Onyx Acceptance Reports First Quarter Earnings
FOOTHILL RANCH, Calif., April 26 Onyx Acceptance
Corporation announced today its financial and operational
results for the quarter ended March 31, 2001. Net income and earnings per
diluted share for the quarter were $884.8 thousand and $0.17 respectively,
compared to $1.7 million and $0.26 for the first quarter of 2000.
During the first quarter, the Company recorded a gain on sale of contracts
of $9.3 million, or 37.2% of total revenues, compared to $12.8 million or
50.0% of first quarter 2000 revenues. The reduction of the gain was
principally due to management's decision to target higher credit-worthy
customers and reduce its reliance on initial gain on sale accounting for its
reported financial results. As a result, the gain on sale as a percentage of
contracts securitized declined to 2.3% for the first quarter of 2001, compared
to 3.0% for the same period in 2000. Total revenues remained relatively
stable at $25.0 million as higher service fee income offset the reduction in
gain on sale revenue. Service fee income, which includes late fees, document
fees and net excess cash flows generated from the sold portion of the
portfolio, increased significantly to $14.2 million compared to $8.7 million
for the same period of 2000, an increase of 63.2%. Management expects that
fee revenue will continue to increase with the growth of the portfolio.
Contract purchases for the quarter ended March 31, 2001 were
$430.5 million, compared to $468.7 million for the same period in 2000. The
reduction in volume for the first quarter reflects management's ongoing focus
on credit quality.
Net interest income for the quarter was $1.5 million compared to
$4.0 million for the same period in 2000. The reduction in net interest
income was principally due to the combined effect of a lower weighted average
annual percentage rate on contracts held during the warehouse period and the
prefunded structure of the securitization executed during the quarter.
Operating expenses totaled $21.6 million or 3.14% of the average serviced
portfolio of $2.8 billion for the first quarter of 2001, compared to
$20.7 million or 3.69% of the $2.2 billion average serviced portfolio for the
same period in 2000. "Our continuing improvement in operating efficiencies
demonstrates the success of our servicing technology and the results of
renegotiated contracts with our major service providers," said John W. Hall,
President and Chief Executive Officer of Onyx Acceptance Corporation.
Total delinquencies as a percentage of the period-end serviced portfolio
decreased to 2.29% from 4.14% at year-end 2000. Annualized net charge-offs as
a percent of the average servicing portfolio increased to 2.68% during the
first quarter of 2001, from 2.33% for the same period in 2000. "Our
improvement in delinquency clearly demonstrates that our focus on credit
quality and underwriting standards is paying off. We are gratified to realize
such a material improvement of $47.7 million or a 185 basis point reduction in
total delinquency from the previous quarter and are confident that our loss
ratios will also decline in the forthcoming quarters," said Mr. Hall.
Onyx Acceptance Corporation is a specialized automobile finance company
based in Foothill Ranch, CA. Onyx provides financing to franchised and select
independent dealerships throughout the United States.
This news release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. The most significant among these risks and
uncertainties are (a) the Company's level of delinquencies, gross charge-offs
and net losses, (b) the Company's ability to achieve adequate interest rate
spreads, (c) the effects of economic factors on consumer debt, and (d) the
continued availability of liquidity sources. Other important factors are
detailed in the Company's annual report on Form 10-K for the year ended
December 31, 2000.
ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED) (AUDITED)
March 31, December 31,
2001 2000
ASSETS
CASH & CASH EQUIVALENTS $5,941,300 $3,129,699
CONTRACTS HELD FOR SALE
- Net of Allowance (1) 187,501,629 170,755,532
CREDIT ENHANCEMENT ASSETS 156,549,962 146,012,701
OTHER ASSETS 11,465,086 11,482,058
TOTAL ASSETS $361,457,977 $331,379,990
LIABILITIES AND EQUITY
LIABILITIES
DEBT $251,087,387 $233,152,110
OTHER LIABILITIES 51,657,166 42,634,891
TOTAL LIABILITIES 302,744,553 275,787,001
