AUSTIN, Texas, Aug. 14, 2001 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced results for the quarter and six months ended June 30, 2001. For the three months ended June 30, 2001, revenues increased to $6,183,000 from $4,148,000 in the year-ago period. Net earnings were $285,000 or $.10 per share, compared to $299,000 or $.11 per share, in the comparable year-ago period. For the six months ended June 30, 2001, revenues increased to $11,958,000 from $10,650,000 in the earlier period. Net earnings were $410,000 or $.15 per share, compared to $477,000 or $.17 per share in the comparable year-ago period.
Ken Shifrin, APS Chairman of the Board, stated, "The 49% quarter over quarter increase in revenues for the three months ended June 30, 2001 demonstrates the strength of our core businesses. Ignoring non-recurring real estate sales in the prior periods, revenues were up 83% for the quarter and 21% for the six months ended June 30, 2001. Operating income, excluding the non-recurring real estate gain of approximately $770,000, increased even more dramatically in the comparable periods."
Shifrin also stated, "Our financial services group had an outstanding quarter. Their fixed income and high yield products were well accepted in the market, as shown by the 187% increase in revenues. Likewise, our insurance services segment benefited from improved market conditions, increasing revenues by over 30%. Profit contributions were up significantly for both segments."
Shifrin continued, "Our investments in affiliates did not have a material effect on net income in the reporting periods, but progress toward future performance was made. Prime Medical Services, Inc. (Nasdaq:PMSI) ("Prime Medical") acquired their biggest competitor in the manufacturing of mobile medical technology. Integration of the acquisition is proceeding on schedule and accretive earnings are anticipated for 2002. Alzheimers care provider Uncommon Care, Inc. continues to improve occupancy and lower costs. Operating ten facilities in four states, this startup company reduced its quarterly loss by 42%, year over year, and remains focused on cash flow."
Shifrin concluded, "We are pleased with the growth in our core businesses during the first half of the year. We believe that conditions are right to carry this momentum into the second half of 2001. We are also encouraged by the actions that managers of our affiliates are taking to improve operations and believe that the profit contribution from affiliates will be more significant in coming quarters."
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; lithotripsy services in 32 states; refractive vision surgery; mobile medical technology; 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,
2001 2000 2001 2000
------------------- ------------------
Revenues $ 6,183 $ 4,148 $11,958 $10,650
Expenses 5,725 3,649 11,082 9,877
Operating income 458 499 876 723
Equity in earnings
of unconsolidated
affiliates 41 24 (96) 28
Earnings from
continuing operations
before income taxes
and minority interest 499 523 780 801
Income tax expense 180 218 307 327
Minority interest (34) (6) (63) 3
Net earnings 285 299 410 477
Diluted earnings
per share:
Net earnings $ 0.10 $ 0.11 $ 0.15 $ 0.17
Weighted average
shares outstanding
(diluted) 2,758 2,745 2,762 2,750
For more information, visit the APS Website at www.amph.com.