ACC Consumer Finance Corp. announces third-quarter earnings.SAN DIEGO--(BUSINESS WIRE)--Oct. 24, 1996--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. ) Thursday announced the results of the quarter ended Sept. 30, 1996. ACCI's net income per share was 18 cents for the quarter ended Sept. 30, 1996, compared with 8 cents for the same quarter in 1995. ACCI reported net income of $1.5 million, a 209 percent increase in the amount reported for the same period in 1995 and a 33 percent increase over the amount reported for the quarter ended June 30, 1996. Delinquencies increased .40 percent 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 Sept. 30, 1996, were 4.36 percent (excluding repossessions 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 1.39 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 Sept. 30, 1996, were 4.66 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 over the past 12-month period were 4.25 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 was $15.9 million. This allowance represents 7.6 percent of the contracts owned, as well as contracts sold and serviced as of Sept. 30, 1996, increasing from 7.5 percent as of June 30, 1996. ACCI increased its contract acquisition activity significantly. During the quarter ended Sept. 30, 1996, the company purchased $53 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 $29 million during the comparable quarter a year earlier, reflecting an 83 percent increase. The average discount and the average interest rate on the contracts purchased during the quarter ended Sept. 30, 1996, were 4.37 percent and 20.74 percent, respectively. ACCI serviced $210 million of automobile installment contracts as of Sept. 30, 1996. 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. $49 million of contracts during the quarter ended Sept. 30, 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-C. The company recorded a gain on sale of approximately $3.8 million, or 7.8 percent of the securitized contracts. -0-
ACC Consumer Finance Corp.
RESULTS OF OPERATIONS
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
Net interest income $1,294,713 $ 860,408 $3,329,317 $2,940,849
Loan loss provision (241,514) (289,842) (590,298) (300,190)
Net interest income
after loan loss
provisions 1,053,199 570,566 2,739,019 2,640,659
Servicing and
ancillary income 1,476,779 487,313 3,288,526 988,030
Gain on sale of
contracts 3,830,825 1,890,600 10,415,434 5,804,077
Total income 6,360,803 2,948,479 16,442,979 9,432,766
Expenses (3,762,477) (2,178,475)(10,525,546) (6,328,076)
Net income before
taxes 2,598,326 770,004 5,917,433 3,104,690
Tax expense (1,091,000) (282,380) (2,485,000) (317,380)
Net income 1,507,326 487,624 3,432,433 2,787,310
Average shares
outstanding 8,346,834 5,835,593 7,303,038 5,823,893
Fully diluted net
income per share 18 cents 8 cents 47 cents 48 cents
SELECTED BALANCE SHEET AMOUNTS
As of Sept. 30, As of Dec. 31,
1996 1995
Contracts held for sale $24,990,322 $28,187,778
Contracts held for investment 330,120 509,388
Asset-backed securities 8,250,907 3,910,080
Excess servicing receivables 11,862,618 5,590,878
Total assets $60,301,507 $46,908,938
Total liabilities $37,640,721 $40,624,138
Shareholders' equity and
preferred stock $22,660,786 $ 6,284,800
Book value per share $ 2.73 $ 1.03
The net income per share for the nine-month period ended Sept. 30, 1996, was 47 cents, compared with 48 cents in the same period in 1995. The period in 1995 is not directly comparable to the period in 1996. In the nine-month period ended Sept. 30, 1995, ACC had an effective tax rate of 10 percent compared with 42 percent in the same period in 1996. In addition, ACCI had more outstanding shares in the quarter ended Sept. 30, 1996, principally as a result of ACCI's initial public offering. ACCI's net income before taxes increased 91 percent in the nine- month period ended Sept. 30, 1996, compared with the nine-month period ended Sept. 30, 1995. Net interest income after the loan loss provision was comparable during the nine-month periods in 1996 and 1995. Servicing income during the nine-month period ended Sept. 30, 1996, was $3.3 million, a 233 percent increase over the same period in 1995. The gain on sale of contracts was $10.4 million in the nine-month period ended Sept. 30, 1996, a 79 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 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. programs. ACCI's expenses increased to $10.5 million during the nine-month period ended Sept. 30, 1996, compared with $6.3 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 Sept. 30, 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 loans serviced decreased to 7.9 percent in the quarter ended Sept. 30, 1996, compared with 9.2 percent in the quarter ended June 30, 1996. 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 37 states and actively markets its program to dealers in Arizona, 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 Oct. 24, 1996, 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 800/553-0273. CONTACT: ACC Consumer Finance Corp., San Diego Rellen Stewart, 619/793-6300 |
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