The information contained in this presentation may … · The information contained in this presentation may include forward ... measures that management believes are useful to an

The information contained in this presentation may include forward-looking statements that involve risks and uncertainties. Such statements appear in a number of places in this presentation and include statements regarding our intent, our belief or current expectations with respect to, among other things, our revenues and operating results in future periods, our expansion plans and our business strategy and ability to successfully execute on that strategy. We caution you not to place undue reliance on such forward-looking statements. Such statements are not guarantees of our future performance and involve risks and uncertainties. Our actual results may differ materially from those projected in this presentation, for the reasons, among others, discussed in our filings with the Securities and Exchange Commission. This presentation, and the information contained herein, represents our outlook only as of today's date, June 7, 2016 and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new developments or otherwise.

Attendees should be aware that todays discussion includes reference to several non-GAAP financial measures that management believes are useful to an understanding of our business. A reconciliation of each of these non-GAAP measures to the most comparable GAAP measure is posted on our website at http://investor.vca.com/.

Safe Harbor Disclosure

A Dogs Tail

A Dogs Tail Tale: The Human Animal Bond

The Human Animal Bond

Pet Owners Say

71% sleep with their pet 43% sleep with their pet

every night 5% sleep with their pet

when their significant other is out of town

52% sleep at their feet 23% snuggle 11% share a pillow

Novosbed Survey, 3/04

Pet Owners Say

71% sleep with their pet 43% sleep with their pet

every night 5% sleep with their pet

when their significant other is out of town

52% sleep at their feet 23% snuggle 11% share a pillow

Novosbed Survey, 3/04

% of pet owners who sleep with their pet 43%% of households with a pet x 65%% of people who sleep with a pet 28%

Consumer:Natural, growing, demand

The Human Animal Bond

Terrific 1st Quarter operating results: Accelerating internal growth rates on positive volumes Hospital and Lab margins up 200 and 210 bps, respectively Consolidated adjusted operating margin up 200 bps Adjusted EPS up 32%

Veterinary market continues to strengthen

Competitive landscape in lab market continues to improve

Aggressively deploying capital: Acquired $84 million of animal hospital revenue Acquired an 80% interest in CAPNA for $344 million

56 hospitals in 19 states Annual revenue of over $200 million Outstanding management team and reputation in the veterinary

community

Whats New at WOOF

Q: Why is your business doing so well?

Consumer:Natural, growing,

demand

What You Want to Know

Q: Why is your business doing so well?

Q: And is it sustainable?


demand


Q: Why is your business doing so well?A: We are in a great industry in a great market

Profession:More medicine


demand


Consumer Growing pet population Bonded with their pet Good demographics Knowledge & awareness

Revenue Drivers- Growing Demand

Profession More medicine Increased specialization Highly trained doctors More pharma More technology More diagnostics Laboratory Radiology (Telemedicine)

Revenue Drivers- Growing Supply

Revenue Drivers- Discretionary Spend

Revenue Drivers- High-Quality Medicine

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjK0p37kfjLAhUrvIMKHQdiAksQjRwIBw&url=http://0kv.dromgij.top/c/clipart-veterinarian-symbol/&psig=AFQjCNF346B9pBJvSYHS1tTNiYtbJFbBQg&ust=1459967784762317

Macro:Great industryStrong consumerConfident doctors

VCA: Investing in:People ServiceTechnology

Revenue Drivers- Macro & VCA

GDP+Grower

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjK0p37kfjLAhUrvIMKHQdiAksQjRwIBw&url=http://0kv.dromgij.top/c/clipart-veterinarian-symbol/&psig=AFQjCNF346B9pBJvSYHS1tTNiYtbJFbBQg&ust=1459967784762317http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjK0p37kfjLAhUrvIMKHQdiAksQjRwIBw&url=http://0kv.dromgij.top/c/clipart-veterinarian-symbol/&psig=AFQjCNF346B9pBJvSYHS1tTNiYtbJFbBQg&ust=1459967784762317

Market Leader in Four Complementary Businesses

$34 billion market Good demographic trends 26,000 animal hospitals 208 million pets 80 million pet-owning households

Substantial Opportunity for Consolidation Large fragmented market

Predictable businesses: Recession resistant Highly repetitive revenue Consistent, stable cash flow Geographically diversified and diversified business units Healthcare, with no reimbursement risk Favorable regulatory environment

