CCC Information Services Group Inc. Posts Continued Strong Profit Growth in Core U.S. Business in 2nd Quarter, on 7% Revenue Gain.Business Editors CHICAGO--(BUSINESS WIRE)--Aug. 2, 2001 Quarterly Net Loss Reflects UK Wind Down, US Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , ChannelPoint Write Down CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. Information Services See Information Systems. Group Inc. (Nasdaq: CCCG CCCG Canadian Conference on Computational Geometry CCCG Climate Change Co-ordinating Group ) continued to post both strong operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and profit growth in its core U.S. operations in the second quarter ended June June: see month. 30, 2001 on a 6.8 percent revenue gain. But one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and the write down of a significant investment in software-developer ChannelPoint Inc. led to a net loss of $18.5 million in the June 30 quarter, equal to $0.85 per share. In the second quarter, CCC U.S., the core tools business, registered a 16.8 percent gain in operating profits to $8.0 million, excluding a $2.8 million restructuring charge. Core tools revenue increased 6.8 percent to $45.8 million from $42.9 million in the prior year. During the quarter, the company posted a total operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $7.0 million, including a $9.2 million investment in DriveLogic and $6.2 million in restructuring charges. International operating profits were $0.5 million in the quarter. "We saw strong performance from our automotive customer base and are pleased by the continued high renewal rates from our insurance and automotive customer base," said Githesh Ramamurthy, chairman and chief executive officer of CCC Information Services Inc. For the first six months of 2001, CCC U.S. revenues increased 5.0 percent to $92.2 million from $87.8 million a year earlier. Operating profits, excluding restructuring charges of $17.6 million, were up 17.6 percent from a year ago. Investment in DriveLogic totaled $16.6 million, up from $6.0 million. "In addition, with our recent integration of DriveLogic and CCC, we are now able to offer customers a complete set of solutions with a single face for sales, service and support. This decision is allowing us to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. our resources toward product delivery, while improving profit," added Ramamurthy. Second quarter highlights: -- Created a more efficient organizational structure resulting in projected annual profit improvement in excess of $10.0 million. A related $2.8 million non-recurring pre-tax restructuring charge was recorded in the second quarter. -- Initiated the wind down of CCC's international businesses to increase focus on U.S. market opportunities. A non-recurring $3.4 million pre-tax charge resulted from this decision. -- Wrote off the company's holding in ChannelPoint Inc., resulting in a non-cash pre-tax charge of $27.6 million, including a $4.9 million allowance related to a note receivable. -- Reached an agreement with Mr. Ramamurthy regarding his employment with CCC through 2004. "The actions taken during the quarter position CCC for improved financial performance during the remainder of 2001 and position us well for further improvement in 2002," said Reid E. Simpson Simp·son , Sir James Young 1811-1870. British obstetrician and a founder of gynecology. He is also known for introducing the use of chloroform as an anesthetic. , the company's executive vice president and chief financial officer. About CCC CCC Information Services Group Inc. (NASDAQ: CCCG), headquartered in Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , is a leading supplier of advanced software, communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. , Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and wireless-enabled technology solutions to the automotive claims and collision See CSMA/CD and collision avoidance system. Collision (physics) Any interaction between particles, aggregates of particles, or rigid bodies in which they come near enough to exert a mutual influence, generally with exchange of energy. repair industries. Its technology-based products and services optimize optimize - optimisation efficiency throughout the entire claims management supply chain and facilitate communication amongst 14,800 collision repair facilities, 350 insurance companies, and a range of industry participants. For more information about CCC Information Services, visit our Web site at www.cccis.com; or contact Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Jablonski Jablonski (also Jabłoński, Jablonsky) is a surname and may refer to:
Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic of Ketchum/CTC at 312-832-9300. Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : The Webcast will be held on Thursday Thursday: see week. , August 2 at 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy at www.cccis.com/investor/confcall.htm. A recording of the conference call will also be available on Thursday, August 2, beginning at 2:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. , and will be available through August 10, at 12:59 a.m. EST. To access the replay, simply call 800-475-6701 within the U.S., or 320-365-3844 outside the U.S. The access code number is 594307. A replay of the Webcast will also be available at www.cccis.com/investor/confcall.htm. This release contains statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of those sections and the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the company's filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements, and startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. businesses are inherently uncertain. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The company has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise any forward-looking statement.
CCC Information Services Group Inc.
