OLYMPIC FINANCIAL REPORTS PROFITABLE FOURTH QUARTER
OLYMPIC FINANCIAL REPORTS PROFITABLE FOURTH QUARTER MINNEAPOLIS, Aug. 18 /PRNewswire/ -- Olympic Financial Ltd.
(NASDAQ:OLYM) today reported net income of $232,563 for the fourth quarter ended June 30, 1992, compared with a loss of $613,210 in the same period a year earlier. This year's results were after an extraordinary charge of $457,541 related to premiums paid to financial institutions to repurchase receivables, which were then included in Olympic's most recent securitization at more favorable interest spreads.
Earnings per share were 14 cents before and 5 cents after extraordinary items, compared with a loss of 29 cents per share in the fourth quarter last year. The company reported fourth-quarter interest income of $1,283,705, up from $562,100 a year earlier. "Our fourth-quarter results were in line with our estimates and reflected the first major securitization of our receivables," said Jeffrey C. Mack, chairman and chief executive officer. "We anticipate sales of our receivables quarterly during fiscal 1993, with spreads and structures comparable to or more favorable than our fourth-quarter securitization this year." Securitization is the process by which installment loans, acquired through Olympic's network of automobile dealerships, are pooled and sold to institutional investors as asset-backed securities, with servicing retained by Olympic. Olympic completed the securitized sale of $41.6 million of company receivables in June. For the year ended June 30, the company reported a loss of $1,146,279 or 31 cents per share before extraordinary items, and $1,603,820 or 43 cents per share after extraordinary charges. That compares with a loss of $1,525,551 or 61 cents per share from the company's inception through fiscal 1991. Interest income was $4,115,775, with gains on sales of auto loans of $1,508,740. That compares to interest income of $935,053 from inception through fiscal 1991. Olympic, based in Minneapolis, specializes in the sale and servicing of retail automobile installment loans originated by a network of automobile dealers under contract with the company. The company opened its first branch office, in Denver, this spring. It has entered into contracts with 75 dealers in the Colorado market in addition to 187 in Minnesota. OLYMPIC FINANCIAL LTD. Three months ended Three months ended June 30, 1992 June 30, 1991 Interest Income $1,283,705 $562,100 Interest expense on financings of auto loans 1,116,439 506,865 Provision for credit losses -- 51,944 Net interest margin 167,266 3,291 Non-interest income 1,559,547 -- Total expenses 1,036,709 616,501 Income (loss) before extraordinary item 690,104 (613,210) Extraordinary item (457,541) -- Net income (loss) $232,563 $(613,210) Income (loss) per share before extraordinary item .14 (.29) Income (loss) on extraordinary item (.09) .00 Net income (loss) per share $.05 $(.29) Weighted average common and common equivalent shares outstanding 5,106,184 2,142,857 Period from 12 months ended inception through June 30, 1992 June 30, 1991 Interest Income $4,115,775 $935,053 Interest expense on financings of auto loans 3,615,106 803,801 Provision for credit losses 108,100 84,544 Net interest margin 392,569 46,708 Non-interest income 1,578,694 -- Total expenses 3,117,542 1,572,259 Income (loss) before extraordinary item (1,146,279) (1,525,551) Extraordinary item (457,541) -- Net income (loss) (1,603,820) (1,525,551) Income (loss) per share before extraordinary item (.31) (.61) Income (loss) on extraordinary item (.12) .00 Net income (loss) per share (.43) (.61) Weighted average common and common equivalent shares outstanding 3,737,995 2,488,093 -0- 8/18/92 /CONTACT: Tom Langenfeld of Swenson Falker Eilertsen, 612-371-0000, for Olympic Financial, or Jeffrey Mack of Olympic Financial, 612-942-9880/ (OLYM) CO: Olympic Financial Ltd. ST: Minnesota IN: FIN SU: ERN
AL -- MN004 -- 0908 08/18/92 11:19 EDT
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|Date:||Aug 18, 1992|
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