Warrantech Reports Third Quarter Results
29 January 1998
Warrantech Reports Third Quarter Results
STAMFORD, Conn., Jan. 29 -- Warrantech Corporation
today reported gross revenues of $53.2 million for the
third quarter ended December 31, 1997, a 26% increase over gross revenues of
$42.1 million for the same quarter last year. Net income for the period ended
December 31, 1997 was $1.0 million or $0.08 per share, compared to
$1.8 million or $0.14 per share as of December 31, 1996.
Warrantech Chairman and Chief Executive Officer, Joel San Antonio stated,
"The Company made substantial infrastructure investments in both Warrantech
Home and Warrantech International to accelerate pending business which is
expected to close in the fourth quarter of fiscal 1998."
San Antonio concluded that he is confident Warrantech will conclude the
year with both top-line and bottom-line consistent with internal growth
targets.
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 nine months For the three months
ended December 31, ended December 31,
1997 1996 1997 1996
Gross revenues $156.7 $ 116.8 $ 53.2 $ 42.1
Income from operations 5.7 6.2 1.4 2.8
Gain on sale of J.V. -- 1.9 -- --
Income before taxes 6.3 8.4 1.6 3.0
Net income $3.9 $5.3 $1.0 $1.8
Net income per share:
Basic $0.30 $0.40 $ 0.08 $0.14
Fully diluted $0.25 $0.34 $ 0.06 $0.12
Average number of shares
outstanding during the period:
Basic 13,228,056 13,014,242 13,284,760 13,064,092
Fully diluted 15,785,414 15,528,601 15,786,572 15,606,166
Warrantech Corporation and Subsidiaries
Condensed Balance Sheet
(millions of dollars)
December 31, March 31,
1997 1996
(Unaudited) (Audited)
Current assets $57.7 $46.2
Property & equipment, net 12.5 10.1
Other assets 11.7 9.8
Total Assets $81.9 $66.1
Current liabilities $42.6 $32.6
Deferred revenues 6.3 5.0
Long term debt & rent obligations 3.0 3.2
Total Shareholders' Equity 30.0 25.3
Total Liabilities &
Shareholders' Equity $81.9 $66.1
SOURCE Warrantech Corporation