CCC Information Services Group Inc. Reports 2000 Third Quarter Results.Business & Technology Editors CHICAGO--(BUSINESS WIRE)--Oct. 25, 2000 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 ), through its wholly-owned subsidiary CCC Information Services Inc., the leading provider of business solutions to the automobile claims industry, today announced the results for the third quarter of 2000. Third Quarter Highlights - CCC U.S. Division underlying operating income shows strong growth, increasing to $5.3 million from $4.4 million in 1999. Year to date underlying operating income up $7.8 million or 63%. - DriveLogic investments increased to $5.2 million for the quarter and $11.2 million for the nine month period. - Non-recurring charges of $4.1 million in the quarter. Quarterly Results In announcing the results, Githesh Ramamurthy, Chairman and Chief Executive Officer, said, "Our CCC U.S. Division continues to maintain its leadership position and post strong financial performance. We also made significant strides during the quarter in our e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. strategy through our DriveLogic business." Third quarter 2000 revenues of $51.5 million were $0.2 million lower than the same quarter last year. Underlying revenue for our CCC U.S. Division grew $1.7 million, or 4.2%, from 1999. Additionally, CCC International Division's revenues grew $0.2 million, or 13.9%, principally due to revenues from the D. W. Norris acquisition made in third quarter of 1999. These increases were offset, in part, by a decline of $1.4 million in Consumer Services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, revenue. The Company reported consolidated operating losses 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. for the quarter of $5.9 million compared to 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. of $3.7 million in the same quarter last year. Excluding non-recurring operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ($1.4 million for litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement, and $2.7 million for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of a marketing license agreement and consulting fee commitments) operating losses totaled $1.8 million. Before $5.2 million of expenses associated with DriveLogic, quarterly operating income decreased by $0.3 million from 1999, driven primarily by increased losses in CCC International and Consumer Services. CCC U.S Division continued to show strong profit improvements. Excluding the non-recurring charges, operating income (including shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. expenses) increased 19% to $5.3 million, up from $4.4 million in the prior year quarter. For the nine month period, CCC U.S. operating income, excluding non-recurring items, has increased 63% to $20.2 million. Equity in net losses from affiliates included $0.5 million for CCC's share of losses on ChoiceParts, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the joint venture auto parts Auto parts are components of automobiles. They mainly are, in alphabetic order (only car specific articles or articles with car section):
v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Data Processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a Inc. and Reynolds & Reynolds Company. Further, $3.7 million in losses were incurred in connection with Enterstand, the Company's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. joint venture. Third quarter 2000 losses per share applicable to common stock were $(0.35) versus earnings per share of $0.03 in the third quarter of 1999. Mr. Ramamurthy commented on the positioning of the Company for future growth, "We believe the investments we have made in DriveLogic, CCC International, ChoiceParts and our continuing product development for CCC U.S., position us well for growth and continued market leadership." 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 Inc., 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. , IL, is the leading supplier of advanced software and 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. to the automotive claims industry, including information and network services for automotive claims management. Its value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: , technology-based products and services increase efficiency and facilitate communication among more than 14,000 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 facilities, 350 insurance companies, and a range of business partners. For more information about CCC Information Services, visit our Web site at www.cccis.com or contact Jeanene O'Brien O'Bri·en , Edna Born 1932. Irish writer whose works, including The Lonely Girl (1962) and Johnny I Hardly Knew You (1977), explore the lives of women in modern-day Ireland. Noun 1. at CCC Information Services Inc. 312-229-3083 or contact Rich Ringer at HLB HLB Hong Leong Bank HLB Hydrophilic-Lipophilic Balance HLB Horton Lees Brogden Lighting Design (company with studios in New York, San Francisco, Los Angeles, and Boston) HLB Hotels Licensing Board (Singapore) Communications 312-649-0371. DriveLogic is a subsidiary of CCC Information Services Group Inc. focused on providing 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 auto claims and collision repair industries. DriveLogic has the unique market advantage of being able to leverage CCC's connectivity platforms, which already processes approximately 800,000 auto claims-related transactions per day. By developing market-driven technology solutions and capitalizing on the industry expertise, customer relationships and market leadership of CCC, DriveLogic aims to optimize optimize - optimisation efficiencies, bringing value to parties throughout the entire supply chain. For more information about DriveLogic, contact Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Roberts at DriveLogic, 312-228-8278, or contact Rich Ringer at HLB Communications, 312-649-0371, or visit the DriveLogic Web site at www.drivelogic.com.
CCC Information Services Group Inc.
