CCC Information Services Group Inc. Reports EPS of $0.31 for the First

CCC Information Services Group Inc. Reports EPS of $0.31 for the First Quarter

    Business Editors/Technology Writers

    CHICAGO--(BUSINESS WIRE)--April 21, 2005--CCC Information Services Group Inc. (Nasdaq: CCCG) today reported net income of $0.31 per diluted share for the first quarter ending March 31, 2005, compared to net income of $0.22 per diluted share for the same quarter in 2004.
    Revenue for the first quarter was $49.7 million, compared to $49.6 million for the same quarter in 2004. Operating income was $11.2 million for the quarter, including $0.7 million for non-cash stock compensation expense, compared to operating income of $10.0 million for the first quarter in 2004. The company did not incur non-cash stock compensation expense during the first quarter of 2004. Operating margin was 22.4 percent, compared to 20.2 percent for the same quarter in 2004. Net income of $5.4 million compares to $6.2 million for the same quarter in 2004. Net income and earnings per share for 2005 reflect the impact of the company's September 2004 self-tender transaction.
    "We're on track for 2005," said Githesh Ramamurthy, Chairman and Chief Executive Officer. "Our new customer implementations are going as planned, the base business is solid and we continue to realize the cost savings we promised last year. We expect to see revenue start to ramp late in the second quarter continuing through the balance of the year."

    First Quarter Revenue and Expense Highlights

    The product portfolio revenues for the first quarter, including a comparison to the same quarter in 2004, are as follows:

($ in 000's) ---------------------------------------------------------------------- % Change Portfolio Q1 Q1 vs. Prior 2005 2004 Year ---------------------------------------------------------------------- CCC Pathways $31,486 $31,174 1.0% CCC Valuescope 10,495 10,139 3.5% Workflow 6,654 6,258 6.3% Information Services Products 517 502 3.0% Other 568 1,530 (62.9)% ---------- ---------- Total $49,721 $49,603 0.2% ----------------------------------------------------------------------

    Key drivers for revenue performance for the first quarter, compared to the same quarter in 2004, were as follows:

--	The CCC Pathways(R) portfolio was up slightly year over year due to CCC Pathways unit growth and sales of Recycled Parts Service to insurance companies. Toward the end of the second quarter the company expects to begin seeing the favorable impact of several new customers that have been in the process of converting to CCC since the beginning of the year.
--	CCC Valuescope(R) portfolio revenue increased primarily due to the growth from new customers that were added during 2004.
--	Workflow benefited from sales of CCC Autoverse(TM) to new customers and further rollouts at existing customers.
--	Other revenue was down due to the completion of the planned phase out of the CARS(R) service, as well as a decrease in certain project-related revenue.

    Operating expenses for the first quarter, compared to the same quarter in 2004, are as follows:

($ in 000's) ---------------------------------------------------------------------- % Change Q1 Q1 vs. Prior 2005 2004 Year ---------------------------------------------------------------------- Production and Customer Support 8,334 8,349 (0.2)% Commissions, Royalties and Licenses 3,364 3,174 6.0% Selling, General, and Administrative 17,689 17,930 (1.3)% Depreciation and Amortization 1,978 2,103 (5.9)% Product Development and Programming 7,196 8,037 (10.5)% --------- -------- Total Operating Expenses 38,561 39,593 (2.6)% ----------------------------------------------------------------------

    Key operating expense highlights for the first quarter, compared to the same quarter in 2004, are as follows:

--	Commissions, royalties and licenses expenses increased due to new data license fees to support the Valuescope product.
--	Selling, general, and administrative expenses were favorable versus prior year as a result of the organization realignment that took place in mid-2004 as well as the absence of certain non-recurring expenses incurred last year, including improvements made to the main office in Chicago. Offsetting a portion of these favorable variances were costs related to Sarbanes-Oxley requirements, non-cash stock compensation expense, and our annual customer conference, which in 2004 was held during the second quarter.
--	Product development and programming expenses reflect the favorable impact from the 2004 organization realignment.

    Guidance Update

    The company issued the following guidance for the second quarter and full year 2005:

    -- Diluted earnings per share for the second quarter is expected
    to be in the $0.31 to $0.33 per share range. For the full
    year, the company has tightened the range and now expects
    diluted earnings per share to be in the $1.30 to $1.35 per
    share range from prior guidance of $1.25 to $1.35. The company
    is using a diluted share base of 17.5 million shares for both
    the second quarter and full year. As mentioned during the
    year-end earnings call, the company is evaluating the impact
    of FAS 123R. However, based on the announcement by the SEC
    last week delaying the implementation of FAS 123R, the company
    is considering delaying its implementation until 2006.

    -- Revenue growth for the second quarter is expected to be in the
    low single digits and for the full year revenue is expected to
    grow in the low-to-mid single digit range. This is unchanged
    from previous guidance. The company expects revenue growth to
    accelerate in the second half as new customer implementations
    are completed by the end of the second quarter.

    -- Operating income for the second quarter is expected to be in
    the $11 to $12 million range. The guidance for full year
    operating income is $47 to $49 million. Both the second
    quarter and full year guidance includes the impact of the
    non-cash stock compensation expense.

    The company will be hosting its first quarter earnings call to discuss results at 11:00 AM EDT. A live web cast will be made available at www.cccis.com.

    About CCC

    CCC Information Services Group Inc. (NASDAQ: CCCG), headquartered in Chicago, is a leading supplier of advanced software, communications systems, and Internet and wireless-enabled technology solutions to the automotive claims and collision repair industries. Its technology-based products and services optimize efficiency throughout the entire claims management supply chain and facilitate communication among approximately 21,000 collision repair facilities, 350 insurance companies and a range of industry participants. For more information about CCC Information Services, visit CCC's Web site at www.cccis.com.

