AutoBond Announces Earnings for 1997
31 March 1998
AutoBond Announces Earnings for 1997
The Following is Not an Offer to Buy or Sell Securities or Assets of any Kind
AUSTIN, Texas, March 31 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the Amex under the symbol ABD, is
reporting fourth quarter 1997 profits of $0.03 per share on net income of
$201,753 and full year 1997 profits of $0.29 per share ($0.28 fully diluted)
on net income of $1,859,464 versus $0.08 per share on net income of $512,739
for the fourth quarter 1996 and full year 1996 profits of $0.62 per share on
net income of $3,584,886. Revenue for 1997 was $22,931,301 versus $16,386,540
for 1996. AutoBond is pleased that each quarter in 1997 was profitable and
that the past three years have each been profitable.
As per SFAS No. 130, AutoBond's financial statements present a new
accounting line item called Comprehensive Income, which is comprised of
recognized net income and unrealized appreciation net of tax, amounted to
$2,908,720 ($0.45 per share) for the full year 1997. The unrealized
appreciation as of December 31, 1997 was $1,049,256.
Due primarily to retained earnings and unrealized appreciation, total
shareholders' equity increased to $15,417,602 at December 31, 1997. This
reflects an increase in shareholders' equity of $3,275,408 from December 31,
1996.
AutoBond is pleased to report that all servicing functions were
successfully transferred from a third party service provider to in-house
technology and personnel during the fourth quarter.
AutoBond's delinquencies increased in 1997, consistent with increased
seasoning. As of the end of the fourth quarter 1997 the 60-89 days past due
delinquencies amounted to 5.17% and the 90 plus days past due delinquencies
amounted to 3.95%. Unlike past quarterly delinquency reporting from AutoBond,
these statistics now include finance contracts where the underlying vehicle is
repossessed, the borrower is in bankruptcy, a dealer buyback is expected or
where insurance claims are filed or pending. By contrast, the effect of
seasoning can be positively observed with respect to the six most seasoned
quarterly production gross annualized default rates for the fourth quarter
1997 in that they are below 10% while only five quarterly production rates
were below 10% as of the third quarter 1997. Finance contracts acquired in
1994 have experienced gross annualized default rates that approximate 7.0%.
AutoBond currently has 6,531,311 shares outstanding. AutoBond is a
specialty consumer finance company engaged in underwriting, acquiring,
servicing and securitizing retail installment contracts originated primarily
by franchised automobile dealers in connection with the sale of used and, to a
lesser extent, new vehicles to selected consumers with limited access to
traditional sources of credit. AutoBond is located in Austin, Texas and in
1997 acquired contracts nationwide from dealers in approximately 40 states.
AUTOBOND ACCEPTANCE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income and Comprehensive Income
Year Ended December 31,
1995 1996 1997
Revenues:
Interest income $2,880,961 $2,519,612 $4,341,297
Gain on sale of
finance contracts 4,085,952 12,820,700 18,944,241
Servicing fee income -- 657,950 1,131,142
Other income (loss) -- 388,278 (1,485,379)
Total revenues 6,966,913 16,386,540 22,931,301
Expenses:
Provision for credit losses 48,702 412,387 612,715
Interest expense 2,099,867 2,382,818 3,879,543
Salaries and benefits 1,320,100 4,529,006 7,357,284
General and administrative 1,462,740 2,331,246 6,201,948
Other operating expenses 963,017 1,119,644 2,005,237
Total expenses 5,894,426 10,775,101 20,056,727
Income before income taxes
and extraordinary loss 1,072,487 5,611,439 2,874,574
Provision for income taxes 199,000 1,926,553 1,015,110
Income before extraordinary
loss 873,487 3,684,836 1,859,464
Extraordinary loss, net of tax -- (100,000) --
Net income 873,487 3,584,886 1,859,464
Other comprehensive income,
net of tax; Unrealized
appreciation on interest-only
strip receivables -- -- 1,049,256
Other comprehensive income -- -- 1,049,256
Comprehensive income $ 873,487 $3,584,886 $2,908,720
Earnings per common share:
Income before extraordinary
loss $0.17 $0.64 $0.29
Extraordinary loss,
net of tax -- (0.02) --
Net income $0.17 $0.62 $0.29
AUTOBOND ACCEPTANCE CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
December 31,
1996 1997
ASSETS
Cash and cash equivalents $ 4,121,342 $ 159,293
Restricted funds 2,981,449 6,904,264
Finance contracts held
for sale, net 228,429 1,366,114
Collateral acquired, net 152,580 150,908
Class B certificates 10,465,294 7,878,306
Retained interest in beneficial
interest of trust -- 5,083,213
Interest-only strip receivables 4,247,274 9,352,641
Debt issuance cost 997,338 605,847
Trust receivable 2,230,003 9,627,144
Due from affiliates 25,300 21,285
Other assets 683,955 1,703,587
Total assets $26,132,964 $42,852,602
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Revolving credit facilities $ -- $ 7,639,201
Notes payable 10,174,633 9,841,043
Accounts payable and accrued
liabilities 1,474,586 3,386,685
Bank overdraft -- 2,936,883
Payable to affiliates 265,998 --
Deferred income taxes 2,075,553 3,631,188
Total liabilities 13,990,770 27,435,000
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value;
5,000,000 shares authorized;
no shares issued -- --
Common stock, no par value;
25,000,000 shares authorized,
6,512,500 and 6,531,311 shares
issued and outstanding 1,000 1,000
Additional paid-in capital 8,617,466 8,781,669
Deferred compensation (11,422) --
Due from shareholders (378,618) (187,555)
Unrealized appreciation on
interest-only strip receivables -- 1,049,256
Retained earnings 3,913,768 5,773,232
Total shareholders' equity 12,142,194 15,417,602
Total liabilities and
shareholders' equity $26,132,964 $42,852,602
SOURCE AutoBond Acceptance Corporation
