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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