Insurance Auto Auctions reports record fourth quarter financial results.NORTH HOLLYWOOD Hollywood. 1 Community within the city of Los Angeles, S Calif., on the slopes of the Santa Monica Mts.; inc. 1903, consolidated with Los Angeles 1910. , Calif.--(BUSINESS WIRE)--Feb. 14, 1995-- Insurance Auto Auctions Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :IAAI IAAI International Association of Arson Investigators IAAI Innovative Applications of Artificial Intelligence (Conference) IAAI Israeli Association for Artificial Intelligence IAAI International Airport Authority of India ), the leading seller of automotive salvage salvage, in maritime law, the compensation that the owner must pay for having his vessel or cargo saved from peril, such as shipwreck, fire, or capture by an enemy. Salvage is awarded only when the party making the rescue was under no legal obligation to do so. 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. , announced that earnings from operations increased 80 percent for the year ended Dec. 31, 1994, over the prior year ended 1993. Earnings from operations before interest and income taxes rose 87 percent in the fourth quarter of fiscal 1994 to $4,955,000, up from $2,653,000 during the company's fourth quarter a year ago. Net earnings increased to $2,870,000 or 26 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the fourth quarter of 1994, compared with $1,685,000 or 17 cents per share, for the same 1993 quarter. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter were $50.7 million compared with $27.9 million a year ago, up 82 percent. In 1994, Insurance Auto Auctions generated earnings from operations before interest and income taxes of $19,145,000, up 80 percent over the $10,624,000 reported in 1993. The company earned $10,985,000, or 98 cents per share, in 1994, compared with $6,618,000, or 74 cents per share, in 1993. Net sales for 1994 were $172.1 million, up 65 percent from 1993. The 26 cents per share in the fourth quarter of 1994 compares to 16 cents for the same period a year ago on a proforma Proforma A financial projection based on assumptions. basis, adjusted as if the 1993 acquisitions of Orange County Salvage Sales and the Reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. Division of Tech-Cor, and the 1994 acquisition of Underwriters Salvage Company had occurred as of Jan. 1, 1993. The 98 cents per share for the year ended 1994 compares to 67 cents per share for the same period a year ago, on such a proforma basis. (Such proforma results are for comparative purposes only and do not purport To convey, imply, or profess; to have an appearance or effect. The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to be indicative of what would have occurred had the transactions actually been made as of Jan. 1, 1993 or of the results which may occur in the future.) For the quarter ended Dec. 31, 1994, the company sold over 81,600 vehicles, up 40,400 vehicles or 98 percent from the same period a year ago. The purchase agreement method of processing accounted for 30 percent of the vehicles processed for the quarter. For the year ended Dec. 31, 1994, the company sold over 315,600 vehicles, up 180,900 vehicles or 134 percent from the year ended 1993. The purchase agreement method of processing accounted for 85,700 vehicles, up 26,500 vehicles or 45% from the year ended 1993. Existing facility comparisons, for facilities with five full quarters of IAA IAA abbr. indoleacetic acid Noun 1. IAA - a plant hormone promoting elongation of stems and roots indoleacetic acid auxin - a plant hormone that promotes root formation and bud growth 2. ownership, were up 25% in revenue for the quarter and down 6% in unit volume versus the same quarter last year. For the year ended Dec. 31, 1994, existing facility comparisons were up 22% in revenue and down 1% in unit volume. On a pro-forma basis, including the units from the former Reclamation Division of Tech-Car and Underwriters Salvage Company, (which have been in the IAA system less than five quarters), units at existing facilities were up 2% for the fourth quarter of 1994, and 6% for the year ended 1994 compared to the respective periods of 1993. Bradley S. Scott, chairman and chief executive officer, said, "I am very pleased that in our third full year as a public company, we have continued our strong growth and profitability. With our first anniversary as a national salvage services company, we continue to achieve record financial results while rolling-out our services across the country and implementing the exclusive national Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile). The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. supply agreement." Scott added, "We have completed our first debt offering, the proceeds of which will be used for acquisitions of automotive salvage sellers." Christopher Knowles Christopher Knowles (born 1959) is a U.S. poet who has autism. In 1976, his poetry was used by Robert Wilson for the avant-garde minimalist Philip Glass opera Einstein on the Beach. , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , added, "We achieved our 1994 goal of consolidating sites for better productivity and profitability by closing seven redundant sites in five major metropolitan areas. The newly streamlined family of IAA sites enables us to process more vehicles with fewer facilities while maintaining the highest levels of customer service." In December December: see month. 1994, IAA completed the acquisition of East Atlanta East Atlanta is an area located east-southeast of downtown Atlanta, Georgia. It is generally considered to be the roughly 10% of Atlanta's area which was part of the 1909 annexation into a neighboring county, putting it into DeKalb while the remainder is in Fulton. Group Inc., in the Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. area, which processes approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5,000 vehicles per year. Founded in 1982, Insurance Auto Auctions Inc. is the leading seller of 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 salvage in the United States, providing insurance companies with cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , turnkey See turnkey system. means to process and sell total-loss and recovered-theft vehicles, a $3 billion per year industry. The company currently has over thirty auction sites across the United States. -0-
Insurance Auto Auctions Inc.