Great Business in a Great Market

Animal Hospitals

VCA Animal Hospitals

VCA Animal Hospitals

Leading Network of free-standing hospitals: 703 hospitals in 41 states and four Canadian provinces Over 3,900 doctors Over 2.0 million clients Over 2.7 million pets Over 9.7 million annual visits

Leading provider of specialty medicine and post-grad veterinarian training

Largest employer of veterinarians

Growth Strategy: Investing in

People: Largest provider of post-grad education in the industry WOOF University (on-line training) Doctor-client communication training

Service: Specialty medicine VCA CareClub (wellness plans) Client experience training and monitoring

Technology: WOOFware Mobile apps

Hospitals: Make accretive acquisitions

Investing in People

Residency Programs: 32 residents training in 12 universities 22 residents training in 10 VCA specialty hospitals

Internship Programs: 194 interns training in 31 hospitals this year Over 1,500 interns trained to date

Externship Programs: Over 1,000 veterinary student externships per year Plus veterinary technicians

Expanding base of specialty/referral hospitals Operate over 67 specialty & specialty/hybrid hospitals Over 400 veterinary specialists 95% of visits referred from non-VCA hospitals Building flagship specialty hospitals Host internship and residency programs

Investing in Specialty Medicine

Investing in Technology

Embracing the Mobile Mind Shift

Investing in Technology

YES

59122

VCA: Bob, Please reply YES to confirm your pets appt at 11AM on 4/13/16 (Wed. If you need to reschedule, please call 123-456-7890.

Thank you for your confirmation. Were looking forward to seeing you and your pet!

Two-way texting to

clients

Appointmentreminders

On-Line Appointment

booking

Measured and consistent Proven track record for hitting

acquisition targets Large target list Enables choice of most attractive

targets Targets 7x-8x EBITDA

Utilize internally generated free cash flow

Easy, low risk, integration process(1) Includes BrightHeart (July 2011), and AVC (February 2012).

51

Revenue Acquired (1)

27 27 1851 27 2750 53

Investing in Acquisitions

$90.3

$177.3

$60.4

$122.5 $122.0

$84.0

2011 2012 2013 2014 2015 1Q 2016

#1 Provider of Veterinary Diagnostic Laboratory Services

in the Nation

Antech Diagnostics

60 labs serving all 50 states & Canada Reference lab testing 34,000 veterinarians 17,000 animal hospitals (included 703 VCA hospitals) 84% of revenue derived from non-VCA hospitals

Over 11 million pets tested per year Over 13 million requisitions per year

Antech Diagnostics

Largest National Platform Over 17,000 customers Serving over 100 cities in U.S. & Canada

Significant Operating Leverage Over 13 million requisitions in 2015 Transportation network in place 39,000 to 48,000 requisitions / day Highly automated chemistry testing

HI

60 Labs serving all 50 states & Canada:

3 Primary Hubs (1 in Canada)

11 Secondary Hubs (1 in Canada)

46 STAT Labs (2 in Canada)

Long Island, NY

Irvine, CA

OR

TX

TNAZ

CA CO IL

GA

FL

MI

NY

WA

UT

MA

VAMO

KYNC

OHIN

OK

NVPA

SC

AL

Ontario, Canada

LA

KS

WI

MS

MN

Extensive Infrastructure in Place

Revenue: Better medicine more diagnostics Improved customer communication and information Antech Online & Antech on the Move Antech Imaging Services

Competitive pricing Build on Antech-Distributor co-selling model

Leverage infrastructure to improve margins Very high fixed-cost business

Antech Diagnostics- Growth Strategy

33

Antech Online 24,000 registered clients

Antech mobile 9,000 registered users 7,500 transactions per day

Communication Drives Better Medicine

Antech Diagnostics- Antech Online

Financial Summary

Hospitals 7.6%* same-store revenue growth on positive volume Adjusted same-store gross profit margin up 180 bps Adjusted operating margin up 200 bps

Laboratory 9.1%* internal revenue growth on strong volume Adjusted operating margin up 210 bps

Consolidated Revenue up 12.8% Adjusted operating margin up 200 bps Adjusted operating income up 28% Adjusted diluted EPS up 32%

* Business day adjusted

Operating Leverage: Margins Expanding on Strong Internal Growth

Strong 1st Quarter Operating Results

Cash & Long-Term Debt at 3/31/16

($ in millions) Pro formaCAPNA w/ CAPNA

Cash 74.5$ 74.5$

Debt:Term Notes (LIBOR +1.50) 575.3$ -$ 575.3$ Revolver 318.5 345.0 663.5 Other 58.8 - 58.8

