Automobile Protection Corporation Announces Record Q3 Results
29 October 1998
Automobile Protection Corporation Announces Record Third Quarter Results
ATLANTA, Oct. 28 -- Automobile Protection Corporation
(APCO) announced record results for the third quarter ended
September 30, 1998.
For the quarter ended September 30, 1998, revenues increased 24% to
$33,686,000 from $27,088,000; net income increased 45% to $1,952,000 from
$1,342,000 and diluted earnings per share increased 33% to $0.16 from
$0.12.
For the nine months ended September 30, 1998, revenues increased 26% to
$89,559,000 from $70,980,000; net income increased 78% to $5,091,000 from
$2,856,000 and diluted earnings per share increased 64% to $0.41 from
$0.25.
Larry I. Dorfman, President/CEO of APCO stated, "We are very pleased with
the results for this quarter. Revenues and net income set all time records
for the Company. Core EasyCare(R) unit growth continues to be strong. Through
our administrative subsidiary, The Aegis Group, Inc., this quarter's results
included limited production from Banc One Insurance Services Corporation and
Allstate Insurance Company. We are also pleased to have exceeded consensus
EPS estimates for this quarter by $0.02."
Mr. Dorfman added: "We continue to aggressively market our products and
recently expanded our national marketing department to support the independent
sales representatives and to further enhance our dealer training and
development capabilities. APCO and Aegis are actively working on the launch
of several new products and programs for clients such as Manheim Auctions,
Banc One Insurance Services Corporation and Allstate Insurance Company, which
we expect to be important contributors in 1999. Additionally, we are
preparing to market a software product to dealerships, called Service Advisor
Plus by EasyCare(R), which is designed to retain service customers and also
assist dealers in building an internet marketing presence."
Martin J. Blank, Chairman/COO of APCO noted: "APCO was recently honored by
inclusion in the 1998 Forbes list of the 200 Best Small Companies. We were
ranked #71, based on growth and profitability. We are committed to delivering
long term value to our shareholders."
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. 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
Consolidated Statement of Income (Unaudited)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
Revenues $33,686,000 $27,088,000 $89,559,000 $70,980,000
Cost of sales 26,415,000 21,561,000 69,859,000 56,332,000
7,271,000 5,527,000 19,700,000 14,648,000
Expenses:
Compensation,
selling and
administr. 4,570,000 3,566,000 12,549,000 10,521,000
Depreciation
and amortiz. 101,000 111,000 339,000 326,000
Interest, div.
and other
income (499,000) (327,000) (1,268,000) (820,000)
4,172,000 3,350,000 11,620,000 10,027,000
Income before
provision for
income taxes 3,099,000 2,177,000 8,080,000 4,621,000
Provision for
income taxes 1,147,000 835,000 2,989,000 1,765,000
Net income $1,952,000 $1,342,000 $5,091,000 $2,856,000
Net income per
share:
Basic $0.17 $0.13 $0.44 $0.27
Diluted $0.16 $0.12 $0.41 $0.25
Number of shares
used in computing
net income per share:
Basic 11,735,000 10,781,000 11,517,000 10,699,000
Diluted 12,480,000 11,677,000 12,327,000 11,467,000