AUTOFINANCE GROUP, INC. REPORTS RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 1995.WESTMONT, Ill.--(BUSINESS WIRE)--August 17, 1995--AutoFinance Group, Inc. (Nasdaq/NM:AUFN), an acquirer of automotive installment sales Installment sale The sale of an asset in exchange for a specified series of payments (the installments). installment sale A sale in which the buyer is scheduled to make a series of payments over a period of time. contracts from franchised new car dealers, today announced results for the fourth quarter and fiscal year ended June 30, 1995. As previously reported, in March 1995 AFG AFG Afghanistan (international vehicle registration) AFG American Financial Group AFG Assistance to Firefighters Grant AFG Arbeitsförderungsgesetz (German: Labor Advancement Law) AFG Accreditation for Growth signed a definitive merger agreement with KeyCorp. In connection with the merger, AFG will spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. 95.01% of the capital stock of Patlex, its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. engaged in patent exploitation and enforcement. As a result of the anticipated spin-off, Patlex's results for the quarter and year are reported as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . Also, as a condition of the merger agreement, AFG was precluded from entering into a 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. transaction during the fourth quarter. The lack of a securitization transaction and costs incurred relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the merger and spin-off had a material negative impact on the results for the quarter and for the year. For the fiscal year ended June 30, 1995, revenues were $34.9 million, a 57% increase from $22.2 million for the prior fiscal year. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was relatively flat at $5.6 million. Income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. increased to $1.7 million from $1.5 million. Net income was $7.3 million, or $0.39 per share, compared with $7.1 million, or $0.42 per share, for fiscal 1994. Average shares outstanding for the fiscal year were 19.0 million compared with 16.8 million for the prior year; the increase is largely attributable to AFG's March 1994 public stock offering. AFG's revenues for the fourth quarter increased 12% to $8.2 million from $7.3 million for the comparable prior-year period; this increase reflects no securitization gain in the quarter while a gain of $2.2 million was reported in the prior-year period. AFG incurred $0.6 million in merger-related costs during the quarter, contributing to a loss from continuing operations of $0.2 million compared with income from continuing operations of $1.9 million for the fourth quarter of fiscal 1994. Income from discontinued operations increased 66% to $0.6 million, including $0.2 million in spin-off costs during the quarter, compared with $0.3 million for the same quarter last year. Net income for the quarter was $0.4 million, or $0.02 per share, compared with $2.2 million, or $0.12 per share, for the prior-year quarter. AFG acquired 14,911 contracts totaling $190.1 million during fiscal 1995, reflecting increases of 33% and 43%, respectively, from the 11,244 contracts totaling $133.1 million acquired in the prior fiscal year. Additionally, in fiscal 1995, AFG reacquired the remaining senior undivided UNDIVIDED. That which is held by the same title by two or more persons, whether their rights are equal, as to value or quantity, or unequal. 2. Tenants in common, joint-tenants, and partners, hold an undivided right in their respective properties, until principal interest from its November 1991 securitization, representing 574 contracts for $1.2 million. At June 30, 1995, the total principal outstanding of contracts owned and/or serviced by AFG was $252.0 million, a 58% increase from the $159.4 million outstanding a year ago. For the fourth quarter, AFG acquired 4,002 contracts totaling $50.4 million compared with acquisitions in the prior-year quarter of 3,961 contracts totaling $48.6 million. President A.E. Steinhaus said, "Our performance for the fourth quarter and fiscal 1995 was on target with our expectations, given the proposed merger and spinoff Spinoff A new, independent company created through selling or distributing new shares for an existing part of another company. Notes: Spinoffs may be done through a rights offering. of Patlex. AFG shareholders are scheduled to vote on the proposed merger on September 7. Assuming shareholder and applicable regulatory approval, we anticipate closing the transaction in late September or early October." AutoFinance Group, with offices in Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , California and 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. , works with franchised new car dealers in 28 states to provide indirect new and used car financing for non-prime customers. In addition, AFG offers contract origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and/or contract servicing/admini-stration services for third parties. -0-
AUTOFINANCE GROUP, INC.
Financial Highlights
(In thousands, except per share data)
Three Months Ended Year Ended
June 30, June 30,
1995 1994 1995 1994
(Unaudited)
Revenues $ 8,183 $ 7,316 $34,874 $22,174 Income (loss) from continuing operations before provision for income taxes (306) 3,083 9,241 9,253 Provision (benefit) for income taxes (130) 1,200 3,610 3,570 Income (loss) from continuing operations (176) 1,883 5,631 5,683 Income from discontinued operations (net of income taxes) 557 335 1,700 1,453 Net income $ 381 $ 2,218 $ 7,331 $ 7,136
Income (loss) per common and
common equivalent share:
Income (loss) from
continuing operations $ (0.01) $ 0.11 $ 0.30 $ 0.34
Income from discontinued
operations 0.03 0.01 0.09 0.08
Net income $ 0.02 $ 0.12 $ 0.39 $ 0.42
Weighted average common and common equivalent shares 19,293 18,855 18,951 16,826
Portfolio Information:
Number of contracts acquired
(not in thousands) 4,002 3,961 14,911 11,244
Dollar value of contracts
acquired $ 50,401 $48,585 $190,109 $133,065
At June 30:
Principal outstanding of contracts
owned and/or serviced $ 252,019 $159,393
CONTACT: AutoFinance Group Inc., Westmont Blair T. Nance, 708/655-7100 |
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