Welcome!

Cloud Expo Authors: JP Morgenthal, Craig Ferril, Michael Bushong, Peter Silva, Ed Featherston

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 that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. 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 development cycles that produce software that is obsolete...
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...