CCC Information Services Group Inc. Reports First Quarter Results and Strong Profitability in Core CCC U.S. Business
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."
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the company's filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements, and startup businesses are inherently uncertain. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The company has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise any forward-looking statement.
About CCC
CCC Information Services Inc., a wholly owned subsidiary of CCC Information Services Group , headquartered in Chicago, IL, a leading supplier of advanced software and communications systems to the automotive claims industry, including information and network services for a wide variety of claims management solutions. Its value-added, technology-based products and services increase efficiency and facilitate communication among more than 14,000 collision repair facilities, 350 insurance companies, and a range of industry participants. For more information about CCC Information Services Inc., visit our Web site at www.cccis.com; or contact Jeanene O'Brien at 312-229-3083, or Susan Jablonski at 312-229-2830.
About DriveLogic
DriveLogic is focused on providing Internet and wireless-enabled technology solutions to the auto claims and collision repair industries. DriveLogic has the unique market advantage of being able to leverage CCC's connectivity platforms, which already processes approximately 900,000 auto claims-related transactions per day. By developing market-driven technology solutions and capitalizing on the industry expertise, customer relationships and market leadership of CCC, DriveLogic aims to optimize efficiencies, bringing value to parties throughout the entire supply chain. For more information about DriveLogic, contact Michael Roberts at DriveLogic, 312-228-8278, or visit the DriveLogic Web site at http://www.drivelogic.com.
Editor's note: A live Webcast to discuss the first quarter 2001 earnings results will be available on Thursday, May 3 at 11:00 a.m. EST at www.cccis.com/investor/confcall.htm.
A recording of the conference call will also be available on Thursday, May 3, beginning at 2:30 p.m. EST, and will be available through May 11, at 12:59 a.m. EST. To access the replay, simply call 800-475-6701 within the U.S., or 320-365-3844 outside the U.S. The access code number is 581231. A replay of the Webcast will also be available at www.cccis.com/investor/confcall.htm.
CCC Information Services Group Inc. Consolidated Operating Results and Selected Balance Sheet Data (In thousands, except per share amounts) Three Months Ended ------------------ March 31, --------- 2001 2000 ---- ---- (Unaudited) (Unaudited) Revenues: CCC U.S. $46,394 $44,935 CCC International 996 2,745 ------ ------ Net revenue 47,390 47,680 ------ ------ 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 ------ ------ Total operating expenses 45,632 41,290 ------ ------ 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) -- ------ ------ Income(loss) before income taxes (233) 10,117 Income tax benefit(provision) 105 (4,991) ------ ------ Income(loss) from continuing operations before equity losses (128) 5,126 Equity in net losses of affiliates (2,692) (813) ------ ------ Income(loss) from continuing operations (2,820) 4,313 Income(loss) from discontinued operations, net of tax (6,982) 222 ------ ------ Net income(loss) $(9,802) $ 4,535 ======= ======= Per Share Data: --------------- Income(loss) per common share - basic from: Continuing operations $ (0.13) $ 0.19 Discontinued operations (0.32) 0.01 ------ ------ Income(loss) per common share - basic $ (0.45) $ 0.20 ======= ====== Income(loss) per common share - diluted from: Continuing operations $ (0.13) $ 0.19 Discontinued operations (0.32) 0.01 ------ ------ Income(loss) per common share - diluted $ (0.45) $ 0.20 ======= ====== Weighted average common shares outstanding - Basic 21,768 22,149 ====== ====== - Diluted 21,768 22,811 ====== ====== March 31, December 31, 2001 2000 ---- ---- Selected Consolidated Balance Sheet Data (Unaudited) ----------------------------------------- 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 ------------------ March 31, -------- 2001 2000 ---- ---- (Unaudited) (Unaudited) CCC US with Shared Services --------------------------- Net revenue $46,394 $44,935 Operating expenses (36,715) (36,746) ------ ------ Operating income $ 9,679 $ 8,189 ======= ======= DriveLogic ---------- Net revenue $ -- $ -- Operating expenses (7,466) (1,783) ------ ------ Operating loss $(7,466) $(1,783) ======= ======= CCC International ----------------- Net revenue 996 2,745 Operating expenses (1,451) (2,761) ------ ------ Operating loss $ (455) $ (16) ======= ======= CCC Consolidated - Continuing Operations ---------------------------------------- Net revenue $47,390 $47,680 Operating expenses (45,632) (41,290) ------ ------ Operating income $ 1,758 $ 6,390 ======= =======