AUSTIN, Texas, Nov. 14, 2002 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced results for the quarter and nine months ended September 30, 2002. For the three months ended September 30, 2002, revenues increased to $7,241,000 from $6,268,000 in the year-ago period. Net earnings were $296,000 or $.13 per share, compared to $117,000 or $.05 per share, in the comparable year-ago period. For the nine months ended September 30, 2002, revenues increased to $19,533,000 from $17,851,000 in the comparable year-ago period. Net earnings were $3,347,000 or $1.40 per share, compared to $527,000 or $.20 per share in the comparable year-ago period. Excluding non-recurring investment gains and asset sales, net of income taxes, net earnings increased 46% to $171,000 for the quarter and 67% to $881,000 for the nine months ended September 30, 2002.
Ken Shifrin, APS Chairman of the Board stated: "Our core insurance and financial services businesses continued their strong performances experienced in 2001. Insurance services revenues and profits improved in all periods presented. Financial services did very well in a tough securities market, showing improvement in revenues and operating income in the third quarter comparison and narrowing the gap with the prior nine month period, revenues and operating income being off only 5% and 9%, respectively."
Mr. Shifrin concluded: "During this quarter, we continued to streamline the Company by making the decision to sell our environmental consulting segment. This business had been collateral on a note receivable, was acquired in foreclosure, and was not a part of our long-term business plan. The sale is expected to close before year-end and will not have a material financial impact."
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 Nine Months Ended
September 30 September 30,
2002 2001 2002 2001
-------- -------- -------- --------
Revenues $ 7,241 $ 6,268 $ 19,533 $ 17,851
Expenses 6,713 5,959 16,888 16,510
Operating income 528 309 2,645 1,341
Gain on sale of investments 64 -- 2,855 --
Equity in earnings of
unconsolidated
affiliates -- 34 (44) (62)
Earnings from continuing
operations before
income taxes and
minority interest 592 343 5,456 1,279
Interest expense 4 124 25 393
Income tax expense 222 95 1,899 364
Minority interest (70) (42) (185) (105)
Earnings from
continuing operations 296 82 3,347 417
Discontinued operations:
Earnings from discontinued
operations net of income
tax expense of $18 and $56
for the three and nine
months in 2001 -- 35 -- 110
Net earnings 296 117 3,347 527
Diluted earnings per share:
Net earnings $ 0.13 $ 0.05 $ 1.40 $ 0.20
Weighted average shares
outstanding (diluted) 2,357 2,608 2,393 2,601
For further information, visit APS' website at www.amph.com