Pethealth Inc. Announces increased Income on Lower Revenues

16% Increase in Pre-Tax Income, 5% Decrease in Revenues and the results for the Quarter ended 31 March 2011

Pethealth Inc. (TSX:PTZ) ("Pethealth" or "the Company") today announced Financial Highlights:

Quarter ended 31March 2011

• Total revenue for the quarter ended March 31, 2011 was $7.96 million, down 5% from Q1 2010.
• Net income, before taxes, was $746,000 vs. $645,000, up 16% over the prior year.
• Net income, after taxes, for the quarter was $605,000 ($0.001 per share after giving effect to the $585,000 dividend payment made in the first quarter) compared to the prior year's after tax net income of $557,000 (($0.002) per share after giving effect to the $585,000 dividend payment made in the first quarter of 2010), up 9%.
• EBITDA (see non IFRS accounting measures) for the quarter was $1.21 million, up 9% from the same period in the prior year.
• Adjusted EBITDA (see non IFRS accounting measures) was $1.23 million for the quarter, up 20% from the same period in the prior year.
• The 5% and 3% appreciation of the Canadian dollar against the US dollar and the British pound respectively had a significant impact on comparative year over year results.

Transition to IFRS
This reporting period is the first under International Financial Reporting Standards (IFRS). A comprehensive summary of all the changes, including reconciliations of Canadian GAAP financial statements to those prepared under IFRS is presented in Note 22 "Transition to IFRS" of the Company's unaudited March 31, 2011 Condensed Consolidated Interim Financial Statements.

Adopting IFRS did not impact the cash the Company generates or how it conducts its businesses. Additionally, the transition to IFRS did not have a significant impact on the Company's reported results for the current or comparative quarters but did however have an impact on its accounting policies, the most significant of which relate to the Company's translation of foreign currency balances upon the consolidation of its US subsidiaries and its calculation of share based compensation expenses.

All results and balances reported in the release, including 2010 comparative results and balances, have been presented under IFRS. 

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