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InsPro Technologies Corporation Announces Third Quarter 2017 Financial Results

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 period ended September 30, 2017.

Third Quarter 2017 Highlights

  • Revenues were $6,064,817 in the Third Quarter of 2017, a 7% increase as compared to $5,647,379 in the Third Quarter of 2016. The increase was the result of increased fees from ongoing and recent implementations of InsPro Enterprise from several existing clients combined with license fee revenue in the Third Quarter of 2017 from an existing client as a result of growth in the number of policies the client processes on their instance of InsPro Enterprise.
  • Net income was $1,495,962 in the Third Quarter of 2017 as compared to $56,313 in the Third Quarter of 2016. Net income in the Third quarter of 2017 was favorably impacted by higher revenues from existing clients combined with lower IT consulting staffing as compared to Third Quarter 2016, primarily as a result of the implementation of cost reduction initiatives. Included in the net income in Third Quarter 2017 and in Third Quarter 2016 was $22,271 and $19,465 of non cash stock based fees and compensation expense, respectively.

Year-to-Date 2017 Highlights

  • Revenues were $15,605,618 in the nine months ended September 30, 2017; an 8% decrease as compared to the $16,883,950 in the nine months ended September 30 2016. The decrease was the result of lower post implementation services to several clients and lower implementation services to the Company’s largest client, as measured by 2017 to date revenue. Partially offsetting the decline in revenue was higher ASP and hosting and software license revenue.
  • Net income was $403,799 in the nine months ended September 30, 2017 as compared to a net loss of $1,826,787 in the nine months ended September 30, 2016. Net income in 2017 was favorably impacted by lower employee and IT consulting staffing as compared to the same period in 2016, primarily as a result of the implementation of cost reduction initiatives. Included in the net income was $130,031 and $1,502,806 of non cash stock based fees and compensation expense in nine months ended September 30, 2017 and 2016, respectively.

David Anderson, Chief Executive Officer, stated, “Third quarter results speak volumes about the outstanding work of the entire InsPro team and the partnerships that we have with our customers. It also marks a turning point for us as we look to jumpstart our journey toward ongoing profitable growth.”

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,
  2017     2016     2017     2016  
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
 
 
Revenues $ 6,064,817 $ 5,647,379 $ 15,605,618 $ 16,883,950
 
Cost of revenues 3,370,999 4,322,737 10,697,146 14,564,361
       
Gross profit   2,693,818     1,324,642     4,908,472     2,319,589  
 
Selling, general and administrative expenses   1,178,326     1,275,345     4,497,733     4,181,427  
 
Operating income (loss) from continuing operations   1,515,492     49,297     410,739     (1,861,838 )
 
Other income (expense):
Gain on the sale of equipment - - 5,380 -
Interest expense   (7,186 )   (7,831 )   (16,742 )   (18,290 )
 
Total other income (expense)   (7,186 )   (7,831 )   (11,362 )   (18,290 )
 
Income (loss) from continuing operations before income taxes 1,508,306 41,466 399,377 (1,880,128 )
 
Provision for income taxes from continuing operations   13,844     -     13,844     -  
 
Net income (loss) from continuing operations   1,494,462     41,466     385,533     (1,880,128 )
 
 
Income from discontinued operations before income taxes 2,156 14,847 18,922 53,341
 
Provision for income taxes from discontinued operations   656     -     656     -  
 
Net income from discontinued operations   1,500     14,847     18,266     53,341  
 
Net income (loss) $ 1,495,962   $ 56,313   $ 403,799   $ (1,826,787 )
 
Net income (loss) per common share - basic:
Income (loss) from operations per common share $ 0.04 $ 0.01 $ 0.01 $ (0.04 )
Income from discontinued operations per common share   -     -     -     -  
Net income (loss) per common share $ 0.04   $ 0.01   $ 0.01   $ (0.04 )
 
Net income (loss) per common share - fully diluted:
Loss from operations per common share $ 0.01 $ 0.01 $ - $ (0.04 )
Income from discontinued operations per common share   -     -     -     -  
Net income (loss) per common share $ 0.01   $ 0.01     -   $ (0.04 )
 
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   196,970,235     41,543,655     187,922,335     41,543,655  
 
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
September 30, 2017 December 31, 2016
(Unaudited)
ASSETS
 
CURRENT ASSETS:
Cash $ 3,424,735 $ 3,161,617
Accounts receivable, net 2,610,169 2,333,817
Prepaid expenses 266,391 225,439
Other current assets - 30,520
Assets of discontinued operations   3,152     8,636  
 
Total current assets 6,304,447 5,760,029
 
Property and equipment, net   332,638     512,960  
 
Total assets $ 6,637,085   $ 6,272,989  
 
LIABILITIES AND SHAREHOLDERS' DEFICIT
 
CURRENT LIABILITIES:
Notes payable $ 72,098 $ 39,194
Accounts payable 1,967,259 5,460,035
Accrued expenses 1,106,098 436,516
Current portion of capital lease obligations 153,204 188,025
Deferred revenue 3,069,080 2,285,140
Income tax payable 13,844 -
Income tax payable on discontinued operations   656     -  
 
Total current liabilities   6,382,239     8,408,910  
Notes payable to related party - -
Warrant liability - -
Deferred revenue 1,000,000 1,500,000
Capital lease obligations   103,891     153,139  
 
Total long term liabilities   1,103,891     1,653,139  
 
Total liabilities   7,486,130     10,062,049  
 
COMMITMENTS AND CONTINGENCIES: (See Note 9)
 
SHAREHOLDERS' DEFICIT:
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 -

Common stock ($.001 par value; 500,000,000 shares authorized, 41,543,655 shares issued and outstanding)

41,543 41,543
Additional paid-in capital 65,350,469 62,815,507
Accumulated deficit   (66,248,895 )   (66,652,694 )
 
Total shareholders' deficit   (849,045 )   (3,789,060 )
 
Total liabilities and shareholders' deficit $ 6,637,085   $ 6,272,989  

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