Interstate National Dealer Services, Inc. Announces Second Quarter Fiscal 1999 Results
8 June 1999
Interstate National Dealer Services, Inc. Announces Second Quarter Fiscal 1999 Results
MITCHEL FIELD, N.Y.--June 8, 1999--Interstate National Dealer Services, Inc. today announced its second quarter results for the period ended April 30, 1999.Revenues for the three months ended April 30, 1999 increased approximately 17% to $13,749,522, compared to $11,792,534 for the same period a year earlier. Net income for the three months ended April 30, 1999 was $749,267, or $0.15 per share on 5,034,595 diluted weighted average shares outstanding compared to net income of $746,602, or $0.15 per share on 4,961,539 diluted weighted average shares outstanding for the comparable period a year earlier.
Revenues for the six months ended April 30, 1999 rose approximately 14% to $25,284,013 compared to $22,100,709 for the six months ended April 30, 1998. Net income for the six months ended April 30, 1999 was $1,240,708, or $0.25 per share on 5,041,978 diluted weighted average shares outstanding compared to $1,252,855, or $0.25 per share on 4,980,100 diluted weighted average shares outstanding for the six months ended April 30, 1998 which excludes $300,000, or $0.06 per fully diluted share, received as the result of a settlement of a dispute.
The increase in revenues for the six months ended April 30, 1999 was primarily due to: (i) an increase in the recognition of deferred contract revenue as a result of an increase in the total number of unexpired service contracts under administration; and (ii) an increase in administrative and insurance fees resulting from an increase in the number of service contracts accepted for administration by the Company in fiscal 1999.
Interstate is a leading nationwide provider of service contracts and extended warranties, primarily for new and used cars and recreational vehicles, as well as watercraft, manufactured housing, motorcycles and other power sport vehicles. Please visit our websites: http://www.inds.com for Company information and http://www.Interstateautomall.com for the most comprehensive listing on the Internet of everything auto-related.
This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Report on Form 8-K filed with the Securities and Exchange Commission on December 23, 1996.
INTERSTATE NATIONAL DEALER SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Six Months For the Three Months
Ended April 30, Ended April 30,
1999 1998 1999 1998
Revenues $25,284,013 $22,100,709 $13,749,522 $11,792,534
Operating income 1,196,446 1,381,833 814,463 877,493
Other income 812,722 (1)1,179,966 407,001 349,969
Income before income
taxes 2,009,168 2,561,799 1,221,464 1,227,462
Net income $ 1,240,708 $ 1,552,855 $ 749,267 $ 746,602
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Net income per share:
Basic $ .27 (1)$ .33 $ .16 $ .16
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Weighted average
shares outstanding 4,659,051 4,627,357 4,665,070 4,631,845
========= ========= ========= =========
Diluted $ .25 (1)$ .31 $ .15 $ .15
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Weighted average
shares outstanding 5,041,978 4,980,100 5,034,595 4,961,539
========= ========= ========= =========
(1) Includes $500,000, or $0.06 per share after taxes, received in
fiscal 1998 as the result of the settlement of a dispute.
CONSOLIDATED BALANCE SHEETS
April 30, October 31,
1999 1998
(Unaudited)
Cash and cash equivalents(2) $ 38,612,774 $ 37,331,242
Working capital 38,810,904 39,073,654
Total assets 58,116,455 53,406,741
Total stockholders' equity 19,407,399 18,115,563
(2) Including United States Treasury Bills, at cost