CCC Information Services Reports Record 1999 Fourth Quarter Results and Announces Business-to-Business e-Commerce Strategy.Business Editors/High-Tech Writers CHICAGO--(BUSINESS WIRE)--Jan. 27, 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 ), the leading provider of business solutions to the automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of claims industry, today announced record revenue and 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. for the fourth quarter of 1999. The results for the year were revenues of $207.8 million and operating income of $15.7 million.
Fourth Quarter Events
-- Record fourth quarter revenues of $55.3 million.
-- Record operating income of $7.3 million before a
reduction-in-force charge of $2.2 million.
-- Establishment of business-to-business strategy targeting the
automotive claims industry.
Quarterly Results In announcing the results, Githesh Ramamurthy, President and Chief Executive Officer, said, &uot;The fourth quarter operating income reflects our efforts during the past quarter to improve the financial performance across the entire business through both revenue growth and expense reduction.&uot; Fourth quarter 1999 revenues of $55.3 million were $6.0 million, or 12.2%, higher than the same quarter last year. The increase in revenues was principally due to continued growth in the Company's 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, business, in both the U.S. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
Fourth quarter operating income of $5.1 million grew $1.5 million, or 42.8%, from the same quarter last year. 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. increased $4.5 million, or 9.8%, reflecting the growth in the Consumer Services business, as well as the $2.2 million reduction-in-force charge. Equity in net losses from affiliates of $0.8 million related to the Company's continued investment in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. joint venture between CCC and Hearst Communications, Inc. which was established in the fourth quarter of 1998 to expand CCC's product offerings in Europe. Fourth quarter 1999 earnings per share applicable to common stock were $0.05 versus losses per share of ($0.09) in the fourth quarter of 1998. Excluding non-cash losses from InsurQuote, earnings per share for the fourth quarter of 1998 were $0.08 versus earnings per share of $0.05 in the fourth quarter of 1999. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results Revenues for the year ended December December: see month. 31, 1999 of $207.8 million were 10.4% higher than last year. The increase in revenue was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to continued growth in the Company's domestic and international Consumer Services business as well as growth in digital imaging 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. estimating products. Operating income for the year ended December 31, 1999 of $15.7 million declined $4.3 million, or 21.3%, from last year. Year-over-year operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: declined from 10.6% in 1998 to 7.6% in 1999. Operating expenses increased $23.9 million, or 14.2%, reflecting the growth in the Consumer Services business, increased expenditures to improve infrastructure and new business initiatives. For the year ended December 31, 1999, net income applicable to common stock of $0.8 million increased from a loss of $0.03 million in 1998. Earnings per share applicable to common stock for the year increased to $0.03 from $0.00 reported for the same period last year. Outlook Mr. Ramamurthy commented on the Company's performance during the latest quarter and its outlook for future quarters, &uot;The fourth quarter results were strong and the profit improvement initiatives we are completing should lay the foundation for continued profitable growth. We are also excited to announce that we are actively working on a business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. 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 to address the substantial opportunities to raise customer satisfaction, lower processing costs and improve the overall profitability of the automobile claims industry participants. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. alone, nearly $100 billion is spent processing automotive claims. CCC, through its strong relationship with insurance companies and repair facilities, is uniquely positioned to create value for the industry participants. I look forward to providing updates over the coming months on the investments and alliances we will be establishing to deliver these solutions to the marketplace.&uot; Some of the statements contained in this release are based on current expectations. Some of these statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and actual results may differ materially. Please see the Company's offering prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. and 1998 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for a discussion of associated risks. CCC Information Services Group Inc. is the automotive claims industry's leading provider of business solutions. Connecting people, processes and information, CCC's innovative technology-based capabilities ensure that the right information is always available -- at the right time and to the right person -- to make the right business decision.
CCC Information Services Group Inc.
Consolidated Operating Results and Selected
Consolidated Balance Sheet Data
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
---------------------- ------------------
(Unaudited) (Unaudited)
1999 1998 1999 1998
---- ---- ---- ----
Revenues:
Insurance Services $ 27,435 $ 25,090 $ 104,228 $ 101,376
Automotive Services 16,314 16,676 66,324 63,455
Consumer Services
11,522 7,608 37,245 22,710
Other -- (91) -- 628
-------- -------- --------- ---------
Net revenue 55,271 49,283 207,797 188,169
-------- -------- --------- ---------
Expenses:
Production and
customer support 17,617 14,646 63,343 48,242
Commissions,
royalties and
licenses 3,664 5,110 16,372 21,495
Selling, general
and administrative 18,027 15,855 76,480 60,053
Depreciation and
amortization 2,982 2,364 10,497 9,210
Product development
and programming 5,661 6,103 23,118 25,813
Reduction-in-force 2,242 -- 2,242 --
Litigation settlement -- 1,650 -- 1,650
Relocation of claims
settlement function -- -- -- 1,707
-------- -------- --------- ---------
Operating expenses 50,193 45,728 192,052 168,170
-------- -------- --------- ---------
Operating income 5,078 3,555 15,745 19,999
Interest expense (606) (132) (1,399) (258)
Other income, net 9 63 412 697
-------- -------- --------- ---------
Income before income taxes 4,481 3,486 14,758 20,438
Income tax provision (2,525) (1,527) (7,361) (8,860)
-------- -------- --------- ---------
Income before equity losses 1,956 1,959 7,397 11,578
Equity in net losses
of affiliates (835) (4,238) (6,645) (11,658)
Minority share in
earnings of subsidiaries (1) (15) -- (1)
-------- -------- --------- ---------
Net income (loss) 1,120 (2,294) 752 (81)
Dividends and accretion
on preferred stock -- 228 (2) 43
-------- -------- --------- ---------
Net income (loss)
applicable to
common stock $1,120 $ (2,066) $ 750 $ (38)
======== ======== ========= ==========
Per Share Data:
Net income (loss)
applicable to common stock
- Basic $ 0.05 $ (0.09) $ 0.03 $ --
======== ======== ======== =========
- Diluted $ 0.05 $ (0.09) $ 0.03 $ --
======== ======== ======== =========
Weighted average common and
common equivalent shares
outstanding
- Basic 21,920 23,972 22,856 24,616
======= ======== ========= ========
- Diluted 22,225 24,297 23,162 25,188
======= ========= ========= =========
December 31, December 31,
Selected Consolidated 1999 1998
Balance Sheet Data (Unaudited)
----------------------- ----------- -----------
Total assets $ 84,459 $ 79,018
Mandatorily redeemable -- 688
preferred stock
Stockholders' equity 15,261 35,303
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