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Letter to the Editor
Wednesday July 23
CCC Information Services Group Reports EPS of $0.20 for Q2
CCC Information Services Group Inc. has reported 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 Valuescope(TM) 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.)
CCC Information Services Group Inc., headquartered in Chicago, provides software, communications systems, and Internet and wireless-enabled technology solutions to approximately 20,000 collision repair facilities and 350 insurance companies in the automotive claims and collision repair industries.
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