AutoInfo, Inc. Announces 1998 Year End Results
31 March 1999
AutoInfo, Inc. Announces 1998 Year End Results
MONTVALE, N.J.--March 31, 1998--AutoInfo, Inc. (OTC BB:AUTO) today announced results of its operations for the year ended December 31, 1998.The Company reported revenues of approximately $7.0 million and a net loss of approximately $9.9 million, or $1.25 per share. This loss includes an additional provision for credit losses on its portfolio of automobile receivables of approximately $3.9 million, a loss on the sale of its automobile finance receivables of approximately $3.5 million, and a restructuring charge relating to the discontinuance of its non-prime automobile business of $ 3.0 million. In addition, the Company reported a gain from the extinguishment of debt of approximately $3.7 million. At December 31, 1998, AutoInfo had cash and cash equivalents of approximately $2.4 million. In March 1999, the Company paid $585,000 in full settlement of a term loan.
The Company experienced material operating losses from its non-prime automobile finance business during the years 1996, 1997 and 1998. As a result of these losses, the adverse change in the non-prime automobile finance industry and the deterioration of the Company's financial condition, the Company determined to discontinue the operation of its non-prime automobile finance business.
William Wunderlich, President and Chief Financial Officer of AutoInfo, stated, "we have exited the non-prime automobile finance industry and have restructured our remaining debt to enable us to seek acquisition and investment opportunities. We have a tax loss carryforward of approximately $27 million and are seeking a transaction that will maximize the benefit of this asset and enable us to begin to rebuild shareholder value."
However, based upon the Company's poor financial condition, there are no assurances that the Company will be able to continue as a going concern.
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 INCOME
YEAR ENDED
DECEMBER 31,
1998 1997
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Revenue $ 7,004,000 $ 19,846,000
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Interest expense 4,685,000 8,146,000
Operating expenses 5,487,000 10,944,000
Loss on sale of automobile receivables 3,542,000
Write off of goodwill and other
intangibles -- 2,541,000
Provision for credit losses 3,942,000 12,456,000
Restructuring charge 2,972,000 867,000
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20,628,000 34,954,000
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Loss from operations (13,624,000) (15,108,000)
Income tax benefit -- (3,986,000)
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Loss from operations ($13,624,000) ($11,122,000)
Extraordinary item - gain on debt
extinguishments 3,689,000 --
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Net (loss) ($ 9,935,000) ($11,122,000)
Basic and diluted (loss) per share ($ 1.25) ($ 1.39)
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Weighted average number of shares
outstanding 7,960,000 8,009,000
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CONDENSED CONSOLIDATED BALANCE SHEETS
December 31,
1998 1997
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Net automobile receivables $ -- $ 78,481,000
Cash and short-term investments 2,399,000 4,749,000
Restricted cash -- 4,088,000
Refundable income taxes -- 3,411,000
Other assets 353,000 5,885,000
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Total assets $ 2,752,000 $ 96,614,000
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Revolving line of credit $ -- $ 67,936,000
Automobile receivables-backed notes -- 14,063,000
Subordinated notes and other debt 10,038,000 11,191,000
Other liabilities 1,278,000 2,113,000
Stockholders' equity (8,564,000) 1,311,000
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Total liabilities and stockholders'
equity $ 2,752,000 $ 96,614,000
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