ACC Consumer Finance Corp. announces results for the year and quarter ended Dec. 31, 1996.SAN DIEGO--(BUSINESS WIRE)--Jan. 22, 1997--ACC Consumer Finance Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ACCI ACCI Australian Chamber of Commerce and Industry ACCI American Council on Consumer Interests ACCI Association of Crafts & Creative Industries ACCI American Consortium of Certified Interpreters ACCI African Center for Crop Improvement ACCI Air Compliance Consultants Inc. ) Wednesday announced the results of the year and quarter ended Dec. 31, 1996. ACCI's net income per share was 20 cents for the quarter ended Dec. 31, 1996, compared with 11 cents for the same quarter in 1995. ACCI reported net income of $1.7 million, a 146 percent increase in the amount reported for the same period in 1995. Delinquencies increased during the quarter, reflecting seasonal trends. Contracts which were 31 days or more delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. as of Dec. 31, 1996, were 5.03 percent (excluding repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, on hand) of contracts owned, as well as contracts sold and serviced by ACCI. The ratio of contracts which were 61 days or more delinquent was 1.73 percent. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net charge-offs during the quarter ended Dec. 31, 1996, were 5.10 percent of the average balance of the portfolio of contracts serviced, including contracts owned, as well as contracts sold and serviced by ACCI. Average quarterly charge-offs for the year were 4.4 percent. The combined allowance for losses on contracts held for investment and the allowance for losses embedded Inserted into. See embedded system. in the excess servicing receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed was $19.8 million. This allowance represents 7.9 percent of the contracts owned, as well as contracts sold and serviced as of Dec. 31, 1996, increasing from 7.6 percent as of Sept. 30, 1996. ACCI increased its contract acquisitions significantly. During the quarter ended Dec. 31, 1996, the company purchased $61 million of automobile installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. , compared with $26 million during the comparable quarter a year earlier, reflecting a 135 percent increase. The average discount and the average interest rate on the contracts purchased during the quarter ended Dec. 31, 1996, were 4.15 percent and 20.53 percent, respectively. ACCI serviced $252 million of automobile installment contracts as of Dec. 31, 1996, compared with $118 million as of Dec. 31, 1995. The company securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. $60 million of contracts during the quarter ended Dec. 31, 1996, in connection with the issuance of ACC See adaptive cruise control. Auto Grantor Trust Grantor trust A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee under a custodial or trust agreement. 1996-D. The company recorded a gain on sale of approximately $4.8 million, or 8 percent of the securitized contracts. Net interest income was $1.4 million during the quarter ended Dec. 31, 1996, an increase of 250 percent compared with the same period in 1995. The increase in interest income is primarily the result of an increase in the amount of contracts held by ACCI during the period. In addition, interest income from senior securities pending sale and from subordinated securities held for investment increased significantly during the quarter ended Dec. 31, 1996, compared with the same period in 1995. ACCI's loan-loss provision was $523,000 during the quarter ended Dec. 31, 1996, compared with $374,000 for the same period in 1995, and $242,000 for the quarter ended Sept. 30, 1996. The increase in the loan-loss provision, relative to the quarter ended Sept. 30, resulted from two factors. First, the provision for charge-offs and contracts held for investment as a result of a delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. status increased during the quarter ended Dec. 31, 1996, as a result of seasonal factors and the recent growth in contract acquisition activity. Second, in connection with the ACC Grantor Trust 1996-D securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , ACC elected to pledge $3 million of performing contracts, the cash flows of which will be used to build up the required credit-enhancement balance. A loan-loss allowance of $125,000 was established on these contracts. The gain on sale of contracts was $4.8 million in the quarter ended Dec. 31, 1996, a 112 percent increase over the amount reported in the same period in 1995. Servicing income during the quarter ended Dec. 31, 1996, was $1.6 million, a 111 percent increase over the same period in 1995. The significant increase in servicing income and the gain on sale of contracts reflects the substantial expansion