Welcome!

@CloudExpo Authors: Elizabeth White, Liz McMillan, Pat Romanski, ManageEngine IT Matters, Chris Kocher

News Feed Item

Pethealth Inc. Announces Quarterly Revenue of $9,303,000 and Profit of $892,000 and Its Full Results for the Quarter and Nine Months Ended September 30, 2012

OAKVILLE, ONTARIO -- (Marketwire) -- 11/07/12 -- Pethealth Inc. (TSX:PTZ) ("Pethealth" or "the Company") today announced its financial results for the quarter and nine months ended September 30, 2012.


----------------------------------------------------------------------------
                        For the quarter ended     For the nine months ended 
----------------------------------------------------------------------------
                                                                            
($'000 except for      Sep 30   Sep 30  Change     Sep 30   Sep 30  Change  
 per share figures)      2012     2011       %       2012     2011       %  
----------------------------------------------------------------------------
                                                                            
Revenue                 9,303    8,318      12%    28,014   24,446      15% 
EBITDA(1)               1,237    1,239       -      4,230    3,600      17% 
Profit before taxes       462      785     (41%)    2,200    2,236      (2%)
Profit after taxes        892      764      17%     3,575    1,921      86% 
Basic earnings per                                                          
 share                   0.03     0.02      50%      0.09     0.04     125% 
Fully diluted                                                               
 earnings per share      0.02     0.02       -%      0.08     0.04     100% 
----------------------------------------------------------------------------
  (1) EBITDA, a non IFRS accounting measure, is profit before amortisation  
and depreciation, interest and income taxes.                                

"I am pleased to be able to present our Q3 and nine-month numbers for 2012 which continue to show consistent top line growth," said Mark Warren, President and Chief Executive Officer of Pethealth. "Q3 was a quarter when we invested more for future growth based on our view that the overall economic conditions in our two largest markets, the United States and the United Kingdom, are improving. This investment in growth was most noticeable in our core U.K. pet insurance business where our policy in force count was up 13% year on year; our rigorous mining of our 24PetWatch database, where year on year revenue was up by 50%; and the launch of our subscription pet food program now being offered through our network of PetPoint licensed shelters where pet food sales were up 177% year on year. The recurring revenue generated from these initiatives we expect will yield significant returns in the coming quarters, improving our earnings and cash flow."

Third quarter consolidated results:

Consolidated revenue increased by 12% to $9.3 million for the quarter which was the aggregate of a 4% growth in insurance segment revenues and a 27% increase in the Company's non-insurance segment revenues. The positive results from the insurance segment resulted from 8% growth in total U.S. insurance revenues which were partially offset by a decline in insurance revenues in both the U.K. and Canada. Growth in the non-insurance segment revenues is attributed to (i) the increase in the number of microchips sold coupled with increased pricing, (ii) the increase in the cross selling of products and services to the 24PetWatch database and (iii) increased sales through the PetangoStore.com.

Although consolidated revenues increased by 12%, consolidated profit before taxes was negatively affected by (i) an increase in the investment in insurance segment organic growth in where marketing dollars are expensed when incurred even though new policyholders represent long-term recurring monthly revenues over the course of the contract; (ii) a significant increase in amortisation expense as a result of the recent deployment of both the Company's internal ERP systems and the first version of PetPoint Enterprise, the Company's first paid version of its cloud based animal welfare management system and (iii) an increase in employment expenses related to the maintenance of its recently deployed systems. EBITDA remained flat at 1.24 million.

In addition to the above, consolidated profit after taxes was positively impacted by the recognition of a deferred income tax asset associated with prior period operating losses in the Company's U.S. operations of $446,000. While the Company determined at June 30th that it had a total tax asset available of approximately $2.2-million to recognize for 2012, under IFRS, the Company is to split recognition over the last three quarters of the year. As such, $1.1 million was recognized in Q2 2012, $446,000 in the current quarter and the balance will be recognized in Q4.

Nine months consolidated results:

Consolidated revenue increased by 15% to $28-million compared to the same period in the prior year. Consolidated revenue growth was the aggregate of a 4% increase in the insurance segment revenues and the 36% increase in the Company's non-insurance segment revenues. In addition to the positive trends impacting the quarter, the nine month results were also influenced by a data report agreement completed with Best Friends during the first quarter totalling $435,000 in data publishing revenue.

For the nine month period, profit before taxes decreased by 2% as a result of the same negative trends impacting the quarter. EBITDA increased by 17% to $4.23-million.

