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COMMERCE CLEARING HOUSE, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS

 COMMERCE CLEARING HOUSE, INC. REPORTS
 SECOND QUARTER FINANCIAL RESULTS
 RIVERWOODS, Ill., July 23 /PRNewswire/ -- Commerce Clearing House, Inc. (NASDAQ: CCLRA) today reported a second quarter net loss of $(29,797,000) or $(.86) per share, a decrease of $35,717,000 or $1.03 per share from 1991 net earnings of $5,920,000 or $.17 per share. The loss resulted from a pre-tax charge of $50 million in connection with the previously announced restructuring of the computer processing services segment. Second quarter consolidated revenues of $160,893,000 decreased $12,123,000 or 7.0 percent from 173,016,000 in 1991.
 For the six months ended June 30, 1992, the company reported a net loss of $(10,659,000) or $(.31) per share, a decrease of $42,172,000 or $1.21 per share from 1991 net earnings of $31,513,000 or $.90 per share. Consolidated revenues of $364,921,000 declined $25,644,000 or 6.6 percent from $390,565,000 in 1991.
 The $50 million restructuring charge results from a shift in the computer processing services segment's product line from service bureau processing to the micro-based tax processing software. The change in focus will allow repositioning of products, services and support costs to match the changing buying patterns of its customers. Upon completion of restructuring, this business is expected to profitably support a significantly smaller revenue base.
 The restructuring charge includes the estimated costs of closing 25 of 31 tax processing centers, elimination of support costs incurred in maintaining the mainframe tax processing applications, reductions in the selling, general and administrative areas, and downsizing this segment's headquarter facilities. These resources are no longer required to support a micro-based software product line with significantly reduced service bureau operations.
 The focus on micro-based tax preparation software will fundamentally shift the company's revenue patterns. Software sales occur primarily in the fourth quarter and first quarter. The company anticipates that, as a result of this shift, the historical third and fourth quarter computer processing services' operating losses will decline and the company's consolidated net earnings for the second half of 1992 will at least break-even.
 Second quarter publishing business segment operating earnings improved in comparison to 1991 on slight revenue growth. New product introduction costs incurred in 1991 and the effects of cost containment programs more than offset a $2.4 million one-time loss from subleasing office space in New Jersey. For the six months ended June 30, 1992, the segment experienced modest improvements in operating earnings on slight revenue growth.
 Second quarter legal information services operating earnings were flat on slight revenue declines. For the first six months, operating earnings declined on unchanged revenue, principally as a result of increased systems development costs.
 Other income, net for the second quarter and six month periods increased largely from the favorable effects of foreign exchange rate fluctuations between the U.S. and the United Kingdom. Included in the second quarter of 1992 is $1.6 million of legal fees incurred by the legal information services segment in the pursuit of a business dispute with a former supplier. In the second quarter of 1991, the company incurred $2.4 million of interest costs for a settlement with the Internal Revenue Service.
 Income tax (benefit) expense for the second quarter and six months of 1992 includes the effect of approximately $13 million of intangible assets written off in the restructuring charge, that are not deductible for income tax purposes.
 COMMERCE CLEARING HOUSE, INC.
 Consolidated Summary of Operations
 (Unaudited)
 (In Thousands, Except Share Data)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 Revenues:
 Publishing $ 98,847 $ 97,982 $ 204,903 $ 203,250
 Computer 37,958 50,569 111,954 139,183
 Processing services
 Legal information services 24,088 24,465 48,064 48,132
 $ 160,893 $ 173,016 $ 364,921 $ 390,565
 Operating (loss) earnings:
 Publishing $ 5,765 $ 3,74 $ 14,638 $ 14,443
 Computer processing (51,209) 5,119 (29,662) 35,399
 Services (A)
 Legal information services 1,216 1,338 2,032 2,530
 (44,228) 10,205 (12,992) 52,372
 Other income, net 2,491 475 4,473 2,431
 (Loss) earnings (41,737) 10,680 (8,519) 54,803
 Before income taxes
 Income taxes (benefit) (11,940) 4,760 2,140 23,290
 Expense
 Net (loss) earnings $ (29,797) $ 5,920 $ (10,659) $ 31,513
 (Loss) earnings per share
 of Class A and B $ (.86) $.17 $(.31) $.90
 Common stock
 Weighted average number of
 shares outstanding 34,786,239 34,836,404 34,811,322 34,928,777
 (A) Includes a $50 million restructuring charge recorded in the second quarter, 1992.
 -0- 7/23/92
 /CONTACT: Mort H. Sullivan of Commerce Clearing House, 708-940-4600/
 (CCLRA) CO: Commerce Clearing House, Inc. ST: Illinois IN: PUB SU: ERN


TM -- NY112 -- 2795 07/23/92 17:28 EDT
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Date:Jul 23, 1992
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