Onyx Acceptance Reports Increased Earnings and Revenues for the Q2
22 July 1999
Onyx Acceptance Reports Increased Earnings and Revenues for the Second Quarter
Earnings per share increase 118%
FOOTHILL RANCH, Calif., July 22 -- Onyx Acceptance
Corporation announced today net income of $0.37 per diluted
share, or $2.4 million, for its second quarter ended June 30, 1999, compared
to net income of $0.17 per diluted share, or $1.1 million, for the quarter
ended June 30, 1998. The 118% increase in net income per diluted share
resulted from several factors. Total revenues for the second quarter of 1999
were $22.7 million compared to $13.7 million for the second quarter of 1998,
an increase of 66%. The increase in revenue was a result of the continued
expansion of the Company's servicing portfolio. The servicing portfolio
totaled $1.7 billion at June 30, 1999, compared to $1.0 billion at June 30,
1998, an increase of 70%. The growth in the servicing portfolio and the
increased volume of contracts purchased were the result of the continued
maturing of existing auto finance markets and penetration into new markets
during the second quarter of 1999. Contracts purchased were $374.1 million
for the second quarter of 1999 compared to $229.7 million for the second
quarter of 1998, an increase of 63%.
The Company securitized $350.0 million in retail installment contracts
during the second quarter, compared to a securitization amount of
$208.8 million for the same period in 1998. As a result, the Company recorded
a gain on sale of $14.5 million or 4.1% of securitized assets for the second
quarter of 1999 compared to $8.1 million or 3.9% of securitized assets for the
same period in 1998. The Company increased its off balance sheet reserves as
a percent of securitized assets to 4.20% at June 30, 1999, from 3.96% at June
30, 1998. Serviced contracts over 30 days delinquent were 2.13% at June 30,
1999, compared to 2.83% at December 31, 1998.
Net charge-offs improved to 1.71% of average serviced contracts
outstanding for the quarter ended June 30, 1999, compared to 1.78% for the
quarter ended June 30, 1998.
Onyx Acceptance Corporation is a specialized automobile finance company
based in Foothill Ranch, CA. Onyx provides financing to franchised and select
independent dealerships throughout the United States.
This news release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. The most significant among these risks and
uncertainties are (a) the Company's level of delinquencies, gross charge-offs
and net losses, (b) the ability to achieve adequate interest rate spreads, (c)
the effects of economic factors on consumer debt, and (d) the continued
availability of liquidity sources. Other important factors are detailed in
the Company's annual report on Form 10-K for the year ended December 31, 1998,
and on Form 10-Q for the quarter ended March 31, 1999.
Please visit the Onyx Acceptance web site at http://www.onyxco.com
ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
June 30, December 31,
1999 1998
ASSETS
CASH & CASH EQUIVALENTS $7,190,558 $1,928,991
CONTRACTS HELD FOR SALE
- Net of Allowance (1) 207,187,854 152,760,781
CREDIT ENHANCEMENT ASSETS 126,103,156 112,953,193
OTHER ASSETS 10,896,401 7,778,759
TOTAL ASSETS $351,377,969 $275,421,724
LIABILITIES AND EQUITY
LIABILITIES
DEBT $263,746,054 $209,600,061
OTHER LIABILITIES 39,236,780 21,997,942
TOTAL LIABILITIES 302,982,834 231,598,003
TOTAL EQUITY 48,395,135 43,823,721
