CCC Information Reports Q4 and Full Year 2000 Results
CHICAGO--Jan. 25, 2001--CCC Information Services Group Inc. , through its wholly-owned subsidiary CCC Information Services Inc., the leading provider of business solutions to the automobile claims industry, today announced the results for the fourth quarter and full year of 2000 and a funding commitment from Capricorn Investors III, L.P., one of CCC's existing shareholders.In addressing the challenges faced in 2000, Githesh Ramamurthy, Chairman and CEO of CCC Information Services Inc. said, "We made some tough decisions throughout the year, designed to refocus the business on our core competencies and assets. As a result, we have created a strong platform for 2001 and beyond. Specifically, we exited an under-performing business, began executing our e-commerce strategy through DriveLogic(TM), and have supplemented the strong cash flow generated by our core CCC U.S. Tools business with a commitment for an additional $15 million of funding from an existing investor."
The Company expects to close the sale to Capricorn Investors III, L.P. of $15 million of Trust Preferred securities and warrants to purchase 1.2 million shares of common stock at $10 per share. The transaction is subject to completion of definitive documentation and other customary closing conditions and is expected to close within the next 30 days.
Fourth Quarter Results
| -- | Fourth quarter 2000 revenues of $51.6 million included CCC U.S. revenues (up 3.4% on an underlying basis to $45.2 million), CSI ($4.9 million) and CCC International ($1.5 million). |
| -- | The Company recorded operating losses for the quarter of $11.1 million. CCC U.S. recorded operating income of $8.3 million for the quarter. Excluding non-recurring items of $7.3 million, the Company recorded operating losses of $3.8 million. Non-recurring charges included: $6.0 million of restructuring charges for the shutdown of the D.W. Norris outsourcing business, $1.0 million for litigation settlement, and $0.3 million, net for severance, settlements and asset write-downs. |
| -- | Net losses for the quarter totaled $23.4 million, or $1.08 per share. Excluding non-recurring items, net loss per share was $0.75 for the quarter. |
Full Year 2000 Results
-- Full year revenues totaled $209.8 million, including CCC U.S.
revenue (up 4.3% on an underlying basis) to $176.9 million.
CSI and CCC International revenues were $25.1 million and $7.8
million, respectively.
-- Operating losses for the full year totaled $10.3 million.
Excluding $11.4 million of non-recurring operating expenses,
operating income was $1.1 million. CCC U.S. operating income
of $26.1 million (up 25% from 1999) was offset by operating
losses at DriveLogic ($19.1 million), CCC International ($3.4
million) and CSI ($2.5 million).
-- Net losses for the full year totaled $9.2 million, or $0.42
per share. Excluding non-recurring items, net loss per share
was $0.05 for the full year.
Full Year 2000 Highlights
-- CCC U.S. business continued to provide consistently strong
earnings, cash flow, and growth in its customer base.
Operating income grew by 25% (excluding non-recurring
operating expenses) to $26.1 million, with annual EBIDTA of
$35.7 million.
-- Launched DriveLogic, our e-commerce subsidiary, focused on
developing Internet and wireless-enabled technology solutions
for the auto claims and repair industries and providing
efficiency through collaboration.
-- Announced DriveLogic's strategic relationships with MDSI
Mobile Data Solutions Inc. to offer real-time workforce
management for the North American auto insurance market, and
Cognizant, a provider of technical resources to speed delivery
of product to market.
-- Released DriveLogic's first commercial product, Collision
Repair Solution(TM), an Internet portal that helps repair
facilities market and promote their business.
-- Formed ChoiceParts, LLC, an online parts network along with
the Dealer Services and Claims Solutions Groups of Automatic
Data Processing, Inc. , and The Reynolds and
Reynolds Company .
-- Increased collision repair facility customers to 14,000 - a
Company record.
-- Achieved record transaction volume on EZNet(R) with nearly a
million claims-related transactions processed in a single day.
-- Strengthened the CCC International leadership team, refocused
efforts on the UK business and exited the non-core UK based
outsourcing business (D.W. Norris), to improve profitability
going forward.
Outlook
With a tighter focus on our core competencies, the Company anticipates and has targeted the following results:
-- Improve CCC U.S. operating margins to 20% and EBITDA to $40
million for 2001.
-- Achieve DriveLogic revenues in excess of $15 million, ramping
to an annual rate of $100 million by the end of 2002.
-- Attain DriveLogic profitability by first quarter 2002 and
limit losses in 2001 to the level of those reported in 2000.
-- Reduce CCC International losses and improve profitability by
$5 million in 2001.
-- Manage costs and infrastructure growth in DriveLogic and CCC
International in tandem with our plans to bring new products,
customers and markets on-line in the future.
-- Execute a swift wind-down of D.W. Norris, our UK-based
outsourcing business, with limited 2001 impact.
"We believe the investments we have made in DriveLogic, CCC International, ChoiceParts and our CCC U.S.Tools businesses position us well for growth and continued leadership," said Ramamurthy. "We expect revenue growth in 2001 in excess of 10% from the combination of our CCC U.S. Tools, DriveLogic and CCC International businesses. Furthermore, we expect to deliver positive, consolidated EBITDA in excess of $15 million, including over $40 million from CCC U.S. We believe our efforts in 2000 will help position CCC into a high-technology, high-margin, and top-quality company for 2001 and beyond."
