CCC Information Services Reports 2000 Second Quarter Results
28 July 2000
CCC Information Services Reports 2000 Second Quarter Results
CHICAGO - CCC Information Services Group Inc. , through its wholly-
owned subsidiary CCC Information Services Inc., the leading provider of business
solutions to the automobile claims industry, today announced the results for the
second quarter of 2000.
Second Quarter Events
- Net income of $17.3 million, or EPS of $0.78, including a
pre-tax gain on its investment in InsurQuote of $18.4 million.
- Second quarter revenues of $51.3 million.
- Operating income of $4.5 million, excluding $4.2 million in
the B2B e-commerce costs.
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Quarterly Results
In announcing the results, Githesh Ramamurthy, Chairman and Chief
Executive Officer, said, "The second quarter results reflect continued
healthy operating results from our CCC U.S. Division. The strong cash
flows from our CCC U.S. Division continue to provide funding for our
B2B e-commerce strategy and European market entry."
Second quarter 2000 revenues of $51.3 million were $0.3 million
higher than the same quarter last year. Excluding non-recurring
revenues from the second quarter of 1999, CCC U.S. Division revenues
grew $1.2 million, or 2.8%, from 1999. Additionally, CCC International
Division's revenues grew $0.9 million, or 128%, principally due to
revenues from the D. W. Norris acquisition made in late 1999. These
increases were offset, in part, by a slight decrease in Consumer
Services Division's revenue.
Second quarter operating income of $0.3 million decreased by $0.3
million, or 59%, from the same quarter last year. Adjusting for the
one-time items of $3.3 million recorded in the second quarter of 1999
and excluding $4.2 million of expenses in the second quarter of 2000
associated with B2B e-commerce, operating income increased by $0.5
million from 1999. While the CCC U.S Division delivered strong
improvements in operating margins, these gains were offset, in part,
by increased operating losses in CCC International Division's D.W.
Norris business.
Equity in net losses from affiliates included $0.3 million for
CCC's share of ChoiceParts, LLC's losses and $3.5 million related to
Enterstand's losses. The ChoiceParts joint venture was established by
CCC, Reynolds & Reynolds Company and Automatic Data Processing Inc. in
the second quarter of 2000 to establish a virtual parts exchange to
serve the multi-billion dollar auto parts market. Enterstand is the
Company's European joint venture focusing on expanding CCC's product
offerings in the European marketplace.
In the second quarter, as a result of the merger of InsurQuote
Systems and ChannelPoint Inc., CCC wrote-up its investment in the new
entity to its estimated fair market value and recorded a net gain on
its investment of $18.4 million, or EPS of $0.80 on a after-tax basis,
in the second quarter.
Second quarter 2000 earnings per share applicable to common stock
were $0.78 versus $0.00 per share in the second quarter of 1999.
Excluding the non-cash gain on its investment in InsurQuote, net of
tax, of $17.7 million, losses per share for the second quarter of 2000
would have been $(0.02) per share.
Outlook
Mr. Ramamurthy commented on the Company's performance during the
latest quarter and its B2B business, "We're encouraged by the strong
operating results of our CCC U.S. Division that continue to provide a
backbone for our growth and expansion in other markets. We have
planned a formal launch of our B2B e-commerce division within the next
week and expect our first product releases in the upcoming quarters."
CCC Information Services Inc., headquartered in Chicago, IL, is
the leading supplier of advanced software and communications systems
to the automotive claims industry, including information and network
services for automotive claims management. Its value-added,
technology-based products and services increase efficiency and
facilitate communication among more than 13,500 collision repair
facilities, 350 insurance companies, and a range of business partners.
For more information about CCC Information Services, visit our Web
site at www.cccis.com or contact Jeanene O'Brien at CCC Information
Services Inc. 312-229-3083 or contact Peter Duckler at HLB
Communications 312-649-0371.
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CCC Information Services Group Inc.
Consolidated Operating Results and
Selected Consolidated Balance Sheet Data
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year-to-Date Period
June 30, Ended June 30,
------------------ -------------------
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
CCC U.S. $42,865 $43,242 $87,801 $86,205
Consumer Services 6,786 7,017 14,530 13,698
CCC International 1,614 709 4,358 974
Net revenue 51,265 50,968 106,689 100,877
------ ------- ------ ------
Expenses:
Production and
customer support 16,614 15,033 32,809 29,149
Commissions, royalties
and licenses 3,179 4,390 6,576 8,850
Selling, general
and administrative 22,012 22,186 42,521 39,032
Depreciation and
amortization 3,062 2,503 5,943 4,926
Product development
and programming 6,139 6,225 12,106 11,970
----- ----- ---- -----
Total operating
expenses 51,006 50,337 99,955 93,927
------ ------ ----- -----
Operating income 259 631 6,734 6,950
Interest expense (755) (186) (1,422) (381)
Other income, net 225 189 4,602 228
Gain on exchange of
investment
securities 18,437 -- 18,437 --
Equity in losses of
ChoiceParts (312) -- (312) --
----- ------ ----- ------
Income before
income taxes 17,854 634 28,039 6,797
Income tax benefit
(provision) 2,899 (58) (1,938) (2,737)
----- ----- ----- -----
Income before
equity losses 20,753 576 26,101 4,060
Equity in net losses
of affiliates (3,496) (501) (4,309) (4,996)
---- ---- ----- -----
Net income(loss) 17,257 75 21,792 (936)
Dividends and
accretion on
preferred stock -- (1) -- (2)
------ ----- ------ -----
Net income(loss)
applicable to
common stock $ 17,257 $ 74 $ 21,792 $(938)
====== ==== ====== =====
Per Share Data:
Net income(loss) applicable
to common stock
-- Basic $ 0.79 $ -- $ 0.99 $ (0.04)
====== ==== ==== ====
-- Diluted $ 0.78 $ -- $ 0.97 $ (0.04)
===== ==== ==== ====
Weighted average common and common
equivalent shares outstanding
-- Basic 21,959 23,381 22,054 23,550
====== ===== ====== ======
-- Diluted 22,113 23,685 22,479 23,910
====== ====== ====== ======
June 30, December 31,
2000 1999
---- ----
(Unaudited)
Total assets $113,890 $84,549
Long-term debt $39,441 $24,685
Stockholders'
equity $32,225 $15,261
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