AutoInfo, Inc. Announces Third Quarter 1997 Results; Consolidates Operating Centers.MONTVALE Montvale may mean:
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) announced results of its operations for the third quarter and nine months ended September September: see month. 30, 1997. In addition, the Company announced the consolidation of its two regional operating centers. Revenues for the third quarter ended September 30, 1997 were $5,343,000, an increase of 54% compared with $3,464,000 for the comparable prior year quarter. Net loss for the quarter was $2,636,000 or $0.32 per share as compared with a net loss of $3,095,000 or $0.39 per share for the comparable prior year period. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the third quarter of 1997 were reduced by a non-recurring charge of $5,317,000 to increase the reserve for loan losses to reflect anticipated losses on the portfolio on a static pool basis. In addition, a $617,000 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. was recorded in connection with the costs associated with the consolidation of the two regional operating centers. The Company also recorded the tax benefit of available carrybacks on the basis of projected tax basis losses. Excluding these non-recurring charges, net income for the quarter was $163,000 or $0.02 per share. For the nine months ended September 30, 1997, revenues increased by 62% to $15,129,000 from $9,337,000 in the comparable prior year period. Net loss for the nine month period was $826,000 or $0.10 per share as compared to $3,633,000 or $0.46 per share for the comparable prior year period. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. AutoInfo's President, Scott Zecher, "We determined after careful evaluation that our reserve for loan losses, utilizing the most conservative accounting approach was inadequate. This increase in our reserve for loan losses to $17,443,000 or 17% of our total portfolio, was necessary due to an increase in our projected lifetime net charge-offs. This was caused by several factors including ineffective collection efforts which has been addressed by the consolidation of our collection and servicing departments into our MidAtlantic Regional Center". Zecher added, "It became apparent that the labor pool needed to staff our Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. Regional Center was not readily available; therefore, the proper course for our continued growth and profitability was to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. operations into the MidAtlantic Regional Center in Norfolk, Virginia Norfolk is an independent city in the Commonwealth of Virginia, in the United States of America. With a population of 234,403 as of the 2000 census, Norfolk is Virginia's second-largest incorporated city. . We are pleased that several of our dedicated and experienced managers have agreed to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. to the Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). area to assist with a smooth consolidation process". 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 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 dealers selling new and used vehicles to non-prime customers. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. . 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 OPERATIONS
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
1997 1996 1997 1996
--------------------------------------------------
Revenue $15,129,000 $ 9,337,000 $ 5,343,000 $ 3,464,000
----------- ----------- ----------- ----------
Interest expense 5,846,000 2,679,000 2,298,000 1,008,000
Operating expenses 8,161,000 5,494,000 3,011,000 2,248,000
Restructuring Charge 617,000 -- 617,000 --
Provision for
credit losses 5,317,000 6,926,000 5,317,000 4,926,000
----------- ----------- ----------- -------------
Total expenses 19,941,000 15,099,000 11,243,000 8,182,000
----------- ----------- ----------- -------------
Loss from
operations (4,812,000) (5,762,000) (5,900,000) (4,718,000)
Income taxes
(benefit) (3,986,000) (2,129,000) (3,264,000) (1,623,000)
----------- ----------- ----------- -------------
Net loss $ (826000) $(3,633,000) $(2,636,000) $(3,095,000)
=========== =========== =========== =============
Net loss per share $ (.10) $ (.46) $ (.32) $ (.39)
=========== =========== =========== =============
Weighted average of
shares outstanding 8,018,752 7,918,329 8,018,752 8,000,615
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1997 1996
(Unaudited) (Audited)
------------ ------------
Automobile receivables, net $ 87,118,000 $ 45,814,000
Cash and short-term investments 4,814,000 9,199,000
Restricted cash 4,447,000 6,380,000
Goodwill and other intangibles, net 2,576,000 2,907,000
Income tax refund receivable 3,411,000 4,352,000
Other assets 7,161,000 5,799,000
------------ ------------
Total assets $ 109,527000 $ 74,451,000
------------ ------------
Revolving line of credit $ 67,035,000 $ 18,082,000
Securitized notes 17,364,000 31,612,000
Subordinated notes and other debt 11,145,000 10,710,000
Accounts payable and accrued liabilities 2,378,000 1,720,000
Stockholders' equity 11,605,000 12,327,000
------------ ------------
Total liabilities and stockholders' equity $109,527,000 $ 74,451,000
------------ ------------
CONTACT: AutoInfo Inc., Montvale Scott Zecher, 201/930-1800 |
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