Interstate National Dealer Services Announces Q1 Fiscal 2000 Results
9 March 2000
Interstate National Dealer Services, Inc. Announces First Quarter Fiscal 2000 Results
MITCHEL FIELD, N.Y.--March 9, 2000--Interstate National Dealer Services, Inc. today announced its first quarter results for the period ended January 31, 2000.Revenues for the three months ended January 31, 2000 increased approximately 15% to a record first quarter level of $13,232,786, compared to $11,534,491 for the same period a year earlier.
Net income for the three months ended January 31, 2000 was approximately $660,000 or $0.14 per share on 4,849,486 diluted weighted average shares outstanding, exclusive of approximately $243,000, or $0.05 per share impact to net income from expenses incurred in establishing the company's complete business-to-business (B2B) car buying site, Uautobid.com, compared to net income of $491,441, or $0.10 per share on 5,049,557 diluted weighted average shares outstanding for the comparable period a year earlier. Including Uautobid.com expenses, the per share results for the quarter ended January 31, 2000 compared to the prior year's quarter were $0.09 versus $0.10.
Operating income in the quarter, exclusive of Uautobid.com, was approximately $441,000 compared to $381,983 a year earlier. Operating margins were maintained at the same level as a year earlier.
Other income benefited from the substantial increase in cash and increased to $649,213 in the first quarter of 2000 compared to $405,721 in the same period a year ago, a 60% increase.
Mr. Chester J. Luby, Chairman and CEO, noted, "We are very pleased that our core competencies continued to show strong growth and that revenues reached a new first quarter record. Our fundamental strengths and rock-solid balance sheet should enable us to continue the company's record of accomplishment. Interstate continues to generate cash at a rapid rate and compared to a year ago cash and cash-equivalents and marketable securities have increased nearly $11 million. These funds have generated a substantial return for our shareholders and are an integral part of our overall business strategy."
"In addition to our strong extended warranty business", Mr. Luby stated, "Interstate is positioned to be a key player in internet auto sales through its Uautobid.com subsidiary, a business-to-business application service provider (ASP). Uautobid.com has developed and markets Net Showroom, a suite of web-based products that empowers dealers to conduct retail and wholesale transactions on line and drive traffic to their own web sites. This permits dealers to compete with other auto sites, while maintaining their customer base and profitability. Net Showroom has received an enthusiastic reception from dealers throughout the country. We believe the investment that we have made to date is reasonable given the potential of this venture."
A conference call to discuss Interstate's first quarter
results will take place on Thursday, March 9, 2000 at
10:00EST. The toll free number is 800-633-8759
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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
(UNAUDITED)
For the Three Months
Ended January 31,
-----------------
2000 1999
---- ----
REVENUES $ 13,232,786 $ 11,534,491
Net income $ 416,663(a) $ 491,441
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NET INCOME PER SHARE:
Basic $ 0.09(b) $ 0.11
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Weighted average shares outstanding 4,672,136 4,653,229
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Diluted $ 0.09(b) $ 0.10
============ ============
Weighted average shares outstanding 4,849,486 5,049,557
============ ============
(a) Net income excluding Uautobid.com expenses would be approximately
$660,000
(b) Net income per share excluding Uautobid.com expenses would be
$0.14
CONSOLIDATED BALANCE SHEETS
January 31, October 31,
2000 1999
---- ----
(Unaudited)
Cash and cash equivalents and
marketable securities $ 50,189,425 $ 50,626,697
Working capital 40,749,295 42,638,101
Total assets 70,005,958 68,661,087
Total stockholders' equity 21,273,932 20,924,415