OLYMPIC FINANCIAL REPORTS RESULTS FOR THIRD QUARTER
OLYMPIC FINANCIAL REPORTS RESULTS FOR THIRD QUARTER MINNEAPOLIS, May 15 /PRNewswire/ -- Olympic Financial Ltd.
(NASDAQ: OLYM) today reported interest income of $1,140,603 for the three months ended March 31, 1992, up sharply from $150,924 in the same period a year earlier.
The company, which began the process of securitizing its auto loan portfolio in February, reported a loss of $678,063 or 15 cents per share for the quarter. That compares with a loss of $268,330 or 13 cents per share in the third quarter last year. For the nine months ended March 31, the company reported a loss of $1,836,383 or 59 cents per share. To realize the increased interest margins on the sale of its receivables, Olympic intends to securitize its loans to be sold to institutional investors at competitive rates. During the transition to securitization, the company has realized reduced interest spreads and resulting net losses. Olympic expects to complete the securitization of most of its outstanding receivables during the fourth quarter, which ends June 30, Jeffrey C. Mack, chairman and chief executive officer, said. "The company has been successful in signing a majority of the automobile dealerships in Minnesota, producing a volume of contracts that should ensure future profitability through the securitization of our product," Mack said. "In April, we opened our first branch operation -- an office in Denver, Colo., a market where we have signed more than 50 dealerships. We believe that Colorado represents an excellent opportunity to duplicate the success we have achieved in Minnesota, and that it will provide a significant addition to our volume of contracts purchased and securitized in fiscal 1993. "Olympic has achieved and maintained significantly lower delinquencies than industry standards, performance that we believe will further enhance profitability as we enter the asset-backed securities market and sell our loans at optimal interest rates." Third-quarter results also reflected costs associated with establishing the Denver office and expanding operations in Minneapolis. In other third-quarter developments, Olympic Financial: -- Completed an initial public offering of 1,600,000 shares of common stock, and its underwriter exercised its entire over-allotment option of 240,000 shares. -- Closed its first asset-backed security transaction -- the sale of automobile loan pass-through certificates totaling $8.28 million through Piper, Jaffray and Hopwood Incorporated. -- Named Kidder, Peabody and Company, Inc., as its financial adviser in connection with the future securitization of automobile receivables. Olympic Financial, based in Minneapolis, sells and services retail automobile installment loans originated from a network of auto dealers. OLYMPIC FINANCIAL LTD. Three months ended Three months ended March 31, 1992 March 31, 1991 Interest Income $1,140,603 $150,924 Interest expense on financing of auto loans (998,791) (113,162) Provision for credit losses ( 43,000) ( 9,100) Net interest margin on auto loans 98,812 28,662 Non-interest income 19,147 0 Total expenses (796,022) (296,992) Net loss ($ 678,063) ($268,330) Net loss per common and common equivalent share ($0.15) ($0.13) Weighted average common and common equivalent shares outstanding 4,381,001 2,142,857 Nine months ended March 31, 1992(a) Interest Income $2,832,070 Interest expense on financing of auto loans (2,498,667) Provision for credit losses (108,100) Net interest margin on auto loans 225,303 Non-interest income 19,147 Total expenses (2,080,833) Net loss ($1,836,383) Net loss per common and common equivalent share ($0.59) Weighted average common and common equivalent shares outstanding 3,125,614 (a) A comparison with the year-earlier period is not considered meaningful, since the company did not begin significant lending operations until the fourth quarter of calendar year 1990. -0- 5/15/92 /CONTACT: Tom Langenfeld of Swenson Falker Eilertsen, 612-371-0000 or Jeff Mack of Olympic Financial, 612-942-9980/ (OLYM) CO: Olympic Financial Ltd. ST: Minnesota IN: FIN SU: ERN
KH -- MN011 -- 0871 05/15/92 15:30 EDT
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|Date:||May 15, 1992|
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