American Physicians Service Group Inc. (NASDAQ: AMPH)
Austin, TX 78746
http://www.amph.com/
Market Capitalization:
$129.07 million
American Physicians Service Group Inc. (APS) is a financial services and insurance firm headquartered in Austin, Texas. The company provides medical malpractice insurance for doctors, and brokerage and investment services to institutions and high net worth individuals. The company operates through multiple wholly owned subsidiaries.
On April 1, 2007, APS completed the acquisition of American Physician Insurance Company (API), for which it had acted as operations manager since the mid-1970s. API is a reciprocal insurance exchange, or co-insurer.
The company also completed a secondary public offering of stock on June 20, 2007. A portion of the proceeds has been assigned to expand API’s liability insurance underwriting capability. As a result, APS’ financial results were significantly improved for the short- and long-term.
Revenues for the three months ended June 30, 2007, were a record $30.0 million, up from $8.2 million a year earlier. Net earnings were $12.1 million for the most recent period, versus $0.6 million in 2006. Although these results do include an extraordinary gain of $2.3 million associated with the API acquisition, EPS is projected to be $3.38 for 2007, more than triple APS’ 2006 results.
