2016 Q1 Form 10-Q Financial Statement

#000137128516000167 Filed on May 06, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q1
Revenue $42.70M $33.31M
YoY Change 28.19% 29.91%
Cost Of Revenue $35.40M $27.70M
YoY Change 27.8% 32.54%
Gross Profit $7.304M $5.582M
YoY Change 30.85% 17.37%
Gross Profit Margin 17.11% 16.76%
Selling, General & Admin $7.562M $7.348M
YoY Change 2.91% 35.27%
% of Gross Profit 103.53% 131.64%
Research & Development $2.300M $2.800M
YoY Change -17.86% 27.27%
% of Gross Profit 31.49% 50.16%
Depreciation & Amortization $785.0K $570.0K
YoY Change 37.72% 83.87%
% of Gross Profit 10.75% 10.21%
Operating Expenses $9.849M $10.15M
YoY Change -2.93% 32.94%
Operating Profit -$2.545M -$4.564M
YoY Change -44.24% 58.69%
Interest Expense $30.00K $245.0K
YoY Change -87.76% -66.71%
% of Operating Profit
Other Income/Expense, Net $17.00K -$19.00K
YoY Change -189.47% -98.52%
Pretax Income -$2.558M -$4.828M
YoY Change -47.02% -1.43%
Income Tax $14.00K $108.0K
% Of Pretax Income
Net Earnings -$2.600M -$4.900M
YoY Change -46.94% -0.26%
Net Earnings / Revenue -6.09% -14.71%
Basic Earnings Per Share
Diluted Earnings Per Share -$92.86K -$179.5K
COMMON SHARES
Basic Shares Outstanding 28.40M shares 28.09M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q1 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $43.10M $53.80M
YoY Change -19.89% 110.98%
Cash & Equivalents $17.53M $32.49M
Short-Term Investments $25.60M $21.30M
Other Short-Term Assets $2.000M $1.400M
YoY Change 42.86% 27.27%
Inventory
Prepaid Expenses
Receivables $8.500M $7.800M
Other Receivables $0.00 $0.00
Total Short-Term Assets $53.60M $63.06M
YoY Change -15.01% 82.25%
LONG-TERM ASSETS
Property, Plant & Equipment $9.587M $8.618M
YoY Change 11.24% 105.19%
Goodwill
YoY Change
Intangibles $4.865M $4.831M
YoY Change 0.7%
Long-Term Investments $296.0K $900.0K
YoY Change -67.11% 0.0%
Other Assets $38.00K $16.00K
YoY Change 137.5% -99.64%
Total Long-Term Assets $17.28M $14.40M
YoY Change 19.97% -0.01%
TOTAL ASSETS
Total Short-Term Assets $53.60M $63.06M
Total Long-Term Assets $17.28M $14.40M
Total Assets $70.87M $77.46M
YoY Change -8.5% 58.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.027M $1.438M
YoY Change -28.58% -40.08%
Accrued Expenses $2.988M $3.560M
YoY Change -16.07% 31.85%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $23.63M $20.94M
YoY Change 12.84% -23.57%
LONG-TERM LIABILITIES
Long-Term Debt $968.0K $0.00
YoY Change -100.0%
Other Long-Term Liabilities $531.0K $102.0K
YoY Change 420.59% -79.6%
Total Long-Term Liabilities $1.499M $102.0K
YoY Change 1369.61% -99.6%
TOTAL LIABILITIES
Total Short-Term Liabilities $23.63M $20.94M
Total Long-Term Liabilities $1.499M $102.0K
Total Liabilities $26.56M $22.54M
YoY Change 17.84% -58.64%
SHAREHOLDERS EQUITY
Retained Earnings -$76.96M -$62.12M
YoY Change 23.89%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.601M $2.601M
YoY Change 0.0%
Treasury Stock Shares
Shareholders Equity $44.31M $54.92M
YoY Change
Total Liabilities & Shareholders Equity $70.87M $77.46M
YoY Change -8.5% 58.08%

Cashflow Statement

Concept 2016 Q1 2015 Q1
OPERATING ACTIVITIES
Net Income -$2.600M -$4.900M
YoY Change -46.94% -0.26%
Depreciation, Depletion And Amortization $785.0K $570.0K
YoY Change 37.72% 83.87%
Cash From Operating Activities -$1.298M -$4.908M
YoY Change -73.55% 24.16%
INVESTING ACTIVITIES
Capital Expenditures $653.0K $1.590M
YoY Change -58.93% 56.5%
Acquisitions
YoY Change
Other Investing Activities -$290.0K $1.040M
YoY Change -127.88% -7.96%
Cash From Investing Activities -$946.0K -$551.0K
YoY Change 71.69% -575.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.473M -$14.92M
YoY Change -109.87% 2390.32%
NET CHANGE
Cash From Operating Activities -$1.298M -$4.908M
Cash From Investing Activities -$946.0K -$551.0K
Cash From Financing Activities $1.473M -$14.92M
Net Change In Cash -$771.0K -$20.38M
YoY Change -96.22% 359.33%
FREE CASH FLOW
Cash From Operating Activities -$1.298M -$4.908M
Capital Expenditures $653.0K $1.590M
Free Cash Flow -$1.951M -$6.498M
YoY Change -69.98% 30.77%

