The Edelman Trust Barometer

Richard Edelman is the President and CEO of the New York based PR firm Edelman.

In the this McKinsey interview shot in June 2009 he discusses the need for corporations to be committed to a 'stakeholder' model that encompasses the needs of a broader audience than just shareholders. While he doesn't shy away from the need to make money he challenges us that making money won't happen and shareholder value can't increase unless there is a corporate commitment to the 'greater good'.

I would encourage you to grapple with some of the understandings he brings forward:

• The breadth of 'continuous conversations' we must undertake so that those who hear our message receive it from multiple sources [up to five] so they can trust it.
• How this requirement creates a need for every company to become its own media that can actively develop and support the places where its conversations occur.
• That everyone who uses our products and services has a view that becomes part of our 'informed audience' for good or bad.
• That because of the masses of information available today our audience copes with a 'continuous partial attention' strategy.
• Whereas in the past we have been consumed by controlling the message, we must now become consumed by developing credibility and trust.
• The coalescence of brand and corporate reputation - our communications and our actions must be in sync.

Edelman also views us as moving into a 'collaboration economy' which will be less about the deal and more about the consequences of the deal. I hope you find this interview as stimulating and engaging as I did.
Enjoy!

View the Video.

15 Minutes with Management

Highlights of the first nine months of Fiscal 2009

* Reader Caution: Metrics and information presented may not be suitable for selected purpose – see Terms of Use &Disclosure

Achievements during third Quarter of 2009

• PetLynx completes first cash positive quarter since entering production
• Completed shareholder survey & held annual general meeting
• Launched final close of Series II Debenture
• Signed Letter of Intent with Canadian Kennel Club for HomeSafe/RDOG
• Sold out Annual Alumni Summit for Urban Animal Strategies
• Filled delegate seats for National Forum on Homing
• Completed management review with Eden Group
• Designed and launched North American Urban Animal Survey
• Launched IAMS Canada wide POME Kit program

Activities planned for fourth quarter of 2009

• Complete final close of 2009 Series II Debenture
• Deliver Annual Alumni Summit for Urban Animal Strategies
• Deliver National Forum on Homing
• Deliver North American Urban Animal Survey
• Execute Tier II 2009/2010 commercial service agreements
• Prepare business plan, strategy and forecasts for 2010 - 2015
• Complete HomeSafe/RDOG agreement with Canadian Kennel Club
• Complete HomeSafe/RDOG agreement with Apex Publishing

Briefing opportunity [Cindy Kreutzer 403.219.1088 for details]
Q3 review teleconference at 10:30 hrs MDT, Tuesday, 13 October 2009

© Copyright, PetLynx Corporation 2001 - 2009. Not for distribution without prior written permission.

AGM report to PetLynx Shareholders

Our recent survey of PetLynx investors showed five questions that were top of mind:

How has the economic downturn affected PetLynx operations?

PetLynx bucked the 2008/2009 economic trends. For the eight months ended 31 August 2009, PetLynx shows excellent performance in all areas:

• Subscription revenues of $140,630 are up 34% from $104,526 in August 2008
• Commercial revenues of $165,972 are up 144% from $67,938 in August 2008
• The deferred revenue account balance of $498,488 shows future strength
• Operating losses were $91,894 or 20.7% of the $443,356 accumulated loss at August 2008
• Revenue per subscriber climbed to $62.94 up 51% from $41.58 at 31 December 2008
  

Where does PetLynx sit in the competitive landscape?

PetLynx has become the dominant provider of recovery services in Canada and leads the world in the V1 metric. At the end of August 2009, accumulated recoveries reached 128,607. The PetLynx V1 rate of recoveries is now 95% which is higher than any other recovery service publishing data around the globe. More than 50 communities representing 18% of the Canadian population use the PetLynx recovery service.

When will PetLynx be self-sustaining and how much more capital will it take?

PetLynx expects to be self-sustaining [positive EBITDA] in 2010. With revenue growth and expense levels at the same rates as in the past three years PetLynx will achieve cash positive operations in 2010. The final raise of the Series II Debenture which is expected to net $300,000 during the next four weeks is expected to extend the horizon to this important moment in the PetLynx emergence.

Can PetLynx afford to pay the premium rates of interest it offers on its debentures?

PetLynx has paid premium rates of interest without interruption since March of 2008:
A core value of PetLynx is to pay its investors a good return on their investment. The debenture holders earned $26,021 in 2008 and $52,184 in the first eight months of 2009 while reducing or eliminating the effects of dilution for the holders of PetLynx Common Shares. The forecast of cash from operations shows an ability to pay interest and redeem the debenture in March of 2013 as prescribed in the terms of the Series II Debenture.

