Portland-based Covetrus reports net income of $54 million for second quarter

Covetrus Inc. of Portland reported net income of $54 million for the second quarter, a significant improvement from its quarterly net loss of $10 million a year earlier.

The company, which provides veterinary technology, products and services, generated revenue of $1.03 billion for the quarter, an increase of about 2 percent from $1.01 billion a year earlier.

“I am extremely proud of our team’s exceptional efforts and accomplishments during the second quarter to support our customers around the globe during COVID-19,” said Ben Wolin, Covetrus president and CEO, in a statement. “Our strong second quarter financial results demonstrate our progress, and our 2020 guidance showcases the confidence we have in our business.”

Covetrus was created from a merger between Portland’s Vets First Choice and a spinoff of the animal health division of New York company Henry Schein Inc. in February 2019.

The company has made a notable recovery from its difficult first year of operations, which included sizable net losses, an investor lawsuit and a $938 million goodwill impairment charge recorded last fall in an attempt to square the company’s value on paper with its then-reality.

Covetrus responded to those challenges by replacing much of its upper management and divesting business units that did not serve its core business model.

The company’s stock, which trades on the Nasdaq exchange under the symbol CVET, fell from a high of about $43 at launch to as low as $4 in March, but it has since recovered considerably to about $22.50 as of market close on Wednesday.

“While uncertainties tied to the global pandemic and the pace and recovery of our end-market remain, continued investments in our organizational health, innovation and customer success puts us in a strong position to capitalize on our strategic opportunities and to deliver shareholder value in the quarters and years ahead,” Wolin said.

The company received approval in 2018 to build a five-story world headquarters in Portland with space for 1,500 employees. Construction is behind schedule but ongoing, Wolin has said.