and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Month Periods Years Ended
Ended December 31, December 31,
------------------- -------------------
1994 1993 1994 1993
Net Sales $50,753,000 $27,913,000 $172,125,000 $104,086,000
Cost of Sales 36,593,000 20,146,000 116,470,000 75,832,000
----------- ----------- ------------ ------------
Gross Profit 14,160,000 7,767,000 55,655,000 28,254,000
Operating expenses:
Direct 8,453,000 4,756,000 33,592,000 16,606,000
Amortization of
acquisition costs 752,000 358,000 2,918,000 1,024,000
--------- --------- ---------- ----------
Earnings from
operations 4,955,000 2,653,000 19,145,000 10,624,000
Other (income) expense:
Interest expense 103,000 41,000 454,000 132,000
Interest (income) (139,000) (197,000) (413,000) (539,000)
----------- ---------- ----------- ----------
Earnings before
income taxes 4,991,000 2,809,000 19,104,000 11,031,000
Income taxes 2,121,000 1,124,000 8,119,000 4,413,000
----------- ---------- ----------- ----------
Net earnings $2,870,000 $1,685,000 $10,985,000 $6,618,000
Net earnings per common and common equivalent shares $.26 $.17 $.98 $.74 Weighted average common and common equivalent shares outstanding 11,244,000 10,120,000 11,225,000 8,968,000
Insurance Auto Auctions Inc.
and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, December 31,
1994 1993
ASSETS
Current assets:
Cash and cash equivalents $ 2,529,000 $ 6,499,000
Short-term investments 7,849,000 23,892,000
Accounts receivable, net 23,122,000 11,675,000
Inventories 6,437,000 4,459,000
Other current assets 1,453,000 1,434,000
------------- -------------
Total current assets 41,390,000 47,959,000
Property and equipment at cost, net 15,571,000 7,744,000
Other assets,
principally goodwill, net 116,680,000 88,222,000
------------- -------------
$173,641,000 $143,925,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments
of long-term debt $ 820,000 $ 772,000
Accounts payable 17,853,000 11,720,000
Accrued liabilities 8,443,000 5,158,000
Income taxes 2,219,000 1,528,000
------------- -------------
Total current liabilities 29,335,000 19,178,000
Long-term debt, excluding
current installments 231,000 1,058,000
Accumulated post-retirement
benefits obligation 4,178,000 --
------------- -------------
Total liabilities 33,744,000 20,236,000
Shareholders' equity:
Preferred stock, par value of $.001
per share Authorized 5,000,000 shares;
none issued -- --
Common stock, par value of $.001 per share
Authorized 20,000,000 shares; issued
and outstanding 11,250,905 and
11,060,576 shares as of Dec. 31,
1994 and 1993, respectively 11,000 11,000
Additional paid-in capital 131,227,000 126,004,000
Retained earnings
(accumulated deficit) 8,659,000 (2,326,000)
------------- -------------
Net shareholders' equity 139,897,000 123,689,000
------------- -------------
$173,641,000 $143,925,000
CONTACT: Insurance Auto Auctions William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack W. Leibeck, 415/233-1952 |
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