OLDSMAR, Fla., June 15 /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
third quarter and nine months ending April 30, 2006 for fiscal year
2006. Total revenue for the three-months ended April 30, 2006, was
nearly $4.0 million, representing over an 11% increase from the
$3.6 million reported for the same period of 2005. Total revenue,
excluding gain on the sale of the building of approximately $757
thousand, for the nine-months ended April 30, 2006 was $11.4
million, compared to $11.2 million for the nine-months ended April
30, 2005. Collision repair management revenue for the three-months
ended April 30, 2006, was $3.0 million, which is a 9% increase
compared to $2.8 million for the three-months ended April 30, 2005.
Collision management revenues decreased to $8.4 million for the
nine-months ended April 30, 2006 from $8.8 million for the same
period of 2005. The increase in revenue for the three months just
ended is a combination of increased shop utilization of our network
shops by consumers associated with our core clients, as well as
increased revenue earned from repairs processed for clients
acquired as a result of the ADP Co- Marketing agreement. As
previously stated in other releases, this revenue 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.
During the nine and three- months ended April 30, 2006, the Company
earned over $490,000 and $241,000, respectively, in net revenue
from clients acquired as a result of the agreement with ADP. The
Company's overall gross margin has grown from 24% during the nine
months ending April 30, 2005, to a current gross margin of 31% for
the nine months ending April 30, 2006. This strong margin growth is
a result of the company changing its mix of product sales to
concentrate on higher margin products. eAutoclaims recognized a net
loss for the three-months ended April 30, 2006 of approximately
$826,000 compared to a net loss of approximately $774,000 for the
three-month period ended April 30, 2005. Excluding one-time
non-cash extraordinary charges of approximately $380,000 during the
quarter, the loss from continuing operations would be approximately
$446,000 compared to the $774,000 net loss for the same period last
year, representing a 42% improvement. Net loss for the nine-months
ended April 30, 2006 totaled approximately $1.3 million compared to
a net loss of approximately $1.9 million for the same period of
2005. Included in the net loss number for the nine-months ended
April 30, 2006 is a gain on the sale of the Oldsmar facility of
approximately $757,000. These amounts include non-cash expenses of
approximately $1.1 million and $526,000 respectively, including
depreciation charges, for the nine and three-months ended April 30,
2006 compared to $590,000 and $190,000 for the nine and three
months ended April 30, 2005. The Company's balance sheet as of
April 30, 2006 shows approximately $1.5 million in cash, which is
an increase of approximately $1.2 million from fiscal year end July
31, 2005. The Company has a working capital deficiency of
approximately $2.1 million compared to a deficiency of
approximately $3.6 million as of April 30, 2005. The primary source
of its working capital during the nine-months ended April 30, 2006
was from cash generated by operations and the sale of its Oldsmar
facility, from which we netted over $800,000, and the exercise of
outstanding warrants by current investors from which the Company
netted approximately $1.7 million. Eric Seidel, CEO of EACC,
commented, "We have shown continued improvement in both our top
line growth and operating margins over the course of this quarter.
The positive influence of our previously announced ADP/
co-marketing contracts are showing good results, while our direct
sales channels are gaining momentum in the sales pipeline. Our
overall margins continue to improve as a result of an increase in
our higher margin product mix gaining penetration with existing
customers. We have begun to feel the positive effects associated
with the previously announced signed annual agreements. The rollout
of Continental Casualty Company (CNA Insurance) that began in late
July 2005 was completed during the third quarter of fiscal 2006 and
the transition is gaining momentum in drive-in percentage. The
second previously announced long-term contract we entered into with
Safe Auto Insurance continues to use our shop network and services.
Mr. Seidel stated further, "While we have focused much of our
efforts over the past eighteen-months on the building of clients
through the ADP Co- Marketing Agreement for our Collision
Management product, we continue to market our services to the
insurance industry through our direct sales channel efforts. The
new client previously mentioned last quarter has entered into an
annual contract. They are testing our product in a district office,
utilizing our network of shops and traditional eJusterSuite
product, which continues to show very positive results. As
previously mentioned, should this testing continue to yield such
results, the client has indicated they would likely roll the
program out to other 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, including our clients from the ADP
Co-Marketing Agreement." "In May of 2006, ADP Claims Services Group
was acquired by Solera, Inc., a privately held company, and a new
firm, Audatex, was established as the operating entity for the
organization. The transaction triggered two provisions of our
previous Co-Marketing Agreement with ADP. Thus we had the right to
terminate our exclusivity clause allowing us to Co-Market our
product suite with other companies, and secondly the need for EACC
to grant consent to ADP for assignment of our Co-Marketing
agreement to another organization, which we declined. Both of these
provisions were time sensitive per the Co- Marketing Agreement. As
a result, EACC took these actions in an effort to evaluate the
strategic direction of Audatex and the ROI to eAutoclaims as part
of their future plans. We remain prudent with the expansion of our
business via new and existing industry partners, and third party
carriers. We are confident of our long-term business prospects for
the remainder of 2006 and the future. We anticipate continued
growth from our previously announced annual agreements as a result
of our relationship with ADP, while we continue to add additional
high margin revenue streams via our ASP platform. We continue to
explore opportunities within collision management and other closely
related industry to expand our customer base and create additional
revenues, thus enhancing top and bottom line growth," concluded Mr.
Seidel. Conference Call Schedule The conference call will take
place at 4:15 p.m. Eastern, on Monday, June 19, 2006. Anyone
interested in participating should call 1-800-811-0667 if calling
within the United States or 1-913-981-4901 if calling
internationally approximately 5 to 10 minutes prior to 4:15 p.m.
There will be a playback available until June 27, 2006. To listen
to the playback, please call 1-888- 203-1112 if calling within the
United States or 1-719-457-0820 if calling internationally. Please
use the pass code 4998365 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 September 30, 2006 on either site. About
eAutoclaims eAutoclaims (OTC:EACC-OTC:News) (BULLETIN BOARD: EACC-
News) 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 NINE-MONTH NINE-MONTH PERIOD PERIOD PERIOD
PERIOD ENDED ENDED ENDED ENDED APRIL 30, APRIL 30, APRIL 30, APRIL
30, 2006 2005 2006 2005 (UNAUDITED) (UNAUDITED) (UNAUDITED)
(UNAUDITED) Revenue: Collision repairs management $3,050,894
$2,793,224 $8,426,989 $8,762,082 Glass repairs 56,984 104,405
213,032 372,833 Fleet repairs management 228,811 181,446 697,426
508,057 Fees and other revenue 654,392 473,123 2,089,736 1,554,594
Gain on sale of building 756,943 TOTAL REVENUE 3,991,081 3,552,198
12,184,126 11,197,566 Expenses: Claims processing charges 2,783,315
2,689,195 7,929,250 8,564,174 Selling, general and administrative
1,921,779 1,512,695 5,215,098 4,169,569 Depreciation and
amortization 112,323 123,981 348,474 391,668 TOTAL EXPENSES
4,817,417 4,325,871 13,492,822 13,125,411 NET LOSS $(826,336)
$(773,673) $(1,308,696) $(1,927,845)
http://www.viavid.net/DATASOURCE: eAutoclaims CONTACT: Eric Seidel,
CEO, eAutoclaims, +1-813-749-1020, ext. 2204, or ; or Investors,
Alliance Advisors, LLC, Mark McPartland, +1-910-221-1827, or , for
eAutoclaims Web site: http://www.eautoclaims.com/
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