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0 USD
CY2016Q1 us-gaap Payments For Proceeds From Investments
PaymentsForProceedsFromInvestments
34000 USD
CY2015Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
384000 USD
CY2016Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
0 USD
CY2015Q1 us-gaap Payments To Acquire Held To Maturity Securities
PaymentsToAcquireHeldToMaturitySecurities
3206000 USD
CY2016Q1 us-gaap Payments To Acquire Held To Maturity Securities
PaymentsToAcquireHeldToMaturitySecurities
3959000 USD
CY2015Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1590000 USD
CY2016Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
653000 USD
CY2015Q4 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2016Q1 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2015Q4 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
2193000 USD
CY2016Q1 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
2038000 USD
CY2015Q1 us-gaap Proceeds From Repayments Of Debt
ProceedsFromRepaymentsOfDebt
-14900000 USD
CY2016Q1 us-gaap Proceeds From Repayments Of Debt
ProceedsFromRepaymentsOfDebt
987000 USD
CY2015Q1 us-gaap Proceeds From Sale And Maturity Of Held To Maturity Securities
ProceedsFromSaleAndMaturityOfHeldToMaturitySecurities
4245000 USD
CY2016Q1 us-gaap Proceeds From Sale And Maturity Of Held To Maturity Securities
ProceedsFromSaleAndMaturityOfHeldToMaturitySecurities
3700000 USD
CY2015Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
367000 USD
CY2016Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
486000 USD
CY2015Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
9719000 USD
CY2016Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
9587000 USD
CY2015Q1 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
0 USD
CY2016Q1 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
0 USD
CY2015Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-74385000 USD
CY2016Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-76957000 USD
CY2015Q1 us-gaap Revenues
Revenues
33310000 USD
CY2016Q1 us-gaap Revenues
Revenues
42699000 USD
CY2015Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3651000 USD
CY2016Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3840000 USD
CY2015Q1 us-gaap Share Based Compensation
ShareBasedCompensation
703000 USD
CY2016Q1 us-gaap Share Based Compensation
ShareBasedCompensation
696000 USD
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
1170000 USD
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
6.73
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
112050 shares
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
180373 shares
CY2015Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
29644000 USD
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
28655000 USD
CY2015Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4871949 shares
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4760535 shares
CY2015Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.71
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.87
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
26045000 USD
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
3523513 shares
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
2.48
CY2016Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
2.74
CY2016Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
8.62
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
703000 USD
CY2016Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
696000 USD
CY2016Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
1199911 shares
CY2016Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y0M2D
CY2015Q4 us-gaap Short Term Investments
ShortTermInvestments
25288000 USD
CY2016Q1 us-gaap Short Term Investments
ShortTermInvestments
25567000 USD
CY2016Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
179737 shares
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
45356000 USD
CY2016Q1 us-gaap Stockholders Equity
StockholdersEquity
44308000 USD
CY2015Q1 us-gaap Technology Services Costs
TechnologyServicesCosts
2798000 USD
CY2016Q1 us-gaap Technology Services Costs
TechnologyServicesCosts
2287000 USD
CY2015Q4 us-gaap Treasury Stock Value
TreasuryStockValue
2601000 USD
CY2016Q1 us-gaap Treasury Stock Value
TreasuryStockValue
2601000 USD
CY2015Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
27337302 shares
CY2016Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
27999248 shares
CY2016Q1 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) provides medical insurance plans 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, 2015 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, 2015 included in the Company&#8217;s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February&#160;17, 2016. 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, 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;">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, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements.</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, 2016 and 2015.</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;">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 2015, the FASB issued an ASU amending short-term insurance contract disclosures and requiring more detailed disclosures to enable users of financial statements to understand information relating to liabilities for unpaid claims and claims adjustment expenses. Additionally, the amendments will also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate these liabilities. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. Early adoption of this guidance is permitted, and must be applied retrospectively by providing comparative disclosures for each period presented. The Company plans to adopt this guidance as of January 1, 2016. The Company is in the process of assessing the impact of this guidance.</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. The Company plans to prospectively adopt this guidance as of January 1, 2017. The Company is in the process of assessing the impact of this guidance.</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued an ASU amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the balance sheet. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2019. The Company is in the process of assessing the impact of this guidance.</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Additionally, tax withholding of shares will be allowed to be up to the employees&#8217; maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2017. The Company is in the process of assessing the impact of this guidance.</font></div></div>
CY2016Q1 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, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements.</font></div></div>

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