eAutoclaims, Inc. - 'EACC' - Reports Third Fiscal Quarter and Nine Month Financial Results

eAutoclaims, Inc. - 'EACC' - Reports Third Fiscal Quarter and
Nine Month Financial Results 


OLDSMAR, Fla., June 15  /PRNewswire-FirstCall/ -- eAutoclaims (OTC:EACC)
(BULLETIN BOARD: EACC) , a leading provider of managed collision repair
services and insurance claims processing technology applications, today
announced financial results for the third quarter ending April 30, 2005 and
nine months for fiscal year 2005.

Total revenue for the nine months ended April 30, 2005 was approximately $11.2
million, which is a fifty-one percent decrease from approximately $22.8 million
of total revenue for the nine months ended April 30, 2004. Total revenue for
the three months ended April 30, 2005 was approximately $3.6 million. This
represents a forty-six percent decrease from approximately $6.6 million of
total revenue for three months ended April 30, 2004. The change in the nine and
three-month total revenue is the net effect of changes in collision repair
revenue, glass repair revenue, fees, and other revenue, which is primarily the
result of the loss of revenues from the Company's two largest clients over the
previous year.  During the nine months ended April 30, 2005, we derived 56% and
6% of our revenue from our two largest clients. In October 2003, our largest
client announced that they were selling one half of their U.S. auto physical
damage business to another insurance carrier. As a result, we have experienced
approximately a $2.3 million decrease from revenue from the three-month period
ended April 30, 2004 to the same period in 2005, and approximately $7.6 million
decrease in revenue from the nine-month period ended April 30, 2004 to the same
period in 2005. We also experienced a decrease in revenue from our second
largest customer because of a change in their state's legislation regarding a
special type of insurance policy requiring a direct repair network. We
experienced approximately $475,000 decrease in revenue from the three-month
period ended April 30, 2004 to the same period in 2005, and approximately $2.4
million decrease in revenue from the nine-month period ended April 30, 2004 to
the same period in 2005.

Fees and other revenue decreased from $1.8 million to $1.6 million, or 15% for
the nine months ended April 30, 2005 compared to the nine months ended April
30, 2004. The nine-month decrease is mainly a result of a reduction in file
handling fees from the reduced collision repair management revenue, and was
partially offset by an increase in the click fee revenue. Fees and other
revenue for the three months ended April 30, 2005 of approximately $473,000
decreased $137,000 compared to the fee revenue of approximately $610,000 for
the three months ended April 30, 2004.

Claims processing charges for the nine and three months ended April 30, 2005
was $8.6 million and $2.7 million, respectively. This was 77% and 76% of total
revenue for the nine and three months ended April 30, 2005, compared to 82% for
both the nine and three months ended April 30, 2004. Claims processing charges
include the costs of collision and glass repairs paid to repair shops within
our repair shop network, as well as the cost of the estimating software sold to
the Company's network of shops.  The reduction in claims processing charges, as
a percentage of total revenue is a result of the change in the percentage of
revenue generated from higher margin products as well as the increased emphasis
in click fees. As revenues from customers generated by the ADP Co-Marketing
Agreement grow, the margins will continue to increase.  EACC believes that this
positive trend will enable the Company to return to profitability.

The net loss for the nine and three months ended April 30, 2005 totaled
$2,957,258 and $1,221,518, compared to a net loss of $1,624,631 and $1,360,900
from the nine and three months ended April 30, 2004. The net loss amounts
include non-cash expenses of $1,421,081 and $571,826 for the nine and three
months ended April 30, 2005, respectively.  The 2005 non-cash losses include
one-time charges for the nine and three-month period of $986,623 and $432,572.
After adjusting for non-cash items, EACC's loss for the third quarter of 2005
was $649,692.  Beginning in August, the start of EACC's fiscal year, the
Company anticipates steady improvement in our quarterly results primarily due
to cost-cutting measures undertaken by management, the launch of the new higher
margin business relationships, and the Company's growing business with the
eAutoclaims/ADP Co-Marketing Agreement.

