Interstate National Dealer Services Announces Q3 Results
14 September 2000
Interstate National Dealer Services, Inc. Announces Third Quarter and Nine Months Fiscal 2000 Results
MITCHEL FIELD, N.Y.--Sept. 13, 2000--Interstate National Dealer Services, Inc. today announced its third quarter and nine months results for the period ended July 31, 2000.
Revenues for the three months ended July 31, 2000 increased approximately 10% to $16,825,617, compared to $15,343,542 for the same period a year earlier. Income from continuing operations for the three months ended July 31, 2000 was $837,548, or $ 0.18 per share on 4,610,770 weighted average shares outstanding, compared to $991,064, or $0.20 per share on 4,948,318 weighted average shares outstanding for the three months ended July 31, 1999. Inclusive of the loss from the discontinued operations of Uautobid.com and the loss from abandonment of those activities, the net income for the three months ended July 31, 2000 was $532,486, or $0.11 per share.
Revenues for the nine months ended July 31, 2000 rose approximately 12% to $ 45,405,405, compared to $40,627,555 for the same period a year earlier. Income from continuing operations for the nine months ended July 31, 2000 was $2,232,018, or $0.47 per share on 4,705,301 weighted average shares outstanding compared to $2,231,772, or $0.45 per share on 5,010,795 weighted average shares outstanding for the nine months ended July 31, 1999. Inclusive of the loss from the discontinued operations of Uautobid.com and the loss from the abandonment of those activities, the net income for the nine months ended July 31, 2000 was $1,428,772, or $0.30 per share.
Mr. Chester J. Luby, Chairman and CEO, stated, "After extensive review and evaluation, Interstate has decided to discontinue the operations of the Company's subsidiary, Uautobid.com. Uautobid.com offered dealers the opportunity to become Internet-enabled in a low cost, low risk way. The rapidly changing and highly competitive Internet car buying landscape has raised the stakes more rapidly than envisioned, bringing a level of risk that was more than we expected or are willing to tolerate. In connection with this decision, we have taken a charge this quarter of $305,062, or $0.07 per share. All costs related to the Uautobid venture have been accounted for currently and there will be no residual impact on future results."
"Our core service contract business remains strong", Mr. Luby noted, "and we are aggressively pursuing many opportunities to further build on the strong market position and capabilities that we have developed. Some of the skills and applications that Uautobid developed may be helpful in this pursuit, without requiring further investment on our part."
"At the same time", Mr. Luby continued, "we have asked and received approval from our board of directors to purchase an additional 500,000 shares. Previously, the board authorized the purchase of 500,000 shares of stock of which approximately 391,000 have been purchased to date. Based on our cash needs and our current cash balances, the board believes that at current prices, the repurchase of shares near book value is an excellent investment."
"Interstate's balance sheet and financial condition are of the highest quality with no debt and high cash resources. Cash and securities continue to reach new record highs at nearly $55 million, or $12.69 per share and our book value currently stands at $4.79 per share. We have successfully increased the return on our invested cash and have decided to give additional sums to our outside money management firms to invest in securities offering higher yields without compromising our low risk parameters."
"We believe that our multi-billion industry of extended service contracts and warranties offers many opportunities to enhance our growth and we intend to capitalize on them", Mr. Luby concluded.
A conference call to discuss Interstate's third quarter results will take place on Thursday, September 14, 2000 at 10:00 am EST. The toll free number is 800-895-1075.
INTERSTATE NATIONAL DEALER SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
For the Nine Months For the Three Months
Ended July 31, Ended July 31,
----------------- -------------------
2000 1999 2000 1999
---- ---- ---- ----
Revenues $45,405,405 $40,627,555 $16,825,617 $15,343,542
Income from
continuing
operations 2,232,018 2,231,772 837,548 991,064
Loss from
discontinued
operations (803,246) -- (305,062) --
---------- ---------- -------- --------
Net income $1,428,772 $2,231,772 $532,486 $991,064
========== ========== ======== ========
NET INCOME PER
SHARE - BASIC:
Continuing
operations $.48 $.48 $.19 $.21
Discontinued
operations $(.17) $ - $(.07) $ -
------- --------- ------- --------
Total $.31 $.48 $.12 $.21
====== ======= ====== ======
Weighted average
shares
outstanding 4,604,280 4,662,500 4,458,829 4,669,284
========= ========= ========= =========
NET INCOME PER
SHARE - DILUTED:
Continuing
operations $.47 $.45 $.18 $.20
Discontinued
operations $(.17) $ - $(.07) $ -
------- -------- ------- --------
Total $.30 $.45 $.11 $.20
====== ======= ====== ======
Weighted average
shares
outstanding 4,705,301 5,010,795 4,610,770 4,948,318
========= ========= ========= =========
INTERSTATE NATIONAL DEALER SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 31, October 31,
2000 1999
------ ---------
Unaudited
Cash and cash equivalents, United
States Treasury Bills, at cost,
and marketable securities $55,444,599 $50,626,697
Total assets 78,057,987 68,661,087
Total stockholders' equity 20,911,328 20,924,415