EX-99.1 3 doc2.txt 2003 SECOND QUARTER PRESS RELEASE CCC INFORMATION SERVICES GROUP INC. REPORTS EPS OF $0.20 FOR THE SECOND QUARTER; TAKES $0.02 PER SHARE CHARGE FOR REAL ESTATE CHICAGO, JULY 23, 2003 - CCC Information Services Group Inc. (Nasdaq: CCCG), a leading provider of software and information services to the automotive claims and collision-repair industries, reported today net income of $5.5 million, or $0.20 per share, for the second quarter ended June 30, 2003, compared with net income of $5.3 million, or $0.20 per share, in the second quarter of 2002. The second quarter results for 2003 include a charge of $1.1 million, or $0.02 per share, to recognize a final adjustment related to an accrual the company had already recorded for excess office space. During the second quarter the company successfully sublet this excess space, however the sublet rental rate is lower than what was assumed when the accrual was last adjusted in the third quarter of 2002. Revenues were $48.1 million in the second quarter of 2003, compared to $48.2 million in the second quarter of 2002. Revenue growth in the company's Workflow and Information Services portfolios was offset by declines in its CCC ValuescopeTM portfolio. Operating income was $8.9 million in the second quarter, including the $1.1 million real estate charge, compared with $9.2 million in the second quarter of 2002. Operating margin in the second quarter of 2003 was 18.6 percent, including the real estate charge, compared to 19.1 percent in the same quarter of 2002. Excluding the $1.1 million charge for excess office space, both operating income and operating margin were in line with management's expectations. "While we again posted sound earnings, we remain focused on capitalizing on the revenue growth opportunities in the marketplace," said Githesh Ramamurthy, chairman and chief executive officer of CCC Information Services Group Inc. "We are working hard to continue the rollout of our new products and deliver top line growth." Revenue for the first six months of 2003 was $95.8 million, compared to $95.7 million a year earlier. Operating income for the first six months of the year increased to $18.7 million (including the $1.1 million real estate charge), up from $18.4 million for the first six months of 2002. Earnings per share for the first six months of 2003 was $0.41 per share (including the $0.02 per share real estate charge), versus $0.40 per share for the same period last year. CCC's expectations for the third quarter and the remainder of 2003 include: - Revenue for the third quarter and full year are expected to grow in the low-single digit range versus prior guidance for the full year of mid-single digit growth. - Operating income in the remaining quarters of 2003 is expected to be in the $10 to $11 million range per quarter. Operating income for the full year 2003 is expected to be in the $39 to $42 million range, which is down from prior guidance of $40 to $43 million due to the $1.1 million real estate charge during the second quarter. - EPS target for the third quarter is expected to be in the $0.23 to $0.25 per share range. Including the $0.02 per share real estate charge during the second quarter, EPS for the full year is expected to be in the $0.88 to $0.92 per share range, down from prior guidance of $0.92 to $0.96 per share. (Using a fully diluted share base of 27.7 million shares outstanding.) ABOUT CCC CCC Information Services Group Inc. (NASDAQ: CCCG), headquartered in Chicago, is a leading supplier of advanced software, communications systems, Internet and wireless-enabled technology solutions to the automotive claims and collision repair industries. Its technology-based products and services optimize efficiency throughout the entire claims management supply chain and facilitate communication among approximately 20,000 collision repair facilities, 350 insurance companies, and a range of industry participants. For more information about CCC Information Services, visit CCC's Web site at www.cccis.com. This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the Company's filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements, and startup businesses are inherently uncertain. Specific factors that might cause actual results to differ from expectations include, but are not limited to, competition in the automotive claims and collision repair industries, the ability to develop new products and services, the ability to protect trade secrets and proprietary information, the ability to generate the cash flow necessary to meet the Company's obligations, the outcome of certain legal proceedings, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The Company has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise any forward-looking statement. CCC INFORMATION SERVICES GROUP INC. AND SUBSIDIARIES CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------------------- ------------------- 2003 2002 2003 2002 -------------------- ------------------- Revenues. . . . . . . . . . . . . . . . . . . . . $ 48,097 $ 48,178 $ 95,829 $ 95,678 Expenses: Production and customer support. . . . . . . . . 