CCC Information Services Group Inc. Reports $0.20 EPS; Revises Guidance Upwards.Business Editors CHICAGO--(BUSINESS WIRE)--July 23, 2002 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 ), a leading provider of software and information services 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, today reported net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $5.3 million, or $0.20 per share, for the second quarter ended June June: see month. 30, 2002 compared with a net loss from continuing operations of $18.5 million, or a loss of $0.85 per share, in the same quarter of 2001. Revenue for the quarter grew 4.4% versus the same period a year ago, increasing from $46.1 in the second quarter of 2001 to $48.2 for the second quarter of 2002. Excluding the exited International segment, revenues grew 5.3% in the second quarter of 2002 compared to the prior year, rising from $45.8 million to $48.2 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose to $9.2 million in the second quarter, compared with a loss of $7.0 million as reported in the same quarter of 2001 (or a loss of $1.2 million excluding results of the exited International segment, and the 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. ). Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"The CCC team continued to make progress during the second quarter," said Githesh Ramamurthy, chairman and chief executive officer of CCC Information Services Inc. "Not only did we deliver another strong quarter of financial results, but we also completed development work on a number of new solutions for our customers, and made enhancements to existing products that we believe will provide future revenue growth for CCC." Revenue for the first half of the year grew 2.3% to $95.7 million from $93.5 million a year earlier (growth was 3.8% excluding the exited International segment). 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. for the first half of the year increased to $18.4 million, up from a loss of $5.2 million for the first half a year ago (Operating profits for the first half last year, excluding the exited International segment and the restructuring charges, were $1.0 million). Based on the first half performance, CCC is raising expectations for the remainder of 2002. Guidance is as follows: -- Revenue for the second half of the year should continue to grow in line with our first half performance. We believe new product launches will provide momentum during the second half of 2002, and into 2003, -- Operating performance for the second half of the year should approximate the first half of the year, -- Our new EBITDA target is $42-$44 million for the full year 2002, up from prior guidance of $40 million, -- We continue to expect capital expenditure of $6 to $9 million for the full year, -- Earnings per share target is $0.70 to $0.74 for the full year 2002. 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 repair industries. Its technology-based products and services optimize optimize - optimisation efficiency throughout the entire claims management supply chain and facilitate communication amongst approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15,000 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. 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. Specific factors that might cause actual results to differ from our expectations include, but are not limited to, competition in the automotive claims and collision repair industries, the ability to develop new products and services, the ability to protect trade secrets and proprietary information, the ability to generate the cash flow necessary to meet the Company's obligations, the outcome of certain legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , and other factors. 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 Year-to-Date
Ended Period Ended
June 30, June 30,
--------------------------------------------
2002 2001 2002 2001
--------------------------------------------
Revenues:
CCC U.S. $48,178 $45,761 $95,678 $92,155
CCC International -- 367 -- 1,363
--------------------------------------------
Net revenue 48,178 46,128 95,678 93,518
--------------------------------------------
Expenses:
Production and customer
support 7,564 8,639 14,710 17,948
Commissions, royalties
and licenses 2,528 2,512 4,991 5,008
Selling, general and
administrative 19,558 23,279 38,735 46,261
Depreciation and
amortization 2,434 3,136 4,852 6,238
Product development and
programming 6,894 9,319 13,980 17,062
Restructuring charges -- 6,199 -- 6,199
--------------------------------------------
Total operating expenses 38,978 53,084 77,268 98,716
--------------------------------------------
