AutoTradeCenter Announces Third Quarter Results
Business EditorsSCOTTSDALE, Ariz.--Feb. 21, 2001--AutoTradeCenter (OTCBB:AUTC) has released its third quarter report, for the period ended Dec. 31, 2000.
This report reflects the company's successful transition to a solely Internet remarketing business, with the sale of its wholesale operations in New Mexico, Texas and Oregon. The report also states a debt reduction of over $5 million, as well as substantially reduced operating expenses.
Revenues from Internet operations were $201,000 and $645,000 for the quarter and nine months ended Dec. 31, 2000, respectively. The company incurred a net loss of $3 million or $0.09 per share and $5.5 million or $0.17 per share for the respective periods reported. Results of operations from the discontinued wholesale subsidiaries are stated separately in the same report.
Company President Roger L. Butterwick said, "This marks an exciting milestone for AutoTradeCenter. The disposition of our wholesale operations has resulted in the retiring of substantial debt as well as the virtual elimination of financial risk associated with the ownership of used car inventory.
"The third quarter results of the wholesale operations clearly supports management's decision to discontinue the wholesale subsidiaries, and concentrate on the company's business plan and core competency, successful Internet remarketing."
"Industry reports that 2001 may be the most volatile year for off-lease portfolios as losses are clearly on the rise," continued Butterwick. "Our three-year agreement with American Honda Finance Corp. announced this month, and our new agreement with American Suzuki Motor Corp., clearly positions the company to achieve profitability by expanding Internet activities and generating greater revenues, thereby increasing shareholder value."
In the continuance of Internet activity development, the company anticipates the receipt of the first draw down of approximately $1.5 million from a private placement of $2 million by Feb. 28, 2001.
The company's 10Q filing with the SEC can be accessed through the EDGAR reporting system located at 222.sec.gov. The company's financial statements for the third quarter and nine months ended Dec. 31, 2000 are posted in the Investor Relations section on its web site www.autotradecenter.com. AutoTradeCenter (ATC) is the leading Internet-based "business-to-business" automotive re-marketing company.
On its web site, http://www.autotradecenter.com/, the company markets its services to automobile manufacturers, captive finance companies, lease and rental companies, and financial institutions across the United States who can use the site's many features for more efficient buying, selling and trading.
ATC powers the American Honda Finance Corp.'s Vehicle Inter-Dealer Purchase System "VIPS" utilizing Internet technology and remarketing services. For more information on AutoTradeCenter.com Inc., please visit http://www.autotradecenter.com/ or contact Public Relations at lseegan@autotradecenter.com.
Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995.
The company intends that such statements about the company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby.
Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.