Wednesday October 28, 4:03 pm Eastern Time
Company Press Release
SOURCE: Automobile Protection Corporation
Automobile Protection Corporation Announces Record
Third Quarter Results
ATLANTA, Oct. 28 /PRNewswire/ -- Automobile Protection Corporation
(Nasdaq: APCO - news; APCO) announced record results for the
third quarter ended September 30, 1998.
For the quarter ended September 30, 1998, revenues increased 24% to
$33,686,000 from $27,088,000; net income increased 45% to
$1,952,000 from $1,342,000 and diluted earnings per share increased
33% to $0.16 from $0.12.
For the nine months ended September 30, 1998, revenues increased 26%
to $89,559,000 from $70,980,000; net income increased 78% to
$5,091,000 from $2,856,000 and diluted earnings per share increased
64% to $0.41 from $0.25.
Larry I. Dorfman, President/CEO of APCO stated, ''We are very pleased
with the results for this quarter. Revenues and net income set all
time records for the Company. Core EasyCare(R) unit growth continues
to be strong. Through our administrative subsidiary, The Aegis Group,
Inc., this quarter's results included limited production from Banc One
Insurance Services Corporation and Allstate Insurance Company. We
are also pleased to have exceeded consensus EPS estimates for this
quarter by $0.02.''
Mr. Dorfman added: ''We continue to aggressively market our products
and recently expanded our national marketing department to support
the independent sales representatives and to further enhance our
dealer training and development capabilities. APCO and Aegis are
actively working on the launch of several new products and programs
for clients such as Manheim Auctions, Banc One Insurance Services
Corporation and Allstate Insurance Company, which we expect to be
important contributors in 1999. Additionally, we are preparing to
market a software product to dealerships, called Service Advisor Plus
by EasyCare(R), which is designed to retain service customers and
also assist dealers in building an internet marketing presence.''
Martin J. Blank, Chairman/COO of APCO noted: ''APCO was recently
honored by inclusion in the 1998 Forbes list of the 200 Best Small
Companies. We were ranked #71, based on growth and profitability. We
are committed to delivering long term value to our shareholders.''
APCO, established in 1984, is a leading marketer and administrator of
products and services to automobile and recreational vehicle dealers.
The Company's core business is the marketing and administration of
EasyCare(R) Vehicle Service Contracts. The Company also administers
warranty and service contract products under private labels for
financial institutions, an insurance company and a manufacturer.
Automobile Protection Corporation
Consolidated Statement of Income (Unaudited)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
Revenues $33,686,000 $27,088,000 $89,559,000 $70,980,000
Cost of sales 26,415,000 21,561,000 69,859,000 56,332,000
7,271,000 5,527,000 19,700,000 14,648,000
Expenses:
Compensation,
selling and
administr. 4,570,000 3,566,000 12,549,000 10,521,000
Depreciation
and amortiz. 101,000 111,000 339,000 326,000
Interest, div.
and other
income (499,000) (327,000) (1,268,000) (820,000)
4,172,000 3,350,000 11,620,000 10,027,000
Income before
provision for
income taxes 3,099,000 2,177,000 8,080,000 4,621,000
Provision for
income taxes 1,147,000 835,000 2,989,000 1,765,000
Net income $1,952,000 $1,342,000 $5,091,000 $2,856,000
Net income per
share:
Basic $0.17 $0.13 $0.44 $0.27
Diluted $0.16 $0.12 $0.41 $0.25
Number of shares
used in computing
net income per share:
Basic 11,735,000 10,781,000 11,517,000 10,699,000
Diluted 12,480,000 11,677,000 12,327,000 11,467,000 |
