AUSTIN, Texas, March 30, 2001 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced results for the fourth quarter and year-end 2000.
For the year ended December 31, 2000, APS reported total revenues of $19,902,000 versus $18,751,000 in 1999. A net loss of $1,402,000 compared to a loss of $55,000 in 1999. Diluted net loss per share was $.51 versus $.02 in 1999. For the three months ended December 31, 2000, revenues were $4,445,000 versus $4,984,000 in the comparable period a year ago. The net loss for the quarter was $1,795,000, compared to $264,000 in last year's fourth quarter. Diluted loss per share was $.65 for the quarter ended December 31, 2000 versus $.10 in the year-ago period.
Ken Shifrin, APS Chairman of the Board stated, "Revenues were up approximately $1.1 million for the year ended December 31, 2000. The increase resulted from consulting revenues being included for twelve months in 2000 versus four months in 1999. Lower investment income partially offset the increase. Combined revenues in our core operations, insurance and financial services, were up slightly from a year ago."
Mr. Shifrin continued, "Our bottom line was impacted by our investments. 1999 benefited from gains recognized on exchanges of some of our Prime Medical Services, Inc. (Nasdaq:PMSI) ('Prime Medical') shares for treasury shares. Conversely, the fourth quarter of 2000 was adversely affected as we recorded a $2.2 million writedown of our investment in an 80 physician OB/GYN specialty management company. Also contributing to the decline in annual earnings were lower earnings from our affiliates, primarily due to nonrecurring items at Prime Medical. Our core operations did well with combined earnings from insurance and financial services being up 10% for the year."
Mr. Shifrin also stated, "As we noted last quarter, following a routine review of a Form S-4 filing, the SEC required us to change the reporting on one of our investments from the cost method to the equity method. We believed that the cost method was called for under generally accepted accounting principles and our view had been approved and audited by KPMG LLP, our independent auditors. This change, required by the SEC, affected the financial statements for 1998, 1999 and the first three quarters of 2000. All financial comparisons reflect the restated numbers. This change does not have any impact on cash flow. Only the timing of the reporting for the gain and loss on this investment is affected, not its ultimate value."
Mr. Shifrin concluded, "While 2000 did not benefit from our investment program, we are hopeful that future years will again reflect the investment successes that we have had. Prime Medical, of which we are the largest shareholder, streamlined its operations and sold a business with limited growth potential to concentrate on its profitable lithotripsy, LASIK and manufacturing operations. It also recently announced that it had signed a letter of intent to acquire a major manufacturer of mobilized medical, broadcast and special purpose technologies. Prime continued its profitable performance with net income of $10.7 million on $131 million of revenue, despite $1.6 million in reorganization costs. Similarly, Uncommon Care, of which we own 34%, has shifted its emphasis to improve its financial performance. The developer and operator of specialized Alzheimer's care facilities is reducing its development pace and is concentrating on improving its bottom line through improved marketing and cost controls. We continue to believe in Uncommon Care's future success as it refines its formula for providing these much needed services.
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; manufacturing of mobile medical and specialty equipment units; and dedicated care facilities for Alzheimer's patients. The Company is headquartered in Austin, Texas and maintains offices in Dallas and Houston.
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.
AMERICAN PHYSICIANS SERVICE GROUP, INC.
SELECTED FINANCIAL DATA
(In thousands, except per share data)
Three Months Year
Ended Ended
December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
Revenue $4,445 $4,984 $19,902 $18,751
Expenses 6,745 4,970 21,397 19,306
------- ------- ------- -------
Operating income (loss) (2,300) 14 (1,495) (555)
Equity in earnings (loss)
of unconsolidated
affiliates (378) (346) (467) 320
------- ------- ------- -------
Loss from continuing
operations before
income taxes and
minority interest (2,678) (332) (1,962) (235)
Income tax benefit (906) (60) (602) (77)
Minority interest 23 32 42 (5)
------- ------- ------- -------
Loss from continuing
operations (1,795) (304) (1,402) (153)
Discontinued operations:
Earnings from discontinued
operations net of income
tax of $0 and $22 for the
three months and $0 and
$113 for the year in
2000 and 1999, respectively -- 40 -- 98
------- ------- ------- -------
Net loss $(1,795) $(264) $(1,402) $(55)
======== ======== ======== ========
Diluted earnings
(loss) per share:
Loss from continuing
operations $(.65) $(.11) $(.51) $(.05)
Discontinued operations -- .01 -- .03
Net loss $(.65) $(.10) $(.51) $(.02)
Weighted average shares
outstanding (diluted) 2,782 2,779 2,756 3,168