AutoInfo, Inc. Announces 1998 Year End Results.MONTVALE Montvale may mean:
See: Over-the-counter. OTC See over-the-counter market (OTC). BB:AUTO) today announced results of its operations for the year ended December December: see month. 31, 1998. The Company reported revenues of approximately $7.0 million and a net loss of approximately $9.9 million, or $1.25 per share. This loss includes an additional provision for credit losses on its portfolio of automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of 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 $3.9 million, a loss on the sale of its automobile finance receivables of approximately $3.5 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 discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of its non-prime automobile business of $ 3.0 million. In addition, the Company reported a gain from the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of approximately $3.7 million. At December 31, 1998, AutoInfo had cash and cash equivalents of approximately $2.4 million. In March 1999, the Company paid $585,000 in full settlement of a term loan. The Company experienced material operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. from its non-prime automobile finance business during the years 1996, 1997 and 1998. As a result of these losses, 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. of the Company's financial condition, the Company determined to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the operation of its non-prime automobile finance business. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Wunderlich, President and Chief Financial Officer of AutoInfo, stated, "we have exited the non-prime automobile finance industry and have restructured our remaining debt to enable us to seek acquisition and investment opportunities. We have a tax loss carryforward tax loss carryforward See carryforward. of approximately $27 million and are seeking a transaction that will maximize the benefit of this asset and enable us to begin to rebuild shareholder value." However, based upon the Company's poor financial condition, there are no assurances that the Company will be able to continue as a going concern. This release contains "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. " based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expected 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 forward-looking statements will prove to be accurate.
AUTOINFO, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED
DECEMBER 31,
1998 1997
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Revenue $ 7,004,000 $ 19,846,000
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Interest expense 4,685,000 8,146,000
Operating expenses 5,487,000 10,944,000
Loss on sale of automobile receivables 3,542,000
Write off of goodwill and other
intangibles -- 2,541,000
Provision for credit losses 3,942,000 12,456,000
Restructuring charge 2,972,000 867,000
------------ ------------
20,628,000 34,954,000
------------ ------------
Loss from operations (13,624,000) (15,108,000)
Income tax benefit -- (3,986,000)
------------ ------------
Loss from operations ($13,624,000) ($11,122,000)
Extraordinary item - gain on debt
extinguishments 3,689,000 --
------------ ------------
Net (loss) ($ 9,935,000) ($11,122,000)
Basic and diluted (loss) per share ($ 1.25) ($ 1.39)
============ ============
Weighted average number of shares
outstanding 7,960,000 8,009,000
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CONDENSED CONSOLIDATED BALANCE SHEETS
December 31,
1998 1997
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Net automobile receivables $ -- $ 78,481,000
Cash and short-term investments 2,399,000 4,749,000
Restricted cash -- 4,088,000
Refundable income taxes -- 3,411,000
Other assets 353,000 5,885,000
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Total assets $ 2,752,000 $ 96,614,000
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Revolving line of credit $ -- $ 67,936,000
Automobile receivables-backed notes -- 14,063,000
Subordinated notes and other debt 10,038,000 11,191,000
Other liabilities 1,278,000 2,113,000
Stockholders' equity (8,564,000) 1,311,000
------------ ------------
Total liabilities and stockholders'
equity $ 2,752,000 $ 96,614,000
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