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| Company Contact: |
Investor Contacts: |
| Pet DRx Corporation |
AT FINANCIAL RELATIONS BOARD: |
| Gregory J. Eisenhauer CFA, EVP & CFO |
Kathy Price, SVP |
| geisenhauer@petdrx.com |
(213) 486-6547 |
|
(408) 236-7428 |
kprice@frbir.com |
PET DRX AFFIRMS 2008 GUIDANCE
- Improving Hospital Margins and the Re-Activation of the
Company’s Acquisition Pipeline
Gives Management Reason to Remain Optimistic About Outlook for
2008 -
SAN JOSE, California – March 13, 2008 – Pet DRx Corporation
(“Pet DRx” or the “Company”) (OTCBB: PDXC), a provider of
veterinary primary care and specialized services to companion
animals, today affirmed its 2008 guidance, noting that improving
hospital margins and the re-activation of its acquisition
pipeline gives management reason to remain optimistic about its
outlook for the year.
In December 2007, Pet DRx advised that for the full year 2008 it
anticipated achieving:
• Same store revenue growth of >10% for the 26 hospitals in its
current portfolio;
• Aggregate same store hospital operating margins increasing
throughout 2008 and averaging 15% to 19% for the full year;
• Revenues for the full year (before acquisitions) in the range
of $75 - $80 million; and
• Additional pro forma revenue for the full year in the range of
$40 - $60 million derived from acquisitions.
“When we met with investors in late 2007, we told them that we
expected to see improved revenues and hospital margins in the
first quarter of 2008, and our preliminary results for January
and February indicate this is the case,” said Gregory J.
Eisenhauer, chief financial officer of Pet DRx.
Robert Wallace, chief executive officer, added, “Now that our
management is able to focus on day-to-day operations, we have
re-engaged talks with potential acquisition targets to broaden
and/or complement our existing markets. Based on discussions
with several acquisition targets in recent weeks, we anticipate
announcing signed contracts sometime in the second quarter.
“Our unique ‘hub-and-spoke’ regional system is appealing to the
veterinary community because it not only enables traditional,
smaller general veterinary practices (‘spokes’) to leverage the
diagnostic/medical services of a specialized and/or emergency
hospital (‘hub’), but also to reduce redundancies, eliminate
inefficiencies and enhance doctor productivity. Therefore, we
believe it is truly a win-win scenario for all parties,”
concluded Mr. Wallace.
About Pet DRx Corporation
Pet DRx Corporation provides veterinary primary care and
specialized services to companion animals through a network of
fully-owned veterinary hospitals. The Company currently owns and
operates 26 leading veterinary hospitals in the state of
California, which it has organized into unique, regional “hub
and spoke” networks. Pet DRx provides a full range of medical
treatments, including preventive care measures such as
examinations, vaccinations, spaying/neutering and dental care,
as well as specialized services such as internal medicine,
surgery, cardiology, ophthalmology, dermatology, oncology,
neurology, x-ray and ultrasound.
Safe Harbor Statement
Certain matters discussed in this press release, including
statements as to the expected benefits of the combination of the
two companies, future product and service offerings and expected
synergies, are forward-looking statements. These forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including, but not limited
to, the ability to successfully integrate the two companies and
achieve expected synergies following the merger, the ability of
the Company to successfully acquire, integrate and operate
veterinary hospitals and clinics, requirements or changes
affecting the businesses in which the Company is engaged,
veterinary services trends, including factors affecting supply
and demand, dependence on acquisitions for growth, labor and
personnel relations, changing interpretations of generally
accepted accounting principles and other risks detailed from
time to time in the Company’s SEC reports, including its Form
10-K and 10-Q filings and Form S-4 Registration Statement. These
forward-looking statements speak only as of the date hereof. The
Company disclaims any intention or obligation to update or
revise any forward-looking statements.
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