CCC Information Services Reports First Quarter Results
22 April 1999
CCC Information Services Reports First Quarter Results
CHICAGO--April 22, 1999--CCC Information Services Group Inc. , the leading provider of business solutions to the automobile claims industry, today announced 11.7% revenue growth for its first quarter ended March 31, 1999.
First Quarter Events
- Revenues increased to $49.9 million.
- Operating income totaled $6.3 million.
- A new strategic partner invested $20.0 million in InsurQuote on
March 31, 1999.
- Pro-Forma E.P.S. results of $0.14 before consolidation of
InsurQuote results.
Quarterly Results
In announcing the results, Dave Phillips, Chairman and Chief Executive Officer, said, "The first quarter operating profit results reflect a return to double digit margins. We have been diligent in keeping a lid on the expense base, while we focus on improving our internal processes and drive our revenue initiatives."
First quarter 1999 revenues of $49.9 million were $5.2 million, or 11.7% higher than the same quarter last year. The increase in revenues was principally due to continued growth in the Company's Consumer Services business, formerly known as outsourcing, as well as growth in the digital imaging product and collision estimating software licensing.
First quarter operating income of $6.3 million declined $0.8 million or 11.7% from the same quarter last year. Quarter-over-quarter operating margin declined from 16.0% in 1998 to 12.7% in 1999. Operating expenses increased $6.1 million or 16.1%, reflecting the growth in the consumer services business and continued growth in expenditures to improve service levels.
Equity in net losses from affiliates, all of which are non-cash, totaled $4.5 million and included $4.2 million associated with recording 100% of the net losses of InsurQuote, an investment the Company made in February, 1998. As a result of the new $20 million investment in InsurQuote, no further losses are expected to be recorded by CCC for the rest of 1999. The other $0.3 million in equity losses relate to the European joint venture between CCC and Hearst Communications Inc. which was established in the fourth quarter of 1998.
First quarter 1999 loss per share, applicable to common stock on a diluted basis was ($0.04) versus earnings per share of $0.12 in the first quarter of 1998. Before the non-cash loss from InsurQuote, which will no longer be reflected in succeeding quarters, the earnings per share for the first quarter of 1999 was $0.14 versus earnings per share of $0.17 in the first quarter of 1998.
Outlook
Mr. Phillips commented on the Company's performance during the latest quarter and its outlook for future quarters, "During the quarter we have substantially added to our managerial strength, made significant strides at improving the process by which we support our customer base, and have our program well on track to deliver the $5 million of annualized cost savings that we promised. We are taking a hard look at how we operate the ACCESS business and getting ready to process our first casualty claims with our partners at First Health. We are looking to the fourth quarter as a period where our initiatives will come together; our cost initiatives, the bodily injury business and a product delivery into the UK marketplace."
Some of the statements contained in this release are based on current expectations. Some of these statements are forward-looking and actual results may differ materially. Please see the company's offering prospectus and 1998 Annual Report on Form 10-K for a discussion of associated risks.
CCC Information Services Group Inc. is the automotive claims industry's leading provider of business solutions. Connecting people, processes and information, CCC's innovative technology-based capabilities ensure that the right information is always available - at the right time and to the right person - to make the right business decision.
CCC Information Services Group Inc.
Condensed Operating Results and Selected Balance Sheet Data
Three Month Period Ended March 31, 1999
(In thousands, except per share amounts)
Three Month
Period Ended
Condensed Operating Results March 31, 1999
--------------------------- ----------------------------
(Unaudited)
1999 1998
----------------------------
Revenues $ 49,909 $ 44,691
Operating Expenses 43,590 37,535
----------------------------
Operating Income 6,319 7,156
Interest Expense (195) (64)
Other Income, net 39 350
----------------------------
Income before income taxes 6,163 7,442
Income tax provision (2,679) (3,162)
----------------------------
Net income before equity losses 3,484 4,280
Equity in net losses of affiliates (4,495) (1,181)
----------------------------
Net income (1,011) 3,099
Dividends and accretion on preferred stock (1) (94)
----------------------------
Net income applicable to common stock $ (1,012)$ 3,005
============================
Per Share Data:
---------------
Net income applicable to common stock
-Basic $ (0.04)$ 0.12
============================
-Diluted $ (0.04)$ 0.12
============================
Weighted average common and common
equivalent shares outstanding
-Basic 23,720 24,638
============================
-Diluted 24,135 25,418
============================
March 31, December 31,
Selected Balance Sheet Data 1999 1998
----------------------------
(unaudited)
--------------
Total Assets $ 70,646 $ 78,746
Mandatorily redeemable preferred stock 685 688
Stockholders' equity 34,620 35,303