AutoInfo, Inc. Announces First Quarter 1999 Results
14 May 1999
AutoInfo, Inc. Announces First Quarter 1999 Results
STAMFORD, Conn.--May 13, 1999--AutoInfo, Inc. (OTC BB:AUTO) today announced results of its operations for the first quarter ended March 31, 1999.The Company reported revenues of approximately $36,000 and a net loss of $480,000, or $.06 per share, as compared with revenues of $25,000 and a net loss of $569,000, or $.07 per share, for the quarter ended March 31, 1998, which included a loss from discontinued operations of $186,000. During 1998, the Company ceased to operate as an automobile finance company. In January 1999, the Company's wholly-owned non-prime automobile subsidiary filed a voluntary petition under Chapter 7 of the United States Bankruptcy Code. Accordingly, the net liabilities of this subsidiary have been reclassified as Investment in and advances to subsidiary subject to compromise as they may be affected by the outcome of this bankruptcy filing. Accordingly, the results of operations for its non-prime automobile operations have been reclassified as discontinued operations for the period ended March 31, 1998.
At March 31, 1999, the Company had cash and short term investments of approximately $1.4 million.
William Wunderlich, President and Chief Financial Officer of AutoInfo, stated, "We have continued to significantly reduce operating overhead subsequent to the close of the first quarter by negotiating a termination of our lease as well as other cost reductions. In addition, we are continuing to work toward the further restructuring of our remaining debt. 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, the 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
(Unaudited)
March 31,
1999 1998
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Revenue $ 35,000 $ 25,000
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Interest expense 246,000 15,000
Operating expenses 269,000 393,000
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515,000 408,000
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(Loss) income from
operations (480,000) (383,000)
Loss from discontinued
operations -- (186,000)
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Net (loss) income $ (480,000) $ (569,000)
=========== ===========
Basic and diluted net
loss per share:
From continuing operations ($ .06) ($ .05)
From discontinued
operations -- ( .02)
=========== ==========
Net loss per share ($ .06) ($ .07)
=========== ==========
Weighted average number
of shares outstanding 7,757,000 7,997,000
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CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1999 1998
----------------------------------
(Unaudited) (Audited)
Cash and short-term investments $ 1,427,000 $ 2,399,000
Investments in and advances
to subsidiary (742,000) (742,000)
Other assets 264,000 353,000
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Total assets $ 949,000 $ 2,010,000
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Subordinated notes and other debt $ 9,404,000 $ 10,038,000
Other liabilities 585,000 536,000
Stockholders' equity (9,040,000) (8,564,000)
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Total liabilities and
stockholders' equity $ 949,000 $ 2,010,000
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