National Auto Credit Announces Financial Results for the Year Ended January 31, 2002
NEW YORK--May 15, 2002--National Auto Credit, Inc. (OTC/BB:NAKD) today announced its financial results for the year ended January 31, 2002.For the year ended January 31, 2002, National Auto Credit, Inc. ("NAC") incurred a net loss from continuing operations of $5.5 million, or $0.47 per share For the year ended January 31, 2001, NAC incurred a net loss from continuing operations of $46.5 million, or $1.67 per share, inclusive of $35.6 million in costs associated with the repurchase of NAC common stock. For the year ended January 31, 2000, NAC incurred a loss of $20.7 million, or $0.73 per share.
Revenues for the year ended January 31, 2002 were $445,000 as compared to $4.1 million and $2.3 million, respectively, for the years ended January 31, 2001 and 2000, respectively. Revenues were comprised principally of interest income from investments and NAC's income from its investment in the Angelika Film Theatre. Revenues for the year ended January 31, 2002 declined $3.7 million principally as a result of lower interest income from investments as NAC used cash to repurchase its common shares during the fourth quarter of fiscal 2001.
Costs and expenses for the year ended January 31, 2002 were $5.9 million as compared to $50.6 million and $22.9 million, respectively, for the years ended January 31, 2001 and January 31, 2000, respectively.
NAC recently completed a strategic review of its investment in ZoomLot, acquired December 15, 2000, and the development of its e-commerce services. NAC's strategic review included evaluating the evolving market conditions of the used car dealer and financing industries, the start-up nature of the ZoomLot operations, the current market demand for and penetration of ZoomLot's e-commerce solution to electronically link eligible used car dealers and their qualified customers with available used car lenders and financing terms, current operating losses and forecasts of future operating results and strategic opportunities available to ZoomLot. As a result of this review, management of NAC determined that it was unable to predict, with the requisite degree of certainty, when or whether ZoomLot would achieve positive cash flows.
As a consequence of NAC's strategic review and determination, effective December 31, 2001, NAC suspended its ZoomLot operations and initiated the steps to discontinue both its e-commerce and auto financing segments. As a result, as of January 31, 2002, NAC is engaged only in the movie exhibition segment.
For the year ended January 31, 2002, NAC reported a loss from discontinued operations of $9.2 million, or $0.78 per share, principally as a result of the suspension of the ZoomLot Corporation subsidiaries e-commerce operations, which includes the non-cash charge of $7.4 million for the amortization and write-off of goodwill associated with the acquisition of ZoomLot. NAC also reported a gain on the disposal of discontinued operations of $394,000, or $0.03 per share. For the year ended January 31, 2001, NAC reported a loss from discontinued operations of $1.1 million, or $0.04 per share, and a gain on the disposal of discontinued operations of $308,000, or $0.01 per share. For the year ended January 31, 2000, NAC reported income from discontinued operations of $7.4 million, or $0.26 per share, and a loss on the disposal of discontinued operations of $28,000, or $0.00 per share.
As NAC continues to implement its restructuring and relocation activities pursuant to a plan, costs and expenses, inclusive of litigation charges and other non-recurring charges and write-downs of asset values, have exceeded revenues for each of the years ended January 31, 2002, 2001 and 2000.
At January 31, 2002, NAC had cash and cash equivalents of $6.1 million and marketable securities of $1.0 million.
This news release may include statements that constitute forward-looking statements, usually containing the words "believe", "estimate", "project", "expects", or similar expressions, These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from forward-looking statements. By making these forward-looking statements, NAC undertakes no obligation to update these statements for revisions or changes after the date of this document.
National Auto Credit, Inc. and Subsidiaries
Consolidated Balance Sheets
(In Thousands, Except Share Amounts)
January 31,
2002 2001
ASSETS
Cash and cash equivalents $ 6,122 $12,444
Marketable securities 994 1,083
Investment in AFC 9,220 10,027
Property and equipment, net of accumulated
depreciation of $57 and $186, respectively 71 789
Goodwill - 6,673
Assets held for sale - 2,785
Income taxes refundable 3,507 3,664
Other assets 620 1,601
TOTAL ASSETS $20,534 $39,066
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Self-insurance claims $ 769 $ 970
Accrued income taxes 697 1,029
Other liabilities 2,743 4,983
------- -------
4,209 6,982
COMMITMENTS AND CONTINGENCIES - -
REDEEMABLE PREFERRED STOCK
(redemption value of $936 in 2001) - 629
STOCKHOLDERS' EQUITY
Preferred stock - -
Common stock - $.05 par value,
authorized 40,000,000 shares, issued
39,377,589 and 39,420,437 shares,
respectively 1,969 1,971
Common stock to be issued - 219
Additional paid-in capital 174,337 174,385
Retained deficit (136,346) (121,801)
Accumulated other comprehensive loss (133) (44)
Treasury stock, at cost, 30,735,835 and
27,901,305 shares, respectively (23,502) (23,275)
------- -------
16,325 31,455
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $20,534 $39,066
National Auto Credit, Inc. and Subsidiaries
Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
Years Ended January 31,
2002 2001 2000
REVENUE
Interest income on investments $ 344 $ 3,872 $ 2,284
Income from investment in AFC 101 230 -
Total 445 4,102 2,284
COSTS AND EXPENSES
General and administrative 5,384 7,696 4,750
Litigation and other charges - 6,290 11,308
Write-off of option - 500 -
Loss (gain) on sale of property 549 (2,868) -
Cost related to purchase of
shares - 35,593 2,224
Write-down of assets held for
sale - 3,398 4,666
Total 5,933 50,609 22,948
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (5,488) (46,507) (20,664)
Benefit for income taxes - - -
LOSS FROM CONTINUING OPERATIONS (5,488) (46,507) (20,664)
DISCONTINUED OPERATIONS, NET OF
TAX (9,174) (1,084) 7,377
GAIN (LOSS) ON DISPOSAL OF
DISCONTINUED OPERATIONS 394 308 (28)
NET LOSS (14,268) (47,283) (13,315)
Accretion of discount on
redeemable preferred stock 226 12 -
NET LOSS APPLICABLE TO COMMON
STOCK $(14,494) $(47,295) $(13,315)
BASIC AND DILUTED (LOSS)
EARNINGS PER SHARE
Continuing operations $ (.47) $ (1.67) $ (.73)
Discontinued operations (.78) (.04) .26
Disposal of discontinued
operations .03 .01 -
Net loss per share $ (1.22) $ (1.70) $ (.47)
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING (000's)
Basic and diluted 11,692 27,761 28,169