Consolidated profit after tax increased by 86% to $3.58 million which included the recognition of a deferred income tax asset of $1.5 million.

Insurance segment results:


----------------------------------------------------------------------------
                        For the quarter ended     For the nine months ended 
----------------------------------------------------------------------------
                       Sep 30   Sep 30  Change     Sep 30   Sep 30  Change  
($'000)                  2012     2011       %       2012     2011       %  
----------------------------------------------------------------------------
                                                                            
Revenue                 5,695    5,466       4%    17,048   16,399       4% 
EBITDA(1)               1,184    1,330     (11%)    3,608    4,129     (13%)
Profit before taxes       843    1,152     (27%)    2,675    3,581     (25%)
Profit after taxes      1,351    1,131      19%     4,161    3,266      27% 
----------------------------------------------------------------------------
 (1)EBITDA, a non IFRS accounting measure, is profit before amortisation and
depreciation, interest and income taxes.                                    

The insurance segment results were influenced by the following:

Third quarter


--  A 3% increase in US core commission revenues driven in large part by the
    Company's continued investment in the U.S. animal welfare community.
    During the quarter, an additional 22,496 ShelterCare policies were
    issued at a total incremental cost of $207,000, a 38% increase vs. the
    prior year. 
    
--  A 6% decline in UK core commission revenues. The Company continued to
    invest in new policy acquisition in the UK adding 13% to its average UK
    policy count from Q3, 2011. The average policy growth was the result of
    the Company's ongoing engagement of aggregator websites as a source for
    new policy acquisition. New policies acquired through aggregator sites
    are lower premium policies that, in turn, offer less coverage and, while
    initially this has a negative impact on commission revenues, these
    policies are expected, in time, to have a positive impact on the loss
    ratios. During the quarter, an additional $55,000 was invested in
    success based aggregator marketing compared to that invested last year. 
    
--  The U.S. and the U.K. core accident year loss ratios for policies
    underwritten by Praetorian and QBE (Europe), in aggregate, are currently
    estimated at 50% for the 2012 accident year. Actual results could vary
    materially from current estimates and will be influenced by several
    factors including, but not limited to, the U.S. and U.K claims inflation
    compared to premium increases, changes in the relative weightings of the
    U.S. and U.K. programs, the relative strength or weakness of the Pound
    Sterling vs. the U.S. dollar over the course of the year, prior year
    loss development, and the impact of changes in underwriting guidelines.
    Given the current year end estimate, $0 (2011 - $79 return of
    commission), was recorded in the third quarter related to the Company's
    participation in its programs' underwriting results. 
    
--  An 87% increase in amortization related primarily to the Company's
    internal ERP system which was deployed April 1, 2012. 
    
--  The recognition of a deferred tax asset of $446,000 related to the
    Company's U.S. operations as discussed under the heading "Overall
    Performance". 

Nine months

The nine month results were influenced by the same factors influencing the quarterly results.

Non-insurance segment results:


----------------------------------------------------------------------------
                        For the quarter ended     For the nine months ended 
----------------------------------------------------------------------------
                      Sep 30   Sep 30  Change      Sep 30   Sep 30   Change 
($'000)                 2012     2011       %        2012     2011        % 
----------------------------------------------------------------------------
                                                                            
Revenue                3,608    2,852      27%     10,966    8,047       36%
EBITDA(1)                 53      (91)      -         622     (529)       - 
Profit/(loss) before                                                        
 taxes                  (381)    (367)     (4%)      (475)  (1,345)      65%
Profit/(loss) after                                                         
 taxes                  (459)    (367)    (25%)      (586)  (1,345)      56%
----------------------------------------------------------------------------
 (1) EBITDA, a non IFRS accounting measure, is profit before amortisation   
and depreciation, interest and income taxes.                                

The non-insurance results consist of aggregate growth in the following:

Third quarter

Revenue from non-insurance operations totalled $3.6 million, up 27%.

EBITDA from non-insurance operations was $53,000, an improvement from an EBITDA loss of ($91,000). The operating loss on the Company's non-insurance operations, after taxes, was ($459,000) vs. a loss of ($367,000) from the same period in the prior year. The increase in loss was mainly on account of increased amortization and tax expense.

For the quarter, the non-insurance results consist of aggregate growth in the following:

PetPoint(TM)

647,000 intakes (animals entering the welfare organisations) and 257,000 adoptions were completed through PetPoint, an increase in intakes of 1% and adoptions of 8%.

As of September 30, 2012, 72 animal welfare organisations were paying to licence PetPoint, the Company's cloud-based animal welfare management system. In the quarter, $36,000 of licence fee revenue was generated.