7,754 7,564 15,098 14,710 Commissions, royalties and licenses. . . . . . . 3,013 2,528 5,430 4,991 Selling, general and administrative. . . . . . . 17,150 19,558 35,716 38,735 Depreciation and amortization. . . . . . . . . . 2,014 2,434 3,944 4,852 Product development and programming. . . . . . . 8,156 6,894 15,852 13,980 Restructuring charges. . . . . . . . . . . . . . 1,061 - 1,061 - ----------------------------------------- Total operating expenses. . . . . . . . . . . . . 39,148 38,978 77,101 77,268 Operating income. . . . . . . . . . . . . . . . . 8,949 9,200 18,728 18,410 Interest expense. . . . . . . . . . . . . . . . . (165) (168) (387) (396) Other income (expense), net . . . . . . . . . . . 67 (7) 156 210 CCC Capital Trust minority interest expense . . . - (461) - (909) Equity in income (loss) of ChoiceParts investment 12 (50) 6 (342) ----------------------------------------- Income before income taxes. . . . . . . . . . . . 8,863 8,514 18,503 16,973 Income tax provision. . . . . . . . . . . . . . . (3,369) (3,218) (7,038) (6,461) ----------------------------------------- Net income. . . . . . . . . . . . . . . . . . . . $ 5,494 $ 5,296 $ 11,465 $ 10,512 ========================================= PER SHARE DATA: Income per common share: Basic. . . . . . . . . . . . . . . . . . . . . . $ 0.21 $ 0.21 $ 0.44 $ 0.41 ========================================= Diluted. . . . . . . . . . . . . . . . . . . . . $ 0.20 $ 0.20 $ 0.41 $ 0.40 ========================================= Weighted average shares outstanding: Basic. . . . . . . . . . . . . . . . . . . . . . 26,224 25,826 26,187 25,763 Diluted. . . . . . . . . . . . . . . . . . . . . 27,630 26,767 27,682 26,468
CCC INFORMATION SERVICES GROUP INC. AND SUBSIDIARIES CONSOLIDATED INTERIM BALANCE SHEETS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (unaudited)
JUNE 30, DECEMBER 31, 2003 2002 --------------------- ASSETS Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,819 $ 20,200 Accounts receivable (net of allowances of $2,115 and $2,313 at June 30, 2003 and December 31, 2002, respectively). . . . . . . . . . . . . . . . . . . . 11,914 10,281 Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,961 8,499 --------------------- Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,694 38,980 Property and equipment (net of accumulated depreciation of $33,477 and $29,815 at June 30, 2003 and December 31, 2002, respectively) . . . . . . . 10,770 12,407 Intangible assets (net of accumulated amortization of $286 at June 30, 2003). 2,581 - Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,520 4,896 Deferred income taxes (net of valuation allowance of $11,599 at June 30, 2003 and December 31, 2002). . . . . . . . . . . . . . . . . . . . . . . . . . . 10,095 10,454 Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 479 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 627 --------------------- Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,423 $ 67,843 ===================== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,847 $ 8,424 Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,670 25,441 Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,202 2,568 Current portion of deferred revenues . . . . . . . . . . . . . . . . . . . . . 8,443 6,503 Other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . 349 488 --------------------- Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . 36,511 43,424 Deferred revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 13 Other liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,428 3,222 --------------------- Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,943 46,659 --------------------- Common stock ($0.10 par value, 40,000,000 shares authorized, 26,244,633 and 26,074,889 shares outstanding at June 30, 2003 and December 31, 2002, respectively) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,022 3,005 Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . 130,074 128,766 Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,413) (62,878) Notes receivable from officer. . . . . . . . . . . . . . . . . . . . . . . . . - (1,506) Treasury stock, at cost (4,094,665 common shares in treasury at June 30, 2003 and December 31, 2002). . . . . . . . . . . . . . . . . . . . (46,203) (46,203) --------------------- Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . 35,480 21,184 --------------------- Total liabilities and stockholders' equity . . . . . . . . . . . . . . . . . . $ 75,423 $ 67,843 =====================