Pethealth posts record revenues

Total revenue for the first quarter 2006 for Pethealth Inc. (TSX:PTZ) drastically increased 41% from Q1 2005 reaching $4.53 million.
The Company also recorded a significant decrease in net loss for Q1 2006, which was reported at $150,855, compared to the restated net loss of $466,089 recorded in Q1 2005. The EBITDA loss for Q1 2006 was $33,195 compared to a restated EBITDA loss of $382,840 for the same period in the prior year.
Total policies in force (Canada and the US) at March 31, 2006, increased 26% compared to the same period last year.
Gross premiums earned by the Company’s insurance carriers were reported at $8.9 million for Q1 2006, which indicates an increase of 28% from the same period in 2005.
Following a review of the Company’s cash management systems, it determined certain inaccuracies were reported during the 2005 and 2004 financial period in respect of the reporting of certain electronic customer payments and service fees processed in the US. In response the Company recently restated its financial results for the years ended 2004 and 2005. The Company has amended its cash management reporting system and processes to rectify the sources of the errors identified to ensure the correctness and accuracy of its financial information.
“Except for the restatement of our 2004 and 2005 financials, Q1 was an outstanding quarter for the company,” Mark Warren, president and CEO, says. “Year on year revenue growth accelerated from previous quarters and, for the first time in the company’s history, we had both positive earnings and EBITDA in our core insurance business. Management takes full responsibility for failing to detect the reconciliation errors sooner. However, the errors in both systems and internal controls have been satisfactorily addressed. The errors had no impact on our revenue and the reduction in our reported cash position will not affect our ability to execute on our current business plan.”