National Auto Credit Announces Financial Results
SOLON, Ohio, May 16 National Auto Credit, Inc.
(OTC Bulletin Board: NAKD) today announced financial results for its year
ended January 31, 2001 and for the fourth quarter of fiscal 2001.
For the year ended January 31, 2001, National Auto Credit has a net loss
of $47,283,000 or $1.70 on the basis of 27,761,000 weighted average shares
outstanding. The loss from continuing operations was $48,939,000 or $1.76 per
share, while the Company's discontinued operations generated earnings of
$1,656,000 or $.06 per share. Revenues for fiscal 2001 declined 51.8% to
$4,709,000. For the year ended January 31, 2000 the Company had reported a net
loss of $13,315,000 or $.47 on the basis of 28,169,000 weighted average shares
outstanding, which included a loss from continuing operations of $14,056,000
or $.50 per share and income from discontinued operations of $741,000 or $.03
per share. Revenues in fiscal 2000 were $9,760,000.
The decline in revenues in fiscal 2001 reflects the loss of interest
income from the Company's loan portfolio, as the result of the Company's
previously reported sale of substantially all of its loan portfolio in the
first and second quarters of fiscal 2001.
The fiscal 2001 net loss also reflects a charge of $35,593,000 related to
the Company's repurchases of shares of its common stock, litigation and other
related charges of $6,290,000, restructuring charges related to the Company's
plan to restructure its operations and relocate its headquarters to New York
City of $1,777,000, and a charge of $3,398,000 to write-down assets being held
for sale. These charges were partially offset by a gain of $2,868,000 from
the sale of the Company's headquarters and office buildings located in Solon,
Ohio. The fiscal 2000 net loss included a charge of $2,224,000 related to the
Company's repurchases of shares of its common stock, litigation and other
related charges of $11,308,000, and a charge of $4,666,000 to write-down
assets being held for sale.
For the three months ended January 31, 2001 National Auto Credit had a net
loss of $41,817,000 or $3.15 per share on the basis of 13,279,000 weighted
average shares outstanding. The loss from continuing operations was
$42,414,000 or $3.19 per share, while the Company's discontinued operations
generated earnings of $597,000 or $.04 per share. Revenues for fourth quarter
of fiscal 2001 declined 79.8% to $573,000. For the fourth quarter of fiscal
2000 the Company had reported a net loss of $3,312,000 or $.12 on the basis of
26,790,000 weighted average shares outstanding, which included a loss from
continuing operations of $4,053,000 or $.15 per share and income from
discontinued operations of $741,000 or $.03 per share. Revenues in the
fourth quarter of fiscal 2000 were $2,834,000.
The results for the fourth quarter of fiscal 2001 reflect a decline in
revenues caused by the Company's sale of its loans in the first and second
quarters of fiscal 2001, and a decline in investment income as the result of
the Company's use of a substantial portion of its cash reserves to repurchase
shares of its common stock in November and December 2000. Additionally, the
Company's ZoomLot operations are still in the process of developing its
FundHere(TM) Aggregator, and as a result its services to independent used car
dealers and finance and insurance companies that service the used car market
did not contribute significant revenues.
The net loss for the fourth quarter of fiscal 2001 also reflects a charge
of $35,593,000 related to the Company's repurchases of shares of its common
stock, restructuring charges related to the Company's plan to restructure its
operations and relocate its headquarters to New York City of $1,488,000, and a
charge of $2,524,000 to write-down assets being held for sale.
National Auto Credit, Inc. is principally engaged, through ZoomLot
Corporation ("ZoomLot"), a wholly-owned subsidiary, in the development of
services to facilitate, through e-commerce, the process by which used car
dealerships, lenders and insurance companies communicate and complete the
transactions between them that are needed to provide the used car dealer's
customers with financing, insurance, and other services. ZoomLot currently
provides these services, on a limited basis, using a combination of Internet
and manual processes, and is continuing its efforts to develop a fully
e-commerce process. The Company acquired ZoomLot on December 15, 2000. The
Company also owns a 50% membership interest in Angelika Film Center, LLC.,
which owns a multiplex cinema and cafe in the Soho district of Manhattan in
New York City.
