CCC Information Services Group Inc. Reports 2000 Third Quarter Results
25 October 2000
CCC Information Services Group Inc. Reports 2000 Third Quarter Results
CHICAGO--Oct. 25, 2000--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 third quarter of 2000.Third Quarter Highlights
| - | CCC U.S. Division underlying operating income shows strong growth, increasing to $5.3 million from $4.4 million in 1999. Year to date underlying operating income up $7.8 million or 63%. |
| - | DriveLogic investments increased to $5.2 million for the quarter and $11.2 million for the nine month period. |
- Non-recurring charges of $4.1 million in the quarter.
Quarterly Results
In announcing the results, Githesh Ramamurthy, Chairman and Chief Executive Officer, said, "Our CCC U.S. Division continues to maintain its leadership position and post strong financial performance. We also made significant strides during the quarter in our e-commerce strategy through our DriveLogic business."
Third quarter 2000 revenues of $51.5 million were $0.2 million lower than the same quarter last year. Underlying revenue for our CCC U.S. Division grew $1.7 million, or 4.2%, from 1999. Additionally, CCC International Division's revenues grew $0.2 million, or 13.9%, principally due to revenues from the D. W. Norris acquisition made in third quarter of 1999. These increases were offset, in part, by a decline of $1.4 million in Consumer Services revenue.
The Company reported consolidated operating losses for the quarter of $5.9 million compared to operating income of $3.7 million in the same quarter last year. Excluding non-recurring operating expenses ($1.4 million for litigation settlement, and $2.7 million for the write-off of a marketing license agreement and consulting fee commitments) operating losses totaled $1.8 million. Before $5.2 million of expenses associated with DriveLogic, quarterly operating income decreased by $0.3 million from 1999, driven primarily by increased losses in CCC International and Consumer Services.
CCC U.S Division continued to show strong profit improvements. Excluding the non-recurring charges, operating income (including shared services expenses) increased 19% to $5.3 million, up from $4.4 million in the prior year quarter. For the nine month period, CCC U.S. operating income, excluding non-recurring items, has increased 63% to $20.2 million.
Equity in net losses from affiliates included $0.5 million for CCC's share of losses on ChoiceParts, LLC, the joint venture auto parts network between CCC, Automated Data Processing Inc. and Reynolds & Reynolds Company. Further, $3.7 million in losses were incurred in connection with Enterstand, the Company's European joint venture.
Third quarter 2000 losses per share applicable to common stock were $(0.35) versus earnings per share of $0.03 in the third quarter of 1999.
Mr. Ramamurthy commented on the positioning of the Company for future growth, "We believe the investments we have made in DriveLogic, CCC International, ChoiceParts and our continuing product development for CCC U.S., position us well for growth and continued market leadership."
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the company's filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements, and startup businesses are inherently uncertain. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The company has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise any forward-looking statement.
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 14,000 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 Rich Ringer at HLB Communications 312-649-0371.
DriveLogic is a subsidiary of CCC Information Services Group Inc. focused on providing Internet and wireless-enabled technology solutions to the auto claims and collision repair industries. DriveLogic has the unique market advantage of being able to leverage CCC's connectivity platforms, which already processes approximately 800,000 auto claims-related transactions per day. By developing market-driven technology solutions and capitalizing on the industry expertise, customer relationships and market leadership of CCC, DriveLogic aims to optimize efficiencies, bringing value to parties throughout the entire supply chain. For more information about DriveLogic, contact Michael Roberts at DriveLogic, 312-228-8278, or contact Rich Ringer at HLB Communications, 312-649-0371, or visit the DriveLogic Web site at www.drivelogic.com.
