CCC Information Services Group Posts 5 Cent Per Share Profit in 3rd Quarter; Focus on U.S. Business Drives Return to Profitability
CHICAGO--Nov. 7, 2001--CCC Information Services Group Inc. today reported net income of $1.2 million, or $0.05 per share, for the third quarter ended September 30, compared with a net loss of $7.6 million, or $0.35 per share, in the same quarter of 2000.Operating income rose to $3.9 million in the third quarter, compared with a loss of $5.0 million in the same quarter of 2000.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter totaled $6.7 million compared with a negative $1.9 million a year ago. The third quarter EBITDA also exceeded the level of each of the previous five quarters.
"CCC returned to a level of solid profitability in the third quarter, reflecting the decisive steps we took in the last several quarters," said Githesh Ramamurthy, chairman and chief executive officer of CCC Information Services Inc. "We made a decision to focus on our U.S. auto claims and collision-repair business, wind down our international operations and discontinue certain unprofitable domestic operations."
"These actions, combined with steady growth in our U.S. business, enabled CCC to post its first profit in four quarters," Ramamurthy continued. "We are seeing promising increases in revenue, operating earnings and cash flows in our U.S. business."
In the third quarter, revenue in the U.S. business was $46.3 million, an increase of 5.5 percent, compared with $43.9 million in the third quarter of 2000.
"Our belief is that the great majority of costs associated with exiting our claims services and international businesses are behind us," said Reid Simpson, executive vice president and chief financial officer. "We enter the fourth quarter fundamentally stronger than a year ago."
"Our EBITDA performance, which increased dramatically during the last year, underscores the strength of our business," said Ramamurthy.
Nine-month revenues in 2001 in the U.S. business were $138.5 million, an increase of 5.2 percent compared with $131.7 million in the year-ago period.
CCC cited the following highlights:
-- Received approval from the Board of Directors to raise $20
million of equity in the form of a rights offering. Two of
CCC's largest institutional shareholders have agreed to
purchase their pro-rata share of the rights offering, as well
as all of the shares not subscribed for by the Company's other
stockholders or warrant holders, up to an aggregate of $20
million. Additionally, the company received commitments from
two of its existing lenders for a new $30 million credit
facility to replace the present bank arrangements. These two
transactions will help to provide CCC with a sound financial
foundation and position the Company for growth.
-- Continued integration of the DriveLogic product suite into
CCC's U.S. business offering. CCC continues to capitalize on
its technology investments in the DriveLogic brand product
suite, including a state-of-the-art technology platform from
which CCC can rapidly develop and deploy new products. CCC
also has begun market testing of the DriveLogic brand product
suite with several of CCC's insurance company customers with
anticipated market availability next year.
-- Released new versions of key products into the marketplace
including Pathways(R)version 3.4 and QAAR Plus(TM) version1.2.
-- Completed divestiture of CCC Consumer Services Inc.'s business
with the sale of its policy services and loss reporting
operation to San Francisco-based Esurance Inc. and the sale of
its claims administration operation to Los Angeles-based David
Morse & Associates.
"Over the last four quarters, we have taken the necessary operational and strategic steps to re-launch CCC on a firm financial footing," Ramamurthy said. "We appreciate the efforts of all our employees -- and thank our customers and stockholders for their support -- during the process of restoring CCC to profitability."
About CCC
CCC Information Services Group Inc. , headquartered in Chicago, is a leading supplier of advanced software, communications systems, Internet and wireless-enabled technology solutions to the automotive claims and collision repair industries. Its technology-based products and services optimize efficiency throughout the entire claims management supply chain and facilitate communication amongst 14,700 collision repair facilities, 350 insurance companies, and a range of industry participants. For more information about CCC Information Services, visit our Web site at www.cccis.com.
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.
CCC Information Services Group Inc.
Consolidated Operating Results
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
CCC US $ 46,328 $ 43,887 $ 138,483 $ 131,688
CCC International 264 1,895 1,627 6,253
------ ------ ------ ------
Net revenue 46,592 45,782 140,110 137,941
------ ------ ------ ------
Expenses:
Production and customer
support 7,225 10,399 25,173 31,674
Commissions, royalties
and licenses 2,528 4,484 7,536 10,998
Selling, general and
administrative 23,120 23,003 69,381 63,393
Depreciation and
amortization 2,895 3,019 9,133 8,303
Product development
and programming 6,973 8,413 24,035 20,075
Restructuring Charges - - 6,199 -
Litigation settlement - 1,425 - 1,425
----- ----- ----- ------
Operating expenses 42,741 50,743 141,457 135,868
----- ------ ------ ------
Operating income (loss) 3,851 (4,961) (1,347) 2,073
Interest expense (1,145) (864) (3,584) (2,253)
Other income, net 44 145 731 4,747
CCC Capital Trust
minority interest
expense (410) - (944) -
Gain on exchange of
investment securities - - - 18,437
Loss on investment
securities and note - - (27,595) -
Equity in losses of
ChoiceParts (481) (476) (2,152) (788)
----- ----- ----- -----
Income (loss) from continuing
operations before
income taxes 1,859 (6,156) (34,891) 22,216
Income tax benefit
(provision) (946) 2,658 17,116 (124)
----- ----- ----- -----
Income (loss) from
continuing operations
before equity losses 913 (3,498) (17,775) 22,092
Equity in net losses
of affiliate 259 (3,657) (2,354) (7,966)
----- ----- ----- -----
Income (loss) from
continuing operations 1,172 (7,155) (20,129) 14,126
Income (loss) from
discontinued operations,
net of income taxes - (447) (6,982) 64
----- ----- ----- -----
Net income (loss) $ 1,172 $ (7,602) $ (27,111) $ 14,190
===== ===== ====== ======
Per Share Data:
Income (loss) per common
share -- basic from:
Continuing operations $ 0.05 $ (0.33) $(0.92) 0.64
Discontinued operations - (0.02) (0.32) -
----- ----- ----- -----
Income (loss) per common
share -- basic $ 0.05 $ (0.35) $(1.24) $ 0.64
===== ===== ===== =====
Income (loss) per common
share -- diluted from:
Continuing operations $ 0.05 $ (0.33) $(0.92) 0.64
Discontinued operations - (0.02) (0.32) -
----- ----- ----- -----
Income (loss) per common
share -- diluted $ 0.05 $ (0.35) $(1.24) $ 0.64
===== ===== ===== =====
Weighted average shares outstanding:
- Basic 21,821 21,613 21,794 21,906
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- Diluted 21,895 21,613 21,794 22,221
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