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10-QPeriod: Q1 FY2013

Zoetis Inc. Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 15, 2013For Securities:ZTS

Summary

Zoetis Inc. reported strong performance in the first quarter of 2013, with revenues increasing by 4% year-over-year to $1,090 million. This growth was driven by operational improvements across all geographic segments, particularly in the U.S. The company successfully navigated its separation from Pfizer and completed an Initial Public Offering (IPO) and a significant senior notes offering. Despite increased interest expenses due to the new debt, Zoetis maintained healthy profitability, with net income attributable to Zoetis Inc. rising 26% to $140 million. The company also benefited from a lower effective tax rate and a reduction in restructuring charges. Key financial activities include managing a substantial debt issuance and preparing for a potential tax-free distribution of remaining equity by Pfizer.

Financial Statements
Beta
Revenue$1.09B
Cost of Revenue$402.00M
Gross Profit$688.00M
SG&A Expenses$357.00M
Operating Expenses$891.00M
Interest Expense$22.00M
Net Income$140.00M
EPS (Basic)$0.28
EPS (Diluted)$0.28
Shares Outstanding (Basic)500.00M
Shares Outstanding (Diluted)500.11M

Key Highlights

  • 1Revenues grew 4% to $1.09 billion in Q1 2013 compared to Q1 2012.
  • 2Net income attributable to Zoetis Inc. increased 26% to $140 million.
  • 3Successfully completed its Initial Public Offering (IPO) and issued $3.65 billion in senior notes.
  • 4Operational revenue growth was observed across all geographic segments, with the U.S. leading the way.
  • 5Effective tax rate decreased from 34.5% to 27.1% due to tax rulings and changes in earnings mix.
  • 6Restructuring charges and acquisition-related costs decreased significantly by 72%.
  • 7Cash and cash equivalents increased by $151 million during the quarter.

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