CCC Information Services Group Inc. Posts $0.20 EPS and Solid First Quarter Operating Income and EBITDA
CHICAGO--April 23, 2002--CCC Information Services Group Inc. , a leading provider of software and other technology to the automobile-claims and collision-repair industries, today reported net income from continuing operations of $5.2 million, or $0.20 per share, for the first quarter ended March 31, 2002 compared with a net loss from continuing operations of $2.8 million, or $0.13 per share, in the same quarter of 2001.Operating income rose to $9.2 million in the first quarter, compared with $1.8 million as reported in the same quarter of 2001 (or $2.2 million excluding results of the exited International segment). Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), increased to $11.6 million compared with $4.9 million as reported in the first quarter a year ago (or $5.2 million excluding results of the exited International segment).
Revenues from the Company's U.S. business in the first quarter of 2002 increased 2.4% from the first quarter a year ago, rising from $46.4 million to $47.5 million.
"These levels of operating income and EBITDA demonstrate our continued progress," said Githesh Ramamurthy, chairman and chief executive officer of CCC Information Services Inc. "We are pleased with our financial performance during the first quarter, and feel the results confirm that CCC is a company capable of generating strong, consistent cash flows and solid operating margins."
CCC's net debt level continued to decline and ended the quarter at $4.7 million.
CCC's expectations for the second quarter and the remainder of 2002 include:
| -- | Revenue for the second quarter that will continue to grow in line with first quarter performance, with new product launches providing momentum in the second half of 2002, and into 2003 |
| -- | Operating income and EBITDA will be lower in the second and third quarters, compared to the first quarter, due to historical seasonality. However, consistent with prior guidance, and considering the performance in the first quarter, the company is encouraged about the remainder of the year and its ability to achieve the target EBITDA of $40 million for the full year 2002 |
| -- | Capital expenditures for the year in the $6.0 to $9.0 million range, and |
| -- | Continued strong cash flow |
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 approximately 15,000 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. Specific factors that might cause actual results to differ from our expectations include, but are not limited to, competition in the automotive claims and collision repair industries, the ability to develop new products and services, the ability to protect trade secrets and proprietary information, the ability to generate the cash flow necessary to meet the Company's obligations, the outcome of certain legal proceedings, and other factors. 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
------------------
March 31,
---------
2002 2001
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Revenues:
CCC U.S. $47,500 $46,394
CCC International -- 996
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Net revenue 47,500 47,390
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Expenses:
Production and customer support 7,146 9,309
Commissions, royalties and licenses 2,463 2,496
Selling, general and administrative 19,177 22,982
Depreciation and amortization 2,418 3,102
Product development and programming 7,086 7,743
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Total operating expenses 38,290 45,632
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Operating income (loss) 9,210 1,758
Interest expense (228) (1,251)
Other income (expense), net 217 286
CCC Capital Trust minority interest expense (448) (150)
Equity in losses of ChoiceParts investment (292) (876)
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Income (loss) from continuing operations
before income taxes 8,459 (233)
Income tax benefit (provision) (3,243) 105
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Income(loss) from continuing operations
before equity losses 5,216 (128)
Equity in net losses of affiliate -- (2,692)
------ ------
Income(loss) from continuing operations 5,216 (2,820)
Income(loss) from discontinued operations,
net of tax -- (6,982)
------ ------
Net income(loss) $ 5,216 $(9,802)
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Per Share Data:
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Income(loss) per common share - basic from:
Continuing operations $ 0.20 $ (0.13)
Discontinued operations -- (0.32)
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Income(loss) per common share - basic $ 0.20 $ (0.45)
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Income(loss) per common share - diluted
from:
Continuing operations $ 0.20 $ (0.13)
Discontinued operations -- (0.32)
------ ------
Income(loss) per common share - diluted $ 0.20 $ (0.45)
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Weighted average common shares outstanding
- Basic 25,699 21,768
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- Diluted 26,138 21,768
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CCC INFORMATION SERVICES GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except share amounts)
March 31, December 31,
2002 2001
---- ----
(Unaudited) (Audited)
ASSETS
Cash........................................ $ 766 $ 766
Accounts receivable (net of reserves of
$2,397 and $2,288 at March 31, 2002 and
December 31, 2001, respectively)........... 11,533 11,346
Current portion deferred income taxes....... 11,252 5,322
Other current assets........................ 7,782 6,461
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Total current assets...................... 31,333 23,895
Property and equipment (net of accumulated
depreciation of $27,797 and $25,376 at
March 31, 2002 and December 31, 2001,
respectively).............................. 12,580 13,487
Goodwill.................................... 4,896 4,896
Deferred income taxes....................... 12,693 18,587
Investments................................. 285 302
Other assets................................ 1,065 1,027
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Total assets.............................. $62,852 $62,194
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Book overdraft.............................. $ 1,723 $ 1,205
Accounts payable............................ 6,468 7,658
Accrued expenses............................ 22,271 28,570
Income taxes payable........................ 3,244 --
Current portion of long-term debt........... 967 421
Deferred revenues........................... 6,088 6,297
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Total current liabilities................. 40,761 44,151
Long-term debt.............................. 4,530 7,145
Deferred revenues........................... 46 66
Other liabilities........................... 3,731 3,737
Net liabilities of discontinued operations.. 534 536
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Total liabilities......................... 49,602 55,635
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Company obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely company-guaranteed
debentures................................. 13,454 13,370
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Common stock ($0.10 par value, 40,000,000
shares authorized, 25,773,814 and
25,503,567 shares outstanding at
March 31, 2002 and December 31, 2001,
respectively).............................. 2,975 2,967
Additional paid-in capital.................. 124,605 124,188
Accumulated deficit......................... (80,371) (85,587)
Accumulated other comprehensive loss........ (10) (10)
Notes receivable from officers.............. (1,200) --
Treasury stock, at cost ($0.10 par value,
4,094,665 and 4,286,665 common shares in
treasury at March 31, 2002 and
December 31, 2001)......................... (46,203) (48,369)
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Total stockholders' equity (deficit)...... (204) (6,811)
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Total liabilities and stockholders' equity
(deficit)................................ $62,852 $62,194
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