What does the future hold for PetLynx?

PetLynx has a bright future. PetLynx has three years of commercial production and key learnings that can assist management to create a new strategic plan. This plan will:

• Accelerate growth with new partners like the Canadian Kennel Club [CKC];
• Add a new business unit that produces revenue from the North American Urban Animal Surveys and the aggregated data of the PetLynx production system;
• Add revenues from new registry services like those for Destron Fearing in Canada; and,
• Develop new sources of capital from industry partners who wish to seed new services.

Lisa Deutscher, PetLynx Corporation presented Power Point slides that showed a comparison of financial and production data for the eight months ended 31 August for 2008 and 2009. Although this presentation cannot be presented on this blog, you can find a summary of this information in a previous blog titled "August Earnings and Revenue Up!" Lisa is also in charge of the final close of the Series II Debenture.

© Copyright, PetLynx Corporation 2001 - 2009.

No distribution without prior written permission. Confidential Information provided subject to the terms of use and disclosure published here.
CAUTION: May not be suitable for reader's purpose.

Election of PetLynx Officers

We are pleased to report on the election of the Officers of the Corporation who were elected at the first meeting of the Directors.

The Officers of the Corporation are:

Wendy Woodworth, Secretary
Nicholas F. Gnida, Treasurer
Larry R. Evans, Chief Executive Officer

PetLynx Shareholders Conduct Annual Business

At the Annual General Meeting of PetLynx Corporation 18 shareholders were represented in person holding 6,334,051 common shares and 53 shareholders were represented by proxy holding 31,244,397 common shares. As such, 71 shareholders were represented holding a total of 37,578,448 common shares or 76.6% of the 49,089,931 issued and outstanding common shares as at 31 August 2009.


The following resolutions were made at the Meeting:


Resolution #1

The shareholders voted unanimously to fix the number of Directors to be elected at 5.


Resolution #2

The following votes were cast for the Director Nominees:

• Albert, Gerald 4,612,994 votes
• Allen, Terry 4,782,414 votes
• Corsar, Garth 32,863,034 votes
• Evans, Larry 37,578,448 votes
• Gnida, Nicholas 32,796,034 votes
• Petkau, Arthur 36,461,448 votes
• Shier, Joseph 4,884,834 votes
• Simmonds, N. Craig 33,913,034 votes

The elected slate of Directors for PetLynx Corporation is:

Corsar, Garth
Evans, Larry
Gnida, Nicholas
Petkau, Arthur
Simmonds, N. Craig



Resolution #3

The shareholders voted unanimously to appoint Deloitte & Touche LLP as auditor of the Corporation until the next annual meeting of shareholders.

2009 Investor survey suggests future development priorities

The 2009 survey provides an interesting view of where investors would like to see PetLynx move with future development strategies.

While analysts are asking emerging companies to 'hunker down and move to cash postive operations' PetLynx investors have a different view of where management should head. Attracting and investing capital to develop new services or enter the US market ranked 1 and 2 ahead of hunkering down. Attracting a complimentary business partner was ranked 3rd of the four options.

PetLynx investors have strong feelings about investment structures as well. While current strategies feature a senior secured debt instrument with an attractive interest rate, PetLynx investors ranked this investment structure dead last. Instead these investors showed a preference for warrants or options that would allow them to acquire the right to purchase a common share at a guaranteed price later in the PetLynx emergence.

While the last 300 units of the series II convertible secured debenture are offered with a 12% interest rate, PetLynx investors showed a lack of sensitivity to high interest rates in current market conditions. Of those responding to this question, 40% thought the correct rate was 7% to 9% while 28% thought it lay between 4% and 6%. Only 8% of the respondents thought it should be higher than 12% and the balance of 24% thought the current rate was adequate.

Perhaps this part of the survey shows an appetite for more of the convertible debenture than was expected. The current offering provides 12% interest income paid quarterly with options to convert into common shares at guaranteed and attractive rates over the next four years.

PetLynx investors wishing to discuss these results are invited to contact either Lisa Deutscher, CFO 403.219.1088 or Larry Evans, CEO 403.921.5900.

© Copyright, PetLynx Corporation 2001 - 2009.

No distribution without prior written permission. Confidential Information provided subject to the terms of use and disclosure published here.

CAUTION: May not be suitable for reader's purpose.

2009 Investors survey ranks governance & management

The 2009 investor survey provided interesting input for management's strategic review of governance. Respondents were asked to rank items as either very good, adequate, fair or needs improvement and were only allowed to place these ranks on four items in each chart.


