eAutoclaims, Inc. - 'EACC' - Reports First Quarter 2006 Financial Results
14 Diciembre 2005 - 3:04PM
PR Newswire (US)
Completes Sale of Oldsmar Facility, Generating Working Capital
OLDSMAR, Fla., Dec. 14 /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
first quarter ending October 31, 2005 for fiscal year 2006. Total
revenue for the three-months ended October 31, 2005 was
approximately $3.8 million, representing an 8% decrease from the
$4.1 million for the same three months ended October 31, 2004. The
decrease in revenue is partially the result of a reduction by
consumers in the usage of network shops and 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. Included in the collision management revenue is revenue
earned through repairs processed for clients acquired as a result
of the ADP Co-Marketing agreement. This revenue is recorded at net
value, which significantly reduces the amount of gross revenue
reported by the Company, resulting in the overall gross margins
increasing as a result of not having to pay the shops for the work
performed. During the three months ended October 31, 2005, the
Company generated over $110,000 in net revenue from clients
acquired as a result of the agreement with ADP. The additional
revenue resulted in the gross margin percent for collision
management to increase from 10% to 13%, not including fees. The
Company anticipates meaningful growth in new clients based on these
favorable early results of its co-marketing agreement with ADP
Claims Services Group. The Company's overall gross margin has grown
from 18% during the 1st quarter of FY 04, to a current gross margin
of 29% of 1st quarter FY06. This additional growth is a result of
the Company changing its mix of product sales to its higher margin
products. Claims processing charges for the three-months ended
October 31, 2005 was approximately $2.7 million. This was 71% of
total revenue, compared to approximately $3.2 million, or 78% of
total revenue for the three-months ended October 31, 2004. Claims
processing charges include the costs of collision and glass repairs
paid to repair shops within our repair shop network. Claims
processing charges are primarily the costs of collision repairs
paid by the Company to its collision repair shop network. The
decrease in claims processing charges as a percentage of total
revenue is a result of the change in the product mix by the Company
focusing on a greater percentage of higher margin products as
compared to lower margin products. This also includes the growth in
click fees charged when a client uses our technology that has
little to no associate cost of sale, for each transaction. EACC
recognized a net loss for the three-months ended October 31, 2005
of approximately $486,000 compared to a net loss of approximately
$545,000 for the three-month period ended October 31, 2004. These
amounts include non-cash expenses of approximately $305,000 and
$230,000, respectively. Our balance sheet shows approximately $393
thousand in cash as of October 31, 2005, which represents an
increase of approximately $87,000 from July 31, 2005. Total assets
increased to $3.4 million as compared to $3.1 million at July 31,
2005. The primary source of our working capital increase during the
three-month period ended October 31, 2005, was from cash flow
generated by operations and the $500,000 bridge loan we obtained in
advance of the sale of our Oldsmar facility. The closing of the
sale of the Oldsmar facility took place on December 9, 2005,
netting the Company $860,000 in cash, which allowed the Company to
repay the outstanding bridge loan while adding $360,000 to the
total current assets from the period ending October 31, 2005.
Management believes that cash generated from operations, the sale
of the Oldsmar facility and exercising of certain outstanding
warrants will be sufficient to meet our working capital
requirements for the next 12 months. Eric Seidel, CEO of EACC,
commented, "As a result of the hard work by our team and the
outstanding work by ADP Claims Services group, we are seeing
positive impact on sales and margin increases of our overall
revenue mix. Since August 2004, our agreement with ADP has produced
over a dozen signed pilot agreements with insurance Companies or
third-party administrators. As a result, we have produced four
annual agreements after the pilot periods were completed. In
addition, two of the pilot insurance companies signing annual
agreements are top carriers, representing significant claims
processing opportunities as full roll out commences with the
carriers over the next twelve months. One of these carriers has
recently signed a 3-year agreement through the ADP Co-Marketing
Agreement. Other than the two top 20 insurance clients, there are
several other companies in the sales cycle that are expected to
mature into new accounts. While there are no guarantees that these
pilot agreements will mature into annual or multi-year contracts,
maturing these accounts past the pilot stage could produce
significant claims volume with only a fraction of the pilots
signing agreements." Mr. Seidel stated further, "We remain very
optimistic of the long-term business prospects and our ability to
return to profitability in 2006. We anticipate continued growth
from our agreement with ADP, while we continue to add additional
high margin revenue streams via our ASP platform. The transaction
involving our primary facility has added significant working
capital to our balance sheet while providing the Company with a
favorable long-term lease arrangement. The initial positive
customer response as a result of the ADP agreement is very
encouraging, while the revenues generated by the top 20 carriers
show the positive impact we should see on both the top and bottom
line as we evolve and sign on additional carriers throughout the
2006 fiscal year." Conference Call Reminder The conference call
will take place at 4:15 p.m. Eastern, today, December 14, 2005.
Anyone interested in participating should call 800-936-9754 if
calling within the United States or 973-935-2048 if calling
internationally approximately 5 to 10 minutes prior to 4:15 p.m.
There will be a playback available until December 21, 2005. To
listen to the playback, please call 877-519-4471 if calling within
the United States or 973-341-3080 if calling internationally.
Please use pass code 6793348 for the replay. The call is being
webcast by ViaVid Broadcasting and can be accessed at eAutoclaims'
website at http://www.eautoclaims.com/ . The webcast may also be
accessed at ViaVid's website at http://www.viavid.net/ . The
webcast can be accessed through March 31, 2006 on either site. To
access the webcast, you will need to have the Windows Media Player
on your desktop. For the free download of the Media Player, please
visit:
http://www.microsoft.com/windows/windowsmedia/en/download/default.asp
. 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)
Three-month Three-month Period Ended Period Ended October 31, 2005
October 31, 2004 (unaudited) (unaudited) Revenue: Collision repairs
management $2,753,654 $3,269,607 Glass repairs 94,711 161,088 Fleet
repairs management 242,179 134,749 Other revenue 711,502 554,352
Total revenue 3,802,046 4,119,796 Expenses: Claims processing
charges 2,687,349 3,200,486 Selling, general and administrative
1,478,493 1,330,271 Depreciation and amortization 122,284 134,584
Total expenses 4,288,126 4,665,341 Net loss $ (486,080) $ (545,545)
http://www.viavid.net/DATASOURCE: eAutoclaims CONTACT: Eric Seidel,
CEO, eAutoclaims, +1-813-749-1020, ext. 2022, or ; or Investors,
Mark McPartland, Alliance Advisors, LLC, +1-910-297-6442, or , for
eAutoclaims Web site: http://www.eautoclaims.com/
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