CCC Information Services Group Inc. Reports $0.20 EPS; Revises Guidance Upwards
CHICAGO--July 23, 2002--CCC Information Services Group Inc. , a leading provider of software and information services to the automotive claims and collision repair industries, today reported net income from continuing operations of $5.3 million, or $0.20 per share, for the second quarter ended June 30, 2002 compared with a net loss from continuing operations of $18.5 million, or a loss of $0.85 per share, in the same quarter of 2001.Revenue for the quarter grew 4.4% versus the same period a year ago, increasing from $46.1 in the second quarter of 2001 to $48.2 for the second quarter of 2002. Excluding the exited International segment, revenues grew 5.3% in the second quarter of 2002 compared to the prior year, rising from $45.8 million to $48.2 million.
Operating income rose to $9.2 million in the second quarter, compared with a loss of $7.0 million as reported in the same quarter of 2001 (or a loss of $1.2 million excluding results of the exited International segment, and the restructuring charges). Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), increased to $11.6 million compared with negative $3.8 million as reported in the second quarter a year ago (or $1.8 million excluding results of the exited International segment, and the restructuring charges).
"The CCC team continued to make progress during the second quarter," said Githesh Ramamurthy, chairman and chief executive officer of CCC Information Services Inc. "Not only did we deliver another strong quarter of financial results, but we also completed development work on a number of new solutions for our customers, and made enhancements to existing products that we believe will provide future revenue growth for CCC."
Revenue for the first half of the year grew 2.3% to $95.7 million from $93.5 million a year earlier (growth was 3.8% excluding the exited International segment). Operating profits for the first half of the year increased to $18.4 million, up from a loss of $5.2 million for the first half a year ago (Operating profits for the first half last year, excluding the exited International segment and the restructuring charges, were $1.0 million).
Based on the first half performance, CCC is raising expectations for the remainder of 2002. Guidance is as follows:
| -- | Revenue for the second half of the year should continue to grow in line with our first half performance. We believe new product launches will provide momentum during the second half of 2002, and into 2003, |
| -- | Operating performance for the second half of the year should approximate the first half of the year, |
| -- | Our new EBITDA target is $42-$44 million for the full year 2002, up from prior guidance of $40 million, |
| -- | We continue to expect capital expenditure of $6 to $9 million for the full year, |
| -- | Earnings per share target is $0.70 to $0.74 for the full year 2002. |
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 Year-to-Date
Ended Period Ended
June 30, June 30,
--------------------------------------------
2002 2001 2002 2001
--------------------------------------------
Revenues:
CCC U.S. $48,178 $45,761 $95,678 $92,155
CCC International -- 367 -- 1,363
--------------------------------------------
Net revenue 48,178 46,128 95,678 93,518
--------------------------------------------
Expenses:
Production and customer
support 7,564 8,639 14,710 17,948
Commissions, royalties
and licenses 2,528 2,512 4,991 5,008
Selling, general and
administrative 19,558 23,279 38,735 46,261
Depreciation and
amortization 2,434 3,136 4,852 6,238
Product development and
programming 6,894 9,319 13,980 17,062
Restructuring charges -- 6,199 -- 6,199
--------------------------------------------
Total operating expenses 38,978 53,084 77,268 98,716
--------------------------------------------
Operating income (loss) 9,200 (6,956) 18,410 (5,198)
Interest expense (168) (1,188) (396) (2,439)
Other income (expense),
net (7) 401 210 687
Loss on investment
securities and note -- (27,595) -- (27,595)
CCC Capital Trust minority
interest expense (461) (384) (909) (534)
Equity in losses of
ChoiceParts investment (50) (795) (342) (1,671)
--------------------------------------------
Income (loss) from
continuing operations
before income taxes 8,514 (36,517) 16,973 (36,750)
Income tax (provision)
benefit (3,218) 17,957 (6,461) 18,062
--------------------------------------------
Income (loss) from
continuing operations
before equity losses 5,296 (18,560) 10,512 (18,688)
Equity in net income
(losses) of affiliate -- 79 -- (2,613)
--------------------------------------------
Income (loss) from
continuing operations 5,296 (18,481) 10,512 (21,301)
Income (loss) from
discontinued operations,
net of tax -- -- -- (6,982)
--------------------------------------------
Net income(loss) $ 5,296 $ (18,481) $ 10,512 $ (28,283)
============================================
Per Share Data:
--------------------------
Income (loss) per common
share - basic from:
Continuing operations $ 0.21 $ (0.85) $ 0.41 $ (0.98)
Discontinued operations -- -- -- (0.32)
--------------------------------------------
Income (loss) per common
share - basic $ 0.21 $ (0.85) $ 0.41 $ (1.30)
============================================
Income(loss) per common
share - diluted from:
Continuing operations $ 0.20 $ (0.85) $ 0.40 $ (0.98)
Discontinued operations -- -- -- (0.32)
--------------------------------------------
Income (loss) per common
share - diluted $ 0.20 $ (0.85) $ 0.40 $ (1.30)
============================================
Weighted average common
shares outstanding
- Basic 25,826 21,794 25,763 21,781
============================================
- Diluted 26,767 21,794 26,468 21,781
============================================
CCC INFORMATION SERVICES GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except share amounts)
June 30, December 31,
2002 2001
---- ----
(Unaudited) (Audited)
ASSETS
Cash................................ $768 $766
Accounts receivable (net of
reserves of $2,497 and $2,288 at
June 30, 2002 and December 31, 2001,
respectively)...................... 12,652 11,346
Income tax receivable............... 13,103 --
Current portion deferred
income taxes....................... -- 5,322
Other current assets................ 6,788 6,461
------- -------
Total current assets.............. 33,311 23,895
Property and equipment (net of
accumulated depreciation of $30,254
and $25,376 at June 30, 2002 and
December 31, 2001, respectively)... 12,307 13,487
Goodwill............................ 4,896 4,896
Deferred income taxes (net of
valuation allowance of $11,489 at
June 30, 2002 and
December 31, 2001)................. 11,164 18,587
Investments......................... 235 302
Other assets........................ 1,546 1,027
------- -------
Total assets...................... $63,459 $62,194
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Book overdraft...................... $1,432 $1,205
Accounts payable.................... 7,751 7,658
Accrued expenses.................... 22,251 28,570
Income taxes payable................ 2,095 --
Current portion of long-term debt... 807 421
Deferred revenues................... 5,193 6,297
------- -------
Total current liabilities......... 39,529 44,151
Long-term debt...................... 411 7,145
Deferred revenues................... 34 66
Other liabilities................... 3,559 3,737
Net liabilities of
discontinued operations............ 475 536
------- -------
Total liabilities................. 44,008 55,635
------- -------
Company obligated mandatorily
redeemable preferred securities of
subsidiary trust holding solely
company-guaranteed debentures...... 13,551 13,370
------- -------
Common stock ($0.10 par value,
40,000,000 shares authorized,
25,860,637 and 25,503,567 shares
outstanding at June 30, 2002 and
December 31, 2001, respectively)... 2,984 2,967
Additional paid-in capital.......... 125,404 124,188
Accumulated deficit................. (75,075) (85,587)
Accumulated other
comprehensive loss................. (10) (10)
Note receivable from officer........ (1,200) --
Treasury stock, at cost ($0.10 par
value, 4,094,665 and 4,286,665 common
shares in treasury at June 30, 2002
and December 31, 2001,
respectively)...................... (46,203) (48,369)
------- -------
Total stockholders'
equity (deficit)................. 5,900 (6,811)
------- -------
Total liabilities and stockholders'
equity (deficit)................. $63,459 $62,194
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