AUSTIN, Texas, Aug. 19, 2002 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced results for the quarter and six months ended June 30, 2002. For the three months ended June 30, 2002, revenues increased to $6,353,000 from $5,995,000 in the year-ago period. Net earnings were $449,000 or $.19 per share, compared to $285,000 or $.10 per share, in the comparable year-ago period. For the six months ended June 30, 2002, revenues increased to $12,292,000 from $11,583,000 in the comparable year-ago period. Net earnings were $3,051,000 or $1.26 per share, compared to $410,000 or $.15 per share in the comparable year-ago period. Excluding non-recurring investment gains and asset sales, net of income taxes, net earnings increased 44% to $409,000 for the quarter and 73% to $710,000 for the six months ended June 30, 2002.
Ken Shifrin, APS Chairman of the Board stated: "Our core financial services and insurance services businesses continued to perform well. Capitalizing on an improving insurance cycle that began in 2001, our insurance management company increased quarter over quarter revenues by 47%. Our financial services business performed admirably in a weak market, posting a decline of only 13% in quarter over quarter revenues. Taken together, our core businesses were up 4% in revenues and 24% and 18% in pretax income for the quarter and six months periods, respectively."
Mr. Shifrin continued: "As we reported last quarter, investment-related income has been significant in 2002. We recognized pretax income, related to deferred gains on our 2001 real estate sale, in the amount of $ 61,000 and $756,000 for the quarter and six months periods ending June 30, 2002. We also recorded gains on the sale of Prime Medical Services, Inc. shares of $2,791,000 in the year to date period."
Mr. Shifrin concluded: "Our balance sheet is now quite strong, with cash and marketable securities of approximately $9 million, net of income taxes payable and excluding our remaining shares of Prime Medical, or approximately 32% of total assets. By concentrating on our core businesses, improving our liquidity, and eliminating debt, we believe that we have positioned ourselves to be able to ride out market difficulties and capitalize on opportunities in the current economy."
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 high net worth individuals; 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 the 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 Six Months Ended
June 30, June 30,
---------------- ------------------
2002 2001 2002 2001
------ ------ ------- -------
Revenues $6,353 $5,995 $12,292 $11,583
Expenses 5,549 5,459 10,174 10,551
Operating income 804 536 2,118 1,032
Gain (loss) on sale
of investments (10) -- 2,791 --
Equity in earnings of
unconsolidated affiliates -- 41 (44) (96)
Earnings from continuing
operations before income
taxes and minority interest 794 577 4,865 936
Interest expense 4 129 21 269
Income tax expense 283 163 1,678 269
Minority interest (58) (34) (115) (63)
Earnings from continuing
operations 449 251 3,051 335
Discontinued operations:
Profit from discontinued
operations net of income
tax expense of $17 and
$38 for the three and six
months in 2001, respectively -- 34 -- 75
Net earnings 449 285 3,051 410
Diluted earnings per share:
Net earnings $ 0.19 $ 0.10 $ 1.26 $ 0.15
Weighted average shares
outstanding (diluted) 2,402 2,758 2,412 2,762
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