of ACCI's contract acquisition and asset-backed securitization programs. ACCI's expenses increased to $4.4 million during the quarter ended Dec. 31, 1996, compared with $2.5 million during the same period in 1995. The increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. reflects the substantial increase in contract acquisition and servicing activities since Dec. 31, 1995. ACCI's operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. ratio as a percentage of average loans serviced decreased to 7.6 percent during the quarter ended Dec. 31, 1996, compared with 7.9 percent in the quarter ended Sept. 30, 1996. Net income per share for the year ended Dec. 31, 1996, was 68 cents, determined on a primary basis, and 67 cents on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared with 61 cents and 60 cents, respectively, for the same period in 1995. ACCI reported net income for the year ended Dec. 31, 1996, of $5.1 million, compared with $3.5 million for the year ended Dec. 31, 1995. During the year ended Dec. 31, 1996, ACCI had an effective tax rate of 42 percent, compared with 6 percent during 1995. In addition, ACCI had more outstanding shares during the 1996 fiscal year as a result of ACCI's initial public offering, which was completed in May 1996. Income before taxes was $8.8 million in fiscal 1996, which represented a 139 percent increase over the amount reported for fiscal 1995. Net interest income after the loan-loss provision was $3.6 million, which represented a 35 percent increase over the amount reported for fiscal 1995. The gain on sale of contracts was $15.2 million in the year ended Dec. 31, 1996, representing an 89 percent increase over the amount reported for fiscal 1995. Servicing income was $4.9 million for the year ended Dec. 31, 1996, representing a 180 percent increase over the amount reported for fiscal 1995. ACCI's expenses were $15 million for the year ended Dec. 31, 1996, representing a 69 percent increase over the amount reported for fiscal 1995. The increases in net interest income, the gain on sale of contracts, servicing income and operating expenses reflect the substantial increase in contract acquisition and servicing activities since Dec. 31, 1995. ACCI specializes in the indirect financing of automobile installment contracts purchased primarily from franchised automobile dealers for consumers who have limited access to traditional sources of financing for vehicle purchases. The company purchases these contracts through its five regional credit centers in Atlanta; Dallas; Newark, Del.; Miami; and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . The company currently services contracts in 34 states and actively markets its program to dealers in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Nevada, New Jersey, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Oklahoma, Oregon, Pennsylvania, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Tennessee, Texas, Virginia, Washington and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . ACCI will conduct a conference call on Jan. 23, at 8 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . The telephone number required to access the call is 800/553-5260. -0-
ACC Consumer Finance Corp.
Results of Operations
Quarter ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1996 1995 1996 1995
Net interest
income $1,370,807 $ 391,505 $4,700,124 $3,332,354
Loan-loss provision (522,771) (373,612) (1,113,069) (673,802)
Net interest income
after loan losses 848,036 17,893 3,587,055 2,658,552
Servicing income 1,626,142 769,227 4,914,668 1,757,257
Gain on sale of
contracts 4,771,455 2,252,059 15,186,889 8,056,136
Total revenues 7,245,633 3,039,179 23,688,612 12,471,945
Expenses 4,371,375 2,468,514 14,896,921 8,796,590
Net income before
taxes 2,874,258 570,665 8,791,691 3,675,355
Tax expense (benefit) 1,207,000 (108,380) 3,692,000 209,000
Net income 1,667,258 679,045 5,099,691 3,466,355
Average shares
outstanding:
primary 8,359,139 6,110,479 7,542,371 5,661,046
Average shares
outstanding:
fully diluted 8,369,897 6,110,479 7,588,476 5,737,258
Primary net income
per share 20 cents 11 cents 68 cents 61 cents
Fully diluted net
income per share 20 cents 11 cents 67 cents 60 cents
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Selected Balance Sheet Amounts
As of Dec. 31, 1996 As of Dec. 31, 1995
Contracts held for sale $ 21,078,692 $ 28,187,778
Contracts held for
investment 3,428,643 509,388
Asset-backed securities 7,542,216 3,910,080
Excess servicing
receivables 15,573,618 5,590,878
Total assets 74,561,166 46,908,938
Total liabilities 50,209,625 40,624,138
Shareholders' equity and
preferred stock 24,351,541 6,284,800
Book value per share $ 2.94 $ 1.03
CONTACT: ACC Consumer Finance Corp., San Diego Rellen Stewart, 619/793-6300 |
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