CCC Information Services Group Inc.
Consolidated Operating Results and
Selected Consolidated Balance Sheet Data
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited)
Revenues:
CCC U.S. $45,200 $44,564 $176,888 $173,723
Consumer Services 4,931 8,047 25,140 28,776
CCC International 1,499 2,660 7,752 5,298
------ ------ ------- ------
Net revenue 51,630 55,271 209,780 207,797
------ ------ ------- -------
Expenses:
Production and customer
support 14,310 17,617 62,609 63,343
Commissions, royalties
and licenses 2,546 3,664 13,637 16,372
Selling, general
and administrative 24,594 18,027 91,193 76,480
Depreciation and
amortization 3,410 2,982 12,614 10,497
Product development
and programming 10,952 5,661 31,639 23,118
Restructuring charges 6,017 2,242 6,017 2,242
Litigation settlements 950 -- 2,375 --
------ ------ ------- ------
Total operating expenses 62,779 50,193 220,084 192,052
------ ------ ------- -------
Operating income (loss) (11,149) 5,078 (10,304) 15,745
Interest expense (899) (606) (3,202) (1,399)
Other income, net 363 9 5,113 412
Gain on exchange of
investment securities -- -- 18,437 --
Equity in losses of
ChoiceParts (1,165) -- (1,953) --
------- ------ ------- ------
Income (loss) before
income taxes (12,850) 4,481 8,091 14,758
Income tax benefit
(provision) (2,827) (2,525) (1,612) (7,361)
------- ------- ------- -------
Income (loss) before
equity losses and
minority interest (15,677) 1,956 6,479 7,397
Equity in net losses
of affiliates (7,684) (835) (15,650) (6,645)
Minority share in loss
of subsidiaries 2 (1) 2 --
------ ------- ------ -------
Net income (loss) (23,359) 1,120 (9,169) 752
Dividends and accretion
on preferred stock -- -- -- (2)
------ ------- ------- -------
Net income (loss)
applicable to
common stock $ (23,359) $ 1,120 $ (9,169) $ 750
========== ======== ========= ======
Per Share Data:
Net income (loss)
applicable to
common stock
- Basic $ (1.08) $ 0.05 $ (0.42) $0.03
======== ====== ======== =====
- Diluted $ (1.08) $ 0.05 $ (0.42) $0.03
======== ====== ======== =====
Weighted average common
and common equivalent
shares outstanding
- Basic 21,687 21,920 21,851 22,856
======== ======== ======== ========
- Diluted 21,687 22,225 21,851 23,162
======== ======== ======== ========
December 31, December 31,
2000 1999
---- ----
(Unaudited)
Total assets $98,412 $84,549
Long-term debt $42,000 $24,685
Stockholders' equity $2,192 $15,261
CCC Information Services Group Inc.
Consolidated Operating Results by Segments
(In thousands)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
(Unaudited)(Unaudited)(Unaudited)
CCC U.S. with Shared Services
-----------------------------
Net revenue $45,200 $44,564 $176,888 $173,723
Operating expenses (39,228) (35,992) (150,750) (152,780)
------- ------- -------- --------
Operating income 5,972 8,572 26,138 20,943
Non-recurring operating
expenses 2,360 (1,853) (1,766) (3,059)
------- ------- -------- --------
Operating income - reported 8,332 6,719 24,372 17,884
======= ======= ======== ========
Consumer Services
-----------------
Net revenue 4,931 8,047 25,140 28,776
Operating expenses (6,324) (8,218) (27,620) (29,059)
------- ------- -------- --------
Operating loss (1,393) (171) (2,480) (283)
Non-recurring operating
expenses (2,890) -- (2,890) --
------- ------- -------- --------
Operating loss - reported (4,283) (171) (5,370) (283)
======= ======= ======== ========
CCC International
-----------------
Net revenue 1,499 2,660 7,752 5,298
Operating expenses (1,989) (3,010) (11,138) (6,034)
------- ------- -------- --------
Operating loss (490) (350) (3,386) (736)
Non-recurring operating
expenses (6,785) (389) (6,785) (389)
------- ------- -------- --------
Operating loss - reported (7,275) (739) (10,171) (1,125)
======= ======= ======== ========
DriveLogic
----------
Net revenue -- -- -- --
Operating expenses (7,923) (731) (19,135) (731)
------- ------- -------- --------
Operating loss (7,923) (731) (19,135) (731)
======= ======= ======== ========
CCC Consolidated
----------------
Net revenue 51,630 55,271 209,780 207,797
Operating expenses (55,464) (47,951) (208,643) (188,604)
------- ------- -------- --------
Operating income (loss) (3,834) 7,320 1,137 19,193
Non-recurring operating
expenses(a) (7,315) (2,242) (11,441) (3,448)
------- ------- -------- --------
Operating income
(loss) - reported $(11,149) $5,078 $(10,304) $15,745
======= ======= ======== ========
(a) - Non-recurring operating expenses in the fourth quarter 2000
include restructuring and severance costs of $8.1 million,
write-off on internally developed software of $2.8 million,
litigation settlement of $1.0 million and a settlement gain of
$4.6 million. Non-recurring operating expenses for fourth quarter
of 1999 included a reduction-in-force charge of $2.2 million.