Respondents ranked corporate governance in the following order:

• Core values received 16 responses and an approval rating of 1.88 out of 3


• Information flow received 25 responses and an approval rating of 1.76 out of 3


• Corporate policy received 15 responses and an approval rating of 1.20 out of 3


• Shareholder representation received 12 responses and an approval rating of 1.00 out of 3

Respondents ranked financial governance in the following order:

• Auditor's report received an approval rating of 2.08 out of 3


• Information flow received an approval rating of 2.00 out of 3


• Audit Committee received an approval rating of 1.83 out of 3


• Financial Control received an approval rating of 1.64 out of 3


• Corporate Policy received an approval rating of 0.56 out of 3

Respondents ranked the President and CEO and Board of Directors as follows:

• The CEO received 19 responses and an approval rating of 2.26 out of 3.


• The Board of Directors received 17 responses and an approval rating of 0.76 out of 3.

PetLynx investors wishing to discuss these results are invited to contact either Lisa Deutscher, CFO 403.219.1088 or Larry Evans, CEO 403.921.5900.




© Copyright, PetLynx Corporation 2001 - 2009.


No distribution without prior written permission. Confidential Information provided subject to the terms of use and disclosure published here.


CAUTION: May not be suitable for reader's purpose.

42 Investors of PetLynx provide managment input

The annual survey of PetLynx investors was open from 25 August 2009 at 12:00 hrs until 10:00 hrs on Tuesday, 01 September 2009. In addition to the opportunity provided on the InfoStream blog there were emails and mailings to shareholders.

Forty-two respondents representing 70.6% of PetLynx common shares took the time to provide their input. Here are some interesting profile stats:

Years invested:

• 37% 10yrs or more


• 42% 6yrs or more


• 14% 3yrs or more


• 7% 2yrs or less
  

Most important consideration:

• Growth in share value or income 51%
  
• Exit strategy 37%

Read '15 Minutes with Management' report:

• Always 41%


• Sometimes 43%

Only 47% access the PetLynx blogs regularly but 58% find this information helpful.

More than 62% of these respondents have provided input to management and more than 73% value the opportunity to supply input.

Top three criteria for choosing an investment:

• Length of time in business


• Uniqueness of offering
  
• Technology

Top 6 rankings for investor services:

• We anticipate your needs and provide assistance


• Overall service ranking


• We are easy to work with


• We keep you informed of changes


• Quality of responses to questions and concerns


• The timeliness of response

Overall the process and input provided showed PetLynx has interested and knowledgeable investors who appreciate the effort that has been invested to inform them about the company and especially the online resources that have been developed during the past 12 months.

© Copyright, PetLynx Corporation 2001 - 2009.

No distribution without prior written permission. Confidential Information provided subject to the terms of use and disclosure published here.
CAUTION: May not be suitable for reader's purpose.

August Revenues and Earnings UP!

August numbers are now in the books:

• YTD revenues climbed to $306,602 or 77% more than $172,464 for the same period in 2008.


• The deferred revenue account balance was $498,488 at 31 August 2009.


• YTD expenses were lower by 35% than $615,820 spent during the same period in 2008.


• YTD losses (EBITDA) were 79% lower than $(443,356) for the same period in 2008.


• August earnings (EBITDA) were the second highest of 2009 at $27,602.


• The daily burn rate (EBITDA) for the first 243 days of 2008 was $314 which was down by 82% from $1,817 for 244 days in 2008.

At 31 August the company had achieved 58% of its revenue budget for 2009 which is ahead of 2008 when it had achieved 50% of its annual revenue budget by this date.

During the 8 months ended 31 August 2009 management improved the EBITDA level earnings enough to pay the full cost of interest on the Series I and II debentures for that period.

Please contact Lisa Deutscher, CFO 403.219.1088 or Larry Evans, CEO 403.921.5900 if you wish to discuss this report further.

© Copyright, PetLynx Corporation 2001 - 2009.
No distribution without prior written permission. Confidential Information provided subject to the terms of use and disclosure published here.

CAUTION: May not be suitable for reader's purpose.

2009 PetLynx Investor Survey

We are happy to provide you with the 2009 PetLynx Investor Survey. This Survey has been designed to capture your input in four important areas:

1. Investor Profile
2. Investor Services
3. Business Indicators
4. Guidance to Management

Previously, we have used the President’s Roundtable and verbal communications to collect this information. However, we now have more than 150 stakeholders and we would like to give everyone equal opportunity to provide their comments.

To complete the Survey please click here.

This Survey has been designed to be completed with an investment of six to ten minutes of your time.

Thank you for your interest in PetLynx Corporation.