DCAP Group Reports Record Year-End Financial Results; Company Achieves Successful Turnaround with Net Income Of More Than $1 Million; Revenue Rises 44%
HEWLETT, N.Y.--March 13, 2003--DCAP Group, Inc. (OTCBB: DCAP), the largest chain of independent storefront insurance agencies in the Northeast, today announced that net income for the year ended December 31, 2002 was a record $1,046,007, or $0.09 per diluted share, compared to a net loss of $929,551, or ($0.08) per diluted share, in the same period a year ago.Revenue for the year climbed 44% to $3,783,729 from $2,615,306 in 2001.
Year-end results include approximately four months of operations of the Barry Scott Companies, representing 20 storefront locations in New York. DCAP acquired Barry Scott from a subsidiary of The Progressive Corporation on August 30, 2002. In addition, fiscal 2002 includes the earnings from the operation and gain on the sale of its Puerto Rico hotel.
Barry Goldstein, chairman and chief executive officer of DCAP Group, said, "2002 was a watershed year for DCAP. After suffering through a string of losses over many years, DCAP has achieved record profits of more than $1 million in 2002 - quite a feat in a challenging economic period.
"Since my appointment as CEO in March 2001, we have implemented a strategic model to capitalize on the growing need for more flexible, competitive automobile insurance products and complement them with other proprietary products that provide value-added benefits for our customers. Our talented and dedicated employees, management team and franchisees all have worked incredibly hard to make this turnaround successful and our focus now is to build on this strong platform that we have created for future performance.
"The results of our wholly owned premium finance subsidiary, Payments, Inc., have been outstanding. In 2002, Payments, Inc., recorded revenue of $1,309,808 compared to $259,454 in 2001, an increase of more than 400%.
"In addition, the successful acquisition of the Barry Scott Companies from Progressive in 2002 significantly expands our geographic footprint throughout Central New York State.
"Our success in agency operations and premium finance provides substantial growth opportunities and enhances the DCAP franchise value. The recent sale of non-core assets in Puerto Rico, which resulted in an after tax gain of $312,920, provided additional working capital to drive our aggressive expansion plan. Our balance sheet reflects working capital of $904,232 at December 31, 2002, compared to a working capital deficiency of $598,263 at December 31, 2001.
"Based on our robust performance throughout 2002, DCAP is poised to become a leading broad-based automobile insurance provider and finance distribution network. We expect our recent accomplishments to carry forward and provide increased shareholder value in 2003 and beyond," Goldstein said.
About DCAP Group
DCAP Group, Inc. is the largest chain of independent storefront insurance agencies in the Northeast. With 73 locations throughout the Northeast, DCAP is focused on building its business into a community-based, one-stop financial services center. The Company offers several services to its retail customers at the most competitive rates with a complete portfolio of insurance and related products and services, including premium financing and roadside assistance programs. DCAP currently provides car, motorcycle, homeowner, business and life insurance products from a number of major carriers and also offers tax return preparation services. More information is available at the Company's website, www.dcapgroup.com.
Forward Looking Statements
Statements in this press release, other than purely historical information, including the comments regarding the Company's future plans and objectives and expected operating results, and statements of the assumptions underlying such statements, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained herein are based on certain assumptions that may not be correct. They are subject to all of the risks and uncertainties incident to the Company's business that are described in the reports and statements filed by the Company with the Securities and Exchange Commission, including (among others) those listed in the Company's Form 10-KSB.
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DCAP GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended
December 31,
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2002 2001
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REVENUES:
Commissions and fees $2,473,921 $2,350,094
Premium finance revenue 1,309,808 259,454
Other operating departments - 5,758
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3,783,729 2,615,306
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NET INCOME (LOSS) $1,046,007 $ (929,551)
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NET INCOME (LOSS) PER COMMON SHARE
Basic and Diluted:
Income (loss) from continuing operations $ 0.06 $ (0.09)
Income from operations of discontinued
subsidiary - 0.01
Gain on disposition of discontinued
subsidiary 0.03 -
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Net income (loss) $ 0.09 $ (0.08)
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