2015 Q1 Form 10-Q Financial Statement

#000137128515000022 Filed on May 07, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1
Revenue $33.31M $25.64M
YoY Change 29.91% 43.71%
Cost Of Revenue $27.70M $20.90M
YoY Change 32.54% 47.18%
Gross Profit $5.582M $4.756M
YoY Change 17.37% 31.82%
Gross Profit Margin 16.76% 18.55%
Selling, General & Admin $7.348M $5.432M
YoY Change 35.27% 20.71%
% of Gross Profit 131.64% 114.21%
Research & Development $2.800M $2.200M
YoY Change 27.27% 144.44%
% of Gross Profit 50.16% 46.26%
Depreciation & Amortization $570.0K $310.0K
YoY Change 83.87% 47.62%
% of Gross Profit 10.21% 6.52%
Operating Expenses $10.15M $7.632M
YoY Change 32.94% 41.33%
Operating Profit -$4.564M -$2.876M
YoY Change 58.69% 60.49%
Interest Expense $245.0K $736.0K
YoY Change -66.71% -836.0%
% of Operating Profit
Other Income/Expense, Net -$19.00K -$1.286M
YoY Change -98.52% 1186.0%
Pretax Income -$4.828M -$4.898M
YoY Change -1.43% 144.9%
Income Tax $108.0K $15.00K
% Of Pretax Income
Net Earnings -$4.900M -$4.913M
YoY Change -0.26% 155.09%
Net Earnings / Revenue -14.71% -19.16%
Basic Earnings Per Share
Diluted Earnings Per Share -$179.5K -$184.2K
COMMON SHARES
Basic Shares Outstanding 28.09M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $53.80M $25.50M
YoY Change 110.98%
Cash & Equivalents $32.49M $10.59M
Short-Term Investments $21.30M $15.00M
Other Short-Term Assets $1.400M $1.100M
YoY Change 27.27%
Inventory
Prepaid Expenses
Receivables $7.800M $7.900M
Other Receivables $0.00 $0.00
Total Short-Term Assets $63.06M $34.60M
YoY Change 82.25%
LONG-TERM ASSETS
Property, Plant & Equipment $8.618M $4.200M
YoY Change 105.19%
Goodwill
YoY Change
Intangibles $4.831M
YoY Change
Long-Term Investments $900.0K $900.0K
YoY Change 0.0%
Other Assets $16.00K $4.400M
YoY Change -99.64%
Total Long-Term Assets $14.40M $14.40M
YoY Change -0.01%
TOTAL ASSETS
Total Short-Term Assets $63.06M $34.60M
Total Long-Term Assets $14.40M $14.40M
Total Assets $77.46M $49.00M
YoY Change 58.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.438M $2.400M
YoY Change -40.08%
Accrued Expenses $3.560M $2.700M
YoY Change 31.85%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $1.200M
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $20.94M $27.40M
YoY Change -23.57%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $25.10M
YoY Change -100.0%
Other Long-Term Liabilities $102.0K $500.0K
YoY Change -79.6%
Total Long-Term Liabilities $102.0K $25.60M
YoY Change -99.6%
TOTAL LIABILITIES
Total Short-Term Liabilities $20.94M $27.40M
Total Long-Term Liabilities $102.0K $25.60M
Total Liabilities $22.54M $54.50M
YoY Change -58.64%
SHAREHOLDERS EQUITY
Retained Earnings -$62.12M
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.601M
YoY Change
Treasury Stock Shares
Shareholders Equity $54.92M -$5.500M
YoY Change
Total Liabilities & Shareholders Equity $77.46M $49.00M
YoY Change 58.08%

Cashflow Statement

Concept 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income -$4.900M -$4.913M
YoY Change -0.26% 155.09%
Depreciation, Depletion And Amortization $570.0K $310.0K
YoY Change 83.87% 47.62%
Cash From Operating Activities -$4.908M -$3.953M
YoY Change 24.16% 195.0%
INVESTING ACTIVITIES
Capital Expenditures $1.590M $1.016M
YoY Change 56.5% -261.27%
Acquisitions
YoY Change
Other Investing Activities $1.040M $1.130M
YoY Change -7.96% 39.51%
Cash From Investing Activities -$551.0K $116.0K
YoY Change -575.0% -35.56%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$14.92M -$599.0K
YoY Change 2390.32% -125.93%
NET CHANGE
Cash From Operating Activities -$4.908M -$3.953M
Cash From Investing Activities -$551.0K $116.0K
Cash From Financing Activities -$14.92M -$599.0K
Net Change In Cash -$20.38M -$4.436M
YoY Change 359.33% -485.74%
FREE CASH FLOW
Cash From Operating Activities -$4.908M -$3.953M
Capital Expenditures $1.590M $1.016M
Free Cash Flow -$6.498M -$4.969M
YoY Change 30.77% 599.86%

