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 twelve month periods ended December 31, 2018.
Fourth Quarter 2018 Highlights
- Revenues were $5,051,123 in the Fourth Quarter of 2018; a 17% decrease as compared to $6,101,430 in the Fourth Quarter of 2017. The decrease was the result of the completion of implementation services in 2018 to the Company's largest client.
- Net income was $309,410 in the Fourth Quarter of 2018 as compared to $1,218,621 in the Fourth Quarter of 2017. Net income in the Fourth Quarter of 2018 was unfavorably impacted by lower revenues from existing clients combined with higher staffing costs as compared to the Fourth Quarter 2017.
2018 Full Year Highlights
- Revenues were $21,634,355 in 2018; a 0.5% decrease as compared to $21,752,447 in 2017. The decrease was the result of decreased professional services fees from the Company's two largest clients as measured by revenue partially offset by higher ASP and hosting revenue and higher professional services revenue from the Company's third largest client.
- Net income was $2,478,455 in 2018 as compared to $1,622,420 in 2017. Net income was favorably impacted by lower employee staffing costs as compared to 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 December 31, | For the Years Ended December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenues | $ | 5,051,123 | $ | 6,101,430 | $ | 21,634,355 | $ | 21,752,447 | ||||||||
| Cost of revenues | 3,390,773 | 3,145,677 | 14,067,286 | 13,842,823 | ||||||||||||
| Gross profit | 1,660,350 | 2,955,753 | 7,567,069 | 7,909,624 | ||||||||||||
| Selling, general and administrative expenses | 1,348,770 | 1,574,734 | 4,926,892 | 6,098,944 | ||||||||||||
| Income from operations | 311,580 | 1,381,019 | 2,640,177 | 1,810,680 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Gain on the sale of equipment | - | - | - | 5,380 | ||||||||||||
| Interest expense | (9,170 | ) | (6,898 | ) | (30,722 | ) | (23,640 | ) | ||||||||
| Total other expense | (9,170 | ) | (6,898 | ) | (30,722 | ) | (18,260 | ) | ||||||||
| Income before income taxes | 302,410 | 1,374,121 | 2,609,455 | 1,792,420 | ||||||||||||
| Provision for income taxes | (7,000 | ) | 155,500 | 131,000 | 170,000 | |||||||||||
| Net income | $ | 309,410 | $ | 1,218,621 | $ | 2,478,455 | $ | 1,622,420 | ||||||||
| Net income per common share - basic | $ | 0.01 | $ | 0.03 | $ | 0.06 | $ | 0.04 | ||||||||
| 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 | 41,673,655 | 41,543,655 | ||||||||||||
| Weighted average common shares outstanding - fully diluted | 198,306,395 | 196,970,235 | 198,306,395 | 189,895,315 | ||||||||||||
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, 2018 | December 31, 2017 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 5,100,660 | $ | 5,017,539 | ||||
| Accounts receivable, net | 3,146,597 | 1,543,389 | ||||||
| Prepaid expenses | 305,643 | 360,975 | ||||||
| Other current assets | - | 3,806 | ||||||
| Income tax receivable | 13,000 | - | ||||||
| Total current assets | 8,565,900 | 6,925,709 | ||||||
| Property and equipment, net | 594,767 | 269,994 | ||||||
| Total assets | $ | 9,160,667 | $ | 7,195,703 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Notes payable | $ | 39,025 | $ | 45,793 | ||||
| Accounts payable | 1,213,758 | 1,484,704 | ||||||
| Accrued expenses | 905,531 | 1,126,596 | ||||||
| Current portion of capital lease obligations | 115,771 | 143,855 | ||||||
| Deferred revenue | 2,850,976 | 2,765,401 | ||||||
| Income tax payable | 141,000 | 170,000 | ||||||
| Total current liabilities | 5,266,061 | 5,736,349 | ||||||
| Deferred revenue | 875,000 | 1,000,000 | ||||||
| Capital lease obligations | 150,559 | 74,861 | ||||||
| Total long term liabilities | 1,025,559 | 1,074,861 | ||||||
| Total liabilities | 6,291,620 | 6,811,210 | ||||||
| COMMITMENTS AND CONTINGENCIES: (See Note 9) | ||||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Preferred stock ($.001 par value; 20,000,000 shares authorized) | ||||||||
|
Series A convertible preferred stock; 3,437,500 shares designated, 1,270,250 and 1,276,750 shares issued and outstanding (liquidation value $12,702,500 and $12,767,500) |
1,271 | 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 and 500,000,000 shares authorized, 41,673,655 and 41,543,655 shares issued and outstanding) |
41,673 |
41,543 | ||||||
| Additional paid-in capital | 65,371,361 | 65,365,386 | ||||||
| Accumulated deficit | (62,551,819 | ) | (65,030,274 | ) | ||||
| Total shareholders' equity | 2,869,047 | 384,493 | ||||||
| Total liabilities and shareholders' equity | $ | 9,160,667 | $ | 7,195,703 | ||||
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