Access Plans, Inc. (OTCBB: APNC), a leading membership benefits
marketing company, today announced its operating results for the
quarter and fiscal year ended September 30, 2011. The Company has
scheduled an investor conference call for 11:00 a.m. Eastern Time
today to discuss its FY2011 operating (see details below).
For the twelve months ended September 30, 2011, revenues
decreased approximately 4% to $53.0 million, compared with $55.3
million in the previous fiscal year. A revenue decrease of $3.9
million in the Insurance Marketing division was primarily due to
significant commission reductions as a result of the Healthcare
Reform Act. A revenue decrease of $0.6 million within the Retail
Plans division was offset by a $2.9 million increase within the
Wholesale Plans division. Operating income increased approximately
118% to $10.5 million in FY2011, versus $4.8 million in FY2010. Net
income more than doubled to $6.2 million, or $0.30 per diluted
share, in FY2011, compared with $3.0 million, or $0.15 per diluted
share, in FY2010. The number of weighted average diluted shares
outstanding approximated 20.7 million during the most recent fiscal
year, compared with 20.1 million shares in the previous fiscal
year.
Revenues for the three months ended September 30, 2011 decreased
approximately 17% to $11.9 million, compared with $14.2 million in
the fourth quarter of FY2010. Operating income increased
approximately 238% to $2.0 million, versus $0.6 million in the
prior-year period, reflecting reduced cost of sales and operating
expenses associated with the inbound call center program. Net
income increased approximately 186% to $1.3 million, or $0.06 per
diluted share, in the fourth quarter of FY2011, compared with $0.5
million, or $0.02 per share in the corresponding period of the
previous fiscal year.
"We are very pleased to report that Fiscal 2011 was a record
year for our Company," noted Danny Wright, Chief Executive Officer
of Access Plans, Inc. "Strong margins within our Wholesale and
Retail Plans divisions and focused expense management throughout
the Company more than offset the anticipated revenue reduction
within the Insurance Marketing division created by the
implementation of portions of the Healthcare Reform Act."
Wholesale Plans
Wholesale Plans division revenue increased approximately 13% to
$25.2 million in the fiscal year ended September 30, 2011, versus
$22.4 million in the previous fiscal year, while operating income
increased approximately 81% to $7.3 million, compared with $4.0
million in FY2010.
In the fourth quarter of FY2011, revenue in the Wholesale Plans
division increased 11% to $6.4 million, versus $5.8 million in the
prior-year period. The increase in fourth quarter revenue was
attributable to improved sell-through at existing customer
locations, along with the addition of new accounts. Gross margin
increased to $2.3 million, compared with $1.9 million a year
earlier. Operating income at the division increased to $1.7 million
in the most recent quarter, versus $1.5 million in the fourth
quarter of FY2010.
Retail Plans
For the fiscal year, Retail Plans revenue decreased
approximately 3% to $16.9 million, versus $17.5 million in the
previous fiscal year. Operating income increased 163%, from $2.3
million in FY2010 to $5.9 million in FY2011, due to reduced sales
and marketing expenses and increased sales within higher-margin
programs.
Revenue in the Retail Plans division decreased approximately 19%
in the fourth quarter of FY2011 to $3.7 million, prior to
inter-company eliminations, versus $4.6 million in the prior-year
period. The decrease was attributable primarily to the
discontinuation of a significant inbound call center program that
was accompanied by higher-than-acceptable sales and marketing
expenses. The division's fourth quarter revenue decrease was also
impacted by anticipated declines in the Company's legacy business.
Gross margins increased from $1.0 million in 2010 to $2.2 million
in 2011, due in large part to the aforementioned discontinuation of
the inbound call center program. The division recorded operating
income of $1.2 million in the final quarter of FY2011, versus an
operating loss of $0.2 million in the fourth quarter of FY2010.
Insurance Marketing
For the fiscal year ended September 30, 2011, Insurance
Marketing revenue decreased to $16.7 million, versus $20.6 million
in 2010. The decrease was due to a 40%-50% reduction in commissions
on most new major medical policies written after December 31, 2010.