Total Debt 952.6$ 345.0$ 1,297.6$

Debt / PF EBITDA 2.2x 2.8x

Unused Revolver 481.5$ 136.5$

Actual

Sheet1

($ in millions)ActualPro forma

CAPNAw/ CAPNA

Cash$ 74.5$ 74.5

Debt:

Term Notes (LIBOR +1.50)$ 575.3$ - 0$ 575.3

Revolver 318.5345.0663.5

Other58.8- 058.8

Total Debt$ 952.6$ 345.0$ 1,297.6

Debt / PF EBITDA2.2x2.8x

Unused Revolver$ 481.5$ 136.5

Looking Forward

Great business in a great market

Strong Market & VCA initiatives

Revenue growth accelerating

Substantial operating leverage opportunities

Continue to make accretive acquisitions

Significant free cash flow

Strong, flexible, balance sheet

Looking Forward

Appendix - Reconciliation of Non-GAAP Measures

Reconciliation of net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share (in millions, except per share amounts):

2015 2016

Net income 38.3$ 46.2$ Adjustments:

Adjustment to other LT liabilities - 3.4 Tax effect on adj. to other LT liabilities - (1.3) Tax adj. to income tax liabilities - 1.0 Transaction costs, CAPNA - 1.0 Tax adj. on transaction costs, CAPNA - (0.4) Acquisitions related amort., net of tax 3.4 3.8

Total adjustments 3.4 7.5 Adjusted net income 41.7$ 53.7$

Diluted earnings per common share 0.46$ 0.57$ Certain significant items as detailed above 0.04 0.10

Adjusted diluted earnings per common share1 0.50$ 0.66$ Shares used for computing adjusted diluted

earnings per common share 83.4 81.5 1 Amounts may not foot due to rounding

First Quarter

Sheet1

Reconciliation of net income and diluted earnings per share to adjusted net income

and adjusted diluted earnings per share (in millions, except per share amounts):

First QuarterSecond QuarterThird QuarterThird QuarterYear-to-Date

2015201620132014201320142014201520142015

Net income$ 38.3$ 46.2$ 41.7$ 45.6$ 40.6$ 27.5$ 27.5$ 54.9$ 107.1$ 147.5

Adjustments:

Adjustment to other LT liabilities- 03.4- 0- 027.027.0- 027.0- 0

Tax effect on adj. to other LT liabilities- 0(1.3)(10.0)- 0(10.0)(1.3)

Tax adj. to income tax liabilities- 01.0- 01.71.7- 01.7- 0

Transaction costs, CAPNA- 01.0- 0- 0- 0- 0- 0(4.5)- 0(4.5)

Tax adj. on transaction costs, CAPNA- 0(0.4)- 01.8- 01.8

Acquisitions related amort., net of tax3.43.85.25.815.617.2

Total adjustments3.47.5- 0- 0- 028.724.03.134.413.1

Adjusted net income$ 41.7$ 53.7$ 41.7$ 45.6$ 40.6$ 56.2$ 51.4$ 57.9$ 141.4$ 160.6

Diluted earnings per common share$ 0.46$ 0.57$ 0.46$ 0.51$ 0.45$ 0.31$ 0.31$ 0.67$ 1.21$ 1.78

Certain significant items as detailed above0.040.10- 0- 0(0.02)0.210.280.040.390.17

Adjusted diluted earnings per common share1$ 0.50$ 0.66$ 0.46$ 0.51$ 0.45$ 0.64$ 0.59$ 0.71$ 1.60$ 1.95

Shares used for computing adjusted diluted

earnings per common share83.481.589.789.289.887.487.481.888.782.7

1Amounts may not foot due to rounding


Reconciliation of operating income and operating margin to adjusted operating income and adjusted operating margin (in millions):

2015 2016

Revenue 499.5$ 563.4$

Operating income 69.1$ 86.1$ Operating margin 13.8% 15.3%Adjustments:

Adjustment to other LT liabilities - 2.0 Transaction costs, CAPNA - 1.0 Acquisitions related amortization 5.5 6.2 Total adjustments1 5.5 9.1

Adjusted operating income1 74.7$ 95.2$ Adjusted operating margin 15.0% 16.9%

1 Amounts may not foot due to rounding

First Quarter

Sheet1

Reconciliation of operating income and operating margin to adjusted

operating income and adjusted operating margin (in millions):

