APCO Announces Record Results For The Second Quarter
29 July 1998
Automobile Protection Corporation - APCO Announces Record Results For The Second Quarter
ATLANTA, July 29 -- Automobile Protection Corporation
announces record second quarter results. For the quarter ended
June 30, 1998, revenues increased 26% to $30,060,000 from $23,797,000; net
income increased 100% to $1,771,000 from $885,000 and diluted earnings per
share increased 75% to $0.14 from $0.08.
For the six months ended June 30, 1998, revenues increased 27% to
$55,873,000 from $43,892,000; net income increased 107% to $3,139,000 from
$1,514,000 and diluted earnings per share increased 92% to $0.25 from $0.13.
Larry I. Dorfman, President/CEO of APCO said: "We are pleased to report
another exceptional quarter. The past several months have been very exciting
and demanding as we simultaneously grew the core EasyCare(R) agency business
and commenced work on all of our recently announced agreements. Our
administrative subsidiary, The Aegis Group, Inc., has been assisting Banc One
with the introduction of The One(R) Care vehicle service contract program and
also commenced processing policies and handling claims for Allstate Insurance
Company. Additionally, we have been working closely with Manheim Auto
Auctions to prepare for the launch of the Manheim EasyCare(R) service contract
test program in Georgia. The new projects did not have a significant impact
on this quarter's results, although we are now starting to experience
production from Banc One and Allstate. Growth this quarter came from our
core EasyCare(R) agency business, EasyCare(R) recreational vehicle service
contracts and from the program we administer for American Honda Finance
Corporation. The core EasyCare(R) agency business continues to grow with the
recent additions of large dealership groups such as Sonic Automotive and
Kelley Automotive, which are ranked by Automotive News as the nation's 8th and
38th largest, respectively. The market place continues to associate
EasyCare(R) with high quality coverage and service levels, which we believe is
a major factor in our growth."
APCO, established in 1984, is a leading marketer and administrator of
products and services to automobile and recreational vehicle dealers. The
Company's core business is the marketing and administration of EasyCare(R)
Vehicle Service Contracts and the EasyCare(R) Certified Pre-Owned Vehicle
Merchandising Program. The Company also administers warranty and service
contract products under private labels for financial institutions, an
insurance company and a manufacturer.
"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. The
specific risk factors are described in the Company's Form 10-K that has been
filed with the Securities & Exchange Commission in connection with its 1997
year.
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
(UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
Revenues $30,060,000 $23,797,000
Cost of sales:
Premium and taxes 19,275,000 15,447,000
Commissions and other costs4,200,000 3,500,000
Total cost of sales 23,475,000 18,947,000
6,585,000 4,850,000
Expenses:
Compensation, selling
and administrative 4,071,000 3,569,000
Depreciation
and amortization 120,000 110,000
Interest, dividend
and other income (416,000) (259,000)
3,775,000 3,420,000
Income before provision
for income taxes 2,810,000 1,430,000
Provision for income taxes 1,039,000 545,000
Net income $1,771,000 $885,000
Net income per share:
Basic $0.15 $0.08
Diluted $0.14 $0.08
Number of shares used in computing
net income per share:
Basic 11,604,000 10,681,000
Diluted 12,552,000 11,404,000
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
Revenues $55,873,000 $43,892,000
Cost of sales:
Premium and taxes 35,242,000 28,379,000
Commissions and other costs8,202,000 6,392,000
Total cost of sales 43,444,000 34,771,000
12,429,000 9,121,000
Expenses:
Compensation, selling
and administrative 7,979,000 6,955,000
Depreciation
and amortization 238,000 215,000
Interest, dividend and
other income (769,000) (493,000)
7,448,000 6,677,000
Income before provision
for income taxes 4,981,000 2,444,000
Provision for income taxes 1,842,000 930,000
Net income $3,139,000 $1,514,000
Net income per share:
Basic $0.27 $0.14
Diluted $0.25 $0.13
Number of shares used in computing
net income per share:
Basic 11,408,000 10,658,000
Diluted 12,285,000 11,440,000