Smart Choice Announces New Director and Record Portfolio Performance
14 May 1998
Smart Choice Announces New Director and Record Portfolio Performance
TITUSVILLE, Fla., May 14 -- Smart Choice Automotive Group,
Inc. , a leading consolidator of the 'dealer-financed' used car
retailing industry in the Southeastern United States, today announced that
John W. Holden, Jr. has joined the Company's Board of Directors.
Mr. Holden is founder, president and chief executive officer of Pioneer
Credit Company, a Tennessee-based consumer finance company with over 52
offices in the southeastern United States. Closely-held Pioneer Credit
Company provides consumer and auto loans, first and second mortgages, and
loans for personal, medical, furniture, home improvement, and other needs of
its customers. Prior to his founding of Pioneer Credit in 1974, Mr. Holden
was senior vice president with American Credit Corporation in Charlotte, North
Carolina.
During his 38-year career in the consumer finance industry, Mr. Holden has
served on numerous boards and committees, and he is currently on the Boards of
Directors of the Tennessee, Kentucky and Mississippi Consumer Finance
Associations.
The appointment of John Holden to the Company's Board of Directors follows
the announcement on April 21, 1998 that Jeffrey D. Congdon has also joined
Smart Choice Automotive Group as a director. Mr. Congdon is vice chairman of
Budget Group, Inc. and president of Budget Car Sales, Inc. His
operating and strategic responsibilities include Budget Car Sales, Inc.,
Premier Car Rental and Van Pool Services, Inc.
"We are extremely pleased that John Holden and Jeff Congdon have agreed to
serve on our Board of Directors," commented Gary R. Smith, president and chief
executive officer of Smart Choice Automotive Group, Inc. "Their years of
experience in consumer finance and automobile retailing should prove
invaluable as we move forward in our strategy of consolidating the used-car
retailing and finance industry in the Southeastern United States."
In a separate announcement, Smart Choice reported that delinquency rates
within customer loan portfolios at the Company's Florida Finance Group
subsidiary reached an all-time low during the month of April 1998. As of
April 30, 1998, 93.9% of Florida Finance Group's customer accounts were
current on their installment loan payments. This compares with the previous
record of 92.8%.
"The quality of our installment loan portfolio continues to reflect the
benefits of consolidating a number of entrepreneurial finance companies under
the Florida Finance Group umbrella," noted Joseph Mohr, chief financial
officer of Smart Choice Automotive Group, Inc. "Low delinquencies and strong
cash collections are critically important to the success of subprime lending
activities. The recent expansion in our credit line with FINOVA Capital
Corporation, from $35 million to $75 million, will enhance Smart Choice's
ability to finance used cars sold by its First Choice Auto Finance
dealerships."
As of April 30, 1998, Florida Finance Group's captive loan portfolio was
comprised of $78.3 million in gross installment receivables.
Smart Choice Automotive Group, Inc. operates a network of 24 new and used
car dealerships in the Southeastern United States. The Company underwrites,
finances and services retail installment contracts generated from the sale of
used cars by its dealerships. Its Eckler's Industries subsidiary is one of
the world's largest aftermarket suppliers of Corvette parts and accessories.
The Company also provides training and insurance services to automobile
dealerships throughout the United States.
Smart Choice Automotive Group, Inc. is headquartered in Titusville,
Florida and its common stock trades on Nasdaq under the symbol "SMCH".
This press release includes statements that may constitute "forward-
looking" statements, usually containing the words "believe," "estimate,"
"project," "expect" 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 the
forward-looking statements. Factors that would cause or contribute to such
differences include, but are not limited to, continued acceptance of the
Company's products in the marketplace, competitive factors, dependence upon
third-party vendors, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission. By making these forward-
looking statements, the Company undertakes no obligation to update these
statements for revisions or changes after the date of this release.
SOURCE Smart Choice Automotive Group, Inc.