AUSTIN, Texas, Nov. 20, 2000 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced net income of $327,000 or $.12 per share (diluted), for the quarter ended September 30, 2000 compared to a net income of $322,000 or $.12 per share, for the same period in 1999. For the three months ended September 30, 2000, revenues from continuing operations were $4,878,000 versus $4,104,000 for the same period of 1999.
For the nine months ended September 30, 2000, APS reported net income of $1,492,000, or $.54 per share (diluted), compared to net income of $1,034,000, or $0.31 per share, for the same period in 1999. Revenues from continuing operations were $15,644,00 for the nine months ended September 30, 2000 versus $14,048,000 for the same period in 1999.
Ken Shifrin, APS Chairman of the Board stated, "Revenues exceeded the year-ago quarter and nine month periods by 19% and 11%, respectively. The addition of our consulting business in September 1999 and progress in Insurance Services are primarily responsible for the increases. The turbulent financial markets limited progress at our Financial Services group, as reflected in the 7% and 3% decline in revenue for the quarter and nine month periods, compared to the same periods last year."
Mr. Shifrin continued, "Our affiliate Prime Medical Services, Inc. (Nasdaq:PMSI) posted record revenues for both the quarter and nine month periods. We believe that the growth plan that they are implementing will continue to improve their already impressive cash flow and that earnings growth will follow suit as their internal growth and cost reduction strategies are fully implemented."
Mr. Shifrin concluded, "The quarter ended with uncertainty. On June 23, 2000 we filed a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC"), which is currently under review by the SEC. In connection with this review the SEC has raised issues concerning our treatment of minority investments in other companies, though our treatment had previously been reviewed and audited by KPMG LLP, our independent auditors. We have been unable to resolve these issues with the SEC as of the date of this report and, accordingly, our independent auditors have not completed their required review of the interim financial information included in this Form 10-Q.
"We expect that, in order to resolve these issues with the SEC, we will be required to restate our audited financial statements for 1998 and 1999, and the current year's interim financial statements through September 30, 2000, to reflect a change in our method of accounting for one or more of our minority investments. The final effects of such changes have not yet been quantified, but it is anticipated that the expected restatement may decrease our net earnings by approximately $375,000 and $950,000 for the years ended December 31, 1998 and 1999, respectively, and $1,800,000 for the nine months ended September 30, 2000. There will be no change at all in cash flow and only the timing of the reporting for the gains or losses on these investments is affected, not their ultimate value." Mr. Shifrin added, "Despite this uncertainty, we continue to remain upbeat about our investments and their potential for growth."
APS is a management and financial services firm with subsidiaries and affiliates which provide: medical malpractice insurance services for doctors; brokerage, and investment services to institutions and individuals; lithotripsy services in 34 states; refractive vision surgery; and dedicated care facilities for Alzheimer's patients. The Company is headquartered in Austin, Texas and maintains offices in Dallas and Houston.
AMERICAN PHYSICIANS SERVICE GROUP, INC., (AMPH)
SELECTED FINANCIAL DATA
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------- ------------------
2000 1999 2000 1999
------ ------ ------- -------
Revenues $4,878 $4,104 $15,644 $14,048
Expenses 4,775 4,532 14,652 14,527
Operating income 103 (428) 992 (479)
Equity in earnings of
unconsolidated affiliates 435 608 1,388 1,600
Earnings from continuing
operations before income
taxes and minority interest 538 180 2,380 1,121
Income tax expense 189 52 869 381
Minority interest (22) -- (19) 37
Earnings from continuing
operations 327 128 1,492 777
Discontinued operations:
Earnings from discontinued
operations net of income
tax of $100 and $131 for
the three and nine months
in 1999 -- 194 -- 257
Net earnings 327 322 1,492 1,034
Diluted earnings per share:
Earnings from continuing
operations $ .12 $ .05 $ .54 $ .24
Discontinued operations -- .07 -- .08
Net earnings .12 .12 .54 .31
Weighted average shares
outstanding (diluted) 2,746 2,768 2,747 3,299
This press release, particularly the statements by Mr. Shifrin, includes forward-looking statements related to the Company that involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect the Company's future results, please see the Company's recent filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual results may differ materially from management expectations. Copies of the filings are available upon request from the Company's investor relations department.
For further information, visit APS's website at www.amph.com.