    This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the Company's filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements. Specific factors that might cause actual results to differ from expectations include, but are not limited to, competition in the automotive claims and collision repair industries, the ability to develop new products and services, the prolonged sales and implementation cycle of some of the company's new products, the ability to protect trade secrets and proprietary information, the ability to generate the cash flow necessary to meet the Company's obligations, the outcome of certain legal proceedings, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The Company has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise any forward-looking statement.

CCC INFORMATION SERVICES GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)

Three Months Ended March 31, ---------------------- 2005 2004 ------------ --------- Revenues $49,721 $49,603 Expenses: Production and customer support 8,334 8,349 Commissions, royalties and licenses 3,364 3,174 Selling, general and administrative 17,689 17,930 Depreciation and amortization 1,978 2,103 Product development and programming 7,196 8,037 ------------ --------- Total operating expenses 38,561 39,593 ------------ ---------

Operating income 11,160 10,010

Interest expense (2,792) (146) Other income, net 134 87 Equity in income of ChoiceParts 125 109 ------------ --------- Income before income taxes 8,627 10,060

Income tax provision (3,208) (3,853) ------------ ---------

Net income $5,419 $6,207 ============ ========= Per Share Data: Income per common share: Basic $0.34 $0.23 ============ ========= Diluted $0.31 $0.22 ============ ========= Weighted average shares outstanding: Basic 16,148 26,472 Diluted 17,347 27,927

CCC INFORMATION SERVICES GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM BALANCE SHEETS (In thousands, except share amounts) (Unaudited)

March 31, Dec. 31, ASSETS 2005 2004 --------- -------- Cash and cash equivalents $26,807 $19,958 Accounts receivable (net of allowances of $2,191 and $2,357 at March 31, 2005 and December 31, 2004, respectively) 12,806 12,721 Other current assets 8,861 7,790 --------- -------- Total current assets 48,474 40,469 Property and equipment (net of accumulated depreciation and amortization of $39,296 and $37,530 at March 31, 2005 and December 31, 2004, respectively) 11,885 12,151 Intangible assets (net of accumulated amortization of $1,783 and $1,569 at March 31, 2005 and December 31, 2004, respectively) 1,084 1,298 Goodwill 15,747 15,747 Deferred income taxes (net of valuation allowance of $11,599 at March 31, 2005 and December 31, 2004) 9,514 9,420 Investments 904 778 Other assets 5,513 3,770 --------- -------- Total assets $93,121 $83,633 ========= ========

LIABILITIES AND STOCKHOLDERS' DEFICIT Accounts payable $7,072 $7,728 Accrued expenses 17,309 19,468 Income taxes payable 3,090 97 Deferred revenues 8,059 6,886 Current portion of long-term debt 431 -- --------- -------- Total current liabilities 35,961 34,179 Long-term debt 169,182 169,613 Other liabilities 1,352 1,716 --------- -------- Total liabilities 206,495 205,508 --------- --------

Commitments and contingencies

Preferred stock ($1.00 par value, 100 shares authorized, issued and outstanding) -- -- Common stock ($0.10 par value, 40,000,000 shares authorized, 16,489,087 and 16,144,124 shares outstanding at March 31, 2005 and December 31, 2004, respectively) 1,649 1,614 Additional paid-in capital 14,704 7,298 Deferred stock compensation (6,184) (292) Other comprehensive income 1,605 72 Accumulated deficit (72,896) (78,315) Treasury stock, at cost (4,460,501 common shares in treasury at March 31, 2005 and December 31, 2004) (52,252) (52,252) --------- -------- Total stockholders' deficit (113,374)(121,875) --------- -------- Total liabilities and stockholders' deficit $93,121 $83,633 ========= ========

CCC INFORMATION SERVICES GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

Three Months Ended March 31, ----------------- 2005 2004 --------- ------- Operating Activities: Net income $5,419 $6,207 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net (income) of ChoiceParts (125) (109) Depreciation and amortization of property and equipment 1,764 1,889 Amortization of intangible assets 214 214 Deferred income tax provision (94) 112 Restricted stock compensation, non-cash 671 11 Income tax benefit related to exercise of stock options 149 -- Other, net 13 37 Changes in: Accounts receivable, net (85) (2,100) Other current assets (1,073) (661) Other assets (209) 85 Accounts payable (656) 1,217 Accrued expenses (2,158) (2,408) Income taxes payable 2,993 2,205 Other current liabilities -- 314 Deferred revenues 1,173 590 Other liabilities (364) (552) --------- ------- Net cash provided by operating activities 7,632 7,051 --------- -------

Investing Activities: Capital expenditures (1,499) (2,339) Proceeds from sale of short-term investments -- 7,004 --------- ------- Net cash provided by (used for) investing activities (1,499) 4,665 --------- -------

Financing Activities: Proceeds from exercise of stock options 619 1,173 Proceeds from employee stock purchase plan 97 106 Principal repayments of capital lease obligations -- (134) -------- ------- Net cash provided by financing activities 716 1,145 -------- -------

Net increase in cash and cash equivalents 6,849 12,861 Cash and cash equivalents: Beginning of period 19,958 20,755 -------- -------

End of period $26,807 $33,616 ======== =======

Supplemental Disclosure: Cash paid: Interest $2,649 $42 Taxes 160 1,536

--30--AC/cg*

CONTACT: CCC Information Services Inc. Media Contact: Michelle Hellyar, 312-229-2830 or Investor Contact: Patrick Donoghue, 312-229-2984

KEYWORD: ILLINOIS INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING INTERNET E-COMMERCE EARNINGS CONFERENCE CALLS SOURCE: CCC Information Services Inc.

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