109,884
)
149,612
Cash, cash equivalents and restricted cash, beginning of period
378,961
444,253
Cash, cash equivalents and restricted cash, end of period
