InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a leading provider of core policy administration software for Group and Individual Life, Health, and Annuity products that enables insurance carriers and third-party administrators to quickly respond to evolving market needs, improve customer service, and reduce operating costs, today announced its financial results for the three and nine month periods ended September 30, 2018.
Third Quarter 2018 Highlights
- Revenues were $5,311,635 in the Third Quarter of 2018; a 13% decrease as compared to $6,077,817 in the Third Quarter of 2017. The decrease was the result of decreased professional services fees as a result of the Company's largest client nearing the completion of the initial phase of its implementation of InsPro Enterprise.
- Net income was $479,814 in the Third Quarter of 2018 as compared to $1,495,962 in the Third Quarter of 2017. Net income in the Third Quarter of 2018 was unfavorably impacted by lower revenues from existing clients combined with higher staffing costs as compared to the Third Quarter 2017.
September Year-To-Date 2018 Highlights
- Revenues were $16,583,232 in the nine months ended September 30, 2018; a 6% increase as compared to $15,651,018 in the nine months ended September 30, 2018. The increase was the result of increased professional services fees from the Company's largest client as measured by revenue.
- Net income was $2,169,046 in the nine months ended September 30, 2018 as compared to $403,799 in the nine months ended September 30, 2017. Net income was favorably impacted by higher revenues from existing clients combined with lower staffing costs as compared to the nine months ended September 30, 2017.
About InsPro Enterprise
InsPro Enterprise, a Life and Health insurance policy administration system, is a single technology solution used to manage all insurance processing requirements supporting multiple product lines as well as hybrid products for both group and individual policies on a single web-based platform. The InsPro Enterprise design provides carriers the option to deploy the solution as an end-to-end straight through processing suite or on a modular, componentized basis to address immediate areas of concern. The InsPro Enterprise suite includes Product Configuration Workbench, New Business and Underwriting, Billing and Collections, Policy Administration, Agent Management and Commissions, Claims, Document Management, Web Portals, and Data Analytics components.
About InsPro Technologies Corporation
Through its subsidiary, InsPro Technologies, LLC, InsPro Technologies Corporation offers InsPro Enterprise, an end-to-end, web-based policy administration system used by insurance carriers and third-party administrators. By managing the entire product and policy lifecycle on a single integrated platform, customers are afforded opportunities to accelerate new product introductions, lower costs, increase customer satisfaction and improve operational performance. InsPro's solutions are offered through standard software licensing, as a hosted solution, or via Software as a Service (SaaS) delivery.
For additional information on InsPro Technologies, LLC and InsPro Enterprise please visit www.inspro.com.
Forward-Looking Statements
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding current and future capabilities and products supported, growth in the number of clients, quality and growth potential of our technology platform, including related services, and providing the financial support and other resources needed to demonstrate the strength of this growing technology business and to continue to reinvest in the product. Forward-looking statements provide InsPro Technologies Corporation's current expectations or forecasts of future events. Moreover, InsPro Technologies Corporation cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from the statements made, including risks described in InsPro Technologies' most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission and available on the Securities and Exchange Commission's website at www.sec.gov. InsPro Technologies Corporation does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||
