Onyx Acceptance Restates Operating Results for the Year Ended December 31, 2002 and the Quarters Ended September 30, 2002 and March 31, 2003
FOOTHILL RANCH, Calif., Aug. 19, 2003 -- Onyx Acceptance Corporation announced today that it is restating its operating results for the year ended December 31, 2002 and for the Quarters ended September 30, 2002 and March 31, 2003.
On August 14, 2003, Management and its independent accountants completed a review of the methodology used by the Company to record and amortize certain loan premiums on Contracts acquired in connection with clean-up calls exercised on the Company's securitization pools. As a result of the review, the Company determined that the premium recorded on the acquisition of certain Contracts in the fourth quarter was overstated (resulting in an overstatement of gain on sale) and that the method used to amortize loan premiums understated the amount of amortization reported in prior periods. The restatement will result in a reduction in earnings by approximately $750,000, net of taxes. The Company will have a corresponding increase in income in the forthcoming quarters as a result of a lower loan premium balance to be amortized. In addition, the Company is recording the amount of impairment recorded on certain trusts, previously recorded in the fourth quarter of 2002, in the third quarter of 2002. This adjustment has no impact on reported net income for the year ended December 31, 2002. The restatement resulted in the following changes to prior period financial statements:
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30
2002 2002 2002 2002
As reported Restated As reported Restated
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Balance Sheet:
Credit enhancement,
at fair value $180,870 $180,440 $180,870 $180,440
Contract held for
sale 213,698 213,605 213,698 213,605
Total assets 413,219 412,696 413,219 412,696
Other liabilities 29,107 28,890 29,107 28,890
Total liabilities 350,062 349,845 350,062 349,845
Retained earnings 27,375 27,069 27,375 27,069
Total stockholders'
equity 63,157 62,851 63,157 62,851
Total liabilities
and equity $413,219 412,696 $413,219 $412,696
Income Statement:
Interest income $10,298 $10,145 $28,159 $28,006
Net interest income 7,453 7,300 19,156 19,003
Gain on sale of
contracts, net 3,625 3,255 10,302 9,932
Total Revenues 23,920 23,397 68,930 68,407
Income before Income
Taxes 1,097 574 2,417 1,894
Income Taxes 455 238 1,002 785
Net Income $642 $336 $1,415 $1,109
Net Income per share
- Basic $0.13 $0.07 $0.28 $0.22
Net Income per share
- Diluted $0.12 $0.07 $0.27 $0.21
YEAR ENDED QUARTER ENDED
DECEMBER 31, MARCH 31,
2002 2002 2003 2003
As reported Restated As reported Restated
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Balance Sheet:
Contract held
for sale $171,132 $170,353 $211,565 $210,284
Total assets 367,936 367,157 409,139 407,858
Other liabilities 28,496 28,819 31,055 30,524
Total liabilities 302,567 302,244 341,873 341,342
Retained earnings 28,299 27,843 29,325 28,575
Total stockholders'
equity 65,369 64,913 67,266 66,516
Total liabilities
and equity $367,936 $367,157 $409,139 $407,858
Income Statement:
Interest income $38,562 $37,992 $11,141 $10,639
Net interest income 27,027 26,457 8,904 8,402
Gain on sale of
contracts, net 13,904 13,695 4,127 4,127
Total Revenues 92,904 92,125 26,269 25,767
Income before Income
Taxes 3,997 3,218 1,754 1,252
Income Taxes 1,658 1,335 728 520
Net Income $2,339 $1,883 $1,026 $732
Net Income per share
- Basic $0.46 $0.37 $0.20 $0.14
Net Income per share
- Diluted $0.45 $0.36 $0.20 $0.14
The Company will amend its Form 10-Q for the quarters ended September 30, 2002 and March 31, 2003 and will also amend its Form 10-K for the year ended December 31, 2002.
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, including the possible change in amortization policies. Other important factors are detailed in the Company's annual report on form 10-K for the year ended December 31, 2002 and on Form 10-Q for the quarter ended March 31, 2003.
For information about Onyx Acceptance Corporation, please visit the investor relations section of our website at www.onyxco.com .