-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GGeF4sPxc1xm34thHO2reRE0k9YL7jj/NxcsxuDYeaQqiH54vt13boDuZtiWTkWu XBfN/zJ0Hjym3Q9W/2j1Iw== 0000724024-06-000011.txt : 20060809 0000724024-06-000011.hdr.sgml : 20060809 20060809155314 ACCESSION NUMBER: 0000724024-06-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060809 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20060809 DATE AS OF CHANGE: 20060809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN PHYSICIANS SERVICE GROUP INC CENTRAL INDEX KEY: 0000724024 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT SERVICES [8741] IRS NUMBER: 751458323 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31434 FILM NUMBER: 061017490 BUSINESS ADDRESS: STREET 1: 1301 CAPITAL OF TEXAS HWY STREET 2: C-300 CITY: AUSTIN STATE: TX ZIP: 78746 BUSINESS PHONE: 5123280888 MAIL ADDRESS: STREET 1: 1301 CAPITAL OF TEXAS HIGHWAY CITY: AUTIN STATE: TX ZIP: 78746 8-K 1 prtext.txt REPORT OF SECOND QUARTER 2006 EARNINGS SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: Date of Report (Date of earliest event reported:) August 9, 2006 (August 9, 2006) American Physicians Service Group, Inc. (Exact name of registrant as specified in its charter) Texas 0-11453 75-1458323 (State of (Commission File Number) (IRS Employer Incorporation) Identification No.) 1301 Capitol of Texas Highway Suite C-300 Austin, Texas 78746 (Address of principal executive offices) (Zip Code) (512) 328-0888 (Registrant's telephone number, including area code) Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On August 9, 2006, American Physicians Service Group, Inc. issued a press release entitled, "American Physicians Service Group, Inc. Reports Solid Second Quarter Earnings" The text of the press release, which is attached as Exhibit 99.1, is incorporated by reference in its entirety. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. American Physicians Service Group, Inc. Date: August 9, 2006 By: /s/ W.H. Hayes ---------------------------------------------- Name: W.H. Hayes ---------------------------------------------- Title: Sr VP - Finance ---------------------------------------------- 2 EXHIBIT INDEX Exhibit Number Description - ------ ----------- 99.1 Press Release issued by American Physicians Service Group, Inc., on August 9, 2006. EX-99.77Q1 2 aug9pr.txt PRESS RELEASE OF 2ND QUARTER 2006 EARNINGS Exhibit 99.1 AMERICAN PHYSICIANS SERVICE GROUP, INC. REPORTS SOLID SECOND QUARTER EARNINGS AUSTIN, TEXAS, August 9, 2006 - American Physicians Service Group, Inc. ("APS") (NASDAQ: AMPH) today announced results for the quarter and six months ended June 30, 2006. For the three months ended June 30, 2006, revenues were $7,975,000 compared to $7,033,000 in the year-ago period. Net earnings were $598,000 or $.21 per diluted share, compared to $1,367,000 or $.48 per diluted share, in the comparable year-ago period. For the six months ended June 30, 2006, revenues were $15,208,000 compared to $13,695,000 in the comparable year-ago period. Net earnings were $1,160,000 or $.40 per diluted share, compared to $2,220,000 or $.77 per diluted share in the comparable year-ago period. Importantly, operating income was $690,000 and $668,000 for the three months ended June 30, 2006 and 2005, respectively, and $1,366,000 and $1,245,000 for the six month periods then ended. Ken Shifrin, APS Chairman of the Board stated, "We are pleased that, taken together, operating income at our two core business segments exceeded that in the comparable year-ago periods. On an individual basis, our financial services segment successfully introduced new products and services to improve its results over last year, while at our insurance operations premium rate competition and the effects of the new accounting requirement to expense stock option grants caused us to under perform last year's comparable periods. Net income had benefited in 2005 from non-recurring pretax investment gains of $1,346,000 and $1,976,000 in the three and six month periods, respectively. There were no significant investment gains as of June 30, 2006. Mr. Shifrin continued, "We continue to work toward completion of the merger with our medical malpractice partner, American Physicians Insurance Exchange, that we announced in June of this year. Regulatory filings and approvals continue to be the focus of our efforts. We have capitalized approximately $364,000 of acquisition costs through June 30, 2006." Mr. Shifrin concluded, "We remain focused on shareholder value. Book value per share at June 30, 2006 increased to $9.86 from $9.62 per share at June 30, 2005, this after paying a higher $0.30 per share dividend on June 30, 2006. Liquidity remains very strong, with a current ratio of 5:1, no long term liabilities, and no debt. We have also continued our share repurchase program, recently announcing a second extension for an additional $2,000,000." 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. 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) (unaudited)
Three Months Ended Six Months Ended June 30, June 30 2006 2005 2006 2005 ---- ---- ---- ---- Revenues: Insurance services $3,175 $3,335 $6,830 $6,730 Financial services 4,800 3,698 8,378 6,965 ------ ------ ------ ------ Total revenues 7,975 7,033 15,208 13,695 Expenses: Insurance services 2,647 2,422 5,401 4,925 Financial services 4,158 3,270 7,443 6,220 General and administrative 482 722 1,000 1,389 Gain on sale of assets (2) (49) (2) (84) ------ ------- ------ ------ Total expenses 7,285 6,365 13,842 12,450 ------ ------ ------ ------ Operating income 690 668 1,366 1,245 Sale of investments and other 13 1,289 20 1,880 ------ ------ ------ ------ Income from operations before interest, income taxes and minority interest 703 1,957 1,386 3,125 Interest and other income 227 154 430 331 Interest expense 2 -- 2 4 Income tax expense 329 742 652 1,219 Minority interest 1 2 2 13 ------ ------ ------ ------ Net income $598 $1,367 $1,160 $2,220 ====== ====== ====== ====== Diluted income per share: Net income $0.21 $0.48 $0.40 $0.77 ===== ===== ===== ===== Weighted average shares outstanding (diluted) 2,917 2,876 2,936 2,892
AMERICAN PHYSICIANS SERVICE GROUP, INC. SELECTED FINANCIAL DATA, continued (In thousands) June 30 ---------------------------- 2006 2005 ---- ---- ASSETS Current assets $21,569 21,663 Notes receivable, less current portion 378 326 Property and equipment 638 687 Investment in available for sale equity and fixed income securities-non-current 6,987 8,601 Goodwill 1,247 1,247 Other assets 686 981 ------- ------- Total Assets $31,505 $33,505 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 4,247 5,783 ------- ------- Total liabilities 4,247 5,783 Minority interests 17 15 Shareholders' Equity: Common stock 276 278 Additional paid-in capital 7,333 8,204 Retained earnings 19,077 18,737 Accumulated other comprehensive income, net of taxes 555 488 ------- ------- Total shareholders' equity 27,241 27,707 ------- ------- Total Liabilities and Shareholders' Equity $31,505 $33,505 ======= ======= For further information, visit APS' Website at www.amph.com or contact: Mr. Kenneth Shifrin, Chairman of the Board (or) Mr. W. H. Hayes, Sr. VicePresident - Finance American Physicians Service Group, Inc. 1301 Capital of Texas Highway, C-300 Austin, Texas 78746 (512) 328-0888 -----END PRIVACY-ENHANCED MESSAGE-----