From October 1995 through March 2000, the Company's principal business
activity was to invest in sub-prime used automobile consumer loans. Prior to
the year ended January 31, 1997, the Company also engaged in the automobile
rental business, including the subsequent sale of cars from its rental fleet.
Additionally, the Company is considering various additional strategic
business alternatives, including, but not limited to, the purchase of one or
more existing businesses or the entry into one or more businesses.
National Auto Credit, Inc.
Consolidated Balance Sheets
(In Thousands, Except Share Amounts)
January 31,
2001 2000
ASSETS
Cash and cash equivalents $12,444 $54,333
Marketable securities 1,083 -
Installment loans, net - 29,306
Investment in AFC 10,027 -
Property and equipment, net of
accumulated depreciation of $186
and $5,219, respectively 789 7,677
Goodwill 6,673 -
Assets held for sale 2,785 6,861
Income taxes refundable 3,664 3,664
Other assets 1,601 2,121
TOTAL ASSETS $39,066 $103,962
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Self-insurance claims $970 $4,089
Accrued income taxes 1,029 2,926
Other liabilities 4,983 13,068
6,982 20,083
COMMITMENTS AND CONTINGENCIES - -
REDEEMABLE PREFERRED STOCK
(redemption value of $936) 629 -
STOCKHOLDERS' EQUITY
Preferred stock - -
Common stock - $.05 par value,
authorized 40,000,000 shares, issued
39,420,437 and 29,963,301 shares,
respectively 1,971 1,498
Common stock to be issued 219 -
Additional paid-in capital 174,385 166,139
Retained deficit (121,801) (69,104)
Accumulated other comprehensive income
(loss) (44) -
Treasury stock, at cost, 27,901,305
and 4,195,598
shares, respectively (23,275) (14,654)
31,455 83,879
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $39,066 $103,962
National Auto Credit, Inc.
Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
Twelve Months Ended Three Months Ended
January 31, January 31,
2001 2000 2001 2000
REVENUE
Interest income from loans $404 $7,331 $- $2,015
Interest income on investments 3,872 2,284 354 803
Income from investment in AFC 230 - 139 -
Other income 203 145 80 16
Total 4,709 9,760 573 2,834
COSTS AND EXPENSES
Provision for credit losses (1,365) (6,118) (182) (2,932)
Operating 2,407 10,272 830 1,925
Loss on sale of loans 1,420 - - -
General and administrative 7,696 4,750 3,934 848
Litigation and other charges 6,290 11,308 - 5,666
Write-off of option 500 - - -
Gain on sale of property (2,868) - - -
Cost related to purchase of
shares 35,593 2,224 35,593 -
Write-down of assets held for
sale 3,398 4,666 2,524 4,666
Restructuring charges 1,777 - 1,488 -
Interest expense - - - -
Total 54,848 27,102 44,187 10,173
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (50,139) (17,342) (43,614) (7,339)
Benefit for income taxes (1,200) (3,286) (1,200) (3,286)
LOSS FROM CONTINUING OPERATIONS (48,939) (14,056) (42,414) (4,053)
DISCONTINUED OPERATIONS, NET OF TAX 1,656 741 597 741
NET LOSS (47,283) (13,315) (41,817) (3,312)
Accretion of discount on redeemable
preferred stock 12 - 12 -
NET LOSS APPLICABLE TO COMMON STOCK $(47,295) $(13,315) $(41,829) $(3,312)
BASIC AND DILUTED (LOSS) EARNINGS
PER SHARE
Continuing operations $(1.76) $(.50) $(3.19) $(.15)
Discontinued operations .06 .03 .04 .03
Net loss per share $(1.70) $(.47) $(3.15) $(.12)
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING (000's)
Basic and diluted 27,761 28,169 13,279 26,790
