Bid side building. COVR looks strong
COVR Nasdaq SmallCap Price: 1-1/4 Target: 2-3
Earlier this year COVR was touted in Business Week's Inside Wall Street column with a target of 10. Well, it isn't going to 10. But a double from here looks possible.
Cover-All Technologies Inc. (COVR), 1-1/4, reported its 4th consecutive quarterly increase in profitability since the company's restructuring in 1995 and an 85% increase in revenue for its 3Q. COVR attrributed its success to a significant increase in new license revenue and professional services. Total revenue for the quarter was $3.8m versus $2m; for the 9 month period, revenue rose to $10.3m from $4.2m. Earnings for the quarter were .04cps, versus a loss of a penny, and for the year to date, earnings are .10cps versus a loss of .17cps. Brian Magowan, chairman and CEO says that COVR "continues to achieve sales and implementation success with its flagship TAS 2000 product line, which allows the Company to deliver complete modular policy and claims administration solutions to Property and Casualty insurers. Although the first shipments of TAS 2000 solutions were delivered in late 1997, revenues from TAS 2000 already represent the largest part of revenue for the company in 1998. Prospects remain promising that TAS 2000 will fuel continuing revenue and earnings growth in the coming quarters.''
cover-all.com
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Cover-All Technologies Ticker: COVR CUSIP: 222892101
BRIEF
Cover-All Technologies licenses and maintains its
software products to the property/casualty insurance
throughout the United States, Puerto Rico and the United
Kingdom. COVR also provides professional consulting
services. For the 6 months ended 6/30/98, total revenues
totalled $6.5M, up from $2.2M. Net income totalled $903K
vs. a loss of $2.6M. Results benefitted from higher license
fees as a result of sales of TAS 2000 product modules.
RATIOS AND STATISTICS AT A GLANCE
(As of 10/09/98)
Price $ 1.16 Avg Monthly Vol. 0.765 Mil.
52W High $ 4.94 Avg Daily Vol. 0.037 Mil.
52W Low $ 0.75
Beta 0.59
TTM EPS $ 0.05 Ann. Div. Rate $ 0.00
P/E 22.23 Div. Yield 0.00 %
5 Yr High P/E NA 5 Yr Avg Yield 0.00 %
5 Yr Low P/E NA Last Dividend Decl. $ NA
Last Div Ex-Date NA
Last Div Pay Date NA
INSTITUTIONAL OWNERSHIP
# of Institutions 10
% Shares Out. Owned 8.46 %
3 Month Net purchases 0.03 Mil.
COMPANY COMPARISON
TO THE DATA PROCESSING/SOFTWARE
COMPANY INDUSTRY
PROFITABILITY RATIOS:
Net Profit Margin 7.04 16.67
Return on Equity 24.71 22.83
Interest Coverage 3.08 16.51
VALUATION RATIOS:
P/E Ratio 22.23 43.35
Dividend Yield 0.00 0.14
Price to Tangible Book 4.14 11.68
Price to Book 3.78 11.24
Price to Free Cash Flow 165.14 36.84
FINANCIAL STRENGTH RATIOS:
Current Ratio 2.57 2.68
LT Debt to Equity 0.58 0.13
Total Debt to Equity 0.58 0.15
GROWTH STATISTICS:
3 Yr Rev Growth 60.30 36.35
3 Yr EPS Growth NM 38.76
3 Yr Div Growth NM 11.08
Reinvestment Rate 100.00 97.24
Return on Sales 7.0
Return on Assets 9.3
Return on Equity 24.7
EPS % Chg. Last Qtr 56.4
EPS % Chg. 2 Qtr. Ago 69.0
EPS % Chg. 3 Qtr. Ago 69.0
EPS % Chg. 4 Qtr. Ago 69.0
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EQUITY
Common Stock $.01 Par, 7/98, 30M auth., 16,982,672 issd.
Insiders own 8%. 3 others own approx. 45%. PO: 9/86, 500K
shares @ $5 by Drexel Burnham Lambert. 5/93, 5-for-4 stock
split; 1/92, 6/89, 5% stock dividend. (As of 12/97) LTD:
$3M @ 12.5%. *NOTE: 7/96, name change from Warner
Insurance Services. FY'96 Q's. are reclassified.
ANALYST FOOTNOTES
12/93 YE changed fr. OCT to DEC. FY'93 = 2 mos. ended 12/93.
FY'93 - '95 fncls. are restated for disc. ops. of Insurance
Services Dvsn. FY'95 - '96 fncls. are reclassified.
