AutoInfo, Inc. Announces Second Quarter 1998 Results
11 August 1998
AutoInfo, Inc. Announces Second Quarter 1998 Results
MONTVALE, N.J.--Aug. 10, 1998--AutoInfo, Inc. (OTC BB:AUTO) today announced results of its operations for the six months and quarter ended June 30, 1998.For the six months ended June 30, 1998, the Company reported revenues of approximately $6.3 million and a net loss of $ 4,837,000 or $ .61 per share. For the three months ended June 30, 1998, the Company reported revenues of approximately $2.3 million and a net loss of $4,268,000 or $ .53 per share These losses include a provision for credit losses of $3,938,000 in both periods and net losses of $1,035,000 and $699,000, respectively, on the sale of automobile receivables. These losses reflect the Company's activity in restructuring operations and the sale of portfolio assets as well as the write down of remaining portfolio assets as of June 30, 1998 to fair values. At June 30, 1998, the Company had cash and short term investments of approximately $3.3 million and expects to receive tax refunds during 1998 aggregating approximately $3.0 million.
Scott Zecher, President and Chief Executive Officer of AutoInfo, stated, "During the second quarter, w e continued the implementation of our restructuring plan. The plan includes, among several additional elements, the strategic sale of certain portfolio assets. During the first six months and in July 1998, we successfully completed transactions for the sale of approximately $44 million of automobile receivables. In addition, as previously reported, in April 1998 we successfully retired $2 million of subordinated debt resulting in an extraordinary gain of $1.7 million. We are continuing to strive to return the Company to a solid financial base upon which to build shareholder value."
During the second quarter, the Company's common stock was delisted from the NASDAQ National Market System and moved to the NASDAQ Small Cap Market based upon the Company's failure to meet recently approved maintenance requirements. In July 1998, the Company's stock was delisted from the NASDAQ Small Cap Market. Trading in the Company's common stock is currently conducted on the OTC Bulletin Board of the National Association of Securities Dealers, Inc. under the symbol AUTO.
AutoInfo, Inc. is a specialized consumer finance company that services retail installment contracts from automobile dealers selling new and used vehicles to non-prime customers.
This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expected or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance that forward-looking statements will prove to be accurate.
AUTOINFO, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
Revenues $ 6,258,000$ 9,786,000 $ 2,337,000 $ 5,381,000
Costs and expenses:
Interest expense 3,664,000 3,548,000 1,501,000 1,978,000
Operating expenses 3,561,000 5,150,000 1,570,000 2,675,000
Provision for credit
losses 3,938,000 - 3,938,000 -
Loss on sale of
automobile
receivables 1,035,000 - 699,000 -
Other expenses 600,000 600,000
Total operating
expenses 12,798,000 8,698,000 8,308,000 4,653,000
(Loss) income from
operations (6,540,000) 1,088,000 (5,971,000) 728,000
Income tax benefit - (722,000) - (833,000)
(Loss) income from
operations before
extraordinary item (6,540,000) 1,810,000 (5,971,000) 1,561,000
Extraordinary item -
gain on debt
extinguishment 1,703,000 - 1,703,000 -
Net (loss) income $(4,837,000)$1,810,000 $(4,268,000) $1,561,000
========== ========= ========== =========
Basic and diluted
(loss) income
per share:
(Loss) income
before extraordinary
item $ (.82) $ .22 $ (.74) $ .19
Extraordinary item
.21 - .21 .21
Basic and diluted
net (loss)income
per share $ (.61)$ .22 $ (.53) $ .19
========== ========= ========== =========
Weighted average number of
common and common equivalent
shares 7,997,000 8,008,000 7,997,000 8,019,000
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1998 1997
---------------- ----------------
(Unaudited) (Audited)
Net automobile receivables $ 19,763,000 $ 78,481,000
Cash and short-term investments 3,298,000 4,749,000
Restricted cash 3,262,000 4,088,000
Automobile receivables available 6,478,000 -
for sale
Refundable income taxes 3,002,000 3,411,000
Fixed assets 1,621,000 2,099,000
Other assets 1,663,000 3,786,000
Total assets $ 39,087,000 $ 96,614,000
---------------- ----------------
Revolving line of credit $ 24,188,000 $ 67,936,000
Automobile receivables-backed notes 8,027,000 14,063,000
Subordinated notes and other debt 9,056,000 11,191,000
Other liabilities 1,333,000 2,113,000
Stockholders' (deficit) equity (3,517,000) 1,311,000
---------------- ----------------
Total liabilities and stockholders'
(deficit) equity $ 39,087,000 $ 96,614,000
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