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CCH REPORTS 1991 FINANCIAL RESULTS

 CCH REPORTS 1991 FINANCIAL RESULTS
 RIVERWOODS, Ill., Feb. 13 /PRNewswire/ -- Commerce Clearing House,


Inc. today reported financial results for the fourth quarter and the year ended Dec. 31, 1991.
 Net earnings of $968,000 for the fourth quarter and $31,025,000 for the year, compared to net earnings of $251,000 and $40,671,000 for the corresponding periods last year. Net earnings per share of $.03 and $.89 compare to net earnings per share of $.01 and $1.15 for the same 1990 periods.
 For the fourth quarter, consolidated revenue increased modestly to $167,160,000 while the seasonal operating loss of $1,288,000 was reduced from $3,754,000 in the corresponding 1990 period. For the year, consolidated revenue of $704,225,000 declined 1.7 percent while operating profits of $44,616,000 declined 13.9 percent compared to 1990.
 All of the company's business segments have been adversely impacted by continued economic pressure on law and accounting firms and increasing competitive pressures.
 Publishing segment revenue increased $1,563,000 or 1.5 percent while operating profits declined $4,824,000 or 36.2 percent for the fourth quarter. Revenue increased $12,282,000 or 3.1 percent while operating profits declined $10,650,000 or 26.9 percent for the year. Included in the fourth quarter are approximately $4 million of costs associated with the downsizing of domestic publishing operations through severance and early retirements that affected approximately 200 employees.
 The computer processing services segment revenue declined $1,620,000 or 4.4 percent while the seasonal operating loss improved $6,980,000 or 36.8 percent for the fourth quarter of 1991 compared to 1990. Revenue declined $26,680,000 or 11.9 percent and operating earnings improved $5,671,000 for the comparable annual period.
 This segment has been experiencing significant volume decreases for service bureau tax return processing that reflects customer shifts toward ''in-office'' tax return processing. Revenue declines in the fourth quarter were partially offset by sales of in-office tax processing software in 1991. Aggressive cost containment and savings arising from the restructuring plan announced in the first quarter have reduced the adverse effect of revenue fall-off for the fourth quarter and full year as compared to 1990. However, maintaining operating earnings will be increasingly difficult as revenue continue to fall in 1992.
 Due to the highly seasonal nature of computer tax return processing business, in which the greater portion of revenue is realized in the first two calendar quarters, the results for the fourth quarter are not indicative of total calendar year operations.
 Legal information services segment revenue improved $517,000 or 2.2 percent for the fourth quarter and $2,535,000 or 2.7 percent for the year ended Dec. 31, 1991 as compared to 1990. operating earnings improved $310,000 or 16.1 percent for the fourth quarter but declined $2,230,000 or 29 percent for the year. continuing costs incurred in upgrading administrative systems and new product development have reduced 1991 operating results.
 Other income decreased in the fourth quarter due principally to lower interest rates in 1991. other income for the year decreased from 1990 due to lower interest rates in 1991, stable foreign exchange rates in 1991 compared with favorable adjustments in 1990, and a $3.0 million charge in 1991 for accumulated interest related to a settlement of an internal revenue service audit.
 COMMERCE CLEARING HOUSE, INC.
 Consolidated Summary of Operations
 (In thousands, except share data)
 Periods ended Three Months Twelve Months
 Dec. 31; 1991 1990 1991 1990
 Revenues:
 Publishing $ 107,642 $ 106,079 $ 410,636 $ 398,354
 Computer processing
 services 34,954 36,574 197,580 224,260
 Legal information
 services 24,564 24,047 96,009 93,474
 Total $ 167,160 $ 166,700 $ 704,225 $ 716,088
 Operating Earnings (Loss):
 Publishing $ 8,484 $ 13,308 $ 28,999 $ 39,649
 Computer processing
 services (12,011) (18,991) 10,158 4,487
 Legal information
 services 2,239 1,929 5,459 7,689
 Total ( 1,288) ( 3,754) 44,616 51,825
 Other income 2,966 4,105 9,339 18,846
 Earnings before income
 taxes 1,678 351 53,955 70,671
 Income taxes 710 100 22,930 30,000
 Net earnings $ 968 $ 251 $ 31,025 $ 40,671
 Net earnings per share of
 common stock $ .03 $ .01 $ .89 $ 1.15
 Weighted average no. of
 shares outstanding 34,836,404 35,263,004 34,882,211 35,452,114
 -0- 2/13/92
 /CONTACT: Mort J. Sullivan of Commerce Clearing House News Bureau, 708-940-4600/
 (CCLRA) CO: Commerce Clearing House, Inc. ST: Illinois IN: PUB SU: ERN


JT -- NY082 -- 9908 02/13/92 16:09 EST
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Date:Feb 13, 1992
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