09 November 2011

Pethealth Inc. Announces Quarterly Results


The Company is hosting an investor conference call on Thursday, November 10th, 2011, at 10:00AM (EST) which can be accessed at 1-877-240-9772 or on-line at www.pethealthinc.com. For those unable to participate, a replay of the call will be available shortly after the call concludes on the Company's website at www.pethealthinc.com.

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CONSOLIDATED FINANCIAL
 HIGHLIGHTS:                             For three months ended
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('000)                           Sep 30, 2011     Sep 30, 2010     Change %
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Insurance Commissions and
 Fees                           $       5,466    $       5,784          (5)%
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Microchip Technology and Non-
 insurance Revenue                      2,852            2,397           19%
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Total Revenue                           8,318            8,181            2%
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Cost of Goods Sold                      1,461            1,337            9%
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Selling and marketing                   2,724            3,020         (10)%
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Administrative and general              3,252            3,279          (1)%
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Other income                                -                -            -
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Other expenses                            106              (16)         763%
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Total Expenses                          7,543            7,620          (1)%
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Results from operating
 activities                               775              561           38%
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Finance revenue                            15               14            7%
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Finance costs                              (5)             (37)          86%
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Profit before income tax                  785              538           46%
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 Income tax expense                        21              128         (84)%
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Net Income                                764              410           86%
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EPS - Basic (1)                          0.02             0.01          100%
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EPS - Diluted (1)                        0.02             0.01          100%
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EBITDA (2)                              1,239              984           26%
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Adjusted EBITDA (3)                     1,269              929           37%
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Gross Premiums Earned by
 Carriers                              14,289           15,367          (7)%
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(1) Basic and diluted earnings per share are adjusted to reflect the
    dividend payments made during the first quarter of 2011 and 2010. For
    the quarter ended September 30, 2011 the Company had weighted average
    basic common shares of 32,513,568 (2010 - 32,505,235) and fully diluted
    common shares of 37,515,527 (2010 - 37,484,539).

(2) The Company believes the presentation of EBITDA is a useful means of
    providing investors with additional information in reviewing and
    analyzing the Company's operating results. EBITDA is considered to be a
    non-IFRS earnings measure and does not have any standardized meaning
    prescribed by IFRS. It is, therefore, unlikely to be comparable to
    similar measures presented by other issuers. EBITDA is net income
    adjusted for interest, taxes and amortization.

(3) The Company believes the presentation of Adjusted EBITDA is a useful
    means of providing investors with additional information in reviewing
    and analyzing the Company's operating results. Adjusted EBITDA is
    considered to be a non-IFRS earnings measure and does not have any
    standardized meaning prescribed by IFRS. It is, therefore, unlikely to
    be comparable to similar measures presented by other issuers. Adjusted
    EBITDA is EBITDA adjusted for stock option and equity-based compensation
    expense and non-cash translation gains and losses associated with the
    Company's U.S. denominated debt.

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CONSOLIDATEDFINANCIAL
 HIGHLIGHTS:                              For nine months ended
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('000)                           Sep 30, 2011     Sep 30, 2010     Change %
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Insurance Commissions and
 Fees                           $      16,399    $      17,798          (8)%
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Microchip Technology and Non-
 insurance Revenue                      8,047            6,593           22%
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Total Revenue                          24,446           24,391          0.2%
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Cost of Goods Sold                      4,088            3,481           17%
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Selling and marketing                   7,928            9,680         (18)%
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Administrative and general             10,077            9,710            4%
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Other income                                -                -            -
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Other expenses                            147               36          308%
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Total Expenses                         22,240           22,907          (3)%
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Results from operating
 activities                             2,206            1,484           49%
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Finance revenue                            55               41           34%
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Finance costs                             (25)            (134)          81%
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Profit before income tax                2,236            1,391           61%
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 Income tax expense                       315             (284)         211%
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Net Income                              1,921            1,675           15%
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EPS - Basic (1)                          0.04             0.03           33%
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EPS - Diluted (1)                        0.04             0.03           33%
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EBITDA (2)                              3,600            2,747           31%
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Adjusted EBITDA (3)                     3,647            2,735           33%

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