24PetWatch(TM) & petprotect RFID Microchip and Database Management

The microchip and database products and services continued strong growth in the quarter.

The Company sold, in aggregate, 389,000 RFID microchips in the United States, Canada and the United Kingdom, an 8% increase in unit sales. Revenue from microchip sales increased 18% to $2.46 million. As a percentage of total non-insurance revenue, microchip revenue fell to 70% from 73%. The sale of ancillary products and services to the 24PetWatch database of pet owners accounted for $606,000 in revenue, a 26% increase.

Petango.com

Petango.com attracted more than 2.5 million unique visitors and generated 45 million page views.

Sales via thepetangostore.com totalled $323,000, a 55% increase.

Nine months

Revenue from non-insurance operations totalled $10.97 million, up 36%.

EBITDA from non-insurance operations was $622,000, an improvement from an EBITDA loss of ($529,000). The operating loss on the Company's non-insurance operations after taxes was ($586,000), vs. a loss of ($1.35 million) from the same period in the prior year.

For the nine months ended September 30, the non-insurance results consist of aggregate growth in the following:

PetPoint(TM)

PetPoint had been licensed by 1,906 animal welfare organisations by September 30, 2012, an increase of 10% from those licensed at September 30, 2011.

1,804,000 intakes (animals entering the welfare organisations) and 709,000 adoptions were completed through PetPoint, an increase in intakes of 5% and adoptions of 10%.

24PetWatch(TM) & petprotect RFID Microchip and Database Management

The Company sold, in aggregate, 1.13 million RFID microchips in the United States, Canada and the United Kingdom, a 13% increase. Revenue from microchip sales increased 25% to $7.21 million. As a percentage of total non-insurance revenue, microchip revenue fell to 67% from 71%.

The sale of ancillary products and services to the 24PetWatch database of pet owners accounted for $1.87 million in revenue, a 29% increase.

Total individual pet and pet owner registrations in the 24PetWatch database surpassed 6.1 million by September 30, 2012, representing an increase of over 1.2 million registered cats and dogs, or 25%.

Petango.com

Petango.com attracted more than 7.5 million unique visitors and generated 217.0 million page views.

Sales via thepetangostore.com totalled $949,000, a 53% increase.

Conference call

The Company is hosting an investor conference call on Thursday, November 8, 2012, at 2:00PM (EST) which can be accessed at 1-800-396-7098 or on-line at www.pethealthinc.com. For those unable to participate, a replay of the call will be available shortly after the call concludes on the Company's website at www.pethealthinc.com.

About Pethealth

For detailed financial statements for the quarter and nine months ended September 30, 2012, including Management's Discussion and Analysis, please refer to the Company's website or SEDAR at www.sedar.com after November 7, 2012.

Pethealth is North America's second largest provider of medical insurance for dogs and cats to pet owners, operating in the United States, Canada and the United Kingdom. In addition, the Company is the leading provider of management software to North American animal welfare organisations through its SaaS-based application and is the leading provider of pet related database management services to the North American companion animal industry. Pethealth offers a unique range of products and services for veterinarians, shelters and pet owners through a number of wholly owned subsidiaries using a range of brand names including PetCare, 24PetWatch, Pet Protect, Petpals Direct, ShelterCare, PetPoint, Petango.com and ThePetangoStore.com.

Pethealth is based in Oakville, Ontario. To find out more about Pethealth, visit the web site at www.pethealthinc.com.

Forward-Looking Statements

This press release contains information that is forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts.

Forward-looking information by its nature necessarily involves risks and uncertainties including, without limitation, the difficulty of predicting the current regulatory and supervisory environment, the timing and conditions to obtaining any regulatory approval, reliance on insurance underwriters for pet insurance policies, market acceptance and demand for existing and new products and services, including PetPoint and EVE Software and the 24PetWatch microchip program, the Company's ability to maintain and service new and existing customers, the protection of intellectual property associated with its products and services, the impact of competition generally and new competitive products, currency and foreign exchange fluctuations, risks associated with the Company's customer care solutions facility, and related risks and uncertainties. Additional risks and uncertainties affecting the Company can be found in the Company's Annual Information Form available on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. The Company disclaims any intention or obligation, other than those required by security laws, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:
Investor Relations Contacts:
Pethealth Inc.
Mark Warren
President and Chief Executive Officer
(905) 842-2615

Pethealth Inc.
Glen Tennison
Chief Financial Officer
(905) 842-2615
www.pethealthinc.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@CloudExpo Stories
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...