| Revenues | $ | 16,583,232 | $ | 6,077,817 | $ | 16,583,232 | $ | 15,651,018 | ||||||||||||||
| Cost of revenues | 10,676,513 | 3,370,999 | 10,676,513 | 10,697,146 | ||||||||||||||||||
| Gross profit | 5,906,719 | 2,706,818 | 5,906,719 | 4,953,872 | ||||||||||||||||||
| Selling, general and administrative expenses | 3,578,120 | 1,189,170 | 3,578,121 | 4,524,211 | ||||||||||||||||||
| Operating income (loss) from operations | 2,328,599 | 1,517,648 | 2,328,598 | 429,661 | ||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||
| Gain on the sale of equipment | - | - | - | 5,380 | ||||||||||||||||||
| Interest expense | (21,552 | ) | (7,186 | ) | (21,552 | ) | (16,742 | ) | ||||||||||||||
| Total other income (expense) | (21,552 | ) | (7,186 | ) | (21,552 | ) | (11,362 | ) | ||||||||||||||
| Income before income taxes | 2,307,047 | 1,510,462 | 2,307,046 | 418,299 | ||||||||||||||||||
| Provision for income taxes | 138,000 | 14,500 | 138,000 | 14,500 | ||||||||||||||||||
| Net income | $ | 2,169,047 | $ | 1,495,962 | $ | 2,169,046 | $ | 403,799 | ||||||||||||||
| Net income per common share - basic | $ | 0.05 | $ | 0.04 | $ | 0.05 | $ | 0.01 | ||||||||||||||
| Net income per common share - fully diluted | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | - | ||||||||||||||
| Weighted average common shares outstanding - basic | 41,543,655 | 41,543,655 | 41,543,655 | 41,543,655 | ||||||||||||||||||
| Weighted average common shares outstanding - fully diluted | 198,306,395 | 196,970,235 | 198,306,395 | 187,922,335 | ||||||||||||||||||
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| September 30, 2018 | December 31, 2017 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash | $ | 5,187,447 | $ | 5,017,539 | |||||||
| Accounts receivable, net | 2,293,112 | 1,543,389 | |||||||||
| Prepaid expenses | 366,698 | 360,975 | |||||||||
| Other current assets | - | 3,806 | |||||||||
| Total current assets | 7,847,257 | 6,925,709 | |||||||||
| Property and equipment, net | 398,003 | 269,994 | |||||||||
| Total assets | $ | 8,245,260 | $ | 7,195,703 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Notes payable | $ | 68,532 | $ | 45,793 | |||||||
| Accounts payable | 1,229,719 | 1,484,704 | |||||||||
| Accrued expenses | 676,000 | 1,126,596 | |||||||||
| Current portion of capital lease obligations | 134,795 | 143,855 | |||||||||
| Deferred revenue | 2,393,204 | 2,765,401 | |||||||||
| Income tax payable | 135,000 | 170,000 | |||||||||
| Total current liabilities | 4,637,250 | 5,736,349 | |||||||||
| LONG TERM LIABILITIES: | |||||||||||
| Deferred revenue | 875,000 | 1,000,000 | |||||||||
| Capital lease obligations | 174,622 | 74,861 | |||||||||
| Total long term liabilities | 1,049,622 | 1,074,861 | |||||||||
| Total liabilities | 5,686,872 | 6,811,210 | |||||||||
| COMMITMENTS AND CONTINGENCIES: (See Note 8) | |||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
| Preferred stock ($.001 par value; 20,000,000 shares authorized) | |||||||||||
|
Series A convertible preferred stock; 3,437,500 shares designated, 1,276,750 shares issued and outstanding (liquidation value $12,767,500) |
1,277 | 1,277 | |||||||||
|
Series B convertible preferred stock; 11,000,000 shares designated, 5,307,212 shares issued and outstanding (liquidation value $15,921,636) |
5,307 | 5,307 | |||||||||
|
Series C convertible preferred stock; 4,000,000 shares designated, 1,254,175 shares issued and outstanding (liquidation value $6,270,875) |
1,254 | 1,254 | |||||||||
|
Common stock ($.001 par value; 750,000,000 shares authorized, 41,543,655 shares issued and outstanding) |
41,543 | 41,543 | |||||||||
| Additional paid-in capital | 65,370,235 | 65,365,386 | |||||||||
| Accumulated deficit | (62,861,228 | ) | (65,030,274 | ) | |||||||
| Total shareholders' equity | 2,558,388 | 384,493 | |||||||||
| Total liabilities and shareholders' equity | $ | 8,245,260 | $ | 7,195,703 | |||||||
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