APCO...
Wednesday July 29, 9:39 am Eastern Time
Company Press Release
SOURCE: Automobile Protection Corporation
Automobile Protection Corporation - APCO Announces
Record Results For The Second Quarter
ATLANTA, July 29 /PRNewswire/ -- Automobile Protection Corporation (Nasdaq:
APCO - news) announces record second quarter results. For the quarter ended June
30, 1998, revenues increased 26% to $30,060,000 from $23,797,000; net income
increased 100% to $1,771,000 from $885,000 and diluted earnings per share
increased 75% to $0.14 from $0.08.
For the six months ended June 30, 1998, revenues increased 27% to $55,873,000
from $43,892,000; net income increased 107% to $3,139,000 from $1,514,000
and diluted earnings per share increased 92% to $0.25 from $0.13.
Larry I. Dorfman, President/CEO of APCO said: ''We are pleased to report another
exceptional quarter. The past several months have been very exciting and
demanding as we simultaneously grew the core EasyCare(R) agency business and
commenced work on all of our recently announced agreements. Our administrative
subsidiary, The Aegis Group, Inc., has been assisting Banc One with the
introduction of The One(R) Care vehicle service contract program and also
commenced processing policies and handling claims for Allstate Insurance
Company. Additionally, we have been working closely with Manheim Auto Auctions
to prepare for the launch of the Manheim EasyCare(R) service contract test
program in Georgia. The new projects did not have a significant impact on this
quarter's results, although we are now starting to experience production from Banc
One and Allstate. Growth this quarter came from our core EasyCare(R) agency
business, EasyCare(R) recreational vehicle service contracts and from the program
we administer for American Honda Finance Corporation. The core EasyCare(R)
agency business continues to grow with the recent additions of large dealership
groups such as Sonic Automotive and Kelley Automotive, which are ranked by
Automotive News as the nation's 8th and 38th largest, respectively. The market
place continues to associate EasyCare(R) with high quality coverage and service
levels, which we believe is a major factor in our growth.''
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 and the EasyCare(R) Certified Pre-Owned Vehicle Merchandising
Program. The Company also administers warranty and service contract products
under private labels for financial institutions, an insurance company and a
manufacturer.
''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. The specific risk factors are described in the
Company's Form 10-K that has been filed with the Securities & Exchange
Commission in connection with its 1997 year.
Other APCO press releases are available through Company News On-Call by fax,
800-758-5804, ext. 100756.
AUTOMOBILE PROTECTION CORPORATION - APCO
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
Revenues $30,060,000 $23,797,000
Cost of sales:
Premium and taxes 19,275,000 15,447,000
Commissions and other costs4,200,000 3,500,000
Total cost of sales 23,475,000 18,947,000
6,585,000 4,850,000
Expenses:
Compensation, selling
and administrative 4,071,000 3,569,000
Depreciation
and amortization 120,000 110,000
Interest, dividend
and other income (416,000) (259,000)
3,775,000 3,420,000
Income before provision
for income taxes 2,810,000 1,430,000
Provision for income taxes 1,039,000 545,000
Net income $1,771,000 $885,000
Net income per share:
Basic $0.15 $0.08
Diluted $0.14 $0.08
Number of shares used in computing
net income per share:
Basic 11,604,000 10,681,000
Diluted 12,552,000 11,404,000
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
Revenues $55,873,000 $43,892,000
Cost of sales:
Premium and taxes 35,242,000 28,379,000
Commissions and other costs8,202,000 6,392,000
Total cost of sales 43,444,000 34,771,000
12,429,000 9,121,000
Expenses:
Compensation, selling
and administrative 7,979,000 6,955,000
Depreciation
and amortization 238,000 215,000
Interest, dividend and
other income (769,000) (493,000)
7,448,000 6,677,000
Income before provision
for income taxes 4,981,000 2,444,000
Provision for income taxes 1,842,000 930,000
Net income $3,139,000 $1,514,000
Net income per share:
Basic $0.27 $0.14
Diluted $0.25 $0.13
Number of shares used in computing
net income per share:
Basic 11,408,000 10,658,000
Diluted 12,285,000 11,440,000
SOURCE: Automobile Protection Corporation
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