AutoInfo, Inc. Announces Third Quarter 1998 Results
17 November 1998
AutoInfo, Inc. Announces Third Quarter 1998 Results
MONTVALE, N.J.--Nov. 16, 1998--AutoInfo, Inc. (OTC BB:AUTO) today announced results of its operations for the three and nine months ended September 30, 1998. For the three months ended September 30, 1998, the Company reported revenues of approximately $700,000 and a net loss of $5,451,000 or $ .68 per share. For the nine months ended September 30, 1998, the Company reported revenues of approximately $7.0 million and a net loss of $10,288,000 or $1.29 per share. These losses reflect the sale of portfolio assets, the write down of remaining portfolio assets as of September 30, 1998 to fair values, and the remaining estimated costs of restructuring as the Company ceases the operations of its non-prime automobile finance business. At September 30, 1998, the Company had cash and short term investments of approximately $4.2 million.Scott Zecher, President and Chief Executive Officer of AutoInfo, stated, "At this juncture, we have successfully completed transactions for the sale of all of our automobile receivables. We are actively seeking business opportunities which 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 enacted 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.
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)
Nine Months Ended Three Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues $ 6,973,000 $ 15,129,000 $ 715,000 $ 5,343,000
------------ ------------ ------------ ------------
Costs and
expenses:
Interest
expense 4,388,000 5,846,000 724,000 2,298,000
Operating
expenses 4,950,000 8,162,000 1,389,000 3,012,000
Provision
for credit
losses 3,938,000 5,317,000 -- 5,317,000
Loss on
sale of
automobile
receivables 3,542,000 -- 2,506,000 --
Other
expenses 2,146,000 617,000 1,547,000 617,000
------------ ------------ ------------ ------------
Total
operating
expenses 18,964,000 19,942,000 6,166,000 11,244,000
------------ ------------ ------------ ------------
(Loss) income
from
operations (11,991,000) (4,812,000) (5,451,000) (5,900,000)
Income tax
benefit -- (3,986,000) -- (3,264,000)
------------ ------------ ------------ ------------
Loss from
operations
before
extra-
ordinary
item (11,991,000) (826,000) (5,451,000) (2,636,000)
Extra-
ordinary
item -
gain on
debt
extinguish-
ment 1,703,000 -- -- --
------------ ------------ ------------ ------------
Net loss $(10,288,000) $ (826,000) $ (5,451,000) $(2,636,000)
============ ============ ============ ============
Basic and
diluted
loss per
share:
Loss before
extra-
ordinary
item $ (1.50) $ (.10) $ (.68) $ (.33)
Extraordinary
item .21 -- -- --
------------ ------------ ------------ ------------
Basic and
diluted
net loss
per share $ (1.29) $ (.10) $ (.68) $ (.33)
============ ============ ============ ============
Weighted
average
number of
common shares 7,997,000 8,019,000 7,997,000 8,019,000
------------ ------------ ------------ ------------
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1998 1997
-------------------------------------
(Unaudited) (Audited)
Net automobile receivables $ 1,018,000 $78,481,000
Cash and short-term investments 4,220,000 4,749,000
Restricted cash 26,000 4,088,000
Refundable income taxes -- 3,411,000
Other assets 841,000 5,885,000
----------- -----------
Total assets $ 6,105,000 $96,614,000
----------- -----------
Revolving line of credit $ 4,441,000 $67,936,000
Automobile receivables-backed notes -- 14,063,000
Subordinated notes and other debt 9,873,000 11,191,000
Other liabilities 755,000 2,113,000
Stockholders' (deficit) equity (8,964,000) 1,311,000
----------- -----------
Total liabilities and stockholders'
(deficit) equity $ 6,105,000 $96,614,000
----------- -----------