DCAP Reports Second Quarter 2007 Results
August 14 2007 - 3:21PM
Business Wire
DCAP Group, Inc. (NASDAQ: DCAP), the largest chain of independent
storefront insurance agencies in the Northeast, today reported
financial results for the second quarter of 2007. Total revenues
were $2,364,793, a decline from the prior year amount of
$3,032,240. Net income was $135,260, down from $280,814 as reported
for the second quarter of 2006. Earnings per diluted share were
$0.04 as compared to $0.09 in the second quarter of 2006. Operating
Highlights 2Q 07 � 2Q 06 Commissions and Fees $1,513,620 �
$1,860,052 Premium Finance Revenue 851,173 � 1,172,188 Total
Revenues 2,364,793 � 3,032,240 Pretax Income 245,927 � 468,139 Net
Income 135,260 � 280,814 � � � Basic EPS 0.05 � 0.10 Diluted EPS
0.04 � 0.09 � � � Basic Shares 2,967,442 � 2,896,024 Diluted Shares
3,284,523 � 3,248,668 Commentary Barry Goldstein, CEO of DCAP,
stated �Little has changed in the past three months. We are in the
throws of a soft market, in which the ease of securing coverage is
coupled with stable or reduced rates. While there is little to
compel consumers to shop, those that do are more frequently
starting at the Internet. This puts the typical storefront agency
in unfamiliar territory, low quote levels and low conversion. For
those consumers who are making the buy decision strictly on price,
we are often at a disadvantage, as the direct writers enjoy an
accounting advantage over the agency-based companies. This has led
to a continued decline in our revenues.� �DCAP is making changes to
its advertising and marketing programs to better generate Internet
leads and has built its own lead management software program to
assist its producers,� Mr. Goldstein continued. �With a customized
comparative rating system, we offer on-line shoppers a choice in
coverages and carriers with near real time response rates. Over
time, we hope to increase our conversion rate to a level that will
economically justify the investments we have made.� About DCAP
Group DCAP Group, Inc. owns and operates the largest chain of
independent storefront insurance agencies in the Northeast. Through
DCAP Insurance, Barry Scott Insurance, Atlantic Insurance Agency
and Accurate Agency, DCAP Group provides automobile insurance (and
to a lesser extent, motorcycle and homeowners), enhanced by
complimentary premium financing capabilities, to retail customers
in New York and Pennsylvania. Other products include automobile
club service for roadside emergencies and income tax preparation
services. As of August 13, 2007, DCAP had 71 owned or franchised
storefront locations. Forward Looking Statements Statements in this
press release may contain �forward-looking statements� within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, may be
forward-looking statements. These statements are based on
management�s current expectations and are subject to uncertainty
and changes in circumstances. These statements involve risks and
uncertainties that could cause actual results to differ materially
from those included in forward-looking statements due to a variety
of factors. More information about these factors can be found in
DCAP�s latest Annual Report filed with Securities and Exchange
Commission under Form 10-KSB. The company undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
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