An operating loss of $0.002 million was posted by the Insurance
Marketing division in FY2011, compared with operating income of
$0.2 million in FY2010, reflecting excellent expense management in
a declining revenue environment.
Insurance Marketing division revenue decreased to $3.2 million
in the final quarter of FY2011, versus $5.2 million in the fourth
quarter of FY2010. The decline was due to the reduction in
commission revenue discussed above. The division recorded an
operating loss of $0.1 million in the three months ended September
30, 2011, compared with an operating loss of $0.1 million in last
year's fourth quarter.
Other Matters
The Company generated cash from operating activities of
approximately $7.9 million in the most recent fiscal year. Cash,
cash equivalents and restricted cash increased to $13.7 million at
September 30, 2011, versus $6.2 million at September 30, 2010. The
increase in cash balances resulted from net cash provided by
operating activities, partially offset by $0.4 million of debt
reduction. Stockholders' equity increased from $14.2 million on
September 30, 2010 to $20.7 million on September 30, 2011, and the
Company had no long-term debt outstanding at the end of FY2011.
Conference Call Information
The Company will host an investor conference call at 11:00 a.m.
Eastern Time (EST) today to discuss its FY2011 operating
results.
Shareholders and other interested parties may
participate in the conference call by dialing 877-317-6789
(international/local participants dial 412-317-6789) and asking to
be connected to the "Access Plans, Inc. Conference Call" a few
minutes before 11:00 a.m. EST today, December 20, 2011.
A replay of the conference call will be available one hour after
the call through Tuesday, December 27, 2011 at 9:00 am EST by
dialing 877-344-7529 (U.S.) or 412-317-0088 (international) and
entering the conference ID Number 10007710.
About Access Plans, Inc.
Access Plans, Inc. (OTCBB: APNC) is a leading membership
benefits marketing company with two distribution channels. The
Wholesale/Retail Plans distribution channel specializes in turnkey,
private-label membership benefit plans that provide discount
products and services, protection benefits and retail services to
more than 1 million customers in the United States and Canada.
America's Health Care Plans (AHCP), the Company's Insurance
Marketing distribution channel, is one of the nation's largest
independent agent networks and provides major medical, life and
supplemental insurance products to individuals. For more
information, please visit: www.accessplans.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act:
This press release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, Section 27A of the Securities Act of 1933, as amended
and pursuant to the Private Securities Litigation Reform Act of
1995. Such forward-looking statements may relate to financial
results and plans for future business activities, and are thus
prospective. Such forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Among the important factors that could
cause actual results to differ materially from those indicated by
such forward-looking statements are competitive pressures, loss of
significant customers, the mix of revenue, changes in pricing
policies, delays in revenue recognition, lower-than-expected demand
for the Company's products and services, general economic
conditions, and the risk factors detailed from time to time in the
Company's periodic reports and registration statements filed with
the Securities and Exchange Commission. Any forward-looking
statements are made pursuant to the Private Securities Litigation
Reform Act of 1995 and the Company assumes no responsibility for
updating such forward-looking statements after the date of this
release.
Access Plans, Inc.
