Warrantech Reports First Quarter Results
4 August 1997
Warrantech Reports First Quarter Results
STAMFORD, Conn., Aug. 4 -- Warrantech Corporation
today reported record gross revenues of $53.3 million for
the first quarter ended June 30, 1997, a 48% increase over gross revenues of
$36.0 million for the same quarter last year. Net income for the quarter
ended June 30, 1997 was $1.3 million or $0.09 per share, compared to $950,000
or $0.08 per share as of June 30 1996, excluding the one time after tax gain
of approximately $1.15 million or $0.08 per share related to the sale of its
international joint venture holdings to its partner American International
Group, Inc. (AIG).
Warrantech Chairman and Chief Executive Officer, Joel San Antonio stated,
"The first quarter was tremendous in terms of growth and progress throughout
all subsidiaries, especially in Warrantech Home, Warrantech Help Desk, and
Warrantech International." He added, "Also during the quarter, Warrantech
Consumer Products Services (WCPS) expanded its efforts with the addition of
John McCraken, who was named Vice President of Sales, which will better enable
the division to take business to the next level. We are already seeing
progress in terms of new account additions and new business presentations."
Mr. San Antonio concluded, "The remainder of year looks promising. We
expect to see continued growth throughout the company, realizing the results
of expanded product offerings and continuous investments made to enhance
service delivery."
Warrantech, through its subsidiaries, administers and markets service
contracts and after-market warranties on automobiles, automotive components,
recreational vehicles, appliances, consumer electronics, homes, computer and
computer peripherals for retailers, distributors and manufacturers. The
Company continues to expand its global penetration, and now provides its
services in the United States, Canada, Mexico, the United Kingdom, Puerto
Rico and Latin America.
"Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995: This release contains forward looking statements that are subject to
risks and uncertainties, including, but not limited to, the impact of
competitive products, product demand and market acceptance risks, reliance on
key strategic alliances, fluctuations in operating results and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission. These risks could cause the Company's actual results for
the current FY and beyond to differ materially from those expressed in any
forward looking statements made by, or on behalf of, the company.
Warrantech Corporation and Subsidiaries
Condensed Consolidated Statement of Operations
(millions of dollars)
Unaudited
For the three months
ended June 30,
1997 1996
Gross revenues $53.3 $36.00
Income from operations 1.9 1.50
Income before taxes 2.1 3.50
One-time after tax gain (a) -- $1.15
Net income 1.3 2.10
Net income per share:
Primary $0.09 $0.16
Fully diluted $0.08 $0.15
Fully diluted (a) $0.08 $0.07
Primary (a) $0.09 $0.08
Average number of shares
outstanding during the period:
Primary 15,543,323 13,644,452
Fully diluted 15,661,561 13,709,868
(a)One-time gain related to the Company's sale of its international joint
venture investment to its partner American International Group, Inc. (AIG)
resulting in an after tax gain of approximately $1.15 million or $0.08 per
share recorded in the first quarter June 30, 1996.
Warrantech Corporation and Subsidiaries
Condensed Balance Sheet
(millions of dollars)
June 30, June 30,
1997 1996
(Unaudited)
Current assets $56.5 $46.2
Property & equipment, net 10.8 10.1
Other assets 10.1 9.8
Total Assets $77.4 $66.1
Current liabilities $42.0 $32.6
Deferred revenues 5.4 5.0
Long term debt & rent obligations 3.2 3.2
Convertible exchangeable
preferred stock -- --
Total Shareholders' Equity 26.8 25.3
Total Liabilities & Shareholders'
Equity $77.4 $66.1
SOURCE Warrantech Corporation