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American Physicians Service Group, Inc.
Press Release for Immediate Release
AMERICAN PHYSICIANS SERVICE GROUP, INC.
REPORTS 92% EPS INCREASE IN SECOND QUARTER
AUSTIN, TEXAS, August 8, 2005 - American Physicians Service Group, Inc.
("APS") (NASDAQ: AMPH) today announced results for the quarter and six months
ended June 30, 2005. For the three months ended June 30, 2005, revenues were
$7,033,000 compared to $7,295,000 for the three months ended June 30, 2004. Net
earnings were $1,367,000 or $.48 per share, compared to $689,000 or $.25 per
diluted share for the three months ended June 30, 2004. For the six months ended
June 30, 2005, revenues were $13,695,000 compared to $14,585,000 for the six
months ended June 30, 2004. Net earnings were $2,220,000 or $.77 per diluted
share, compared to $1,383,000 or $.49 per diluted share for the six months ended
June 30, 2004.
Ken Shifrin, APS Chairman of the Board stated, "We are pleased that, taken
together, operating income at our two core business segments exceeded operating
income in the comparable quarter a year-ago. The increase was approximately 7%
on approximately 9% lower revenues. On an individual basis, our insurance
services segment continued its positive trend, while interest rate and inflation
concerns kept our financial services segment underperforming last year."
Mr. Shifrin continued, "As in the first quarter, we were able to realize
gains this quarter on equity investments, recognizing $1,289,000 in pretax
income. Partially offsetting the gain were expenses related to the sale that are
included in general and administrative expenses. Proceeds of the sale have been
invested primarily in government securities, with a portion set aside to fund
our recently announced dividend.
Mr. Shifrin concluded, "Along with operating performance we remain focused
on value and liquidity. Book value per share as of the June 30, 2005 balance
sheet increased to $9.62 from $8.23 per share at June 30, 2004. Contributing to
the book value improvement has been our management of shares outstanding. At our
Annual Meeting, shareholders approved new equity compensation plans that
continue to align managements' and shareholders' interests, while minimizing
share dilution. We also remain active with our share repurchase plan and have
now invested approximately $1.4 million of the $2.0 million authorized by our
board of directors. With a current ratio exceeding 5:1, our liquidity has never
been better and we remain alert to opportunities that have the potential to
increase shareholder value."
ABOUT THE COMPANY
APS is a management and financial services firm with subsidiaries that
provide: medical malpractice insurance services for doctors; and brokerage and
investment services to institutions and high net worth individuals. The Company
is headquartered in Austin, Texas and maintains offices in Dallas and Houston.
FORWARD-LOOKING STATEMENTS
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
-------------------- ---------------------
2005 2004 2005 2004
---- ---- ---- ----
Revenues:
Financial services $3,698 $4,227 $6,965 $8,059
Insurance services 3,335 3,068 6,730 6,526
------ ----- ------ ------
Total revenues 7,033 7,295 13,695 14,585
Expenses:
Financial services 3,270 3,660 6,220 6,901
Insurance services 2,422 2,380 4,925 5,002
General and administrative 722 555 1,389 1,068
Gain on sale of assets (49) (44) (84) 56
------ ------ ------ ------
Total expenses 6,365 6,551 12,450 12,915
------ ------ ------ ------
Operating income 668 744 1,245 1,670
Sale of investments and other 1,289 230 1,880 320
------ ------ ------ ------
Income from operations before interest,
income taxes and minority interest 1,957 974 3,125 1,990
Interest and other income 154 96 327 171
Income tax expense 742 381 1,219 778
Minority interest 2 -- 13 --
------ ------ ------ -----
Net income
Diluted income per share: $1,367 $ 689 $2,220 $1,383
====== ====== ====== ======
Net income $0.48 $0.25 $0.77 $0.49
===== ===== ===== =====
Weighted average shares outstanding (diluted) 2,876 2,791 2,892 2,802
===== ===== ===== =====
AMERICAN PHYSICIANS SERVICE GROUP, INC.
SELECTED FINANCIAL DATA, continued
(In Thousands)
June 30
---------------------------
2005 2004
---- ----
ASSETS
Current assets $15,125 11,855
Notes receivable, less current portion 338 318
Property and equipment 686 554
Investment in available for sale equity fixed
income securities-non-current 11,201 11,065
Goodwill 1,247 1,247
Other assets 267 392
-------- ---------
Total Assets $28,864 $25,431
======== =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 2,739 3,487
Other liabilities 344 1,042
-------- ---------
Total liabilities 3,083 4,529
Minority interests 14 --
Shareholders' Equity:
Common stock 268 254
Additional paid-in capital 7,695 7,192
Retained earnings 16,168 13,756
Accumulated other comprehensive income
(loss), net of taxes 1,636 (300)
-------- -------
Total shareholders' equity 25,767 20,902
-------- -------
Total Liabilities and Shareholders' Equity $28,864 $25,431
======= =======
For further information, visit APS's 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