Interstate National Dealer Services Announces Fiscal 1999 Results
18 January 2000
Interstate National Dealer Services, Inc. Announces Fiscal 1999 Results; Revenues Increase 14% to a New Record
MITCHEL FIELD, N.Y.--Jan. 18, 2000--Interstate National Dealer Services, Inc. today announced year-end results for the period ended October 31, 1999.Revenues for the year ended October 31, 1999 increased approximately 14% to a record $56,151,613, compared to $49,283,426 for the same period a year earlier. Net income for the year ended October 31, 1999 was $2,814,807, or $0.57 per share on 4,980,000 diluted weighted average shares outstanding compared to net income of $3,303,802, or $0.67 per share on 4,960,939 diluted weighted average shares outstanding for the comparable period a year earlier. The previous fiscal year net income includes $300,000, or $0.06 per share, received as the result of a settlement of a dispute.
Mr. Chester J. Luby, Chairman and CEO of Interstate, stated, "For the seventh year in a row we have achieved record revenue. Profits were below last year's level as a result of expenses associated with our investment in UAUTOBID.com, Interstate's wholly-owned unique Internet car buying site and the absence of the one time income generated from the settlement of a dispute in fiscal 1998. Absent these two items, Interstate would have again reported record earnings. In 1999 we continued to see an increase in the number of service contracts written and the attendant fee income. Moreover, as the number of service contracts under administration increased we also realized additional recognition of deferred contract revenue."
Mr. Luby added, "Selling, general and administrative expenses have been closely controlled and, excluding the UAUTOBID.com-related expenses, were maintained at 44% of revenue, the same level recorded in fiscal 1998. Interest income, meanwhile, rose nearly $387,000 to nearly $1.9 million. We view our ability to generate significant interest income for our shareholders as one of Interstate's strengths. Interstate is extremely strong financially with no long term debt."
Mr. Luby concluded, "Interstate continued to show good growth and position itself for the future. We operate in a very competitive environment but Interstate has shown its ability to thrive under these conditions and we expect to do so in the future. UAUTOBID.com offers our shareholders a low risk way of participating in the emerging Internet marketplace for the purchase of new and used vehicles. We are optimistic about FY2000 and expect to report another successful year."
A conference call to discuss Interstate's fiscal 1999 results will take place on Tuesday, January 18th at 4:30 pm (ET). The toll free number is 1-800-633-8298.
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 information on the Company and http://www.uautobid.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
FOR THE YEARS ENDED OCTOBER 31, 1999 AND 1998
1999 1998
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Revenues $56,151,613 49,283,426
Operating income 2,719,596 3,473,179
Other income 1,854,802 (a)1,968,296
Income before provision for income taxes 4,574,398 5,441,475
Net income $2,814,807 $3,303,802
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Net Income Per Share:
Basic $ 0.60 $ 0.71
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Weighted average shares outstanding 4,664,632 4,635,301
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Diluted $ 0.57 $ 0.67
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Weighted average shares outstanding 4,980,000 4,960,939
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(a) Includes $500,000 received in the first quarter as the result of
a settlement of a dispute.
CONSOLIDATED BALANCE SHEETS
AS OF OCTOBER 31, 1999 AND 1998
1999 1998
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Cash, treasury bills
and marketable securities $ 50,626,697 $ 37,331,242
Working capital 42,638,101 39,073,654
Total assets 68,661,087 53,406,741
Total stockholders' equity 20,924,415 18,115,563