HISTORICAL QUARTERLY RESULTS
REVENUE
(Thousands of U.S. Dollars)
1995 1996 1997
1998
1st Qtr MAR 1,054 1,120 883
2,871
2nd Qtr JUN 925 1,896 1,338
3,632
3rd Qtr SEP 1,136 1,051 2,058
4th Qtr DEC 1,004 1,402 3,659
EARNINGS PER SHARE
(U.S. Dollars per share)
1st Qtr MAR -0.250 -0.070 -0.090
0.020
2nd Qtr JUN -0.030 -0.080 -0.060
0.030
3rd Qtr SEP -0.050 -0.120 -0.010
4th Qtr DEC - -.080 -0.100 0.010
SELECTED INCOME STATEMENT ITEMS
(Thousands of U.S. Dollars)
ANNUAL YEAR TO DATE
12 MONTHS 12 MONTHS 6 MONTHS 6
MONTHS
ENDING ENDING ENDING
ENDING
12/31/96 12/31/97 06/30/97
06/30/98
Revenue 5,468 7,938 2,221
6,503
Operating Expenses 11,184 10,315 4,736
5,448
Operating Income -5,716 -2,377 -2,515
1,055
Non-Operating Income 109 38 20
37
Non-Operating Expenses -2 -301 -101
-188
Income Before Taxes -5,609 -2,640 -2,596
904
Income Taxes 0 0 0
0
Income After Taxes -5,609 -2,640 -2,596
904
Adjustments to Income 0 0 0
0
Inc. for Primary EPS -5,609 -2,640 -2,596
904
EPS Excl. Xord Items -0.377 -0.157 -0.155
0.054
Disc Opns + Xord Items -393 0 0
0
EPS Incl. Xord Items -0.404 -0.157 -0.155
0.054
Avg Primary Shs Out. 14,865.76 16,794.00 16,719.15
16,889.89
Common Dividends/Shr 0.000 0.000 0.000
0.000
F.D. EPS Excl. Xord -0.377 -0.157 -0.155
0.054
F.D. EPS Incl. Xord -0.404 -0.157 -0.155
0.054
SELECTED BALANCE SHEET ITEMS
(Thousands of U.S. Dollars)
YEAR ENDING QUARTER ENDING
12/31/96 12/31/97 06/30/97
06/30/98
Cash & ST Investments 447 2,908 1,124
2,179
Receivables 1,585 1,235 1,239
4,187
Other Current Assets 7 141 245
1,143
Total Current Assets 2,039 4,284 2,608
7,509
LT Investments 0 0 0
0
Fixed Assets 410 228 307
196
Other LT Assets 5,794 3,973 4,879
3,408
Total Assets 8,243 8,485 7,794
11,113
Accounts Payable 536 571 487
541
ST Debt & Curr LTD 0 0 0
0
Other Current Liab. 2,797 2,066 1,871
2,382
Total Current Liab. 3,333 2,637 2,358
2,923
LT Debt & Cap Leases 0 3,000 3,000
3,000
Other LT Liabilities 0 0 0
0
Total Liabilities 3,333 5,637 5,358
5,923
Preferred Stock 0 0 0
0
Common & Paid In Capital 27,432 25,441 27,553
26,883
Retained Earnings -19,954 -22,594 -22,550
-21,691
Other Equity -2,567 0 -2,567
0
Total Equity 4,911 2,847 2,436
5,192
Shares Outstanding 16,718 16,791 16,720
16,978
SELECTED STATEMENT OF CASH FLOWS ITEMS
INDIRECT METHOD (Thousands of U.S. Dollars)
ANNUAL YEAR TO DATE
12 MONTHS 12 MONTHS 6 MONTHS 6
MONTHS
ENDING ENDING ENDING
ENDING
12/31/96 12/31/97 06/30/97
06/30/98
Net Income -5,608 -2,640 -2,596
903
Depreciation & Amort. 2,444 1,997 1,012
416
Non Cash Items -2,039 607 149
0
Other Operating CF 532 -643 -890
-2,675
Total Operating CF -4,671 -679 -2,325
-1,356
Capital Expenditures -1,405 -4 -1
-171
Other Investing CF 0 4 0
0
Total Investing CF -1,405 0 -1
-171
Dividends Paid 0 0 0
0
Sale (Purch.) of Stock 4,947 141 4
298
Net Borrowings 0 3,000 3,000
0
Other Financing CF 0 0 0
500
Total Financing CF 4,947 3,141 3,004
798
Exchange Rate Effect 0 0 0
0
Net Change In Cash -1,130 2,461 677
-729
COMPANY CONTACT, ADDRESS & PHONE #:
Director of Investor Relations
Cover-All Technologies
18-01 Pollitt Drive
Fair Lawn, NJ 07410
PHONE: (201) 794-4800 |
