Printer Friendly

CCH REPORTS FIRST QUARTER FINANCIAL RESULTS

 RIVERWOODS, Ill., April 21 /PRNewswire/ -- Commerce Clearing House, Inc. (NASDAQ-NMS: CCLRA) today reported 1993 first quarter net earnings of $.22 per share as compared to $.52 per share in 1992, a decrease of $.30 per share. Although earnings have exceeded management's plans, earnings were significantly below 1992 results. The company continues to undergo significant changes in each of its three business segments. Management's continued objective is to achieve 1993 annual operating earnings that exceed 1992 pre-restructuring operating earnings of $30.5 million, exclusive of the impacts of acquisitions, divestitures or restructuring charges that will likely arise during 1993.
 On a consolidated basis, revenues of $164,400,000 decreased 19.4 percent, operating earnings of $11,082,000 decreased 62.5 percent and net earnings before cumulative effect of accounting changes of $7,506,000 decreased 58.5 percent, as compared to the first quarter of 1992.
 Effective Jan. 1, 1992, the company changed its method of accounting for postretirement benefits, postemployment benefits and income taxes to comply with new financial accounting standards board pronouncements. The company recorded an after-tax charge of $50,502,000 or $1.45 per share for the cumulative effects of these changes in accounting methods.
 During the second quarter of 1992, Computer Processing Services' product line was changed from mainframe service bureau tax return processing to microcomputer based tax compliance software and services (resulting in a $50 million charge). The change in product lines has resulted in a significantly smaller but profitable business, with different seasonal revenue and operating earnings patterns. Annual revenue for 1993 is expected in the $85-95 million range with software licenses contributing approximately 60 percent of total revenues. Revenue is recognized upon shipment of these products, principally occurring during the fourth and first quarters. This compares to 1991 revenues of approximately $198 million of which 70 percent arose during the first half of 1991, the last full year of service bureau processing.
 Computer Processing Services operating earnings for 1993 were impacted by transitional costs for customer support, direct sales and system support necessary to ensure a smooth migration and successful tax processing season for the microcomputer based product line. These transitional costs will continually be reduced as the migration is successfully concluded.
 Legal Information Services incurred an operating loss of $2,387,000 as compared to operating profits of $391,000 in 1992 while revenues of $23,986,000 were flat as compared to 1992. Prior to Jan. 1, 1993, the publishing segment's state tax reports were sold to the legal markets through the Legal Information Services representatives. Segment revenue and operating earnings for 1992 included approximately $.5 million arising from transactions under the agreement. Operating results for 1993 were adversely impacted by increased allocations of corporate data processing charges, costs incurred accelerating development and implementation of administrative systems in support of re-engineered operations and expansion of customer management functions. This segment is expected to be profitable for 1993 as the results of re-engineering efforts are planned to be achieved later in the year.
 Publishing revenues of $101,863,000 decreased 4 percent and operating earnings of $6,821,000 decreased 12.7 percent from 1992. Domestically, revenues declined as a result of reduced book sales and erosion in the federal tax loose-leaf lines offset by significantly higher sales of electronic products. International revenues decreased principally from reduced book sales in Canada and the United Kingdom. Domestic operating earnings decreased as a result of increased allocations of corporate data processing charges and higher product management and expanded administrative support costs. International operating earnings improved as a result of reductions in operating expenses in Australia.
 COMMERCE CLEARING HOUSE, INC.
 Consolidated Summary of Operations
 (Unaudited, In thousands, except share data)
 Periods ended March 31 Three Months
 1993 1992
 Revenues:
 Publishing $ 101,863 $ 106,057
 Computer Processing Services 38,551 73,996
 Legal Information Services 23,986 23,975
 Total revenues $ 164,400 $ 204,028
 Operating earnings (loss):
 Publishing $ 6,821 $ 7,817
 Computer Processing Services 6,648 21,325
 Legal Information Services (2,387) 391
 Total operating earnings 11,082 29,533
 Other Income, Net 1,749 1,982
 Earnings Before Income Taxes and
 Cumulative Effect of Accounting Changes 12,831 31,515
 Income Tax Expense 5,325 13,420
 Earnings Before Cumulative Effect of
 Accounting Changes 7,506 18,095
 Cumulative effect of accounting changes
 in method of accounting for:
 Postretirement and Postemployment
 Benefits Other Than Pensions -- (51,675)
 Income Taxes -- 1,173
 Net Earnings (Loss) $ 7,506 $ (32,407)
 Net earnings (loss) per share of
 common stock:
 Earnings (Loss) Before Cumulative
 Effect of Accounting Changes $ .22 $ .52
 Cumulative effect of accounting
 changes in method of accounting for:
 Postretirement and Postemployment
 Benefits Other Than Pensions -- (1.48)
 Income Taxes -- .03
 Net Earnings (Loss) Per Share $ .22 $ (.93)
 Weighted Average Number
 of Shares Outstanding 34,749,908 34,836,404
 -0- 4/21/93
 /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

TM -- NY124 -- 9056 04/21/93 19:02 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1993
Words:842
Previous Article:ZENECA GROUP ANNOUNCES RIGHTS OFFERING
Next Article:ADELPHIA COMMUNICATIONS CORPORATION POSTPONES EQUITY OFFERING
Topics:


Related Articles
CCH REPORTS FIRST QUARTER FINANCIAL RESULTS
LARSON-DAVIS ANNOUNCES SECOND QUARTER RESULTS
COMMERCE CLEARING HOUSE, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS
COMMERCE CLEARING HOUSE (CCLR) REPORTS THIRD QUARTER FINANCIAL RESULTS
COMMERCE CLEARING HOUSE (CCLR) REPORTS THIRD QUARTER FINANCIAL RESULTS
According to TR's Online Census Failure of Free ISPs Triggers First-Ever Dip In Number of Online Users.
CCH Wall Street, Actimize, to Offer Detection Tool for Securities Compliance.
CCH INCORPORATED to Provide IRS With Comprehensive Tax Research Information; CCH Teams With LexisNexis to Serve Federal Tax Agency Needs.
New DivTracker From GainsKeeper Helps Taxpayers Calculate, Report Qualified Dividends; Combined with Schedule D Automation Tool, GainsKeeper Now...
Industry round-ups.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters