AutoInfo, Inc. Announces 1997 Year End Results and Automobile Receivables Sale.MONTVALE, N.J.--(BUSINESS WIRE)--March 27, 1998--AutoInfo, Inc. (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 :AUTO) today announced results of its operations for the year ended December 31, 1997. The Company reported revenues of approximately $19.9 million and a net loss of approximately $11.1 million, or $1.39 per share. This loss includes the write-off of goodwill and other intangibles of approximately $2.5 million, an additional provision for credit losses on its portfolio of automobile 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 of approximately $12.5 million and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the closing of its Northeast regional office of $0.9 million. At December 31, 1997, AutoInfo had cash and cash equivalents of approximately $4.8 million and expects to receive tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. during 1998 aggregating approximately $3.4 million. Scott Zecher, President and Chief Executive Officer of AutoInfo, stated, "1997 was a most difficult and disappointing year for the Company as it was for many other non-prime automobile finance companies. During 1997, several non-prime automobile finance companies, including AutoInfo, experienced poor loan performance, higher 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. rates and increased credit losses on their portfolio assets. In addition, during the past several months, several non-prime automobile finance companies have made strategic decisions to exit the marketplace." Mr. Zecher continued, "these trends are the direct result of several factors including: (a) lower loan acquisition discounts resulting from increased levels of competition; (b) the heightened demand created by the increased supply of capital and used automobile inventories; (c) the resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials need to attract consumers with lower credit qualifications to meet this additional demand; (d) economic uncertainties and financial difficulties within the non-prime automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. as well as management upheavals at certain industry leaders and (e) increased levels of outstanding consumer debt and personal bankruptcies Personal bankruptcy is a procedure which, in certain jurisdictions, allows an individual to declare bankruptcy. In other jurisdictions, bankruptcies are reserved for corporations. . These factors have contributed to a significant reduction in available warehouse lines of credit and a material decline in financial markets investments in the non-prime automobile industry through the sale of equity securities, subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". instruments and 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. notes." As a result of the losses incurred, the adverse change in the non-prime automobile finance industry and the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the Company's financial condition, the Company's warehouse lender is no longer funding the acquisition of non-prime automobile receivables generated by the Company. The Company, among other actions, has restructured operations and reduced 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. by approximately $4 million on an 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. basis. On March 24, 1998, the Company sold approximately 1,200 automobile receivables with a net balance of approximately $11.2 million for net cash proceeds of approximately $9.9 million which were used to reduce the outstanding balance on the Company's warehouse facility. The Company is pursuing the sale of additional automobile receivables. AutoInfo, Inc. is a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. consumer finance company that acquires and services retail 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. from automobile dealers selling new and used vehicles to non-prime customers. -0- This release contains "forward looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expressed or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance that the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. will prove to be accurate. -0-
AUTOINFO, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED
DECEMBER 31,
1997 1996
-------------------- -------------
Revenue $ 19,846,000 $ 13,185,000
------------ ------------
Interest expense 8,146,000 3,990,000
Operating expenses 10,944,000 8,103,000
Write off of goodwill
and other intangibles 2,541,000 11,193,000
Provision for credit losses 12,456,000 13,351,000
Restructuring charge 867,000
------------ ------------
34,954,000 36,637,000
------------ ------------
(Loss) from operations (15,108,000) (23,452,000)
Income tax benefit (3,986,000) (4,352,000)
------------ ------------
Net (loss) ($11,122,000) ($19,100,000)
============ ============
Basic and diluted
(loss) per share ($ 1.39) ($ 2.41)
============ ============
Weighted average number
of shares outstanding 8,009,097 7,920,515
------------ ------------
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31,
1997 1996
-------------------------------
Net automobile receivables $78,481,000 $45,814,000
Cash and short-term investments 4,749,000 8,698,000
Restricted cash 4,088,000 6,882,000
Refundable income taxes 3,411,000 4,352,000
Other assets 5,885,000 8,705,000
----------- -----------
Total assets $96,614,000 $74,451,000
----------- -----------
Revolving line of credit $67,936,000 $18,082,000
Automobile receivables-backed notes 14,063,000 31,612,000
Subordinated notes and other debt 11,191,000 10,711,000
Other liabilities 2,113,000 1,719,000
Stockholders' equity 1,311,000 12,327,000
----------- -----------
Total liabilities and
stockholders' equity $96,614,000 $74,451,000
----------- -----------
CONTACT: AutoInfo Inc., Montvale Scott Zecher, 201/930-1800, Ext. 180 |
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