Shares of PetIQ (PETQ), a pet medication and wellness company, are higher after reporting fourth quarter results. QUARTERLY RESULTS: The company reported that Q4 adjusted EBITDA increased $2M to $3.6M, an increase of 132% year-over-year. Adjusted net income increased $3.7M to $2.6M and gross profit moved up to $10.5M from $7.6M, in the same period last year. The increase in gross profit was primarily due to the growth in net sales which created improved economies of scale as well as improved sales mix of more profitable categories and procurement improvements. Gross margin increased 330 basis points to 20.3% for Q4 from 17% for Q416. Net sales increased 15.6% to $51.9M for Q4 compared to $44.9M for the same period in the prior year. Consensus for Q4 revenue was $51.69M. CEO COMMENTARY: Cord Christensen, PetIQ’s Chairman and CEO, said, “We are pleased with our record year of growth and profitability. PetIQ is uniquely positioned for future growth with a business model that is supported by attractive macro trends, and differentiated operational characteristics that are revolutionizing how pet parents obtain their pet healthcare products and services. As we kick off 2018, we are a larger and more diversified pet health and wellness company with the addition of VIP Petcare and we look forward to capitalizing on the strategic value of our combined platform. We have countless opportunities to leverage each other’s relationships and we believe this will drive shareholder value over the long-term.” CLINIC OPENINGS IN WALMART: PetIQ also announced that it has entered into an agreement to open 20 veterinarian clinics within Walmart (WMT) stores. The clinics will open between March and the end of Q2 of 2018. OUTLOOK: PetIQ reiterated the following fiscal 2018 financial outlook: Consolidated net sales of $450M-$500M, an increase of 69%-87% year-over-year. Analyst consensus estimates for FY18 revenue is $465.54M. The company sees adjusted EBITDA of $40M-$45M, an increase of 79%-102% year-over-year; The VIP acquisition, which was announced on January 17, is expected to further diversify PetIQ’s current net sales mix, with the veterinarian products business representing approximately 75% of net sales and the veterinarian services business representing approximately 25% of net sales. PRICE ACTION: Shares of PetIQ are up 8.6% to $24.78 in after-hours trading.