Consolidated Statements of Operations
(Unaudited and dollars in thousands, except earnings per share)
For the Three Months Ended September 30,
-----------------------------------------
2011 2010 Change
--------- --------- -------------------
Net revenues $ 11,858 $ 14,215 $ (2,357) -17%
Direct costs 6,285 10,654 (4,369) -41%
--------- --------- --------- --------
Gross profit 5,573 3,561 2,012 57%
Operating expenses 3,571 2,969 602 20%
--------- --------- --------- --------
Operating income 2,002 592 1,410 238%
Net other income (expense) 2 (41) 43 -105%
Provision for income taxes, net 665 83 582 701%
--------- --------- --------- --------
Net income $ 1,339 $ 468 $ 871 186%
========= ========= ========= ========
Per Share Data:
Basic $ 0.07 $ 0.02 0.05 250%
========= ========= ========= ========
Diluted $ 0.06 $ 0.02 0.04 200%
========= ========= ========= ========
Average Shares Outstanding:
Basic 19,927 19,777 150 1%
========= ========= ========= ========
Diluted 21,083 19,929 1,154 6%
========= ========= ========= ========
For the Three Months Ended September 30,
-----------------------------------------
2011 2010 Change
--------- --------- -------------------
Segment net revenues
Wholesale Plans $ 6,447 $ 5,834 $ 613 11%
Retail Plans 3,684 4,565 (881) -19%
Insurance Marketing 3,188 5,199 (2,011) -39%
Eliminations (1,461) (1,383) (78) 6%
--------- --------- --------- --------
$ 11,858 $ 14,215 $ (2,357) -17%
========= ========= ========= ========
For the Three Months Ended September 30,
-----------------------------------------
2011 2010 Change
--------- --------- -------------------
Segment operating income
Wholesale Plans $ 1,693 $ 1,450 $ 243 17%
Retail Plans 1,155 (230) 1,385 602%
Insurance Marketing (124) (114) (10) 9%
Corporate (722) (514) (208) 40%
--------- --------- --------- --------
$ 2,002 $ 592 $ 1,410 238%
========= ========= ========= ========
For the Year Ended September 30,
-----------------------------------------
2011 2010 Change
--------- --------- -------------------
Net revenues $ 52,993 $ 55,349 $ (2,356) -4%
Direct costs 30,510 39,044 (8,534) -22%
--------- --------- --------- --------
Gross profit 22,483 16,305 6,178 38%
Operating expenses 11,939 11,474 465 4%
--------- --------- --------- --------
Operating income 10,544 4,831 5,713 118%
Net other income (expense) 14 (21) 35 -167%
Provision for income taxes, net 4,311 1,763 2,548 145%
--------- --------- --------- --------
Net income $ 6,247 $ 3,047 $ 3,200 105%
========= ========= ========= ========
Per Share Data:
Basic $ 0.31 $ 0.15 0.16 107%
========= ========= ========= ========
Diluted $ 0.30 $ 0.15 0.15 100%
========= ========= ========= ========
Average Shares Outstanding:
Basic 19,906 19,910 (4) 0%
========= ========= ========= ========
Diluted 20,743 20,111 632 3%
========= ========= ========= ========
For the Year Ended September 30,
-----------------------------------------
2011 2010 Change
--------- --------- -------------------
Segment net revenues
Wholesale Plans $ 25,242 $ 22,372 $ 2,870 13%
Retail Plans 16,866 17,458 (592) -3%
Insurance Marketing 16,697 20,641 (3,944) -19%
Eliminations (5,812) (5,122) (690) 13%
--------- --------- --------- --------
$ 52,993 $ 55,349 $ (2,356) -4%
========= ========= ========= ========
For the Year Ended September 30,
-----------------------------------------
2011 2010 Change
--------- --------- -------------------
Segment operating income
Wholesale Plans $ 7,289 $ 4,034 $ 3,255 81%
Retail Plans 5,938 2,259 3,679 163%
Insurance Marketing (2) 161 (163) -101%
Corporate (2,681) (1,623) (1,058) 65%
--------- --------- --------- --------
$ 10,544 $ 4,831 $ 5,713 118%
========= ========= ========= ========
Access Plans, Inc.
Condensed Consolidated Balance Sheets
(Unaudited and dollars in thousands)
September 30,
2010
September 30, (Derived From
2011 Audited
(Unaudited) Statements)
-------------- --------------
Total current assets $ 20,537 $ 16,297
Total assets $ 27,376 $ 24,852
Total current and long term liabilities $ 6,705 $ 10,638
Total stockholders' equity $ 20,671 $ 14,214
Total liabilities and stockholders' equity $ 27,376 $ 24,852
Contact: Access Plans, Inc. Robert Hoeffner 405-579-8525
bhoeffner@accessplans.com or RJ Falkner & Company, Inc.
Investor Relations Counsel 800-377-9893 info@rjfalkner.com
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