Exhibit 99.1
[GRAPHIC OMITTED]
AMERICAN PHYSICIANS SERVICE GROUP, INC.
ANNOUNCES INCREASE IN REVENUES, OPERATING INCOME
AUSTIN, TEXAS, May 11, 2006 - American Physicians Service Group, Inc.
("APS") (NASDAQ: AMPH) today announced results for the first quarter of 2006.
For the three months ended March 31, 2006, revenues were $7,233,000 compared to
$6,662,000 a year-ago. Operating income was $676,000 versus $577,000 a year
earlier, while net income of $562,000 compares to net income of $853,000 in the
same quarter of 2005. In 2005, gains on sales of investments had added $591,000
to pretax income versus $7,000 in the current period. Diluted earnings per share
in the current quarter were $0.19 compared to $0.30 in the first quarter of
2005.
Ken Shifrin, APS Chairman of the Board, stated, "We are very pleased with
first quarter results. Revenues were up 9% and operating income was up 17%,
compared to the same quarter last year. Net income had been positively impacted
in the quarter ended March 31, 2005 by a large, one-time, investment gain that
we did not have in the quarter just ended, but our core businesses continued to
perform well."
Mr. Shifrin continued, "Our insurance segment beefed up its marketing
effort last year and has increased the number of insured doctors for its managed
insurance company by about 12% since March 31, 2005. Our financial services
segment benefited from its entry last year into investment banking and trade
claims clearing, boosting revenue quarter-to-quarter in what was a challenging
market for its core fixed-income business. We are proud of the resourcefulness
that our management team has shown."
Mr. Shifrin concluded, "Attention to shareholder value continues to be an
integral part of our business plan. Book value per share was $10.16 per share at
March 31, 2006 compared to $9.32 at March 31, 2005. A year before that it was
$8.18, a trend reflective of our excellent earnings and our consistent stock
repurchases. Our balance sheet continues to give us stability and opportunity,
with outstanding working capital, liquidity, and no debt."
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.
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
AMERICAN PHYSICIANS SERVICE GROUP, INC.
UNAUDITED SELECTED FINANCIAL DATA
(In thousands, except per share data)
Three Months Ended
March 31,
2006 2005
-------------------------
Revenues:
Financial services $3,578 $3,267
Insurance services 3,655 3,395
------ ------
Total revenues 7,233 6,662
Expenses:
Financial services 3,285 2,950
Insurance services 2,754 2,503
General and administrative 518 667
Gain on sale of assets -- (35)
------ ------
Total expenses 6,557 6,085
------ ------
Operating income 676 577
Sale of investments and other 7 591
------ ------
Income from operations before interest,
income taxes and minority interests 683 1,168
Interest and other income 203 173
Income tax expense 323 477
Minority interests 1 11
------ ------
Net income $ 562 $853
====== ======
Diluted income per share:
Net income $ 0.19 $0.30
====== ======
Weighted average shares outstanding (diluted) 2,909 2,867
AMERICAN PHYSICIANS SERVICE GROUP, INC.
UNAUDITED SELECTED FINANCIAL DATA, continued
(In thousands)
March 31,
2006 2005
--------- --------
ASSETS
Current assets $21,472 $12,601
Notes receivable, less current portion 405 107
Property and equipment 669 670
Investment in available for sale equity
and fixed income securities-non-current 8,544 13,343
Goodwill 1,247 1,247
Other assets 812 299
------- -------
Total Assets $33,149 $28,267
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 5,147 $ 2,971
Other liabilities -- 688
-------- -------
Total liabilities 5,147 3,659
Minority interests 16 13
Shareholders' Equity:
Common stock 275 264
Additional paid-in capital 7,826 7,838
Retained earnings 19,300 14,801
Accumulated other comprehensive income,
net of taxes 585 1,692
------- -------
Total shareholders' equity 27,986 24,595
------- -------
Total Liabilities and Shareholders' Equity $33,149 $28,267
======= =======