TOTAL EQUITY 58,713,424 55,592,989
TOTAL LIABILITIES AND EQUITY $361,457,977 $331,379,990
(1) Net of Unearned Discounts
ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
2001 2000
REVENUES:
Net Interest Income $1,451,024 $3,958,226
Gain on Sale of Contracts 9,318,774 12,756,654
Service Fee Income 14,248,111 8,679,431
Total Revenues 25,017,909 25,394,311
EXPENSES:
Provision for Credit Losses 334,110 433,564
Interest Expense 1,539,632 1,446,433
Operating Expenses 21,631,640 20,654,877
Total Expenses 23,505,382 22,534,874
Income before Income Taxes 1,512,527 2,859,437
Income Taxes 627,700 1,186,660
NET INCOME $884,827 $1,672,777
NET INCOME PER SHARE - BASIC $0.18 $0.27
NET INCOME PER SHARE - DILUTED $0.17 $0.26
BASIC SHARES OUTSTANDING 4,989,504 6,179,922
DILUTED SHARES OUTSTANDING 5,132,111 6,349,518
ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES
DELINQUENCY AND LOSS RATES
(UNAUDITED)
(Dollars In Thousands)
March 31, December 31,
2001 2000
Delinquency Experience
Number of Number of
Contracts $ Contracts $
Servicing Portfolio 279,513 $2,784,411 269,372 $2,690,606
Serviced Delinquency
31 to 59 days 4,116 $38,021 7,424 $71,681
60 to 89 days 1,415 13,167 2,285 23,085
90 days or more 1,405 12,579 1,749 16,748
Total 6,936 $63,767 11,458 $111,514
Delinquency as a percentage
of number and amount of
contracts 2.48% 2.29% 4.25% 4.14%
Net of Repossessed Inventory and Bankruptcies
Three Months Ended
March 31,
Loss Experience
2001 2000
Average Contracts
Serviced during the
period $2,758,385 $2,238,058
Gross Charge-offs $20,907 $15,054
Recoveries $2,419 $2,002
Net Charge-offs $18,488 $13,052
Net Charge-offs as a
percentage of contracts
outstanding during the
period. 2.68% 2.33%
*Annualized
Onyx Acceptance Corporation
Static Pool Information for securitized pools outstanding
for the period from the date of securitization through March 31, 2001
MONTH 97-2 97-3 97-4 98-1 98-A 98-B 98-C
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.00% 0.01% 0.01% 0.00% 0.02%
3 0.02% 0.02% 0.01% 0.02% 0.03% 0.02% 0.02%
4 0.07% 0.09% 0.04% 0.08% 0.07% 0.08% 0.04%
5 0.22% 0.13% 0.11% 0.14% 0.14% 0.19% 0.15%
6 0.32% 0.24% 0.20% 0.24% 0.23% 0.33% 0.27%
7 0.59% 0.36% 0.28% 0.40% 0.37% 0.45% 0.46%
8 0.80% 0.47% 0.43% 0.53% 0.42% 0.61% 0.57%
9 0.91% 0.62% 0.55% 0.68% 0.51% 0.82% 0.74%
10 1.07% 0.73% 0.72% 0.85% 0.70% 0.95% 0.94%
11 1.26% 0.81% 0.87% 1.04% 0.85% 1.10% 1.12%
12 1.42% 0.94% 0.95% 1.20% 1.01% 1.20% 1.30%
13 1.58% 1.10% 1.08% 1.33% 1.17% 1.36% 1.54%
14 1.68% 1.23% 1.19% 1.46% 1.37% 1.48% 1.73%
15 1.80% 1.38% 1.36% 1.61% 1.48% 1.64% 1.90%
16 1.97% 1.58% 1.42% 1.71% 1.59% 1.89% 2.10%
17 2.10% 1.68% 1.52% 1.88% 1.76% 2.05% 2.28%
18 2.23% 1.77% 1.64% 2.01% 1.96% 2.22% 2.51%
19 2.35% 1.91% 1.75% 2.17% 2.07% 2.37% 2.71%
20 2.48% 2.04% 1.85% 2.25% 2.25% 2.50% 2.83%
21 2.59% 2.11% 1.97% 2.41% 2.37% 2.67% 2.95%
22 2.72% 2.20% 2.08% 2.52% 2.48% 2.79% 3.08%
23 2.81% 2.31% 2.12% 2.63% 2.65% 2.92% 3.25%
24 2.85% 2.41% 2.23% 2.75% 2.76% 3.06% 3.39%
25 2.93% 2.51% 2.36% 2.86% 2.81% 3.14% 3.45%
26 2.96% 2.59% 2.41% 2.98% 2.95% 3.23% 3.57%
27 3.09% 2.71% 2.52% 3.06% 2.99% 3.28% 3.72%
28 3.17% 2.79% 2.55% 3.15% 3.03% 3.35% 3.81%
29 3.22% 2.92% 2.62% 3.19% 3.12% 3.45% 3.91%
30 3.26% 2.94% 2.71% 3.26% 3.13% 3.50%
31 3.33% 3.01% 2.77% 3.33% 3.18% 3.57%
32 3.39% 3.04% 2.81% 3.40% 3.24%
33 3.48% 3.08% 2.85% 3.42% 3.26%
34 3.51% 3.11% 2.88% 3.46% 3.28%
35 3.54% 3.20% 2.93% 3.53%
36 3.55% 3.21% 2.91% 3.56%
37 3.56% 3.23% 2.94% 3.59%
38 3.56% 3.24% 2.98%
39 3.58% 3.25% 3.00%
40 3.58% 3.27% 3.01%
41 3.58% 3.32%
42 3.59% 3.34%
43 3.60% 3.36%
44 3.61%
45 3.61%
46 3.62%
MONTH 99-A 99-B 99-C 99-D 00-A 00-B 00-C 00-D 01-A
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
3 0.02% 0.03% 0.03% 0.01% 0.02% 0.02% 0.01% 0.00%
4 0.05% 0.07% 0.06% 0.04% 0.04% 0.04% 0.03% 0.02%
5 0.11% 0.14% 0.16% 0.09% 0.11% 0.10% 0.06% 0.07%
6 0.21% 0.27% 0.28% 0.15% 0.18% 0.17% 0.11%
7 0.35% 0.43% 0.47% 0.24% 0.37% 0.30% 0.26%
8 0.49% 0.60% 0.64% 0.43% 0.63% 0.44% 0.41%
9 0.63% 0.85% 0.83% 0.59% 0.87% 0.67% 0.65%
10 0.81% 1.07% 1.09% 0.76% 1.05% 0.90%
11 1.04% 1.34% 1.31% 0.99% 1.27% 1.11%
12 1.29% 1.56% 1.47% 1.20% 1.59% 1.38%
13 1.49% 1.79% 1.62% 1.41% 1.82%
14 1.72% 1.90% 1.77% 1.52% 2.03%
15 1.90% 2.08% 2.00% 1.70%
16 2.10% 2.23% 2.08% 2.00%
17 2.26% 2.42% 2.29% 2.17%
18 2.46% 2.63% 2.48% 2.40%
19 2.59% 2.71% 2.61%
20 2.71% 2.89% 2.73%
21 2.83% 3.08%
22 2.88% 3.21%
23 3.03% 3.31%
24 3.21%
25 3.28%
26 3.34%
