2024 Q2 Form 10-Q Financial Statement

#000137128524000120 Filed on May 03, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q4
Revenue $314.8M $306.1M $295.9M
YoY Change 16.35% 19.43% 20.26%
Cost Of Revenue $274.5M $269.9M $255.8M
YoY Change 13.82% 17.35% 20.45%
Gross Profit $40.27M $36.23M $40.06M
YoY Change 37.1% 37.5% 19.06%
Gross Profit Margin 12.79% 11.83% 13.54%
Selling, General & Admin $33.13M $31.52M $30.58M
YoY Change -2.29% -26.12% -7.42%
% of Gross Profit 82.26% 87.0% 76.33%
Research & Development $8.190M $6.960M $5.969M
YoY Change 56.54% 42.04% -14.18%
% of Gross Profit 20.34% 19.21% 14.9%
Depreciation & Amortization $4.376M $3.785M $3.024M
YoY Change 34.52% 18.21% 4.38%
% of Gross Profit 10.87% 10.45% 7.55%
Operating Expenses $45.69M $42.26M $39.58M
YoY Change 7.79% -16.75% -7.71%
Operating Profit -$5.471M -$6.137M $487.0K
YoY Change -58.2% -74.94% -105.28%
Interest Expense $3.655M $3.596M -$3.776M
YoY Change 24.32% 50.65% 125.84%
% of Operating Profit -775.36%
Other Income/Expense, Net $3.220M $2.843M $1.256M
YoY Change 54.96% 49.47% -16.49%
Pretax Income -$5.906M -$6.890M -$2.033M
YoY Change -57.67% -72.41% -78.14%
Income Tax -$44.00K -$38.00K $130.0K
% Of Pretax Income
Net Earnings -$5.862M -$6.852M -$2.163M
YoY Change -57.26% -72.35% -76.7%
Net Earnings / Revenue -1.86% -2.24% -0.73%
Basic Earnings Per Share -$0.14 -$0.16
Diluted Earnings Per Share -$0.14 -$0.16 -$0.05
COMMON SHARES
Basic Shares Outstanding 42.02M shares 41.81M shares 41.55M shares
Diluted Shares Outstanding 42.08M shares 41.92M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $277.2M $275.2M $277.2M
YoY Change 17.43% 12.49% 24.62%
Cash & Equivalents $124.3M $146.5M $147.5M
Short-Term Investments $152.9M $128.7M $129.7M
Other Short-Term Assets $15.70M $17.08M $17.02M
YoY Change -16.84% -2.33% 19.47%
Inventory
Prepaid Expenses
Receivables $285.9M $278.5M $267.9M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $578.9M $570.8M $562.1M
YoY Change 11.19% 11.84% 19.82%
LONG-TERM ASSETS
Property, Plant & Equipment $104.0M $104.4M $103.7M
YoY Change 6.16% 10.47% 14.28%
Goodwill $43.03M $42.98M $43.71M
YoY Change -1.93% -0.11% 4.12%
Intangibles $15.93M $17.22M $18.75M
YoY Change -26.36% -25.2% -22.0%
Long-Term Investments $14.12M $13.01M $300.0K
YoY Change 43.81% 54.11% 0.0%
Other Assets $16.74M $18.01M $18.92M
YoY Change -7.8% -7.83% -0.11%
Total Long-Term Assets $217.1M $218.7M $220.9M
YoY Change 3.57% 5.37% 9.05%
TOTAL ASSETS
Total Short-Term Assets $578.9M $570.8M $562.1M
Total Long-Term Assets $217.1M $218.7M $220.9M
Total Assets $795.9M $789.5M $782.9M
YoY Change 9.01% 9.97% 16.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.630M $8.348M $10.51M
YoY Change -4.16% 13.06% 10.92%
Accrued Expenses $34.67M $30.47M $34.05M
YoY Change 15.97% 3.09% 4.4%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.350M $1.350M $1.350M
YoY Change 22.73% 6.89% 22.39%
Total Short-Term Liabilities $355.8M $351.6M $344.5M
YoY Change 7.61% 12.68% 18.94%
LONG-TERM LIABILITIES
Long-Term Debt $127.6M $127.5M $127.6M
YoY Change 23.92% 23.85% 86.65%
Other Long-Term Liabilities $4.495M $4.627M $4.487M
YoY Change -8.28% -7.9% -9.68%
Total Long-Term Liabilities $132.1M $132.1M $4.487M
YoY Change 22.46% 22.37% -9.68%
TOTAL LIABILITIES
Total Short-Term Liabilities $355.8M $351.6M $344.5M
Total Long-Term Liabilities $132.1M $132.1M $4.487M
Total Liabilities $490.1M $486.1M $479.2M
YoY Change 11.02% 14.89% 30.82%
SHAREHOLDERS EQUITY
Retained Earnings -$229.0M -$223.1M -$216.3M
YoY Change 9.0% 13.63% 26.05%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $16.53M $16.53M $16.53M
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares
Shareholders Equity $305.8M $303.4M $303.7M
YoY Change
Total Liabilities & Shareholders Equity $795.9M $789.5M $782.9M
YoY Change 9.01% 9.97% 16.57%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q4
OPERATING ACTIVITIES
Net Income -$5.862M -$6.852M -$2.163M
YoY Change -57.26% -72.35% -76.7%
Depreciation, Depletion And Amortization $4.376M $3.785M $3.024M
YoY Change 34.52% 18.21% 4.38%
Cash From Operating Activities $6.856M $2.434M $17.51M
YoY Change -301.35% -135.47% 1618.16%
INVESTING ACTIVITIES
Capital Expenditures $2.880M $3.065M $3.970M
YoY Change -39.18% -40.88% -27.53%
Acquisitions
YoY Change
Other Investing Activities -$24.84M -$516.0K -$13.48M
YoY Change 3028.09% 416.0% -46.24%
Cash From Investing Activities -$27.72M -$2.737M -$17.45M
YoY Change 401.3% -108.07% -42.88%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -958.0K -$286.0K 566.0K
YoY Change 930.11% -100.85% -96.14%
NET CHANGE
Cash From Operating Activities 6.856M $2.434M 17.51M
Cash From Investing Activities -27.72M -$2.737M -17.45M
Cash From Financing Activities -958.0K -$286.0K 566.0K
Net Change In Cash -21.82M -$902.0K 623.0K
YoY Change 141.71% -101.48% -104.2%
FREE CASH FLOW
Cash From Operating Activities $6.856M $2.434M $17.51M
Capital Expenditures $2.880M $3.065M $3.970M
Free Cash Flow $3.976M -$631.0K $13.54M
YoY Change -148.85% -94.76% -403.61%

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Nature of Operations and Significant Accounting Policies<div style="margin-bottom:5pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Description of Business and Basis of Presentation</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the "Company") provides medical insurance for cats and dogs in the United States, Canada, Continental Europe, and Australia. The Company's data-driven, vertically-integrated approach enables the Company to provide pet owners with products that the Company believes are the highest value medical insurance, priced specifically for each pet’s unique characteristics. </span></div><div style="margin-bottom:5pt;margin-top:5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The financial data as of December 31, 2023 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), stockholders' equity and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 27, 2024 (the 2023 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2023 10-K. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period.</span></div><div style="margin-bottom:5pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2023 10-K for additional discussion of these estimates and assumptions.</span></div>
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