AUSTIN, Texas, April 17, 2002 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced revised 2001 earnings and restated 2000 earnings. The Company had announced earnings on March 22, 2002 and had then been informed of a potential investment valuation issue as disclosed in our press release of April 5, 2002.
Ken Shifrin, APS Chairman of the Board stated: "As we have previously announced, we have reviewed the valuation of a common stock investment in a private company at December 31, 2000 following a significant impairment of that common stock investment in 2001. An independent valuation has indicated that the impairment had occurred in the prior year and, accordingly, we have restated our consolidated financial statements at December 31, 2000 and for the year then ended."
Mr. Shifrin continued: "These changes affect the timing of the impairment but have no significant impact on our financial position at December 31, 2001 or on our cash flows in 2001 or 2000. With cash and marketable securities currently exceeding $12 million, net of taxes on gains both realized and unrealized, no bank debt, no goodwill or other intangibles, and a book value per share today in excess of $6.00, our current financial position is very solid and very liquid. With this strong financial position and the operational strength of our core businesses, we continue to look forward to our opportunities in 2002."
APS is a management and financial services firm with subsidiaries and affiliates which provide: medical malpractice insurance services for doctors; brokerage and investment services to institutions and individuals; and dedicated care facilities for Alzheimer's patients. The Company is headquartered in Austin, Texas and maintains offices in Dallas and Houston.
This press release, particularly the statements by Mr. Shifrin, includes forward-looking statements related to the Company that involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect the Company's future results, please see the Company's recent filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual results may differ materially from management expectations. Copies of the filings are available upon request from the Company's investor relations department.
AMERICAN PHYSICIANS SERVICE GROUP, INC.
SELECTED FINANCIAL DATA
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, 2001 December 31, 2001
-------------------- --------------------
As Previously As As Previously As
Announced Revised Announced Revised
-------- -------- -------- --------
Revenues $ 5,269 $ 5,269 $ 23,120 $ 23,120
Expenses 10,965 5,809 27,868 22,712
-------- -------- -------- --------
Operating profit (loss) (5,696) (540) (4,748) 408
Equity in loss of
unconsolidated
affiliates (3,129) (3,129) (3,191) (3,191)
-------- -------- -------- --------
Loss from continuing
operations before
income taxes and
minority interest (8,825) (3,669) (7,939) (2,783)
-------- -------- -------- --------
Income tax benefit (3,064) (1,312) (2,704) (952)
Minority interest 52 52 157 157
Loss from continuing
operations (5,813) (2,409) (5,392) (1,988)
Discontinued operations:
profits from discontinued
operations net of income
tax of $672 for the
three months and $727
for the year in 2001 1,305 1,305 1,410 1,410
-------- -------- -------- --------
Net loss $ (4,508) $ (1,104) $ (3,982) $ (578)
======== ======== ======== ========
Diluted loss per share:
Loss from continuing
operations $ (2.48) $ (1.03) $ (2.30) $ (.85)
Discontinued
operations .56 .56 .60 .60
Net loss $ (1.92) $ (.47) $ (1.70) $ (.25)
Weighted average shares
outstanding (diluted) 2,343 2,343 2,343 2,343
AMERICAN PHYSICIANS SERVICE GROUP, INC.
SELECTED FINANCIAL DATA (continued)
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, 2000 December 31, 2000
-------------------- --------------------
As Previously As As Previously As
Reported Revised Reported Revised
-------- -------- -------- --------
Revenues $ 4,260 $ 4,260 $ 18,347 $ 18,347
Expenses 6,614 11,722 20,882 25,990
-------- -------- -------- --------
Operating loss (2,354) (7,462) (2,535) (7,643)
Equity in loss of
unconsolidated
affiliates (378) (378) (467) (467)
-------- -------- -------- --------
Loss from continuing
operations before
income taxes and
minority interest (2,732) (7,840) (3,002) (8,110)
Income tax benefit (924) (2,660) (956) (2,692)
Minority interest 21 21 42 42
Loss from continuing
operations (1,829) (5,201) (2,088) (5,460)
Discontinued operations:
profits from discontinued
operations net of income
tax of $18 for the
three months and $354
for the year in 2000 35 35 686 686
Net loss $ (1,794) $ (5,166) $ (1,402) $ (4,774)
======== ======== ======== ========
Diluted loss per share:
Loss from continuing
operations $ (.67) $ (1.91) $ (.84) $ (2.19)
Discontinued
operations .01 .01 .28 .28
Net loss $ (.66) $ (1.90) $ (.56) $ (1.92)
Weighted average shares
outstanding (diluted) 2,726 2,726 2,490 2,490
For further information, visit APS' Website at www.amph.com