Operating income (loss) 9,200 (6,956) 18,410 (5,198)
Interest expense (168) (1,188) (396) (2,439)
Other income (expense),
net (7) 401 210 687
Loss on investment
securities and note -- (27,595) -- (27,595)
CCC Capital Trust minority
interest expense (461) (384) (909) (534)
Equity in losses of
ChoiceParts investment (50) (795) (342) (1,671)
--------------------------------------------
Income (loss) from
continuing operations
before income taxes 8,514 (36,517) 16,973 (36,750)
Income tax (provision)
benefit (3,218) 17,957 (6,461) 18,062
--------------------------------------------
Income (loss) from
continuing operations
before equity losses 5,296 (18,560) 10,512 (18,688)
Equity in net income
(losses) of affiliate -- 79 -- (2,613)
--------------------------------------------
Income (loss) from
continuing operations 5,296 (18,481) 10,512 (21,301)
Income (loss) from
discontinued operations,
net of tax -- -- -- (6,982)
--------------------------------------------
Net income(loss) $ 5,296 $ (18,481) $ 10,512 $ (28,283)
============================================
Per Share Data:
--------------------------
Income (loss) per common
share - basic from:
Continuing operations $ 0.21 $ (0.85) $ 0.41 $ (0.98)
Discontinued operations -- -- -- (0.32)
--------------------------------------------
Income (loss) per common
share - basic $ 0.21 $ (0.85) $ 0.41 $ (1.30)
============================================
Income(loss) per common
share - diluted from:
Continuing operations $ 0.20 $ (0.85) $ 0.40 $ (0.98)
Discontinued operations -- -- -- (0.32)
--------------------------------------------
Income (loss) per common
share - diluted $ 0.20 $ (0.85) $ 0.40 $ (1.30)
============================================
Weighted average common
shares outstanding
- Basic 25,826 21,794 25,763 21,781
============================================
- Diluted 26,767 21,794 26,468 21,781
============================================
CCC INFORMATION SERVICES GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except share amounts)
June 30, December 31,
2002 2001
---- ----
(Unaudited) (Audited)
ASSETS
Cash................................ $768 $766
Accounts receivable (net of
reserves of $2,497 and $2,288 at
June 30, 2002 and December 31, 2001,
respectively)...................... 12,652 11,346
Income tax receivable............... 13,103 --
Current portion deferred
income taxes....................... -- 5,322
Other current assets................ 6,788 6,461
------- -------
Total current assets.............. 33,311 23,895
Property and equipment (net of
accumulated depreciation of $30,254
and $25,376 at June 30, 2002 and
December 31, 2001, respectively)... 12,307 13,487
Goodwill............................ 4,896 4,896
Deferred income taxes (net of
valuation allowance of $11,489 at
June 30, 2002 and
December 31, 2001)................. 11,164 18,587
Investments......................... 235 302
Other assets........................ 1,546 1,027
------- -------
Total assets...................... $63,459 $62,194
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Book overdraft...................... $1,432 $1,205
Accounts payable.................... 7,751 7,658
Accrued expenses.................... 22,251 28,570
Income taxes payable................ 2,095 --
Current portion of long-term debt... 807 421
Deferred revenues................... 5,193 6,297
------- -------
Total current liabilities......... 39,529 44,151
Long-term debt...................... 411 7,145
Deferred revenues................... 34 66
Other liabilities................... 3,559 3,737
Net liabilities of
discontinued operations............ 475 536
------- -------
Total liabilities................. 44,008 55,635
------- -------
Company obligated mandatorily
redeemable preferred securities of
subsidiary trust holding solely
company-guaranteed debentures...... 13,551 13,370
------- -------
Common stock ($0.10 par value,
40,000,000 shares authorized,
25,860,637 and 25,503,567 shares
outstanding at June 30, 2002 and
December 31, 2001, respectively)... 2,984 2,967
Additional paid-in capital.......... 125,404 124,188
Accumulated deficit................. (75,075) (85,587)
Accumulated other
comprehensive loss................. (10) (10)
Note receivable from officer........ (1,200) --
Treasury stock, at cost ($0.10 par
value, 4,094,665 and 4,286,665 common
shares in treasury at June 30, 2002
and December 31, 2001,
respectively)...................... (46,203) (48,369)
------- -------
Total stockholders'
equity (deficit)................. 5,900 (6,811)
------- -------
Total liabilities and stockholders'
equity (deficit)................. $63,459 $62,194
======= =======
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