The Aegis Consumer Funding Group, Inc. Announces its First Quarter Results
1 December 1997
The Aegis Consumer Funding Group, Inc. Announces its First Quarter Results
JERSEY CITY, N.J., Dec. 1 -- The Aegis Consumer Funding
Group, Inc. today reported a net loss of $3.6 million, or
($0.20) per share, for the first fiscal quarter ended September 30, 1997. For
the first quarter ended September 30, 1996, the Company reported net income of
$3.1 million, or $0.19 per share. For the first fiscal quarter ended
September 30, 1997, the Company had revenues of $10.3 million, a decrease of
25% from $13.7 million of revenues reported in the comparable period a year
ago.
The Company's new executive management team led by Matthew Burns, who was
recently appointed as Chief Executive Officer, has developed and is in the
process of implementing its strategic business plan designed to enhance the
Company's operations and rebuild its equity and operating capital.
Accordingly, the Company has (i) recently converted $25.3 million of debt into
equity which would have resulted in the Company having a net worth of
$10.5 million as of September 30, 1997 if this conversion had occurred prior
to September 30, 1997 instead of a deficit net worth of $14.2 million as
reported; (ii) has agreed in principle, subject to certain creditor and
shareholder approval, to sell all of the stock of its wholly owned subsidiary,
Systems & Services Technologies, Inc., for $7.0 million with an option,
exercisable at any time through December 31, 1998, to repurchase SST for
$7 million plus an accretion at a 5% annual rate; (iii) consolidated all of
its loan processing centers to its facility in Marietta, Georgia; and (iv)
commenced the process of relocating the Company's principal executive offices
to Georgia, which is expected to be completed in January 1998.
The Aegis Consumer Funding Group, Inc. is a holding company whose
principal operating subsidiaries are engaged in the consumer finance business
primarily serving the sub-prime credit market for automobile loans. The
Company maintains offices in New Jersey, California, Georgia, Kansas and
Missouri. The Company provides new and used car financing in over thirty
states through franchised automobile dealers.
THE AEGIS CONSUMER FUNDING GROUP, INC.
Unaudited Financial Highlights
THREE MONTHS ENDED SEPTEMBER 30,
1997 1996
Total revenues $10,253,851 $13,688,777
Interest expense 3,367,353 3,013,473
Provision for credit losses 1,112,709 536,175
Other operating expenses 9,344,572 4,824,397
Total operating expenses 13,824,635 8,374,044
Net (loss) income before income taxes (3,570,784) 5,314,733
Income tax (recovery) expense -- 2,179,090
Net (loss) income ($3,570,784) $3,135,643
Primary Earnings Per Share:
Net (loss) income available
to common stockholders ($3,591,984) $3,135,643
Net (loss) income per common and
dilutive common equivalent share ($0.20) $0.19
Weighted average common and dilutive
common equivalent shares outstanding 17,677,217 16,484,713
Fully Diluted Earnings Per Share:
Net (loss) income available to
common stockholders ($3,591,984) $3,135,643
Net (loss) income per common and
dilutive common equivalent share ($0.20) $0.19
Weighted average common and dilutive
common equivalent shares outstanding 17,677,217 16,491,910
THE AEGIS CONSUMER FUNDING GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
SEPTEMBER 30, 1997
(unaudited)
Proforma Actual
ASSETS
Cash and cash equivalents $3,181,876 $3,181,876
Automobile finance receivables 63,538,260 63,538,260
Retained interests in securitized
receivables 32,531,513 32,531,513
Other assets, including fixed assets 12,495,386 12,809,860
Total $111,747,035 $112,061,509
LIABILITIES AND STOCKHOLDERS' EQUITY
Warehouse credit facilities $52,581,753 $52,581,753
Notes payable 34,327,089 34,327,089
Accounts payable, accrued expenses 14,304,414 15,221,748
Total 101,213,256 102,130,590
Subordinated debt -- 24,079,365
Stockholders' equity:
Common stock 176,772 176,772
Preferred stock 2,419 11
Paid-in-capital 47,004,051 22,324,234
Deficit (36,649,463) (36,649,463)
Total 10,533,779 (14,148,446)
Total stockholders' equity $111,747,035 $112,061,509
SOURCE Aegis Consumer Funding Group, Inc.