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Pethealth Inc. announces positive third quarter results


November 22, 2004   by Canadian Underwriter


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Pethealth Inc. announced its financial results for the third quarter and nine months ended September 30, 2004. Notably, total revenue for the quarter ended September 30, 2004 was $2.99-million, up 56% over the quarter ended September 30, 2003. Net loss for the three months ended September 30, 2004 was $50,000, an 88% improvement from the net loss of $426,000 for Q3, 2003. Gross written premiums for the quarter ended September 30, 2004 were $6.6-million, up 40% from Q3, 2003. Additionally, in Q3, 2004 new policy sales were 82,433, an increase of 27% over the same period a year ago. Total paid policies in force as at September 30, 2004 were 137,872 vs. the 98,204 reported at the end of Q3, 2003, an increase of 40%.<br>
For the nine months ended September 30, 2004, total revenue for the nine months ended September 30, 2004 was $8.42-million, up 68% over the nine months ended September 30, 2003.<br>
Net loss for the nine months ended September 30, 2004 was $235,000, an 86% improvement from the net loss of $1,641,000 for the same period in the prior year. Gross written premiums for the nine months ended September 30, 2004 were $18.7-million, up 49% from the gross written premiums from the same period in the prior year. New policy sales for the nine months ended September 30, 2004, were 223,425, an increase of 34% over the same period a year ago. <br>
Of the Company’s total revenue in Q3, 2004, 91% was derived from commissions and administration fees earned from the placement of pet insurance policies on behalf of its carriers. In the United States and Canada, the Company earned a blended commission of 38% across all pet insurance products. The Company’s total commission and management fee revenue for Q3 2004 was $2,511,000 compared to commission and management fee revenue in Q3 2003 of $1,737,000, an increase of 45%. For the nine months ended September 30, 2004 the Company’s total commission and management fee revenue was $7,214,000, an increase of 59% compared to $4,548,000 from the same period last year.<br>
In Canada, the Company has become the number one distributor of new microchips to the veterinary and shelter communities. In the United States, the Company offers the Allflex microchip technology and provides its manufacturer neutral pet registry, recovery, and database management services in 48 states. As a result of the expanded technology offering, the Company sold microchips to shelters and/or veterinary clinics in an additional 26 states and achieved an increase in microchip sales revenue of 263% over Q3, 2003. At September 30, 2004, 165,285 pets had been registered on the Company’s pet registry of which 71% reside in the United States.<br>
“We are delighted to be reporting strong growth in both our pet insurance and microchip businesses, which for the twenty-second consecutive quarter has resulted in record revenue,” said Mark Warren, President and Chief Executive Officer. “Our distribution through the animal shelter community continues to be a significant cornerstone of our business which will be further developed with the introduction of our management software solution to shelters in the fourth quarter. This will not only help further solidify our position within the shelter community but also provide for significant cost savings associated with the delivery of our programs through this distribution channel.”<br>


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