Insurance Auto Auctions Announces First Quarter Results SCHAUMBURG,
Ill., April 23 /PRNewswire-FirstCall/ -- Insurance Auto Auctions,
Inc. , a leading provider of automotive salvage and claims
processing services in the United States, today reported higher net
earnings for the quarter ended March 28, 2004. The Company recorded
net earnings of $2.3 million, or $0.20 per diluted share, versus
net earnings of $2.0 million, or $0.16 per diluted share, for the
same quarter a year ago. Revenues for the quarter were $57.2
million compared with $56.0 million in the first quarter of 2003.
Fee income in the first quarter increased to $50.1 million versus
$42.7 million in the first quarter of last year. "We are pleased to
announce first quarter financial results that exceeded our
expectations," said Tom O'Brien, CEO. "As the quarter progressed,
we continued to see a positive trend in volumes sold and
significantly higher returns for our customers. We believe our live
auctions, complemented with an internet bidding capability, offer
the optimal solution for both our insurance company suppliers and
our buyers. Increased buyer participation and an increase in scrap
prices during the quarter both contributed positively to the
average selling price of our vehicles." O'Brien added, "Another
positive takeaway from the first quarter was the fact that we
gained some market share, which contributed to our current
inventory levels and higher incoming volumes and has positioned us
better for the future. We believe these customer wins validate the
industry's recognition of our improved suite of value-added
services. The market share gains are especially important given the
recent decline in frequency of collision claims which could worsen
as a result of rising fuel costs." Touching on the new,
company-wide IT system that was rolled out to all of IAA's branches
during 2003, O'Brien said, "We are happy to have the rollout of the
IT system and the related business transformation costs behind us.
We remain focused on using our new system to create further
efficiencies and drive additional visibility for both the
management team and our customers. We have, and will continue to,
leverage our technology to generate further market share gains,
create cost effective expansion opportunities and drive a
consistently improving cost structure. As a strong by-product of
our new system, we have developed a real-time bidding platform that
is currently being tested in four markets. We plan to continue
rolling it out to many other major branches during the second
quarter." The Company also continued its expansion strategy during
the first quarter with the addition of a new greenfield facility in
Tucson, Arizona. This new 16-acre facility will provide needed
coverage in the southern part of the state and will leverage IAA's
existing location in Phoenix. The new facility will also improve
IAA's regional coverage, complementing other existing locations in
southern California and New Mexico. "We do not foresee making many
expansion announcements in the second quarter and will likely fall
at the low end of our expansion target for 2004," said O'Brien.
"Instead, we will focus on leveraging our new system and generating
additional market share gains. We will also continue to support our
customers through additional investments in our existing facilities
in order to add capacity as well as to improve yard and office
functionality." O'Brien concluded, "In terms of guidance, due to
strong current inventory levels combined with recent market share
wins and their related volumes, we anticipate a solid second
quarter that should produce financial results similar to those we
just saw in the first quarter. However, we are cautious given the
recent decline in collision claims and will provide further
guidance with our second quarter results." Investors' Conference
Call The Company previously announced that it will hold its first
quarter 2004 investors' conference call on Friday, April 23 at
11:00 a.m. Eastern Time. To participate by phone, please dial
877-307-4802 and ask to be connected to the Insurance Auto Auctions
earnings conference call. Investors may also access the call over
the Internet by visiting the Company's Web site at
http://www.iaai.com/ . A replay will be available until midnight
EDT on April 30, 2004. To listen to the replay, please dial
800-642-1687 and enter conference reservation code 6508088 when
prompted. About Insurance Auto Auctions, Inc. Insurance Auto
Auctions, Inc., founded in 1982, a leader in automotive total loss
and specialty salvage services in the United States, provides
insurance companies with cost-effective, turnkey solutions to
process and sell total-loss and recovered-theft vehicles. The
Company currently has 75 sites across the United States. Safe
Harbor Statement This Report contains forward-looking statements
that are subject to certain risks, trends and uncertainties that
could cause actual results to differ materially from those
projected, expressed, or implied by such forward- looking
statements. In some cases, you can identify forward looking
statements by use of words such as "may, will, should, anticipates,
believes, expects, plans, future, intends, could, estimate,
predict, projects, targeting, potential or contingent," the
negative of these terms or other similar expressions. The Company's
actual results could differ materially from those discussed or
implied herein. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in the
Company's annual report on Form 10-K for the fiscal year ended
December 28, 2003 and subsequent quarterly reports. You should not
place undue reliance on any forward-looking statements. Except as
expressly required by the federal securities laws, the Company
undertakes no obligation to publish, update or revise any
forward-looking statements, whether as a result of new information,
future events, changed circumstances or any other reason.
