Interstate National Dealer Services Announces Q3 Fiscal 1999 Results
14 September 1999
Interstate National Dealer Services Announces Third Quarter Fiscal 1999 Results
MITCHEL FIELD, N.Y.--Sept. 14, 1999--Interstate National Dealer Services, Inc. today announced its third quarter results for the period ended July 31, 1999.Revenues for the three months ended July 31, 1999 increased approximately 11% to $15,343,542, compared to $13,775,114 for the same period a year earlier. Net income for the three months ended July 31, 1999 was $991,064, or $0.20 per share on 4,948,318 diluted weighted average shares outstanding compared to net income of $915,187, or $0.19 per share on 4,942,004 diluted weighted average shares outstanding for the comparable period a year earlier.
Revenues for the nine months ended July 31, 1999 rose approximately 13% to $40,627,555 compared to $35,875,823 for the nine months ended July 31, 1998. Net income for the nine months ended July 31, 1999 was $2,231,772, or $0.45 per share on 5,010,795 diluted weighted average shares outstanding compared to $2,168,042, or $0.44 per share on 4,967,451 diluted weighted average shares outstanding for the nine months ended July 31, 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 nine months ended July 31, 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 administrative fees charged per contract and an increase in the number of service contracts accepted for administration by the Company in fiscal 1999.
Mr. Chester J. Luby, Chairman and CEO, stated, "Interstate continues to enhance its position as a leader in extended service contracts and warranties. Growth in our basic warranty business is steady and could accelerate as our new initiatives take hold, particularly our warranty/lender relationships and our unique consumer-oriented Internet car buying site - UAUTOBID.com."
"As we announced yesterday," Mr. Luby continued, "after extensive beta tests and a careful analysis of the opportunity, Interstate has launched UAUTOBID.com with the Dallas/Ft. Worth, Texas region as the first location in what will be a national roll-out. This exciting venture should increase dealer awareness of Interstate's capabilities and has the potential to add significantly to our basic business. We are all excited about the company's future prospects."
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.uautobid.com, the car buyer's website.
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.
- Tables Follow -
INTERSTATE NATIONAL DEALER SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Nine Months
Ended July 31,
1999 1998
Revenues $ 40,627,555 $ 35,875,823
Operating income 2,336,081 2,502,023
Interest income 1,299,502 1,068,433
Other income, non-recurring -- 500,000
Income before income taxes 3,635,583 4,070,456
Net income $ 2,231,772 $ 2,468,042
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Net income per share:
Basic $ .48 $ * .53
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Weighted average shares
outstanding 4,662,500 4,631,932
========= =========
Diluted $ .45 $ * .50
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Weighted average shares
outstanding 5,010,795 4,967,451
========= =========
For the Three Months
Ended July 31,
1999 1998
Revenues $ 15,343,542 $ 13,775,114
Operating income 1,139,635 1,120,190
Interest income 486,780 388,467
Other income, non-recurring -- --
Income before income taxes 1,626,415 1,508,657
Net income $ 991,064 $ 915,187
========== ==========
Net income per share:
Basic $ .21 $ .20
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Weighted average shares
outstanding 4,669,284 4,640,933
========= =========
Diluted $ .20 $ .19
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Weighted average shares
outstanding 4,948,318 4,942,004
========= =========
* Includes $300,000, or $0.06 per share after taxes, received in
fiscal 1998 as the result of the settlement of a dispute.
CONSOLIDATED BALANCE SHEETS
July 31, October 31,
1999 1998
(Unaudited)
Cash and cash equivalents and
marketable securities $ 47,383,682 $ 37,331,242
Working capital 40,603,893 39,073,654
Total assets 63,851,614 53,406,741
Total stockholders' equity 20,398,463 18,115,563