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 Ended
September 30 September 30,
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
CCC U.S. $43,877 $42,954 $131,688 $129,159
Consumer Services 5,679 7,031 20,209 20,729
CCC International 1,895 1,664 6,253 2,638
------- ------- -------- --------
Net revenue 51,461 51,649 158,150 152,526
------- ------- -------- --------
Expenses:
Production and customer
support 15,490 16,577 48,299 45,726
Commissions, royalties
and licenses 2,620 3,858 9,196 12,708
Selling, general and
administrative 24,078 19,421 66,599 58,453
Depreciation and
amortization 3,261 2,589 9,204 7,515
Product development and
programming 7,775 5,487 19,881 17,457
Write-off of marketing
license agreement and
consulting fee
commitments 2,701 -- 2,701 --
Litigation settlement 1,425 -- 1,425 --
------- ------- -------- --------
Total operating expenses 57,350 47,932 157,305 141,859
------- ------- -------- --------
Operating income(loss) (5,889) 3,717 845 10,667
Interest expense (881) (412) (2,303) (793)
Other income, net 148 175 4,750 403
Gain on exchange of
investment securities -- -- 18,437 --
Equity in losses of
ChoiceParts (476) -- (788) --
------- ------- -------- --------
Income(loss) before
income taxes (7,098) 3,480 20,941 10,277
Income tax benefit
(provision) 3,153 (2,099) 1,215 (4,836)
------- ------- -------- --------
Income(loss) before
equity losses and
minority interest (3,945) 1,381 22,156 5,441
Equity in net losses of
affiliates (3,657) (814) (7,966) (5,810)
Minority share in loss of
subsidiaries -- 1 -- 1
------- ------- -------- --------
Net income(loss) (7,602) 568 14,190 (368)
Dividends and accretion
on preferred stock -- -- -- (2)
------- ------- -------- --------
Net income(loss) applicable
to common stock $(7,602) $ 568 $ 14,190 $ (370)
======= ======= ======== ========
Per Share Data:
---------------
Net income(loss) applicable
to common stock
- Basic $ (0.35) $ 0.03 $ 0.65 $ (0.02)
======= ======== ======== ========
- Diluted $ (0.35) $ 0.03 $ 0.64 $ (0.02)
======= ======== ======== ========
Weighted average common and common
equivalent shares outstanding
- Basic 21,613 22,429 21,906 23,172
======= ======== ======== ========
- Diluted 21,613 22,670 22,221 23,478
======= ======== ======== ========
September 30, December 31,
2000 1999
---- ----
(Unaudited)
Total assets $109,447 $84,549
Long-term debt $ 37,405 $24,685
Stockholders' equity $ 24,731 $15,261
CCC Information Services Group Inc.
Consolidated Operating Results by Segments
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year-to-Date Period Ended
September 30, September 30,
2000 1999 2000 1999
---- ---- ---- ----
CCC US with Shared Services
---------------------------
Net revenue $43,887 $42,954 $131,688 $129,159
Operating expenses (38,604) (38,518) (111,522) (116,788)
------- ------- -------- --------
Operating income 5,283 4,436 20,166 12,371
Non-recurring operating
expenses(n) (4,126) -- (4,126) (1,206)
------- ------- -------- --------
Operating income--reported 1,157 4,436 16,040 11,165
======= ======= ======== ========
Consumer Services
-----------------
Net revenue 5,679 7,031 20,209 20,729
Operating expenses (6,582) (7,584) (21,296) (20,841)
------- ------- -------- --------
Operating loss (903) (553) (1,087) (112)
======= ======= ======== ========
CCC International
-----------------
Net revenue 1,895 1,664 6,253 2,638
Operating expenses (2,841) (1,830) (9,149) (3,024)
------- ------- -------- --------
Operating loss (946) (166) (2,896) (386)
======= ======= ======== ========
DriveLogic
----------
Net revenue -- -- -- --
Operating expenses (5,197) -- (11,212) --
------- ------- -------- --------
Operating loss (5,197) -- (11,212) --
======= ======= ======== ========
CCC Consolidated
----------------
Net revenue 51,461 51,649 158,150 152,526
Operating expenses (53,224) (47,932) (153,179) (140,653)
------- ------- -------- --------
Operating income(loss) (1,763) 3,717 4,971 11,873
Non-recurring operating
expenses(n) (4,126) -- (4,126) (1,206)
------- ------- -------- --------
Operating income(loss)
--reported $(5,889) $ 3,717 $ 845 $ 10,667
======= ======= ======== ========
(n) Non-recurring operating expenses included third quarter 2000
litigation settlement of $1,425 and an impairment of marketing
license fees and consulting fee commitments related to the
Company's existing shop management program of $2,701.
Non-recurring operating expenses for 1999 included a compensation
charge as a result of stock repurchase related to the former
chairman of the Company of $1,206.