EXHIBIT 99-1
AMERICAN PHYSICIANS SERVICE GROUP, INC.
Announces Increase in Fourth Quarter and Annual Results
Revenues up 13% for the Quarter, 6% for the year
EPS up 10% for the Quarter, 145% for the year
AUSTIN, TEXAS, March 13, 2006 - American Physicians Service Group,
Inc. ("APS") (NASDAQ: AMPH) today announced results for the fourth quarter and
year-end 2005.
For the three months ended December 31, 2005, revenues were $11,096,000
versus $9,843,000 in the comparable period a year ago. Net earnings for the
quarter were $1,845,000, compared to $1,603,000 in last year's fourth quarter.
Diluted earnings per share were $0.64 for the quarter ended December 31, 2005
versus $0.58 in the year-ago period. For the year ended December 31, 2005, APS
reported total revenues of $33,973,000 versus $32,021,000 in 2004. Net earnings
were $5,460,000 in 2005 compared to $2,152,000 in 2004. Diluted earnings per
share were $1.86 versus $0.76 in 2004.
Ken Shifrin, Chairman of the Board, stated, "In 2005 we maintained our
focus on developing our two core businesses and strengthening our balance sheet.
Although combined operating income from our two segments was down less than 1%
from last year, our financial services segment recorded its second best year
ever, and our insurance segment did an admirable job of maintaining parity with
2004 in what was a much more competitive environment."
Mr. Shifrin continued, "Our investments were dramatically more
successful in 2005. We realized net gains in 2005 of approximately $3 million
due primarily to the sale of various equity investments versus net losses in
2004 of approximately $2.2 million due primarily to an impairment charge taken
on our investment in Financial Industries Corporation. We do not expect to see
additional large gains or losses from these equity investments in the
foreseeable future."
Bill Hayes, APS' CFO, added, "We continued to strengthen our balance
sheet in 2005. Working capital grew from approximately $10.7 million to
approximately $15.9 million, and book value per share grew to $9.95 at December
31, 2005 from $9.23 a year earlier. Even while accomplishing these things we
were able to reward shareholders with a 25% dividend increase - from $0.20 per
share to $0.25. We also completed our $2 million stock buy-back plan and, in
December 2005, announced a second $2 million buy-back. We remain debt free."
Mr. Shifrin concluded, "Last year at this time, we noted that it was a
difficult task to follow a successful year. We think our financial results,
together with an increase in our share price from $10.39 at December 31, 2004 to
$13.20 at December 31, 2005, indicate that we accomplished that task. In 2006,
we will continue to focus on shareholder value through the enhancement of our
operations."
APS is a management and financial services firm with subsidiaries and
affiliates which 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 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, December 31,
------------------------ ----------------------
2005 2004 2005 2004
---- ---- ---- ----
Revenues $11,096 $9,843 $33,973 $32,021
Expenses 8,436 7,206 29,262 26,733
Gain on sale of assets 3 -- 134 56
------- ------ ------- -------
Operating income 2,663 2,637 4,845 5,344
Gain (loss) on investments 45 (193) 2,967 (2,247)
------- ------ ------- -------
Earnings from operations
before interest, income taxes,
and minority interest 2,708 2,444 7,812 3,097
Interest and other income 211 83 701 373
Income tax expense 1,073 924 3,039 1,317
Minority interest 1 -- 14 1
------ ------ ------ ------
Earnings from operations 1,845 1,603 5,460 2,152
------ ------ ------ ------
Net earnings $ 1,845 $ 1,603 $ 5,460 $ 2,152
======= ======= ======= =======
Diluted earnings per share:
Earnings from operations $ 0.64 $ 0.58 $ 1.86 $ 0.76
Net earnings $ 0.64 $ 0.58 $ 1.86 $ 0.76
====== ====== ====== ======
Weighted average shares
outstanding (diluted) 2,896 2,787 2,931 2,838
AMERICAN PHYSICIANS SERVICE GROUP, INC.
SELECTED FINANCIAL DATA, continued
(In thousands) December 31,
----------------------------
2005 2004
---- ----
ASSETS
Current assets $21,663 $15,769
Notes receivable, less current portion 326 141
Property and equipment 687 619
Investment in available for sale equity and
fixed income securities-non-current 8,601 12,337
Goodwill 1,247 1,247
Other assets 981 330
------- -------
Total Assets $33,505 $30,443
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 5,783 5,096
Other liabilities -- 1,133
------ ------
Total liabilities 5,783 6,229
Minority interests 15 1
Shareholders' Equity:
Common stock 278 265
Additional paid-in capital 8,204 7,919
Retained earnings 18,737 13,948
Accumulated other comprehensive income,
net of taxes 488 2,081
------ ------
Total shareholders' equity 27,707 24,213
------ ------
Total Liabilities and Shareholders' Equity $33,505 $30,443
======= =======
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