AUSTIN, Texas, May 15, 2001 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced results for the first quarter of 2001. For the three months ended March 31, 2001, revenues decreased by 11% to $5,775,000 from $6,502,000 in the comparable year-ago period. Income from operations increased by 53% to $418,000 from $274,000 in the first quarter of 2000. Net earnings of $125,000, or $.05 per share in the current quarter, compares to net earnings of $178,000 or $.06 per share in the same quarter of 2000.
Ken Shifrin, APS Chairman of the Board, stated, "Our core businesses turned in good performances, with Insurance Services continuing a favorable trend and becoming profitable after a breakeven quarter a year ago and losses in the first quarter of 1999. While our Financial Services group could not match the first quarter of 2000, one of the most expansive periods in stock market history, its results declined by only 13% in this more difficult market. Combined with reduced general and administrative expenses, these results from our core businesses carried us to a 53% improvement in operating income, compared to the year ago period."
Shifrin continued, "Results from our affiliate Uncommon Care improved compared to a year ago. This developer and operator of specialized Alzheimer's care facilities steadily improved occupancy and reduced costs. While this development stage company is still unprofitable, its focus on cash flow should position it to move ahead as its industry consolidates. Prime Medical Services, Inc. ("Prime") (Nasdaq:PMSI) continued to expand its revenue base, announcing an 11% increase in revenues and a major acquisition in its manufacturing segment. Prime's net earnings were down compared to the first quarter of 2000, $.13 per share vs. $.20 per share, a result of expenses required to implement Stark II rules and a shift in its patient care mix. This decline reduced our pre-tax income by approximately $174,000, compared to the year ago quarter."
Shifrin concluded, "We are encouraged by the progress at each of our core businesses. We believe that our investments continue to present long-term opportunities for growth. Looking at the values of each of our businesses and the strength of our balance sheet, we remain convinced that our stock is undervalued. Consequently, we are reviewing available alternatives as how to best employ our assets for maximizing shareholder value."
APS is a management and financial services firm with subsidiaries and affiliates that provide: medical malpractice insurance services for doctors; brokerage and investment services to institutions and high net worth 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.
This press release 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 Ended March 31,
2001 2000
Revenue $ 5,775 $ 6,502
Expenses 5,357 6,228
------- -------
Operating income 418 274
Equity in earnings (loss)
of unconsolidated affiliates (137) 4
------- -------
Earnings before income taxes
and minority interest 281 278
Income tax expense 127 109
Minority interest (29) 9
------- -------
Net earnings 125 178
======= =======
Diluted earnings per share:
Net earnings $ 0.05 $ 0.06
======= =======
Weighted average
shares outstanding (diluted) 2,750 5,133
======= =======
For further information, visit APS' Website at www.amph.com or contact:
Mr. Kenneth Shifrin, Chairman of the Board (or) Mr. W. H. Hayes, Sr. Vice President - Finance American Physicians Service Group, Inc. 1301 Capital of Texas Highway, C-300 Austin, Texas 78746 (512) 328-0888