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Interstate National Dealer Services, Inc. Announces Record Second Quarter Results; Revenues Increase 36% Resulting in Net Income Rise of 52
MITCHEL FIELD, N.Y.--(BUSINESS WIRE)--May 26, 1998--Interstate National Dealer Services, Inc. (NASDAQ: ISTN) today reported an increase in revenues of approximately 36% to a record $11,792,534 for the three months ended April 30, 1998, compared to $8,650,077 for the same period a year earlier. Net income for the three months ended April 30, 1998 increased approximately 52% to $746,602, or $0.15 per share on 4,967,539 diluted weighted average shares outstanding compared to net income of $489,630, or $0.13 per share on 3,860,396 diluted weighted average shares outstanding for the comparable period a year earlier.
Revenues for the six months ended April 30, 1998 rose approximately 47% to $22,100,709 compared to $14,984,314 for the six months ended April 30, 1997. Net income for the six months ended April 30, 1998 increased approximately 76% to $1,552,855, or $0.31 per share on 4,980,100 diluted weighted average shares outstanding compared to $881,348, or $0.24 per share on 3,731,773 diluted weighted average shares outstanding for the six months ended April 30, 1997. Net income for the first quarter benefited by approximately $300,000 as a result of a settlement of a dispute with an unaffiliated party.
Mr. Chester J. Luby, Chairman and CEO, noted, "We are confident that our business will continue to grow at a strong pace in future periods. Our reputation for quality service and product has resulted in significant new business. As we stated when we reported our first quarter results, we were not satisfied by the gross margins in that period and we felt confident that we would improve the gross margin over the course of the year. Therefore, it is particularly gratifying that our gross margins have rebounded from the first quarter level of 50.5% to 53.2% in the second quarter. We continue to monitor and closely control costs and the decline in selling, general and administrative costs as a percentage of revenue to 46% in the most recent quarter, the same as it was in the first quarter, from 50% a year ago is evidence of our success."
"Our balance sheet is extremely strong and liquid," Mr. Luby concluded, "with our cash and cash equivalents and treasury notes, at cost, now at $31.8 million, or $6.39 per diluted weighted average share outstanding. We are optimistic about our business and our future opportunities and, based on current business conditions, expect a very successful year." -0- Interstate is a leading nationwide provider of service contracts and extended warranties, primarily for new and used cars and recreational vehicles, and also for watercraft, motorcycles and other power sport vehicles.
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. -0- *T
INTERSTATE NATIONAL DEALER SERVICES, INC.
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
For the Six Months For the Three Months
Ended April 30, Ended April 30, 1998 1997 1998 1997
Revenues $22,100,709 $14,984,314 $11,792,534 $8,650,077 Operating income 1,381,833 1,141,691 877,493 636,641 Income before taxes 2,561,799 1,467,446 1,227,462 815,233 Net income (a) 1,552,855 881,348 746,602 489,630
NET INCOME PER SHARE:
Basic $0.33 $0.26 $0.16 $0.14 Weighted average shares outstanding 4,627,357 3,391,836 4,631,845 3,397,898
Diluted $0.31 $0.24 $0.15 $0.13 Weighted average shares outstanding 4,980,100 3,731,773 4,967,539 3,860,396
(a) Includes net income of $300,000 received in the first quarter as a result of a settlement of a dispute.
-0-
CONDENSED BALANCE SHEET
April 30, October 31, 1998 1997
(Unaudited)
Cash and cash equivalents and U.S. Treasury Notes, at cost $31,841,603 $26,856,861 Working capital 33,177,401 29,704,256 Total assets 45,719,440 41,282,561 Stockholders' equity 16,317,898 14,758,838
*T
CONTACT:
Chester J. Luby, CEO
Cindy H. Luby, President & COO
Interstate National Dealer Services, Inc.
(516) 228-8600
or
Stephen D. Axelrod, CFA
Susan T. Bolen (Media)
Wolfe Axelrod Associates
(212) 370-4500; (212) 370-4505 (Fax) |
