AUTOINFO REPORTS SECOND-QUARTER RESULTS
AUTOINFO REPORTS SECOND-QUARTER RESULTS MAYWOOD, N.J., Jan. 7 /PRNewswire/ -- AutoInfo, Inc. (NASDAQ: AUTO)
announced today that net income for the second quarter of fiscal 1992 ended Nov. 30, 1991, was $294,706, or 4 cents per share, on revenue of $2,747,573. This compares to net income of $579,721, or 8 cents per share, which includes $196,688, or 3 cents per share, from the utilization of net operating loss carryforwards, on revenue of $2,376,376 a year earlier.
President Martin Rubin said that the increased in the effective tax rate to 40 percent for this year's second quarter from approximately 9 percent last year occurred because all tax loss carryforwards were utilized in prior quarters. Rubin said that the increase in second-quarter revenue was due primarily to growth in the company's Orion Network and related services, and a sales contribution of approximately $200,000 from COMPASS Communications, which was acquired on Oct. 31, 1991. Orion is a satellite communications network that provides salvage yard dealers with information on the availability of used automobile parts. COMPASS is the largest supplier of voice communications services to the auto salvage industry. Rubin noted that operating results of the joint venture formed in December 1991 with National Automotive Certification to provide photo inspection services to the automobile insurance industry are not reflected in second-quarter revenue or earnings but will be included in the company's consolidated results for the third quarter and thereafter. Rubin said that in addition to the higher tax rate, the decline in net income for the second quarter resulted primarily from continued weakness in sales of the company's multi-terminal Checkmate workstation for salvage yard management, which adversely affected margins, and higher selling expenses associated with increased staffing in anticipation of the company's continued growth. For the first six months ended Nov. 30, 1991, net income was $720,911, or 10 cents per share, including $134,277, or 2 cents per share, from the utilization of net operating loss carryforwards, compared to net income of $1,132,445, or 16 cents per share, including $384,578, or 6 cents per share, from the utilization of tax loss carryforwards, for last year's first half. Revenue advanced to $5,324,125 for the first half of fiscal 1992 from $4,693,650 for the same period a year ago. AutoInfo provides communications and computer services to more than 3,000 auto parts salvage dealers in 49 states and 10 Canadian provinces. The company operates one of the largest satellite networks in North America and provides database services to major automobile insurance companies. AUTOINFO, INC. Summary Financial Data (Unaudited) Periods ended Three Months Six Months Nov. 30 1991 1990 1991 1990 Revenues $2,747,573 $2,376,376 $5,324,125 $4,693,560 Net income before taxes 491,176 636,721 977,724 1,246,445 Provision for income taxes 196,470 253,688 391,090 498,578 Net income before extraordinary item 294,706 382,033 586,634 747,867 Extraordinary item: Utilization of net operating loss carryforwards -- 196,688 134,277 384,578 Net income 294,706 579,721 720,911 1,132,445 Net income per share: Inc. bef. extraord. item $.04 $.05 $.08 $.10 Extraordinary item -- .03 .02 .06 Total .04 .08 .10 .16 Wtd. avg. number of shrs. outstdg. 7,257,932 7,281,521 7,276,753 7,276,309 -0- 1/7/92 /CONTACT: Scott Zecher of AutoInfo, 201-712-0020, or Neil Berkman Associates, 213-277-5162, for AutoInfo/ (AUTO) CO: AutoInfo Inc. ST: New Jersey IN: AUT SU: ERN TS-CK -- NY025 -- 7255 01/07/92 10:43 EST
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|Date:||Jan 7, 1992|
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