CCC Information Services Reports Third Quarter Results
29 October 1999
CCC Information Services Reports Third Quarter Results
CHICAGO--Oct. 28, 1999--CCC Information Services Group Inc. , the leading provider of business solutions to the automobile claims industry, today announced 7.5% revenue growth for its third quarter ended September 30, 1999.
Third Quarter Events
- Revenues increased to $51.6 million.
- Operating income totaled $3.7 million.
- EPS of $0.03.
- Pathways Appraisal and Image Library products released to the
market.
Quarterly Results
In announcing the results, Githesh Ramamurthy, Chief Executive Officer, said, "While the 3rd quarter results reflect continued revenue growth, favorable contract renewals and a greater contribution from new initiatives, our financial results were unacceptable."
Third quarter 1999 revenues of $51.6 million were $3.6 million, or 7.5%, higher than the same quarter last year. The increase in revenues was principally due to continued growth in the Company's Consumer Services business, in both the U.S. and Europe.
Third quarter operating income of $3.7 million declined $0.9 million from the same quarter last year. Operating expenses increased $4.5 million, or 10.3%, reflecting the growth in the Consumer Services business as well as internal system infrastructure and human resources expenditures.
Equity in net losses from affiliates totaled $0.8 million related to the European joint venture between CCC and Hearst Communications Inc., which was established in the fourth quarter of 1998.
Third quarter 1999 earnings per share, applicable to common stock on a diluted basis was $0.03 versus earnings per share of ($0.02) in the third quarter of 1998. Excluding non-cash losses from InsurQuote, the earnings per share for the third quarter of 1998 was $0.10 versus earnings per share of $0.03 in the third quarter of 1999.
Outlook
Mr. Ramamurthy commented on the Company's performance during the latest quarter and its outlook for future quarters, "We are performing a detailed review across the entire business to improve financial performance. The endorsement by our customers, as demonstrated by the upgrade to Pathways by over 13,000 collision repair facilities and contract renewals by several major insurance carriers, gives us a strong foundation on which to build and optimism about the growth opportunities for the business."
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.
Consolidated Operating Results and
Selected Consolidated Balance Sheet Data
(In thousands, except per share amounts)
Three Months Ended Year-to-Date Period Ended
September 30, September 30,
------------------- ---------------------
(Unaudited) (Unaudited)
1999 1998 1999 1998
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Revenues:
Insurance services $25,872 $25,393 $ 76,793 $76,287
Automotive services 16,266 16,464 50,010 46,779
Consumer processing
services 9,511 6,191 25,723 15,101
Other - - - 719
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Net revenue 51,649 48,048 152,526 138,886
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Expenses:
Production and
customer support 16,577 12,854 45,726 33,596
Commissions,
royalties and
licenses 3,858 5,540 12,708 16,385
Selling, general
and administrative 19,421 16,006 58,453 44,198
Depreciation and
amortization 2,589 2,405 7,515 6,846
Product development
and programming 5,487 6,644 17,457 19,710
Claims settlement
relocation - - - 1,707
------- ------- ------- -------
Operating expenses 47,932 43,449 141,859 122,442
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Operating income 3,717 4,599 10,667 16,444
Interest expense (412) (61) (793) (126)
Other income, net 175 172 403 634
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Income before income
taxes 3,480 4,710 10,277 16,952
Income tax provision (2,099) (2,125) (4,836) (7,333)
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Net income before
equity losses 1,381 2,585 5,441 9,619
Equity in net losses of
affiliates (814) (3,203) (5,810) (7,420)
Minority share in
losses of
subsidiaries 1 14 1 14
------- ------- ------- -------
Net income (loss) 568 (604) (368) 2,213
Dividends and accretion
on preferred stock - 6 (2) (185)
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Net income (loss)
applicable to common
stock $ 568 $ (598) $(370) $2,028
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Per Share Data:
Net income (loss)
applicable to common
stock
- Basic $ 0.03 $(0.02) $(0.02) $0.08
======= ======= ======= =======
- Diluted $ 0.03 $(0.02) $(0.02) $0.08
======= ======= ======= =======
Weighted average common
and common Equivalent
shares outstanding
- Basic 22,429 24,998 23,172 24,833
======= ======= ======= =======
- Diluted 22,670 25,388 23,478 25,440
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Selected Consolidated Balance Sheet Data
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September 30, December 31,
1999 1998
----------- -----------
(Unaudited)
Total assets $85,467 $79,018
Mandatorily redeemable preferred stock 688
Stockholders' equity 13,595 35,303