eAutoclaims Celebrates Profitability

Oldsmar, Fla.-based eAutoclaims Inc., which provides online claims management solutions for the auto insurance industry through both an application services provider (ASP) and outsourcing services, achieved profitability during February of 2003, the first month of its third fiscal quarter.

According to president and CEO Eric Seidel, “As a result of cost cutting measures and discontinuing unprofitable business relationships, eAutoclaims earned net profits of approximately $69,000 during February and earnings of approximately $110,000 on a cash basis or before interest, taxes, depreciation and amortization or EBITDA.” Seidel added that based on the current customer base and the rate at which customers have ramped up their use of eAutoclaims’ services, he anticipates the company will be able to sustain its profitable performance throughout the third quarter, but stated there were no guarantees of future performance.

EACC recently filed its 10Q with the SEC for the second quarter ending in January 2003. The trend from fiscal first quarter ending October 2002 to fiscal second quarter ending January 2003 showed an improvement on net operating results by 39 percent, with a net loss of $537,658 verses $876,852, and an improvement on EBITDA of 47 percent and cash losses of $341,486 versus $639,288.

Seidel added that, “Since we announced our restructuring in the fall of 2002 we have cut $130,000 in monthly costs or $1.56M annually on a permanent basis. These past months have seen the company reshape itself, both in terms of management structure and product focus. While we have turned the corner based on these most recent results, our management team remains committed to diligently managing costs going forward and remaining focused on growing its sales of higher margin product mix.”