HispanicBusiness

Gross profit increased by 23.1% to $76.9 million for the quarter ended December 31, 2012, compared to $62.5 million for the quarter ended December 31, 2011. Gross profit as a percentage of total revenues decreased to 13.4% for the quarter ended December 31, 2012, compared to 13.5% for the quarter ended December 31, 2011 due to a decrease in product margin, partially offset by an improvement in freight as a percentage of total revenues. Vendor rebates for the quarter ended December 31, 2012 increased by approximately $2,910,000 compared to the quarter ended December 31, 2011 primarily due to the growth in revenues and timing of manufacturer programs.

Operating income increased 26.4% to $27.1 million for the quarter ended December 31, 2012, compared to $21.4 million for the quarter ended December 31, 2011. SG&A expenses increased 22.0% to $47.5 million for the quarter ended December 31, 2012, compared to $38.9 million for the quarter ended December 31, 2011. SG&A expenses as a percentage of total revenues were 8.3% for the quarter ended December 31, 2012, compared to 8.4% for the quarter ended December 31, 2011. The increase in SG&A expenses was primarily due to an increase in compensation and benefit costs and Micro expenses for the month of October 2012.

Net income increased 26.9% to $16.8 million for the quarter ended December 31, 2012, compared to $13.2 million for the quarter ended December 31, 2011. Diluted earnings per share were $1.32 and $1.05 for the quarter ended December 31, 2012 and 2011, respectively, an increase of 25.7%.

As of December 31, 2012, we had $52.6 million outstanding on our credit facilities after acquiring PCI Animal Health for approximately $17 million. We generated cash from operations of $15.6 million for the quarter ended December 31, 2012.

Business Outlook

The Company estimates that for the fiscal year ending September 30, 2013, revenues will be from $2.310 billion to $2.360 billion, which represents growth of 11.3% to 13.7% compared to revenues in fiscal year 2012. The Company estimates that diluted earnings per share will be from $4.73 to $4.87 per share, which represents growth of 11.8% to 15.1% compared to diluted earnings per share in fiscal year 2012. The Company's previous guidance for the fiscal year ending September 30, 2013 was revenues from $2.285 billion to $2.335 billion and diluted earnings per share of $4.66 to $4.80. These estimates are based on the Company's current calendar-year and quarterly vendor contracts which typically undergo annual renegotiation and which may include terms such as rebates, commissions and exclusivity requirements.

Conference Call

The Company will be hosting a conference call on February 4, 2013 at 11:00 a.m. eastern time to discuss in greater detail these results and its fiscal year 2013 business outlook. Participants can access the conference call by dialing (877) 638-4561 and international callers can access the conference call by dialing (720) 545-0002. The conference call will also be carried live on the Company's web site at www.mwivet.com. Audio replay will be made available through February 11, 2013 by calling (855) 859-2056 for calls within the United States or (404) 537-3406 for international calls using the passcode 92578691. The conference call will also be available on the Company's web site, www.mwivet.com.