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CY2015Q1 us-gaap Payments To Acquire Held To Maturity Securities
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CY2014Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1016000 USD
CY2015Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1590000 USD
CY2014Q4 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2015Q1 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2014Q4 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
1299000 USD
CY2015Q1 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
1448000 USD
CY2014Q1 us-gaap Proceeds From Repayments Of Debt
ProceedsFromRepaymentsOfDebt
0 USD
CY2015Q1 us-gaap Proceeds From Repayments Of Debt
ProceedsFromRepaymentsOfDebt
-14900000 USD
CY2014Q1 us-gaap Proceeds From Sale And Maturity Of Held To Maturity Securities
ProceedsFromSaleAndMaturityOfHeldToMaturitySecurities
3809000 USD
CY2014Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
567000 USD
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
703000 USD
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
1261767 shares
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y4M24D
CY2014Q4 us-gaap Short Term Investments
ShortTermInvestments
22371000 USD
CY2015Q1 us-gaap Proceeds From Sale And Maturity Of Held To Maturity Securities
ProceedsFromSaleAndMaturityOfHeldToMaturitySecurities
4245000 USD
CY2014Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
20000 USD
CY2015Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
367000 USD
CY2014Q4 us-gaap Property Plant And Equipment Net
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7862000 USD
CY2015Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
8618000 USD
CY2014Q1 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
0 USD
CY2015Q1 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
0 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
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-57180000 USD
CY2015Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-62116000 USD
CY2014Q1 us-gaap Revenues
Revenues
25640000 USD
CY2015Q1 us-gaap Revenues
Revenues
33310000 USD
CY2014Q1 us-gaap Selling And Marketing Expense
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2646000 USD
CY2015Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3651000 USD
CY2014Q1 us-gaap Share Based Compensation
ShareBasedCompensation
567000 USD
CY2015Q1 us-gaap Share Based Compensation
ShareBasedCompensation
703000 USD
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
2068000 USD
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
8.79
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
161463 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
57374 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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21116000 USD
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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23564000 USD
CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4833400 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
5112556 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4677592 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.19
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.16
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
20833000 USD
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
3415825 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
1.93
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
1.58
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
7.36
CY2015Q1 us-gaap Short Term Investments
ShortTermInvestments
21330000 USD
CY2015Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
330875 shares
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
59275000 USD
CY2015Q1 us-gaap Stockholders Equity
StockholdersEquity
54917000 USD
CY2014Q1 us-gaap Technology Services Costs
TechnologyServicesCosts
2200000 USD
CY2015Q1 us-gaap Technology Services Costs
TechnologyServicesCosts
2798000 USD
CY2014Q4 us-gaap Treasury Stock Value
TreasuryStockValue
2601000 USD
CY2015Q1 us-gaap Treasury Stock Value
TreasuryStockValue
2601000 USD
CY2013Q4 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
4900000 USD
CY2014Q1 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
6119000 USD
CY2014Q4 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
0 USD
CY2015Q1 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
0 USD
CY2014Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
1524028 shares
CY2015Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
27337302 shares
CY2015Q1 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Nature of Operations and Summary of Significant Accounting Policies</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Description of Business</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) is a direct-to-consumer monthly subscription service provider of a medical plan for cats and dogs throughout the United States, Canada and Puerto Rico.</font></div><div style="line-height:120%;padding-top:6px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Basis of Presentation</font><font style="font-family:inherit;font-size:12pt;"> </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The consolidated balance sheet data as of December 31, 2014 was derived from audited consolidated financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and notes should be read in conjunction with the Company&#8217;s audited consolidated financial statements and accompanying notes for the year ended December 31, 2014 included in the Company&#8217;s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February&#160;24, 2015. The accompanying unaudited consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Company&#8217;s financial position and results of its operations, as of and for the periods presented. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or for any other period.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified within the Company&#8217;s consolidated financial statements from their original presentation to conform to the current period presentation. In addition, amounts in note 8 related to segments have been recast to reflect a change in the composition of the Company&#8217;s segments as described in note 8.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, claims reserve and useful lives of software developed for internal use. Actual results could differ from the estimates used in preparing the consolidated financial statements.</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Income Taxes</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is subject to income taxes in the United States and in Canada. The provision for income taxes reflects the Company's estimated effective tax rate for the year. The difference between this rate and the U.S. federal income tax rate of 35% was primarily due to a full valuation allowance on its U.S. deferred tax assets. </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Accumulated Other Comprehensive Loss</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">There were </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2015 and 2014.</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Insurance Operations</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Effective January 1, 2015, the Company formed a segregated account in Bermuda as part of Wyndham Insurance Company (SAC) Limited (WICL), and entered into a revised fronting and reinsurance arrangement with Omega General Insurance Company (Omega) to include its newly formed segregated account. The Company maintains all risk with the business written in Canada and consolidates the entity in its financial statements. Contractual requirements restrict dividends from this entity until after 2016, at which time dividends will be allowed subject to the Segregated Accounts Company Act of 2000, which allows for dividends only to the extent that the entity remains solvent and the value of its assets remain greater than the aggregate of its liabilities and its issued share capital and share premium accounts.</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recent Accounting Pronouncements</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Insurance contracts are excluded from the scope of this new guidance. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited, and must be applied retrospectively or modified retrospectively.&#160;We do not believe this ASU will have a material impact on our consolidated financial statements.</font></div></div>
CY2015Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified within the Company&#8217;s consolidated financial statements from their original presentation to conform to the current period presentation. In addition, amounts in note 8 related to segments have been recast to reflect a change in the composition of the Company&#8217;s segments as described in note 8.</font></div></div>
CY2015Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, claims reserve and useful lives of software developed for internal use. Actual results could differ from the estimates used in preparing the consolidated financial statements.</font></div></div>

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