Consolidated Operating Results
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30,
-------- --------
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
CCC U.S. $ 45,761 $ 42,866 $ 92,155 $ 87,801
CCC International 367 1,613 1,363 4,358
------- ------- ------- -------
Net revenue 46,128 44,479 93,518 92,159
------- ------- ------- -------
Expenses:
Production and
customer support 8,639 11,047 17,948 21,275
Commissions, royalties
and licenses 2,512 3,148 5,008 6,514
Selling, general
and administrative 23,279 20,966 46,261 40,390
Depreciation
and amortization 3,136 2,754 6,238 5,284
Product development
and programming 9,319 5,920 17,062 11,662
Restructuring charges 6,199 -- 6,199 --
------- ------- ------- -------
Total operating expenses 53,084 43,835 98,716 85,125
------- ------- ------- -------
Operating income (6,956) 644 (5,198) 7,034
Interest expense (1,188) (739) (2,439) (1,389)
Other income, net 401 225 687 4,602
Gain on exchange of
investment securities -- 18,437 -- 18,437
Loss on investment
securities and
note receivable (27,595) -- (27,595) --
CCC Capital Trust
minority interest expense (384) -- (534) --
Equity in losses of
ChoiceParts investment (795) (312) (1,671) (312)
------- ------- ------- -------
Income(loss) from
continuing operations
before income taxes (36,517) 18,255 (36,750) 28,372
Income tax
benefit (provision) 17,957 2,208 18,062 (2,782)
------- ------- ------- -------
Income(loss) from
continuing operations
before equity losses (18,560) 20,463 (18,688) 25,590
Equity in net
losses of affiliate 79 (3,496) (2,613) (4,309)
------- ------- ------- -------
Income(loss) from
continuing operations (18,481) 16,967 (21,301) 21,281
Income(loss) from
discontinued operations,
net of tax -- 290 (6,982) 511
------- ------- ------- -------
Net income(loss) $(18,481) $ 17,257 $(28,283) $ 21,792
======= ======= ======= =======
Per Share Data:
Income(loss) per common
share - basic from:
Continuing operations $ (0.85) $ 0.78 $ (0.98) $ 0.96
Discontinued operations -- 0.01 (0.32) 0.02
------- ------- ------- -------
Income(loss) per
common share - basic $ (0.85) $ 0.79 $ (1.30) $ 0.98
======= ======= ======= =======
Income(loss) per
common share - diluted from:
Continuing operations $ (0.85) $ 0.77 $ (0.98) $ 0.95
Discontinued operations -- 0.01 (0.32) 0.02
------- ------- ------- -------
Income(loss) per
common share - diluted $ (0.85) $ 0.78 $ (1.30) $ 0.97
======= ======= ======= =======
Weighted average
common shares outstanding
- Basic 21,794 21,959 21,781 22,054
======= ======= ======= =======
- Diluted 21,794 22,113 21,781 22,479
======= ======= ======= =======
CCC Information Services Group Inc.
Consolidated Operating Results by Segments
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30,
------- -------
2001 2000 2001 2000
---- ---- ---- ----
CCC US with Shared Services
Net revenue $45,761 42,866 92,155 87,801
Operating expenses (37,806) (36,056) (74,521) (72,802)
------ ------- ------ ------
Operating income 7,955 6,810 17,634 14,999
Non-recurring
operating expenses (2,830) -- (2,830) --
------ ------- ------ ------
Operating
income - reported $ 5,125 $ 6,810 $14,804 $14,999
====== ======= ====== ======
CCC International
Net revenue 367 1,613 1,363 $ 4,358
Operating expenses 103 (3,547) (1,348) (6,308)
------ ------- ------ ------
Operating income (loss) 470 (1,934) 15 (1,950)
Non-recurring
operating expenses (3,369) -- (3,369) --
------ ------- ------ ------
Operating loss - reported $(2,899) $ (1,934) $(3,354) $(1,950)
====== ======= ====== ======
DriveLogic
Net revenue $ -- $ -- $ -- $ --
Operating expenses (9,182) (4,232) (16,648) (6,015)
------ ------- ------ ------
Operating loss $(9,182) $ (4,232) $(16,648) $(6,015)
====== ======= ====== ======
CCC Consolidated -
Continuing Operations
Net revenue $46,128 $ 44,479 $93,518 $92,159
Operating expenses (46,885) (43,835) (92,517) (85,125)
------ ------- ------ ------
Operating income (loss) (757) 644 1,001 7,034
Non-recurring
operating expenses (6,199) -- (6,199) --
------ ------- ------ ------
Operating income (loss) -
reported $(6,956) $ 644 $(5,198) $ 7,034
====== ======= ====== ======
CCC INFORMATION SERVICES GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except share amounts)
(Unaudited)
June 30, December 31,
2001 2000
---- ----
ASSETS
Cash.................................. $803 $912
Accounts receivable (net of reserves
of $2,882 and $3,271 at June 30, 2001
and December 31, 2000, respectively) 13,401 16,867
Income tax refunds receivable......... 3,975 --
Current portion deferred income taxes. 5,322 --
Other current assets.................. 4,880 5,212
----------- -----------
Total current assets................ 28,381 22,991
Property and equipment (net of
accumulated depreciation of $37,850
and $32,141 at June 30, 2001 and
December 31, respectively) 19,690 21,812
Goodwill (net of accumulated
amortization of $11,584 and $15,312
at June 30, 2001 and December 31,
2000) 5,391 7,224
Deferred income taxes................. 18,484 8,004
Investments........................... 1,447 23,764
Notes receivable...................... 739 5,257
Other assets.......................... 1,053 788
Net assets of discontinued operations. -- 4,848
----------- -----------
Total assets........................ $75,185 $94,688
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Book overdraft........................ $3,076 $8,682
Accounts payable and accrued expenses. 29,156 34,462
Income taxes payable.................. -- 375
Current portion of long-term debt..... 692 314
Deferred revenues..................... 5,064 4,044
----------- -----------
Total current liabilities........... 37,988 47,877
Long-term debt........................ 43,864 42,000
Deferred revenues..................... 84 120
Other liabilities..................... 2,686 2,573
Net liabilities of discontinued
operations........................... 2,046 --
----------- -----------
Total liabilities................... 86,668 92,570
----------- -----------
Preferred Securities in CCC Capital
Trust................................ 12,534 --
----------- -----------
Common stock ($0.10 par value,
40,000,000 shares authorized,
21,812,420 and 21,759,279 shares
issued and outstanding at June 30,
2001 and December 31, 2000,
respectively)........................ 2,598 2,593
Additional paid-in capital............ 105,580 103,279
Accumulated deficit................... (83,245) (54,962)
Accumulated other comprehensive loss.. (581) (423)
Treasury stock, at cost ($0.01 par
value, 4,286,665 common shares in
treasury at June 30, 2001and December
31, 2000, respectively).............. (48,369) (48,369)
----------- -----------
Total stockholders' equity (deficit) (24,017) 2,118
----------- -----------
Total liabilities and stockholders'
equity (deficit) $75,185 $94,688
=========== ===========
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