Monaco Finance Initiates Corporate Restructuring to Reduce Costs
6 November 1998
Monaco Finance Initiates Corporate Restructuring to Substantially Reduce Operating Costs
DENVER, Colorado--Nov. 6, 1998--Company to Maximize Automation Benefits of its Advanced Technology
Monaco Finance, Inc. (Nasdaq SmallCap: MONFA), a sub-prime automobile lender, announced today a restructuring designed to substantially reduce operating costs.
The restructuring includes eliminating approximately 40 positions, which will streamline the Company's operations and will allow it to maximize the automation benefits of its advanced technology. Monaco's service and collection departments will be unaffected, reflecting the Company's commitment to maintaining its high standards of service and asset management control.
"After conducting a detailed analysis of Monaco's operations, it became abundantly clear the Company should not continue to function at its present staffing levels given current market conditions," said Cutrona, who was appointed Chief Executive Officer in July. "Access to the equity and capital markets has dramatically tightened over the past quarter. While we believe that these conditions are temporary, we must position the Company to deal with the current market environment."
Cutrona said Monaco expects to report a loss of $3.2 million for the three months ended September 30, which will be reported on November 13. He said the loss reflects the fact that the Company was not able to fully utilize its operating capacity. As reported in September, Cutrona said that he would develop strategic initiatives to enhance shareholder value.
Monaco Finance, which is based in Denver and operates in 29 states, is one of the nation's most experienced secondary auto finance companies specializing in acquiring, from automobile dealerships, retail installment contracts of purchasers of new and late model automobiles. Monaco has developed sophisticated credit evaluation systems and state-of-the-art loan monitoring programs to provide a solid platform for future growth.
The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, 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. Although the Company believes that the assumptions underlying the forward looking statements are reasonable, any of the assumptions could be inaccurate and therefore, there can be no assurance that the forward looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the forward looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.