Consolidated Operating Results and
Selected Consolidated Balance Sheet Data
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year-to-Date Period Ended
September 30 September 30,
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
CCC U.S. $43,877 $42,954 $131,688 $129,159
Consumer Services 5,679 7,031 20,209 20,729
CCC International 1,895 1,664 6,253 2,638
------- ------- -------- --------
Net revenue 51,461 51,649 158,150 152,526
------- ------- -------- --------
Expenses:
Production and customer
support 15,490 16,577 48,299 45,726
Commissions, royalties
and licenses 2,620 3,858 9,196 12,708
Selling, general and
administrative 24,078 19,421 66,599 58,453
Depreciation and
amortization 3,261 2,589 9,204 7,515
Product development and
programming 7,775 5,487 19,881 17,457
Write-off of marketing
license agreement and
consulting fee
commitments 2,701 -- 2,701 --
Litigation settlement 1,425 -- 1,425 --
------- ------- -------- --------
Total operating expenses 57,350 47,932 157,305 141,859
------- ------- -------- --------
Operating income(loss) (5,889) 3,717 845 10,667
Interest expense (881) (412) (2,303) (793)
Other income, net 148 175 4,750 403
Gain on exchange of
investment securities -- -- 18,437 --
Equity in losses of
ChoiceParts (476) -- (788) --
------- ------- -------- --------
Income(loss) before
income taxes (7,098) 3,480 20,941 10,277
Income tax benefit
(provision) 3,153 (2,099) 1,215 (4,836)
------- ------- -------- --------
Income(loss) before
equity losses and
minority interest (3,945) 1,381 22,156 5,441
Equity in net losses of
affiliates (3,657) (814) (7,966) (5,810)
Minority share in loss of
subsidiaries -- 1 -- 1
------- ------- -------- --------
Net income(loss) (7,602) 568 14,190 (368)
Dividends and accretion
on preferred stock -- -- -- (2)
------- ------- -------- --------
Net income(loss) applicable
to common stock $(7,602) $ 568 $ 14,190 $ (370)
======= ======= ======== ========
Per Share Data:
---------------
Net income(loss) applicable
to common stock
- Basic $ (0.35) $ 0.03 $ 0.65 $ (0.02)
======= ======== ======== ========
- Diluted $ (0.35) $ 0.03 $ 0.64 $ (0.02)
======= ======== ======== ========
Weighted average common and common
equivalent shares outstanding
- Basic 21,613 22,429 21,906 23,172
======= ======== ======== ========
- Diluted 21,613 22,670 22,221 23,478
======= ======== ======== ========
September 30, December 31,
2000 1999
---- ----
(Unaudited)
Total assets $109,447 $84,549
Long-term debt $ 37,405 $24,685
Stockholders' equity $ 24,731 $15,261
CCC Information Services Group Inc.
Consolidated Operating Results by Segments
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year-to-Date Period Ended
September 30, September 30,
2000 1999 2000 1999
---- ---- ---- ----
CCC US with Shared Services
---------------------------
Net revenue $43,887 $42,954 $131,688 $129,159
Operating expenses (38,604) (38,518) (111,522) (116,788)
------- ------- -------- --------
Operating income 5,283 4,436 20,166 12,371
Non-recurring operating
expenses(n) (4,126) -- (4,126) (1,206)
------- ------- -------- --------
Operating income--reported 1,157 4,436 16,040 11,165
======= ======= ======== ========
Consumer Services
-----------------
Net revenue 5,679 7,031 20,209 20,729
Operating expenses (6,582) (7,584) (21,296) (20,841)
------- ------- -------- --------
Operating loss (903) (553) (1,087) (112)
======= ======= ======== ========
CCC International
-----------------
Net revenue 1,895 1,664 6,253 2,638
Operating expenses (2,841) (1,830) (9,149) (3,024)
------- ------- -------- --------
Operating loss (946) (166) (2,896) (386)
======= ======= ======== ========
DriveLogic
----------
Net revenue -- -- -- --
Operating expenses (5,197) -- (11,212) --
------- ------- -------- --------
Operating loss (5,197) -- (11,212) --
======= ======= ======== ========
CCC Consolidated
----------------
Net revenue 51,461 51,649 158,150 152,526
Operating expenses (53,224) (47,932) (153,179) (140,653)
------- ------- -------- --------
Operating income(loss) (1,763) 3,717 4,971 11,873
Non-recurring operating
expenses(n) (4,126) -- (4,126) (1,206)
------- ------- -------- --------
Operating income(loss)
--reported $(5,889) $ 3,717 $ 845 $ 10,667
======= ======= ======== ========
(n) Non-recurring operating expenses included third quarter 2000
litigation settlement of $1,425 and an impairment of marketing
license fees and consulting fee commitments related to the
Company's existing shop management program of $2,701.
Non-recurring operating expenses for 1999 included a compensation
charge as a result of stock repurchase related to the former
chairman of the Company of $1,206.
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