First QuarterYear-to-Date

2015201620142015

Revenue$ 499.5$ 563.4$ 1,438.6$ 1,600.0

Operating income$ 69.1$ 86.1$ 194.6$ 263.4

Operating margin13.8%15.3%13.5%16.5%

Adjustments:

Adjustment to other LT liabilities- 02.0- 0- 0

Transaction costs, CAPNA- 01.0- 0- 0

Acquisitions related amortization5.56.215.617.2

Total adjustments15.59.115.617.2

Adjusted operating income1$ 74.7$ 95.2$ 210.2$ 280.6

Adjusted operating margin15.0%16.9%14.6%17.5%



Reconciliation of Animal Hospital operating income and operating margin to Animal Hospital adjusted operating income and adjusted operating margin (in millions):

2015 2016

Animal Hospital revenue 393.0$ 458.6$

Animal Hospital operating income 44.0$ 60.8$ Animal Hospital operating margin 11.2% 13.2%Adjustments:

Acquisitions related amortization 4.6 5.2 Total adjustments 4.6 5.2

Animal Hospital adjusted operating income1 48.5$ 66.0$ Animal Hospital adjusted operating margin 12.4% 14.4%


First Quarter

Sheet1

Reconciliation of Animal Hospital operating income and operating margin to

Animal Hospital adjusted operating income and adjusted operating margin (in millions):


2015201620142015

Animal Hospital revenue$ 393.0$ 458.6$ 1,134.2$ 1,270.3

Animal Hospital operating income$ 44.0$ 60.8$ 151.2$ 171.9

Animal Hospital operating margin11.2%13.2%13.3%13.5%

Adjustments:

Property write-down adjustment- 0- 0- 0- 0

Depreciation expense adjustment- 0- 0- 0- 0

Vacant lease expense accrual- 0- 0- 0- 0

Vacant property write down- 0- 0- 0- 0

West LA capital lease correction- 0- 0- 0- 0

Inventory adjustments- 0- 0- 0- 0



Animal Hospital adjusted operating income1$ 48.5$ 66.0$ 163.3$ 185.8

Animal Hospital adjusted operating margin12.4%14.4%14.4%14.6%



Reconciliation of Laboratory operating income and operating margin to Laboratory adjusted operating income and adjusted operating margin (in millions):

2015 2016

Lab revenue 94.0$ 106.7$

Lab operating income 39.1$ 46.4$ Lab operating margin 41.6% 43.5%Adjustments:

Acquisitions related amortization 0.2 0.4 Total adjustments 0.2 0.4

Lab adjusted operating income 39.3$ 46.8$ Lab adjusted operating margin 41.8% 43.9%

First Quarter

Sheet1

Reconciliation of Laboratory operating income and operating margin to Laboratory

adjusted operating income and adjusted operating margin (in millions):


2015201620142015

Lab revenue$ 94.0$ 106.7$ 1,134.2$ 1,270.3

Lab operating income$ 39.1$ 46.4$ 151.2$ 171.9

Lab operating margin41.6%43.5%13.3%13.5%

Adjustments:

Property write-down adjustment- 0- 0- 0- 0

Depreciation expense adjustment- 0- 0- 0- 0

Vacant lease expense accrual- 0- 0- 0- 0

Vacant property write down- 0- 0- 0- 0

West LA capital lease correction- 0- 0- 0- 0

Inventory adjustments- 0- 0- 0- 0



Lab adjusted operating income$ 39.3$ 46.8$ 163.3$ 185.8

Lab adjusted operating margin41.8%43.9%14.4%14.6%


Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11What You Want to KnowWhat You Want to KnowWhat You Want to KnowRevenue Drivers- Growing DemandRevenue Drivers- Growing SupplySlide Number 17Slide Number 18Slide Number 19Market Leader in Four Complementary BusinessesGreat Business in a Great MarketVCA Animal HospitalsVCA Animal HospitalsGrowth Strategy: Investing inInvesting in PeopleInvesting in Specialty MedicineInvesting in TechnologyInvesting in TechnologyInvesting in AcquisitionsSlide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34Slide Number 35Slide Number 36Slide Number 37Slide Number 38Slide Number 39Slide Number 40Appendix - Reconciliation of Non-GAAP MeasuresAppendix - Reconciliation of Non-GAAP MeasuresAppendix - Reconciliation of Non-GAAP MeasuresAppendix - Reconciliation of Non-GAAP Measures

Documents

The information contained in this presentation may … · The information contained in this presentation may include forward ... measures that management believes are useful to an