OLDSMAR, Fla., March 21 /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
second quarter and six months ending January 31, 2006 for fiscal
year 2006. Total revenue for the three-months ended January 31,
2006, excluding the gain on the sale of the Company's real-estate
property of approximately $757 thousand, was nearly $3.6 million,
representing a 3% increase from the $3.5 million reported for the
same period of 2005. Total revenue, excluding gain on the sale of
the building of $756 thousand, for the six-months ended January 31,
2006 was $7.4 million, compared to $7.6 million for the six-months
ended January 31, 2005. The decrease in revenue for the six-month
period was partially the result of a reduction by consumers in the
usage of network shops. As previously stated, the revenue for the
ADP Co-Marketing Agreement is recorded at net, which significantly
reduces the amount of gross revenue reported, although the overall
gross margin is increased as a result of not having to pay the
shops for the work performed, a responsibility of ADP per the
Co-Marketing Agreement. Collision repair management revenue for the
three-months ended January 31, 2006, was $2.6 million compared to
$2.7 million for the three-months ended January 31, 2005. Collision
management revenues decreased to $5.4 million for the six-months
ended January 31, 2006 from $6.0 million for the same period of
2005. Also included in the collision management revenue is the
revenue earned through repairs processed for clients acquired as a
result of the ADP Co- Marketing Agreement. During the six and
three-months ended January 31, 2006 we earned over $248,000 and
$148,000, respectively, in net revenue from clients acquired as a
result of the agreement with ADP. This additional revenue, which
increased 59% in the quarter ended January 31, 2006 over the
quarter ended October 31, 2005, resulted in the gross margin
percent for collision management to increase from 10% to 14% for
the-six months ended January 31, 2006, not including fees. The
Company's overall gross margin has grown from 23% during the 1st
half of FY 05, to a current gross margin of 31% of the first six
months of FY 06. This strong margin growth is a result of the
company changing its mix of product sales to concentrate on higher
margin products. The Company anticipates meaningful growth in new
clients based on the favorable early results of its co-marketing
agreement with ADP Claims Services Group. eAutoclaims recognized a
net income for the three-months ended January 31, 2006 of
approximately $4,000, which includes the gain on the sale of the
Oldsmar facility of approximately $756,000, compared to a net loss
of approximately $608,000 for the three-month period ended January
31, 2005. Net loss for the six-months ended January 31, 2006
totaled approximately $482,000 compared to a net loss of
approximately $1.15 million for the same period of 2005. These
amounts include non-cash expenses of approximately $808,000 and
$520,000, respectively including depreciation charges, for the six
and three months ended January 31, 2006 compared to $400,000 and
$186,000 for the six and three months ended January 31, 2005. The
Company's balance sheet shows approximately $546,000 in cash as of
January 31, 2006, which is an increase of approximately $240,000
from July 31, 2005. We have a working capital deficiency of
approximately $3.4 million compared to a deficiency of
approximately $3.6 million as of January 31, 2005. The primary
source of our working capital during the six-months ended January
31, 2006 was from cash generated by operations and the sale of our
Oldsmar facility, from which we netted over $800,000. Eric Seidel,
CEO of EACC, commented, "We continue to see positive traction as a
result of our ADP agreement coupled with positive impact from our
direct sales channels. We have realized a significant increase in
our overall margins due to the enhancements of our product mix by
rolling out higher margin products. Management continues to
leverage our internally developed ASP/technologies that will allow
other companies in related industries to significantly reduce labor
costs and improve operating efficiencies. We have experienced
success with the Company's recently announced new product "Audit
Pro" which has generated significant interest from the industry.
Many of our new technologies have already been implemented in the
Company's operating processes and have shown themselves to be of
considerable value for our existing customer base," continued, Mr.
Seidel. "By modifying the interface to our technologies, we believe
the Company will produce increasing click fee revenue without
adding significant operating costs. The target market for these
technologies will include a wide range of organizations, including
the largest tier 1 insurance companies. This additional product
line should result in greater growth in high volume, high margin
revenues that will have a meaningful impact to the Company's
bottom-line." Mr. Seidel stated further, "We have been successful
in our new business endeavors, specifically with one new client who
entered into an annual contract and is testing our program in
targeted district offices, utilizing our network of shops and
traditional eJusterSuite product. While this test is in its early
stages and there are no guarantees the client will expand the
program, the early test results have been very positive. Should
this test continue to yield such results, the client would likely
roll the program out to all of its district offices over the course
of the calendar year 2006. The potential sales volume and the full
revenues of our direct sales channel model would make this
account's contribution to profit the most material of all current
clients under contract, inclusive of our clients from the ADP Co-
Marketing Agreement." "We remain confident of our 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, thus generating a positive impact on both the top
and bottom line as we finish the 2006 fiscal year," concluded Mr.
Seidel. Conference Call Schedule The conference call will take
place at 4:15 p.m. Eastern, on Thursday, March 23, 2006. Anyone
interested in participating should call 888-802-2275 if calling
within the United States or 913-312-1267 if calling internationally
approximately 5 to 10 minutes prior to 4:15 p.m. There will be a
playback available until March 30, 2006. To listen to the playback,
please call 888-203-1112 if calling within the United States or
1-719-457-0820 if calling internationally. Please use the pass code
4895411 for replay. This 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 June 30, 2006 on either site. 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 Six-month
Six-month Period Period Period Period Ended Ended Ended Ended
January 31, January 31, January 31, January 31, 2006 2005 2006 2005
(unaudited) (unaudited) (unaudited) (unaudited) Revenue: Collision
repairs management $ 2,622,441 $ 2,699,251 $ 5,376,095 $ 5,968,858
Glass repairs 61,337 107,340 156,048 268,428 Fleet repairs
management 226,436 191,861 468,615 326,611 Fees and other revenue
723,842 527,117 1,435,344 1,081,471 Gain on sale of building
756,943 756,943 Total revenue 4,390,999 3,525,569 8,193,045
7,645,368 Expenses: Claims processing charges 2,458,586 2,674,492
5,145,935 5,874,979 Selling, general and administrative 1,814,826
1,326,602 3,293,319 2,656,874 Depreciation and amortization 113,867
133,104 236,151 267,687 Total expenses 4,387,279 4,134,198
8,675,405 8,799,540 Net income (loss) $3,720 $(608,629) $(482,360)
$(1,154,172) DATASOURCE: eAutoclaims, Inc. CONTACT: Eric Seidel,
CEO of eAutoclaims, +1-813-749-1020, ext. 2204, , or Investors,
Mark McPartland of Alliance Advisors, LLC, +1-910-297-6442, Web
site: http://www.eautoclaims.com/ http://www.viavid.net/
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