EACC EAC Invest AS

eAutoclaims, Inc. - 'EACC' - Reports Third Fiscal Quarter and Nine Month Financial Results OLDSMAR, Fla., June 15 /PRNewswire-FirstCall/ -- eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC) , a leading provider of managed collision repair services and insurance claims processing technology applications, today announced financial results for the third quarter ending April 30, 2005 and nine months for fiscal year 2005. Total revenue for the nine months ended April 30, 2005 was approximately $11.2 million, which is a fifty-one percent decrease from approximately $22.8 million of total revenue for the nine months ended April 30, 2004. Total revenue for the three months ended April 30, 2005 was approximately $3.6 million. This represents a forty-six percent decrease from approximately $6.6 million of total revenue for three months ended April 30, 2004. The change in the nine and three-month total revenue is the net effect of changes in collision repair revenue, glass repair revenue, fees, and other revenue, which is primarily the result of the loss of revenues from the Company's two largest clients over the previous year. During the nine months ended April 30, 2005, we derived 56% and 6% of our revenue from our two largest clients. In October 2003, our largest client announced that they were selling one half of their U.S. auto physical damage business to another insurance carrier. As a result, we have experienced approximately a $2.3 million decrease from revenue from the three-month period ended April 30, 2004 to the same period in 2005, and approximately $7.6 million decrease in revenue from the nine-month period ended April 30, 2004 to the same period in 2005. We also experienced a decrease in revenue from our second largest customer because of a change in their state's legislation regarding a special type of insurance policy requiring a direct repair network. We experienced approximately $475,000 decrease in revenue from the three-month period ended April 30, 2004 to the same period in 2005, and approximately $2.4 million decrease in revenue from the nine-month period ended April 30, 2004 to the same period in 2005. Fees and other revenue decreased from $1.8 million to $1.6 million, or 15% for the nine months ended April 30, 2005 compared to the nine months ended April 30, 2004. The nine-month decrease is mainly a result of a reduction in file handling fees from the reduced collision repair management revenue, and was partially offset by an increase in the click fee revenue. Fees and other revenue for the three months ended April 30, 2005 of approximately $473,000 decreased $137,000 compared to the fee revenue of approximately $610,000 for the three months ended April 30, 2004. Claims processing charges for the nine and three months ended April 30, 2005 was $8.6 million and $2.7 million, respectively. This was 77% and 76% of total revenue for the nine and three months ended April 30, 2005, compared to 82% for both the nine and three months ended April 30, 2004. Claims processing charges include the costs of collision and glass repairs paid to repair shops within our repair shop network, as well as the cost of the estimating software sold to the Company's network of shops. The reduction in claims processing charges, as a percentage of total revenue is a result of the change in the percentage of revenue generated from higher margin products as well as the increased emphasis in click fees. As revenues from customers generated by the ADP Co-Marketing Agreement grow, the margins will continue to increase. EACC believes that this positive trend will enable the Company to return to profitability. The net loss for the nine and three months ended April 30, 2005 totaled $2,957,258 and $1,221,518, compared to a net loss of $1,624,631 and $1,360,900 from the nine and three months ended April 30, 2004. The net loss amounts include non-cash expenses of $1,421,081 and $571,826 for the nine and three months ended April 30, 2005, respectively. The 2005 non-cash losses include one-time charges for the nine and three-month period of $986,623 and $432,572. After adjusting for non-cash items, EACC's loss for the third quarter of 2005 was $649,692. Beginning in August, the start of EACC's fiscal year, the Company anticipates steady improvement in our quarterly results primarily due to cost-cutting measures undertaken by management, the launch of the new higher margin business relationships, and the Company's growing business with the eAutoclaims/ADP Co-Marketing Agreement. Eric Seidel, President and CEO of eAutoclaims, commented, "As a result of previously announced slow down in our core business, from the loss of two of our key customers, we have felt a negative impact over the past nine months to our top and bottom line. However, we remain very optimistic about the opportunities presented with the ADP Co-Marketing Agreement; the effect of the early delays has resulted in eAutoclaims incurring additional expenses for carrying support personnel and ramping for the remainder of fiscal 2004, and the first half of fiscal 2005. As a result, cost reduction measures were put in place. We have enjoyed some recent success with the ADP Co-Marketing Agreement that will provide excellent growth opportunities over the course of the following year and beyond. EACC has focused a great deal of its resources and effort in order to build the infrastructure necessary to accelerate the ADP program, and we have finally reached a positive inflection point. After completion of a pilot study, eAutoclaims has begun to rollout our service with a top 20 insurance carrier. This should expedite the ramp of revenues as full rollout begins over the course of the next quarter, while other top tier carriers have shown tremendous interest. We feel confident that the program will soon show generous uptake as pilots are completed and rollout commences. We appreciate our shareholders patience as we transition toward our goal of higher margin business and a return to profitability by the end of 2005." About eAutoclaims eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC) is a business services company that provides the insurance industry with claims management services through both ASP and integrated outsourcing solutions. The Company's clients are insurance companies, fleet management companies and insurance services companies. eAutoclaims' solutions streamline the claims handling process, decreasing the overall time and cost required to process a collision claim, and reducing average paid losses for its clients. The Company handles repair estimates, repair audits, and claims systems administration services for automobile claims that are processed and tracked via the eAutoclaims web-based platform and network of service providers. This announcement contains forward-looking statements. Words such as anticipate, believe, estimate, satisfies, expect and other similar expressions as they relate to the Company and its management are intended to identify such forward-looking statements. Although the Company and its management believe that the statements contained in this announcement are reasonable, it can give no assurances that such statements will prove correct. Factors that could affect the occurrence of events or results discussed herein are included with those mentioned in the Company's filings with the Securities and Exchange Commission. Contacts: Company For More Information: Jeff Dickson, Chairman 813-749-1020, Ext. 2202 Or Investors Alliance Advisors, LLC Alan Sheinwald, 914-244-0062 --Financial Tables Follow- eAutoclaims, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three-month Period Ended Nine-month Period Ended April 30, April 30, April 30, April 30, 2005 2004 2005 2004 Revenue: Collision repairs management $2,793,224 $5,509,078 $8,762,082 $19,382,272 Glass repairs 104,405 288,064 372,833 976,605 Fleet repairs management 181,446 155,958 508,057 572,720 Fees and other revenue 473,123 610,122 1,554,594 1,831,493 Total revenue 3,552,198 6,563,222 11,197,566 22,763,090 Expenses: Claims processing charges 2,689,195 5,368,369 8,564,174 18,681,432 Selling, general and administrative 1,512,695 2,401,353 4,169,569 5,236,311 Depreciation and amortization 123,981 131,836 391,668 397,608 Total expenses 4,325,871 7,901,558 13,125,411 24,315,351 Net loss $(773,673) $(1,338,336) $(1,927,845) $(1,552,261) Adjustment to net loss to compute loss per common share: Preferred stock dividends (15,273) (22,564) (42,790) (72,370) Dividend to unit holders (432,572) (986,623) Net loss applicable to common stock $(1,221,518) $(1,360,900) $(2,957,258) $(1,624,631) Loss per common share - basic and diluted $(0.02) $(0.06) $(0.07) $(0.07) Weighted-average number of common shares outstanding - basic and diluted 51,529,115 24,666,084 41,231,707 24,620,543 DATASOURCE: eAutoclaims CONTACT: Jeff Dickson, Chairman, eAutoclaims, +1-813-749-1020, ext. 2202, or ; or Investors, Alan Sheinwald, Alliance Advisors, LLC, +1-914-244-0062, or , for eAutoclaims Web site: http://www.eautoclaims.com/

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