-----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, QMmm53BHeVh+5WARrpL7QvtZH1XyAsWh2vf2+s6gP3aUYberL6Y28U6SWfMSkrx3 QByuhVQMV4Zeb9vpqtZ4YQ== 0000724024-06-000015.txt : 20061113 0000724024-06-000015.hdr.sgml : 20061113 20061113145826 ACCESSION NUMBER: 0000724024-06-000015 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061113 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20061113 DATE AS OF CHANGE: 20061113 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: 061208280 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 septcovr.txt SEPTEMBER 30, 2006 EARNINGS ANNOUNCEMENT 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:) November 13, 2006 (November 10, 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 November 10, 2006, American Physicians Service Group, Inc. issued a press release entitled, "American Physicians Service Group, Inc. reports Third 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: November 13, 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 November 10, 2006. EX-99.77Q1 2 septearn.txt PRESS RELEASE DATED NOVEMBER 10, 2006 Exhibit 99.1 AMERICAN PHYSICIANS SERVICE GROUP, INC. REPORTS THIRD QUARTER EARNINGS AUSTIN, TEXAS, November 10, 2006 - American Physicians Service Group, Inc. ("APS") (NASDAQ: AMPH) today announced results for the quarter and nine months ended September 30, 2006. For the three months ended September 30, 2006, revenues were $6,769,000 compared to $9,182,000 for the three months ended September 30, 2005. Net earnings were $409,000 or $.14 per diluted share, compared to $1,395,000 or $.48 per diluted share for the three months ended September 30, 2005. For the nine months ended September 30, 2006, revenues were $21,977,000 compared to $22,877,000 for the nine months ended September 30, 2005. Net earnings were $1,569,000 or $.53 per diluted share, compared to $3,615,000 or $1.24 per diluted share, for the nine months ended September 30, 2005. Ken Shifrin, APS Chairman of the Board stated, "While our emphasis in running American Physicians has always been on building long-term value, we never-the-less do not like to see a quarterly decline, even when comparing against what was a very good third quarter in 2005. Investment gains from sales of stock of $1,114,000 and $3,091,000 in the three and nine month periods last year, versus only $90,000 and $110,000 in the current three and nine month periods, accounting for 74% and 99% of the decline in pretax income for the three and nine month period ended September 30, 2006, respectively." Mr. Shifrin continued, "Our insurance segment has performed well in 2006, with revenues keeping pace with 2005 despite rate decreases in the Texas malpractice insurance market. This has been accomplished by additional marketing emphasis and has enabled us to meet objectives for new business and retention, though at lower premium rates and at higher cost. Similarly, in the current quarter we incurred $125,000 in consulting costs related to analyzing a new information system to improve future processing efficiencies. Our financial services segment experienced a significant decline for the quarter ended September 30, 2006, compared to the same period in 2005, with revenue declining 44% and pretax income by 79%. We have been faced over the last couple of years with the gradual, although recently accelerating commoditization of trading in corporate bonds, with the resultant reduction in margins. Additionally, trading in investment grade government and agency bonds has been less profitable in a market characterized by low interest rates, a flat to inverted yield curve, and relatively low volatility. This environment ultimately led to the closing in September of our Houston office, which concentrated in these investment grade products. The contribution of this office to the firm's profitability had been flat to negative for some time and showed little sign of immediate rebound. The two new expanding segments of our financial services business, investment banking and bank debt/trade claims trading, have continued to grow nicely. We believe the expansion of these areas will continue to compliment our efforts in building a more profitable and diversified product mix. Due to the relatively small number of large transactions that make up these activities, timing of completed transactions can impact results, which was the case in the third quarter. The merger with our long-time client APIE, that was announced in June of this year, continues to make its way through the regulatory process. We remain both optimistic and excited about the benefits that this merger will have for the policyholders of APIE and our shareholders. Detailed information of this transaction is available in the S-4 registration statement that we filed in August and amended in September 2006." Mr. Shifrin concluded, "We continue to emphasize a strong balance sheet. In this quarter, our current ratio of 3.7 to 1 and our equity of $27.7 million remain approximately the same as at December 31, 2005, even after paying a $.30 dividend and spending over $2,000,000 in a stock repurchase program. We remain debt free." 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. 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 Nine Months Ended September 30 September 30 ------------------------- -------------------------- 2006 2005 2006 2005 ---- ---- ---- ---- Revenues: Insurance services $3,726 $3,732 $10,556 $10,462 Financial services 3,043 5,450 11,421 12,415 ----- ----- ------ ------ Total revenues 6,769 9,182 21,977 22,877 Expenses: Insurance services 3,147 2,931 8,548 7,856 Financial services 2,905 4,788 10,348 11,009 General and administrative 436 573 1,436 1,961 Gain on sale of assets (13) (47) (15) (131) ------- ------- ------ ------- Total expenses 6,475 8,245 20,317 20,695 ------- ------- ------ ------- Operating income 294 937 1,660 2,182 Sale of investments and other 90 1,042 110 2,922 ------- ------- ------ ------ Income before interest, income taxes and minority interest 384 1,979 1,770 5,104 Interest and other income 264 169 694 500 Interest expense 9 6 11 10 Income tax expense 230 747 882 1,966 Minority interest -- -- 2 13 ------- ------- ------ ------ Net Income $ 409 $ 1,395 $1,569 $3,615 ======= ====== ====== ====== Diluted income per share: Net income $0.14 $0.48 $0.53 $1.24 ======= ===== ===== ===== Weighted average shares outstanding (diluted) 2,892 2,885 2,942 2,920
AMERICAN PHYSICIANS SERVICE GROUP, INC. SELECTED FINANCIAL DATA, continued (In thousands) September 30 -------------------------------- 2006 2005 ---- ---- ASSETS Current assets $25,023 $17,690 Notes receivable, less current portion 347 344 Property and equipment 588 696 Investment in available for sale equity and fixed income securities-non-current 6,546 8,739 Goodwill 1,247 1,247 Other assets 805 977 -------- ------- Total Assets $34,556 $29,693 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 6,826 4,189 Other liabilities -- 49 -------- ------- Total liabilities 6,826 4,238 Minority interests 20 14 Shareholders' Equity: Common stock 279 273 Additional paid-in capital 7,502 7,727 Retained earnings 19,486 16,892 Accumulated other comprehensive income net of taxes 443 549 -------- ------- Total shareholders' equity 27,710 25,441 -------- ------- Total Liabilities and Shareholders' Equity $34,556 $29,693 ======= ======= For further information, visit APS's Website at www.amph.com or contact: Mr. Kenneth Shifrin, Chairman of the Board (or) 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 -----END PRIVACY-ENHANCED MESSAGE-----