Pethealth Inc.’s revenue grew by 3 percent in 2011 compared to the year-ago period despite a 5 percent decline in pet insurance revenue, the Canadian company reported yesterday.
In April 2011, Pethealth completed a restructuring of its ShelterCare insurance program delivered through North American animal welfare organizations. The process reduced both the non-cash component of its pet insurance revenue and the program’s marketing expenses, while increasing net income and cash flows. Total revenue from the company’s pet insurance segment decreased from $23.4 million in 2010 to $22.3 million in 2011, but increased by 4 percent in the 4th quarter, from $5.6 million in 2010 to $5.9 million in 2011.
Meanwhile, the company’s non-insurance segment, including animal welfare software, pet recovery database services, and online retail, grew by 24 percent in 2011 from $8.8 million to $10.9 million. The segment also grew by 32 percent in the 4th quarter, from $2.2 million in 2010 to $2.9 million in 2011.
Sales through the company’s online store, thepetangstore.com, grew by 166 percent from 2010 to 2011. Sales of pet medications comprised about 69 percent of the store’s 2011 sales of $879,000. Fourth quarter sales through thepetangostore.com increased 158 percent to $258,000 in 2011 compared to the year-ago period.
The number of animal welfare organizations licensed by the Oakville, Ontario-based company’s PetPoint software program increased by 13 percent as of Dec. 31, 2011, compared to the same date in 2010. The number of intakes and adoptions completed through the software increased by 11 percent and 13 percent, respectively, in 2011 versus the prior year. Intakes and adoptions increased by 10 percent and 18 percent, respectively, in the 4th quarter of 2011 compared to the year-ago period.
In 2011 Pethealth sold 1,323,235 RFID microchips in the U.S., Canada, and the U.K., a 6 percent increase over the prior year, and revenue from microchip sales for 2011 increased 10 percent from the prior year to $7.71 million. Fourth quarter microchip sales increased by 12 percent to 328,183 in 2011 compared to the year ago period, and revenue from sales increased 19 percent to $1.96 million.
Total pet and pet owner registrations in the 24PetWatch database surpassed 5.26 million by Dec. 31, 2011, representing an increase of more than 1.12 million registered cats and dogs, or 27 percent, compared to those registered at the end of 2010.
As a whole, Pethealth reported net earnings of $906,000 on revenues of $8.8 million for its 4th quarter ended Dec. 31, 2011, compared with earnings of $748,000 on revenues of $7.8 million in the year-ago period. For the year 2011, the company reported net earnings of $2.8 million on revenue of $33.2 million compared with earnings of $2.4 million on revenues of $32.2 million in the prior year.