 |
 |
||||||||||
 |
 |
 |
 |
 |
 |
 |
 |
|
|||
|
Press Press Releases 2001 Pethealth Inc. Announces Q1 2001 Results. Oakville, Ontario - Thursday, May 17, 2001, 9:20 AM EDT Highlights
Pethealth Inc. ("Pethealth" or "the Company") (CDNX: PTZ) achieved gross premium collections of $526,728 for Q1, up 276% from Q1 2000. Total policies in force at the end of Q1 totalled 10,857, a 174% increase from the number outstanding after Q1 2000 and a 31% increase from the number outstanding after Q4 2000. The continued strong growth is attributable to the continued success of the Company's direct to consumer advertising campaign, increased sales from its strategic alliances and its increased presence within the veterinary community. Revenue for Q1 was $387,599, up from $55,243 a year ago, a 602% increase. Brokerage commissions earned for Q1 were $178,452, up from $46,019 a year ago representing a 287% increase. Administration fees earned were $31,953 vs $9,224 in Q1 2000. Pethealth expects growth to accelerate during Q2 on the back of seasonal factors in Canada and the Company's expansion into the U.S. The population of dogs and cats in the United States is estimated to be 112 million, roughly 12 times the number of companion animals in Canada. Pethealth will begin selling its programmes in approximately 30 states via its interim services agreement with Avalon Risk Management Inc., including New York, Florida, Illinois and Pennsylvania in May 2001. The U.S. programme will be underwritten by Lincoln General Insurance Company, a subsidiary of Kingsway Financial Services Inc. Selling, general and administrative expenses totalled $1,159,187 for the quarter vs $731,101 in Q1 2000. Marketing costs increased to $476,105 vs $303,612 in Q1 2000. However, as a multiple of commission revenue, marketing costs fell to 2.7 times in Q1 2001 from 6.6 times during Q1 last year and 3.9 times for the entire fiscal year 2000. With the Company's expansion into the United States scheduled for Q2 2001, the Company expects the ratio to decline still further. The Q1 2001 loss also reflects significant costs associated with the establishment of its U.S. operations and system upgrades. Employment costs rose from $323,661 from $220,597 in Q1 2000. Increased staffing costs were incurred as staff were hired and trained in advance of the Company's launch into the U.S. in Q2 2001. Nevertheless Employment costs as a multiple of commission revenue declined to 1.8 times vs 4.8 times in Q1 2000 and 3.0 times for fiscal 2000. As a result the Company incurred a net loss after tax of $771,588, or $0.01 per share vs $675,858, or $0.01 per share for Q1 2000. During the period the Company received final approval from the Canadian Venture Exchange for its reverse takeover of Capital.com Inc. This came after the Company was receipted by applicable provincial securities commissions for its final prospectus on February 15, 2001 clearing the 34,909,090 special shares totalling in aggregate $7.5 million which was raised in October 2000. The Company has raised over $12 million to date. On 11th April 2001, the Company signed a three-year Strategic Alliance Agreement with Petco Animal Supplies, Inc., a leading pet specialty retailer, which operates over 500 stores in the United States. The Agreement makes the Company the exclusive provider of pet insurance to Petco's customers. The marketing campaign is expected to begin in June 2001. "We are very pleased with our policy growth in Q1, especially as the first quarter is expected to be the Company's slowest quarter of the year. Thus our ability to maintain the strong growth rate in our business over the period is, we believe, exceptional. We are quite comfortably now the largest seller of pet insurance in Canada on a monthly basis and our dominant position looks set to continue," said Mark Warren, President and Chief Executive Officer. "With our success in Canada, we are confident our expansion into the U.S. will be successful especially as we have established alliances with the likes of Reader's Digest and Petco, each leaders in their respective industries." Forward-Looking Statements Included in this press release are forward-looking statements with respect to the Company. These forward-looking statements by their nature necessarily involve risk and uncertainties that could cause the actual results to differ materially from those contemplated by such statements. The company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions may ultimately prove to be incorrect due to events which may be beyond the Company's control. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Pethealth Pethealth, through its subsidiary PetCare Insurance Brokers Ltd., currently offers pet insurance products to owners of dogs and cats in Canada. PetCare products in Canada, which include: QuickCare(TM) Original - an accident-only product ideal for puppies and kittens; QuickCare(TM) for Indoor Cats - an inexpensive product which provides limited accident and illness coverage; QuickCare(TM) Senior - the first product designed for previously uninsured senior dogs and cats; MasterCare(TM)/MasterCare(TM) Plus and MasterCare(TM) Premiere - which offer comprehensive coverage for dogs and cats; TenantCare(TM) - specially designed for pet owners living in rental accommodation; PetCare Travel(TM) - accident and illness coverage for those travelling with their dogs and cats are underwritten by ING Wellington, a member of the ING Group, and CGU Elite Insurance Company, a member of CGU Group Canada Ltd. Pethealth was founded in February 1998 and is based in Oakville, Ontario. Institutional investors include the VC Advantage Fund and Dynamic Mutual Funds, through its Dynamic Venture Opportunities Fund. The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Not for dissemination in the United States of America or to United States news wire services. For further information: E. Mark Warren, President and Chief Executive Officer of Pethealth or Glen H. Tennison, Chief Financial Officer of Pethealth at (905) 842 2615. |
|
||||||||||
 |
 |
|
|||||||||
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
