Automobile Protection Corporation Reports Q2 Revenue
4 August 1997
Automobile Protection Corporation - APCO Announces Record Revenues and Net Income for its Second Quarter and Six Months
ATLANTA, Aug. 4 -- Automobile Protection Corporation
(APCO) announced record revenues and net income for its second
quarter ended June 30, 1997. Revenues for the quarter were $23,797,029
compared to $17,726,638 for 1996, an increase of 34%. Net income was $885,089
compared to $725,868 for 1996, an increase of 22%. EPS was $0.08 compared to
$0.07 for 1996.
For the six months ended June 30, 1997, revenues were $43,892,343 compared
to $32,078,926 for 1996, an increase of 37%. Net income was $1,514,392
compared to $965,844 for 1996, an increase of 57%. EPS was $0.13 compared to
$0.09 for 1996.
Larry Dorfman, President & CEO, stated, "We are pleased to report that all
time records were set for revenues and net income this quarter and also that
we were able to exceed consensus analyst net income estimates.
"We experienced strong growth in the EasyCare(R) Certified Pre-Owned
Vehicle Program which was launched late last year. This is a market leading
program designed to enable automobile dealers to compete effectively against
used car superstores. Additionally, we once again experienced excellent
growth in the Honda and Acura EasyCare(R) programs. APCO is clearly
benefiting from its position as a provider of high customer satisfaction
products to consumers. In addition to recruiting new dealers to our programs,
we are emphasizing training and development at all of our dealerships. We
believe that the training and development aspect of the business is integral
to our customer satisfaction goals and also to increasing production from each
dealer.
"We are actively marketing our recreational vehicle service contracts and
expect to see this segment grow in the third quarter. We are also really
excited about several new programs we are planning for 1998 and hope to
announce them during the third quarters."
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: To the extent that this news release discusses financial
projections, information or expectations about our products or markets, or
otherwise makes statements about the future, our statements are forward
looking and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from the statements made. These
factors include, but are not limited to, the competitive nature of the
industry in which some competitors have significantly greater financial
resources and name recognition than the Company, the availability of insurance
coverage at competitive rates and of insurance funds to make claims payments,
the Company's dependence on independent sales representatives, dealers and a
major automobile manufacturer, the cyclical nature of the automobile industry,
and other risks detailed in the Company's Form 10-K that has been filed with
the Securities & Exchange Commission in connection with its 1996 year.
APCO, established in 1984, and its subsidiary, The Aegis Group, Inc., are
leading marketers and administrators of products and services to automobile
and recreational vehicle dealers which are designed to enhance customer
satisfaction and dealership profitability. The Company's core business is the
marketing and administration of the EasyCare(R) Certified Pre-Owned Vehicle
Program, Vehicle Service Contracts and Recreational Vehicle Service Contracts.
Other APCO press releases are available through Company News On-Call by
fax, 800-758-5804, ext. 100756.
AUTOMOBILE PROTECTION CORPORATION - APCO
CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED
JUNE 30, 1997 and 1996 (UNAUDITED)
1997 1996
Revenues $23,797,029 $17,726,638
Cost of sales:
Premium and taxes 16,710,796 12,460,360
Commissions and other costs 2,236,584 1,447,322
Total cost of sales 18,947,380 13,907,682
Total 4,849,649 3,818,956
Expenses:
Compensation, selling and administrative 3,568,624 2,708,803
Depreciation and amortization 110,000 107,000
Interest, dividend and other income (259,064) (167,715)
Total 3,419,560 2,648,088
Income before provision for income taxes 1,430,089 1,170,868
Provision for income taxes 545,000 445,000
Net income $ 885,089 $ 725,868
Net income per share $ 0.08 $ 0.07
Number of shares used in computing
net income per share 11,457,000 10,983,000
AUTOMOBILE PROTECTION CORPORATION - APCO
CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED
JUNE 30, 1997 and 1996 (UNAUDITED)
1997 1996
Revenues $43,892,343 $32,078,926
Cost of sales:
Premium and taxes 30,887,412 22,699,760
Commissions and other costs 3,883,925 2,488,451
Total cost of sales 34,771,337 25,188,211
Total 9,121,006 6,890,715
Expenses:
Compensation, selling and administrative 6,955,320 5,448,354
Depreciation and amortization 214,500 206,294
Interest, dividend and other income (493,206) (332,777)
Total 6,676,614 5,321,871
Income before provision for income taxes 2,444,392 1,568,844
Provision for income taxes 930,000 603,000
Net income $ 1,514,392 $ 965,844
Net income per share $ 0.13 $ 0.09
Number of shares used in computing
net income per share 11,432,000 10,884,000
SOURCE Automobile Protection Corporation