Additional information about Insurance Auto Auctions, Inc. is
available on the World Wide Web at http://www.iaai.com/ . INSURANCE
AUTO AUCTIONS, INC. AND SUBSIDIARIES Condensed Consolidated
Statements of Operations (dollars in thousands except per share
amounts) Three Months Ended March 28, March 30, 2004 2003
(Unaudited) Revenues: Vehicle sales $7,127 $13,304 Fee income
50,064 42,736 57,191 56,040 Cost of sales: Vehicle cost 5,984
11,771 Branch cost 38,395 32,964 44,379 44,735 Gross profit 12,812
11,305 Operating expense: Selling, general and administrative 8,480
7,168 Business transformation costs - 797 Earnings from operations
4,332 3,340 Other (income) expense: Interest expense 477 55 Other
income (12) (79) Earnings before income taxes 3,867 3,364 Provision
for income taxes 1,566 1,388 Net earnings $2,301 $1,976 Net
earnings per share: Basic $.20 $.16 Diluted $.20 $.16 Weighted
average shares outstanding: Basic 11,537 12,045 Effect of dilutive
securities -stock options 132 96 Diluted 11,669 12,141 INSURANCE
AUTO AUCTIONS, INC. AND SUBSIDIARIES Condensed Consolidated Balance
Sheets (dollars in thousands except per share amounts) March 28,
December 28, 2004 2003 ASSETS (Unaudited) Current assets: Cash and
cash equivalents $23,655 $15,486 Accounts receivable, net 50,420
48,375 Inventories 14,887 13,602 Other current assets 2,746 3,099
Total current assets 91,708 80,562 Property and equipment, net
62,402 60,187 Deferred income taxes 10,170 9,788 Intangible assets,
net 1,969 2,101 Goodwill, net 135,062 135,062 Other assets 228 93
$301,539 $287,793 LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities: Accounts payable $40,074 $35,005 Accrued liabilities
11,985 13,195 Short-term borrowings 7,000 - Obligations under
capital leases 2,605 2,822 Income taxes 2,117 - Current
installments of long-term debt 7,547 7,547 Total current
liabilities 71,328 58,569 Deferred income taxes 18,522 17,748 Other
liabilities 3,562 3,612 Obligation under capital leases 1,396 1,891
Long-term debt, excluding current installments 15,001 16,887 Total
liabilities 109,809 98,707 Shareholders' equity: Preferred stock,
par value of $.001 per share Authorized 5,000,000 shares; none
issued - - Common stock, par value of $.001 per share Authorized
20,000,000 shares; 12,345,508 shares issued and 11,538,299
outstanding as of March 28, 2004; and 12,325,482 shares issued and
11,518,273 outstanding as of December 28, 2003 12 12 Additional
paid-in capital 146,115 145,856 Treasury stock, 807,209 shares
(8,012) (8,012) Deferred compensation related to restricted stock
(835) (892) Accumulated other comprehensive income (loss) (598)
(625) Retained earnings 55,048 52,747 Total shareholders' equity
191,730 189,086 $301,539 $287,793 INSURANCE AUTO AUCTIONS, INC. AND
SUBSIDIARIES Condensed Consolidated Statements of Cash Flows
(dollars in thousands) Three Months Ended March 28, March 30, 2004
2003 (unaudited) Cash flows from operating activities: Net earnings
$2,301 $1,976 Adjustments to reconcile net earnings to net cash
provided by operating activities: Depreciation and amortization
3,243 2,352 Gain on disposal of fixed assets (2) (42) Loss on
change in fair market value of derivative unhedged portion - (307)
Deferred compensation related to restricted stock 57 - Changes in
assets and liabilities (excluding effects of acquired companies):
(Increase) decrease in: Accounts receivable, net (2,045) (1,259)
Inventories (1,285) 546 Other current assets 353 1,263 Other assets
(117) (379) Increase (decrease) in: Accounts payable 5,069 (268)
Accrued liabilities (1,338) (1,843) Income taxes, net 2,509 1,272
Total adjustments 6,444 1,335 Net cash provided by operating
activities 8,745 3,311 Cash flows from investing activities:
Capital expenditures (5,417) (2,769) Proceeds from disposal of
property and equipment 180 44 Payments made in connection with
acquisitions, net of cash acquired - (2,360) Net cash used in
investing activities (5,237) (5,085) Cash flows from financing
activities: Proceeds from issuance of common stock 259 215 Proceeds
from term loan - 30,000 Proceeds from short-term borrowings 7,000 -
Principal payments on long-term debt (1,886) (10) Purchase of
treasury stock - (7,401) Principal payments - capital leases (712)
(573) Net cash provided (used) by financing activities 4,661 22,231
Net increase (decrease) in cash and cash equivalents 8,169 20,457
Cash and cash equivalents at beginning of period 15,486 10,027 Cash
and cash equivalents at end of period $23,655 $30,484 Supplemental
disclosures of cash flow information: Cash paid or refunded during
the period for: Interest $656 $317 Income taxes paid $2 $20 Income
taxes refunded $1,011 $1,250 Non-cash financing activities:
Property and equipment additions resulting from capital leases $-
$2,250 Contact: Scott Pettit, Chief Financial Officer of Insurance
Auto Auctions, Inc., +1-847-839-4040, or General Inquiries, Chris
Kettmann of Ashton Partners, +1-312-553-6716 DATASOURCE: Insurance
Auto Auctions, Inc. CONTACT: Scott Pettit, Chief Financial Officer
of Insurance Auto Auctions, Inc., +1-847-839-4040, or General
Inquiries, Chris Kettmann of Ashton Partners, +1-312-553-6716 Web
site: http://www.iaai.com/
Copyright
Insurance Auto Auctions (NASDAQ:IAAI)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Insurance Auto Auctions (NASDAQ:IAAI)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024