congrats on great apco earnings trackman.. surprised it hasn't rocketed due to the news,, but no matter. apco has done well in hanging in there..
Company Press Release
SOURCE: Automobile Protection Corporation
Automobile Protection Corporation (APCO) Announces Record Fourth Quarter and Full Year Results
ATLANTA, Feb. 4 /PRNewswire/ -- Automobile Protection Corporation (Nasdaq: APCO - news) announces record revenues and net income for its fourth quarter and year ended December 31, 1997. Revenues for the quarter were $22,955,000 compared to $16,487,000 for 1996, an increase of 39%. Net income was $1,194,000 compared to a net loss of $122,000 for 1996. Diluted EPS was $0.10 compared to a loss of $0.01 for 1996. Revenues for the year were $93,935,000 compared to $67,208,000 for 1996, an increase of 40%. Net income was $4,051,000 compared to $1,564,000 for 1996. Diluted EPS was $0.35 compared to $0.14 for 1996.
Larry I. Dorfman, President/CEO stated: ''The fourth quarter is typically difficult for automobile dealers and consequently also their service contract providers. This year was no exception; nevertheless, we are very satisfied with our sales and net income for the quarter. Sales for the fourth quarter increased 39% over the fourth quarter of the prior year, which was in line with our expectations and our year to date sales growth rate. Net income for this quarter was $1,194,000, which included a benefit of approximately $165,000 ($0.01 per share) from an adjustment to a vendor payment in prior periods. Net income (excluding the adjustment) of $1,029,000 ($0.09 per share) increased by 143% over recurring net income for the prior year of $423,000 ($0.04 per share). We are extremely pleased to report that we achieved net income in excess of $4 million for 1997, which is a near doubling of our 1996 recurring net income. It is especially exciting to look back to 1994, which was our turnaround year, to compare current year sales of $94 million to $30 million in 1994 and current year net income of $4 million to $1 million in 1994.''
Mr. Dorfman also stated: ''We continue to see excellent growth opportunities for APCO in our core EasyCare(R) and EasyCare(R) Certified products. We are extremely pleased with the recently announced agreement with Sonic Automotive holdings, Inc. (NYSE: SAH - news), which we expect to be an important source of revenue growth for 1998. In addition to the above, we are preparing to launch a major new service contract product line, which will enable us to penetrate lower price points. We expect this product line to both take us into new geographical markets and also to fill out our existing distribution system. In addition to the expected growth within our established distribution system, we continue to work on several longer term projects with major partners, which we expect to be an important source of future growth.''
As required by the Financial Accounting Standards Board, the Company adopted SFAS 128 this quarter, which requires earnings per share for the current year, future years and all prior periods to be computed under a different methodology. Under SFAS 128, our diluted earnings per share for the first nine months was $0.25, compared to $0.24 reported under the previous methodology.
APCO (established 1984) and its administrative subsidiary, The Aegis Group, Inc., is a leading marketer and administrator of vehicle service contract and warranty products for the automotive and recreational vehicle industries.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: To the extent that this news release discusses financial projections, information or expectations about our products or markets, or otherwise makes statements about the future, our statements are forward looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, the competitive nature of the industry in which some competitors have significantly greater financial resources and name recognition than the Company, the availability of insurance coverage at competitive rates and of insurance funds to make claims payments, the Company's dependence on independent sales representatives, dealers and a major automobile manufacturer, the cyclical nature of the automobile industry, and other risks detailed in the Company's Form 10-K that has been filed with the Securities & Exchange Commission in connection with its 1996 year. |