Eric Seidel, President and CEO of eAutoclaims, commented, "As a result of
previously announced slow down in our core business, from the loss of two of
our key customers, we have felt a negative impact over the past nine months to
our top and bottom line.  However, we remain very optimistic about the
opportunities presented with the ADP Co-Marketing Agreement; the effect of the
early delays has resulted in eAutoclaims incurring additional expenses for
carrying support personnel and ramping for the remainder of fiscal 2004, and
the first half of fiscal 2005. As a result, cost reduction measures were put in
place.  We have enjoyed some recent success with the ADP Co-Marketing Agreement
that will provide excellent growth opportunities over the course of the
following year and beyond. EACC has focused a great deal of its resources and
effort in order to build the infrastructure necessary to accelerate the ADP
program, and we have finally reached a positive inflection point.  After
completion of a pilot study, eAutoclaims has begun to rollout our service with
a top 20 insurance carrier.  This should expedite the ramp of revenues as full
rollout begins over the course of the next quarter, while other top tier
carriers have shown tremendous interest.  We feel confident that the program
will soon show generous uptake as pilots are completed and rollout commences.
We appreciate our shareholders patience as we transition toward our goal of
higher margin business and a return to profitability by the end of 2005."

About eAutoclaims

eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC)  is a business services company
that provides the insurance industry with claims management services through
both ASP and integrated outsourcing solutions. The Company's clients are
insurance companies, fleet management companies and insurance services
companies. eAutoclaims' solutions streamline the claims handling process,
decreasing the overall time and cost required to process a collision claim, and
reducing average paid losses for its clients. The Company handles repair
estimates, repair audits, and claims systems administration services for
automobile claims that are processed and tracked via the eAutoclaims web-based
platform and network of service providers.

This announcement contains forward-looking statements. Words such as
anticipate, believe, estimate, satisfies, expect and other similar expressions
as they relate to the Company and its management are intended to identify such
forward-looking statements. Although the Company and its management believe
that the statements contained in this announcement are reasonable, it can give
no assurances that such statements will prove correct. Factors that could
affect the occurrence of events or results discussed herein are included with
those mentioned in the Company's filings with the Securities and Exchange
Commission.

   Contacts:
   Company
   For More Information:
   Jeff Dickson, Chairman
   813-749-1020, Ext. 2202
   

   Or

   Investors
   Alliance Advisors, LLC
   Alan Sheinwald, 914-244-0062
   


                        --Financial Tables Follow-


                            eAutoclaims, Inc.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (Unaudited)



                        Three-month Period Ended   Nine-month Period Ended

                        April 30,     April 30,     April 30,    April 30,
                           2005         2004          2005         2004

  Revenue:
  Collision repairs
   management           $2,793,224    $5,509,078   $8,762,082  $19,382,272

  Glass repairs            104,405       288,064      372,833      976,605

  Fleet repairs
   management              181,446       155,958      508,057      572,720

  Fees and other
   revenue                 473,123       610,122    1,554,594    1,831,493

  Total revenue          3,552,198     6,563,222   11,197,566   22,763,090


  Expenses:
  Claims processing
   charges               2,689,195     5,368,369    8,564,174   18,681,432

  Selling, general and
   administrative        1,512,695     2,401,353    4,169,569    5,236,311

  Depreciation and
   amortization            123,981       131,836      391,668      397,608

  Total expenses         4,325,871     7,901,558   13,125,411   24,315,351


  Net loss               $(773,673)  $(1,338,336) $(1,927,845) $(1,552,261)


  Adjustment to net
   loss to compute loss
   per common share:
    Preferred stock
     dividends             (15,273)      (22,564)     (42,790)     (72,370)

    Dividend to unit
     holders              (432,572)                  (986,623)


  Net loss applicable
   to common stock     $(1,221,518)  $(1,360,900) $(2,957,258) $(1,624,631)


  Loss per common
   share - basic and
   diluted                  $(0.02)       $(0.06)      $(0.07)      $(0.07)


  Weighted-average
   number of common
   shares outstanding -
   basic and diluted    51,529,115    24,666,084   41,231,707   24,620,543


DATASOURCE: eAutoclaims



CONTACT:  Jeff Dickson, Chairman, eAutoclaims, [phone],

ext. 2202, or ; or Investors, Alan

Sheinwald, Alliance Advisors, LLC, [phone], or

, for eAutoclaims



Web site:  http://www.eautoclaims.com/ 

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