SOURCE: American Physicians Service Group, Inc.

August 08, 2005 09:00 ET

American Physicians Service Group, Inc. Reports 92% EPS Increase in Second Quarter

AUSTIN, TX -- (MARKET WIRE) -- August 8, 2005 -- American Physicians Service Group, Inc. ("APS") (NASDAQ: AMPH) today announced results for the quarter and six months ended June 30, 2005. For the three months ended June 30, 2005, revenues were $7,033,000 compared to $7,295,000 for the three months ended June 30, 2004. Net earnings were $1,367,000 or $.48 per share, compared to $689,000 or $.25 per diluted share for the three months ended June 30, 2004. For the six months ended June 30, 2005, revenues were $13,695,000 compared to $14,585,000 for the six months ended June 30, 2004. Net earnings were $2,220,000 or $.77 per diluted share, compared to $1,383,000 or $.49 per diluted share for the six months ended June 30, 2004.

Ken Shifrin, APS Chairman of the Board stated, "We are pleased that, taken together, operating income at our two core business segments exceeded operating income in the comparable quarter a year-ago. The increase was approximately 7% on approximately 9% lower revenues. On an individual basis, our insurance services segment continued its positive trend, while interest rate and inflation concerns kept our financial services segment underperforming last year."

Mr. Shifrin continued, "As in the first quarter, we were able to realize gains this quarter on equity investments, recognizing $1,289,000 in pretax income. Partially offsetting the gain were expenses related to the sale that are included in general and administrative expenses. Proceeds of the sale have been invested primarily in government securities, with a portion set aside to fund our recently announced dividend."

Mr. Shifrin concluded, "Along with operating performance we remain focused on value and liquidity. Book value per share as of the June 30, 2005 balance sheet increased to $9.62 from $8.23 per share at June 30, 2004. Contributing to the book value improvement has been our management of shares outstanding. At our Annual Meeting, shareholders approved new equity compensation plans that continue to align management's and shareholders' interests, while minimizing share dilution. We also remain active with our share repurchase plan and have now invested approximately $1.4 million of the $2.0 million authorized by our board of directors. With a current ratio exceeding 5:1, our liquidity has never been better and we remain alert to opportunities that have the potential to increase shareholder value."

About the Company

APS is a management and financial services firm with subsidiaries that provide: medical malpractice insurance services for doctors; and brokerage and investment services to institutions and high net worth individuals. The Company is headquartered in Austin, Texas and maintains offices in Dallas and Houston.

Forward-Looking Statements

This press release 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 the 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    Six Months Ended
                                       June 30,             June 30,
                                  ------------------   ------------------
                                    2005      2004       2005      2004
                                  --------  --------   --------  --------

Revenues:

Financial services                $  3,698  $  4,227   $  6,965  $  8,059
Insurance services                   3,335     3,068      6,730     6,526
                                  --------  --------   --------  --------
        Total revenues               7,033     7,295     13,695    14,585

Expenses:

Financial services                   3,270     3,660      6,220     6,901
Insurance services                   2,422     2,380      4,925     5,002
General and administrative             722       555      1,389     1,068
Gain on sale of assets                 (49)      (44)       (84)      (56)
                                  --------  --------   --------  --------
        Total expenses               6,365     6,551     12,450    12,915
                                  --------  --------   --------  --------
Operating income                       668       744      1,245     1,670
Sale of investments and other        1,289       230      1,880       320
                                  --------  --------   --------  --------

Income from operations before
 interest, income taxes and
 minority interest                   1,957       974      3,125     1,990

Interest and other income              154        96        327       171

Income tax expense                     742       381      1,219       778
Minority interest                        2        --         13        --
                                  --------  --------   --------  --------

Net income
Diluted income per share:         $  1,367  $    689   $  2,220  $  1,383
                                  ========  ========   ========  ========


        Net income                $   0.48  $   0.25   $   0.77  $   0.49
                                  ========  ========   ========  ========

Weighted average shares
 outstanding (diluted)               2,876     2,791      2,892     2,802
                                  ========  ========   ========  ========



                 AMERICAN PHYSICIANS SERVICE GROUP, INC.
                  SELECTED FINANCIAL DATA, continued


    (In thousands)                                      June 30
                                                  2005          2004
                                                 -------      -------
ASSETS

Current assets                                   $15,125      $11,855

Notes receivable, less current portion               338          318
Property and equipment                               686          554
Investment in available for sale equity
 fixed income securities-non-current              11,201       11,065
Goodwill                                           1,247        1,247
Other assets                                         267          392
                                                 -------      -------

    Total Assets                                 $28,864      $25,431
                                                 =======      =======


LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities                                2,739        3,487

Other liabilities                                    344        1,042
                                                 -------      -------

    Total liabilities                              3,083        4,529

Minority interests                                    14           --

Shareholders' Equity:

Common stock                                         268          254
Additional paid-in capital                         7,695        7,192
Retained earnings                                 16,168       13,756
Accumulated other comprehensive income
 (loss), net of taxes                              1,636         (300)
                                                 -------      -------

    Total shareholders' equity                    25,767       20,902
                                                 -------      -------

Total Liabilities and Shareholders' Equity       $28,864      $25,431
                                                 =======      =======

Contact Information

  • For further information, visit APS's Website at www.amph.com or contact:

    Mr. Kenneth Shifrin
    Chairman of the Board
    Mr. W. H. Hayes
    Sr. Vice President - Finance
    American Physicians Service Group, Inc.
    1301 Capital of Texas Highway, C-300
    Austin, Texas 78746
    (512) 328-0888