CCC Information Services Group Inc. Reports First Quarter Results
CHICAGO--May 3, 2001--CCC Information Services Group Inc. , through its wholly-owned subsidiary CCC Information Services Inc., a leading provider of business solutions to the automobile claims industry, today announced the results for the first quarter of 2001 and reported strong profitability in CCC U.S."We are pleased to report that CCC U.S., our core tools business, reported earnings ahead of expectations for the quarter with operating profits of $9.7 million, up 18.2% from last year," said Githesh Ramamurthy, Chairman and CEO of CCC Information Services Inc. "This is just one example of how focused we are on successfully leveraging our core competencies and assets. I am also pleased to announce the progress we are making at DriveLogic as we prepare to launch three products during the third quarter of 2001."
Revenues for the quarter from continuing operations totaled $47.4 million, including CCC U.S. revenues of $46.4 million (up 3.2%). Operating income from continuing operations totaled $1.8 million, including CCC U.S. operating income of $9.7 million (up 18.2%), DriveLogic losses of $7.5 million, and CCC International losses of $0.5 million. Net losses from continuing operations totaled $2.8 million, or $0.13 per share, including equity in net losses from Enterstand of $2.7 million. Total net losses for the quarter of $9.8 million, or $0.45 per share, included a loss from discontinued operations of $7.0 million, or $0.32 per share, related to the exit of CCC Consumer Services Inc.
First Quarter Results
| -- | CCC U.S. business continued to provide consistently strong earnings with operating income of $9.7 million, up 18.2% from first quarter 2000. EBITDA for the quarter was $12.2 million, up $1.8 million (17.2%) from prior year. |
| -- | Revenues for CCC U.S. grew to $46.4 million, up $1.5 million from the first quarter of 2000. |
| -- | Investment and progress continued at DriveLogic, including negotiation with a number of prospective customers for three products set for launch in third quarter 2001. |
| -- | Announced the exit of CCC Consumer Services Inc., CCC's U.S.-based claims outsourcing and policy fulfillment business with a net earnings charge of approximately $7.0 million and anticipated cash costs related to the exit are projected at $3.4 million. This has been accounted for as a discontinued operation. For the full year 2000, CSI reported operating losses of $5.4 million. |
"The first quarter results from our core U.S. tools business are consistent with the expectations we set for 2001 last quarter, which targeted CCC U.S.' annual EBITDA of $40 million and operating margins of 20%. Currently, we are on pace with this plan," Ramamurthy continued. "Our progress in DriveLogic continues with the focus of delivering three products to market in the third quarter of 2001, resulting in slightly less revenue this year than originally anticipated. With auto repair costs on the rise, continuing profit pressures on insurance companies, and pressure increasing from consumers to provide the best service at lower costs, our customers are increasingly looking for solutions that provide efficiency and better service for consumers. It is this need that DriveLogic is positioned to fill. We are very encouraged from the activity over the last few months of its ability to fill this need."
CCC Information Services Group Inc.
Consolidated Operating Results and Selected Balance Sheet Data
(In thousands, except per share amounts)
Three Months Ended
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March 31,
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2001 2000
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(Unaudited) (Unaudited)
Revenues:
CCC U.S. $46,394 $44,935
CCC International 996 2,745
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Net revenue 47,390 47,680
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Expenses:
Production and customer support 9,309 10,228
Commissions, royalties and licenses 2,496 3,366
Selling, general and administrative 22,982 19,425
Depreciation and amortization 3,102 2,530
Product development and programming 7,743 5,741
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Total operating expenses 45,632 41,290
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Operating income 1,758 6,390
Interest expense (1,251) (650)
Other income, net 286 4,377
CCC Capital Trust minority interest expense (150) --
Equity in losses of ChoiceParts (876) --
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Income(loss) before income taxes (233) 10,117
Income tax benefit(provision) 105 (4,991)
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Income(loss) from continuing operations
before equity losses (128) 5,126
Equity in net losses of affiliates (2,692) (813)
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Income(loss) from continuing operations (2,820) 4,313
Income(loss) from discontinued operations,
net of tax (6,982) 222
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Net income(loss) $(9,802) $ 4,535
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Per Share Data:
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Income(loss) per common share - basic from:
Continuing operations $ (0.13) $ 0.19
Discontinued operations (0.32) 0.01
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Income(loss) per common share - basic $ (0.45) $ 0.20
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Income(loss) per common share - diluted from:
Continuing operations $ (0.13) $ 0.19
Discontinued operations (0.32) 0.01
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Income(loss) per common share - diluted $ (0.45) $ 0.20
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Weighted average common shares outstanding
- Basic 21,768 22,149
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- Diluted 21,768 22,811
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March 31, December 31,
2001 2000
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Selected Consolidated Balance Sheet Data (Unaudited)
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Total assets $97,819 $97,859
Long-term debt $53,000 $42,000
CCC Capital Trust preferred securities $12,150 $ --
Stockholders' equity(deficit) $(5,473) $ 2,118
CCC Information Services Group Inc.
Consolidated Operating Results by Segments
(In thousands)
Three Months Ended
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March 31,
--------
2001 2000
---- ----
(Unaudited) (Unaudited)
CCC US with Shared Services
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Net revenue $46,394 $44,935
Operating expenses (36,715) (36,746)
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Operating income $ 9,679 $ 8,189
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DriveLogic
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Net revenue $ -- $ --
Operating expenses (7,466) (1,783)
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Operating loss $(7,466) $(1,783)
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CCC International
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Net revenue 996 2,745
Operating expenses (1,451) (2,761)
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Operating loss $ (455) $ (16)
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CCC Consolidated - Continuing Operations
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Net revenue $47,390 $47,680
Operating expenses (45,632) (41,290)
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Operating income $ 1,758 $ 6,390
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