Canadian Underwriter

Pethealth posts net loss despite revenue growth

March 8, 2004   by Canadian Underwriter

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Pet insurer Pethealth Inc. (TSX VE: PTZ) is reporting a net loss for the year ending December 31, 2003 of $2.0 million, or $0.01 per share, although the company notes this is a considerable improvement over the net loss of $5.0 million, or $0.02 per share, reported for 2002.
The loss came despite a 93% jump in revenue last year, to $7.1 million, up from $3.7 million in 2002. Gross written premiums were up 87% to $17.7 million last year, from $9.4 million the year prior. And the number of policies in force at the end of 2003 was 74% higher than at the end of 2002.
The company’s results were dragged by the strengthening Canadian dollar while Pethealth’s revenue comes in U.S. dollars, it reports in Canadian dollars. However, losses were offset by new accounting methods wherein direct advertising costs per policy are now amortized over the three-year life of a policy. This reduced net marketing expenses by $3.8 million in 2003 accounting.
At the end of 2003, the company had total assets of $6.8 million, down from $7.5 million at the end of 2002.

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