YAHA!
Tuesday September 16 6:10 PM EDT
Company Press Release
ABR Information Services Inc. Announces Record Fourth
Quarter Results
PALM HARBOR, Fla.--(BUSINESS WIRE)--Sept. 16, 1997--ABR Information Services Inc.
(NASDAQ:ABRX) Tuesday announced record revenues and net income for the company's fourth quarter and
for the year ended July 31, 1997.
For the quarter ended July 31, 1997, revenues increased 53.6% to $14.8 million compared to revenues of $9.6
million for the same quarter of the prior year. Net income increased 59.1% to $3.5 million, or $.13 per share,
compared to $2.2 million, or $.08 per share, for the same quarter of the prior year. For the year ended July 31,
1997, revenues increased 60.7% to $50.1 million, compared to $31.2 million for the prior year. Net income
increased 115.5% to $12.2 million, or $.44 per share, compared to $5.7 million, or $.25 per share, for the
prior year.
The company experienced significant growth in the areas of portability administration, which had revenues of
$10.4 million for the quarter, an increase of $4.1 million or 65.7% from the same quarter last year, and active
employee administration services, which had revenues of $2.5 million for the quarter, an increase of $1.0 million
or 67.3% over the same quarter last year. For the year, portability administration revenues increased $11.1
million or 50.9%, retiree/inactive administration revenues increased $2.4 million or 49.4% and active employee
administration revenues increased $5.5 million or 119.5% when compared to last year.
James E. MacDougald, chief executive officer stated, ``The fourth quarter evidenced the positive impact of the
newly enacted HIPAA (Health Insurance Portability and Accountability Act of 1996) legislation upon ABR's
core business. During the quarter, our HIPAA services were sold to a substantial portion of our COBRA
qualifying event customer base. The timely implementation of HIPAA services, coupled with our existing
COBRA capabilities, firmly establishes ABR as a leading provider of portability compliance services.''
MacDougald continued, ``At our most recent board of directors meeting, the board approved two matters
which will continue to strengthen and focus the company on its long term goals. First, the board approved Peter
A. Sullivan as a new member of the board of directors. Peter is president of Arlen Corporation and brings to
ABR a wealth of industry knowledge and contacts. Also, the board approved the consolidation of a number of
our subsidiaries into one operating subsidiary called ABR Benefits Services Inc. We believe this significantly
improves the ability of ABR to cross-sell to our base of 21,000 + customers.''
ABR Information Services Inc. provides comprehensive benefits administration, compliance and information
services to employers seeking to outsource their benefits administration functions. The company is one of the
largest benefits outsourcing firms in the United States, serving more than 21,000 employers with a total
employee population exceeding 6.0 million. ABR's customers include Fortune 500 companies, insurance
companies, and other employers in various industries.
Summary financial statements for the quarters and the years ended July 31, 1997 and 1996 are as follows:
ABR INFORMATION SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited)
Three months ended Year ended
July 31, July 31,
1996 1997 1996 1997
------------ ------------ ------------ ------------
Revenue $ 9,628,840 $14,786,433 $31,162,181 $50,078,842
Cost of
services 5,540,520 8,281,268 17,863,588 28,178,925
Selling, general
and
administrative 1,870,306 2,710,273 6,575,390 9,765,500
Acquisition costs 361,198 -- 361,198 --
Operating
income 1,856,816 3,794,892 6,362,005 12,134,417
Interest income 1,959,205 1,576,995 2,872,145 7,081,238
Income taxes 1,618,578 1,875,649 3,560,366 6,987,003
Net income $ 2,197,443 $ 3,496,238 $ 5,673,784 $12,228,652
Net income per
share(a) $.08 $.13 $.25 $.44
Weighted average
shares
outstanding(a) 28,002,710 27,814,478 23,067,054 27,814,794
(a) Restated for the two-for-one stock split completed on
February 19, 1997.
CONSOLIDATED CONDENSED BALANCE SHEETS
July 31, 1996 July 31, 1997
Current Assets:
Cash and cash equivalents $ 14,088,396 $ 33,322,734
Investments 147,111,102 108,499,196
Accounts receivable, net 3,870,539 8,295,884
Prepaid expenses and other 1,282,952 2,595,306
Total current assets 166,352,989 152,713,120
Investments -- 14,128,644
Property and equipment, net 14,539,898 27,790,354
Software development costs, net 6,181,973 11,767,211
Goodwill, intangibles
and other assets 15,498,745 15,617,519
Total assets $202,573,605 $222,016,848
Current Liabilities:
Accounts payable $ 615,663 $ 613,138
Accrued expenses 762,442 512,035
Unearned revenue 647,093 594,524
Customer account deposits 18,019,405 23,133,381
Income taxes payable 483,663 20,770
Total current liabilities 20,528,266 24,873,848
Deferred income taxes 895,555 3,047,243
Shareholders' equity 181,149,784 194,095,757
Total liabilities and
shareholders' equity $202,573,605 $222,016,848
Contact:
ABR Information Services, Inc., Palm Harbor
James P. O'Drobinak, Chief Financial Officer,
Senior Vice President, 813/785-2819 x7207
More news for referenced ticker symbols: ABRX, and related industries: insurance. |
