eAutoclaims, Inc. - 'EACC' - Reports Fiscal Year-End Financial Results
01 Noviembre 2005 - 12:03PM
PR Newswire (US)
OLDSMAR, Fla., Nov. 1 /PRNewswire-FirstCall/ -- eAutoclaims
(OTC:EACC) (BULLETIN BOARD: EACC) , a leading provider of managed
collision repair services and insurance claims processing
technology applications, today announced financial results for the
fiscal year ending July 31, 2005. Total revenue for the year ended
July 31, 2005 was approximately $14.7 million, consisting of
approximately $11.2 million in collision repair management for
insurance companies, approximately $0.5 million in auto glass
repairs and approximately $2.9 million in fleet repair management
and other repairs and fees respectively. Total revenue for the year
ended July 31, 2004 was approximately $27.1 million, which consists
of approximately $22.7 million in collision repair management for
insurance companies, approximately $1.2 million in auto glass
repairs and approximately $3.2 million in fleet repair management
and other repairs and fees. Total revenues decreased approximately
$12.5 million or 46% compared to approximately $27.1 million for
the year ended July 31, 2004. This decrease is primarily the result
of the loss of revenues from our two largest clients as discussed
in the Company's previous filings with the Securities and Exchange
Commission. EACC recognized a net loss of approximately $2.4
million and $2.2 million for the years ended July 31, 2005 and
2004, respectively. The increase in net loss was primarily a result
of the reduction in revenue experienced in fiscal 2005 compared to
fiscal 2004 and the retention of staff in anticipation of new
business that was expected to be generated by the ADP Co-marketing
Agreement in fiscal 2005. The ADP agreement will generate
additional revenues in FY 2006 and we will update investors of our
progress with ADP in our year-end conference call, which will be
announced shortly. Eric Seidel, CEO of EACC, commented, "We remain
very optimistic about our long-term business prospects and our
ability to return to profitability. Although we faced significant
challenges in FY 2005, we believe we are now on the upward trend of
our transition. We are particularly pleased with the 33%
improvement in net results from our 3rd quarter to our 4th quarter
ending in July of this year. We anticipate the growth from our
previously announced agreement with ADP will continue to gain
significant traction. The effects of the early delays in the
rollout of the agreement resulted in eAutoclaims incurring
additional expenses for carrying support personnel in anticipation
of the ramping of our operation. We have recently enjoyed success
with the ADP Co-Marketing Agreement that will provide excellent
growth opportunities over the course of the following year and
beyond. In fiscal 2006, we will begin to roll out a substantial
volume increase of repairs pursuant to our ADP Claims Co-Marketing
Agreement. We have invested a significant amount of our working
capital, technical infrastructure and personnel time in preparing
EACC for the anticipated increased claims volume. Our financial and
personnel commitment to the ADP Claims Co-Marketing Agreement
combined with the loss of revenue from our largest customer due to
a sale of part of their business created the poor financial
performance we experienced during fiscal 2005. As we progress
through this year, we anticipate a slow but steady ramp up during
the first half of 2006, and a more rapid acceleration of claims
processed on our network during the second half of 2006. We believe
that new clients that are currently in our pipeline will allow our
top line growth to enable EACC to return to profitability during
this fiscal year." About eAutoclaims eAutoclaims (OTC:EACC)
(BULLETIN BOARD: EACC) is a business services company that provides
the insurance industry with claims management services through both
ASP and integrated outsourcing solutions. The Company's clients are
insurance companies, fleet management companies and insurance
services companies. eAutoclaims' solutions streamline the claims
handling process, decreasing the overall time and cost required to
process a collision claim, and reducing average paid losses for its
clients. The Company handles repair estimates, repair audits, and
claims systems administration services for automobile claims that
are processed and tracked via the eAutoclaims web-based platform
and network of service providers. This announcement contains
forward-looking statements. Words such as anticipate, believe,
estimate, satisfies, expect and other similar expressions as they
relate to the Company and its management are intended to identify
such forward-looking statements. Although the Company and its
management believe that the statements contained in this
announcement are reasonable, it can give no assurances that such
statements will prove correct. Factors that could affect the
occurrence of events or results discussed herein are included with
those mentioned in the Company's filings with the Securities and
Exchange Commission. --Financial Tables Follow- eAutoclaims, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Year
Ended July 31 2005 2004 Revenue: Collision repairs management
$11,248,882 $22,718,284 Glass repairs 487,723 1,239,969 Fleet
repairs management 718,240 713,303 Fees and other revenue 2,196,387
2,489,126 Total revenue 14,651,232 27,160,682 Expenses: Claims
processing charges 11,029,261 22,130,634 Selling, general and
administrative 5,554,430 6,417,316 Depreciation and amortization
511,812 515,813 Amortization of beneficial conversion feature on
convertible debentures and fair value of warrants issued in
connection with debentures 307,694 Total expenses 17,095,503
29,371,457 Net loss $(2,444,271) $(2,210,775) DATASOURCE:
eAutoclaims CONTACT: Investors Relations, Mark McPartland, Alliance
Advisors, LLC, +1-910-297-6442, or , for eAutoclaims Web site:
http://www.eautoclaims.com/
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