TOTAL LIABILITIES AND EQUITY $351,377,969 $275,421,724
(1) Net of Unearned Discounts
ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
REVENUES:
Net Finance
Revenue 2,391,960 1,604,809 3,923,129 3,264,373
Gain on Sale of
Loans 14,469,784 8,083,093 26,797,368 16,234,203
Service Fee Income 5,811,182 4,039,365 11,520,535 6,008,006
Total Revenues 22,672,926 13,727,267 42,241,032 25,506,582
EXPENSES:
Provision for
credit losses 249,068 324,819 748,982 631,807
Operating Expenses 18,323,539 11,530,555 33,677,667 21,733,891
Total Expenses 18,572,607 11,855,374 34,426,649 22,365,698
NET INCOME BEFORE
INCOME TAXES 4,100,319 1,871,893 7,814,383 3,140,884
INCOME TAXES 1,701,633 776,835 3,242,969 1,303,466
NET INCOME $2,398,686 $1,095,058 $4,571,414 $1,837,418
NET INCOME
PER SHARE - BASIC $0.39 $0.18 $0.74 $0.30
NET INCOME
PER SHARE - DILUTED $0.37 $0.17 $0.71 $0.28
BASIC SHARES
OUTSTANDING 6,171,034 6,092,400 6,171,034 6,058,610
DILUTED SHARES
OUTSTANDING 6,512,022 6,533,804 6,463,234 6,477,178
ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES
DELINQUENCY AND LOSS RATES
(UNAUDITED)
(In Thousands)
June 30, 1999 December 31, 1998
Delinquency Experience
Number of Number of
Contracts $ Contracts $
Servicing Portfolio 169,309 $1,729,338 131,862 $1,345,961
Serviced Delinquency
31 to 59 days 2,294 $21,800 2,766 $26,410
60 to 89 days 783 7,891 691 6,876
90 days or more 673 7,130 455 4,790
Total 3,750 $36,821 3,912 $38,076
Delinquency as a
percentage of number and
amount of contracts 2.21% 2.13% 2.97% 2.83%
Three Months Ended Six Months Ended
Loss Experience June 30, June 30,
1999 1998 1999 1998
Average Contracts
Serviced during
the period $1,629,129 $935,391 $1,532,269 $875,657
Gross Charge-offs $8,062.3 $4,917.2 $15,101.9 $9,374.8
Recoveries $1,108.4 $761.8 $1,927.0 $1,457.6
Net Charge-offs $6,953.9 $4,155.4 $13,174.9 $7,917.2
Net Charge-offs
as a percentage 1.71% 1.78% 1.72% 1.81%
of contracts
outstanding during
the period
Onyx Acceptance Corporation
Static Pool Information for securitized pools outstanding for the period from
the date of securitization through June 30, 1999
Trust 96-1 96-2 96-3 96-4 97-1 97-2 97-3 97-4
Month
1 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 0.03% 0.07% 0.02% 0.02% 0.00% 0.00% 0.00% 0.00%
3 0.05% 0.20% 0.07% 0.05% 0.03% 0.02% 0.02% 0.01%
4 0.11% 0.33% 0.16% 0.14% 0.06% 0.07% 0.09% 0.04%
5 0.23% 0.46% 0.43% 0.24% 0.13% 0.22% 0.13% 0.11%
6 0.40% 0.78% 0.54% 0.38% 0.26% 0.32% 0.24% 0.20%
7 0.69% 0.98% 0.74% 0.53% 0.37% 0.59% 0.36% 0.28%
8 0.82% 1.15% 0.97% 0.81% 0.52% 0.80% 0.47% 0.43%
9 0.93% 1.39% 1.13% 0.98% 0.60% 0.91% 0.62% 0.55%
10 1.15% 1.52% 1.32% 1.18% 0.76% 1.07% 0.73% 0.72%
11 1.25% 1.69% 1.47% 1.43% 0.92% 1.26% 0.81% 0.87%
12 1.47% 1.94% 1.60% 1.63% 1.02% 1.42% 0.94% 0.95%
13 1.65% 2.08% 1.77% 1.73% 1.13% 1.58% 1.10% 1.08%
14 1.79% 2.34% 1.94% 1.87% 1.23% 1.68% 1.23% 1.19%
15 2.02% 2.52% 2.09% 2.07% 1.40% 1.80% 1.38% 1.36%
16 2.25% 2.76% 2.27% 2.23% 1.56% 1.97% 1.58% 1.42%
17 2.43% 2.89% 2.42% 2.33% 1.68% 2.10% 1.68% 1.52%
18 2.59% 3.10% 2.57% 2.49% 1.75% 2.23% 1.77% 1.64%
19 2.77% 3.14% 2.70% 2.62% 1.85% 2.35% 1.91% 1.75%
20 2.93% 3.30% 2.83% 2.73% 1.92% 2.48% 2.04%
21 3.06% 3.47% 2.94% 2.84% 1.98% 2.59% 2.11%
22 3.15% 3.60% 3.00% 2.93% 2.09% 2.72% 2.20%
23 3.21% 3.70% 3.08% 3.02% 2.17% 2.81%
24 3.28% 3.81% 3.17% 3.10% 2.22% 2.85%
25 3.40% 3.93% 3.28% 3.22% 2.31% 2.93%
26 3.43% 4.06% 3.38% 3.29% 2.38%
27 3.55% 4.13% 3.43% 3.39% 2.44%
28 3.60% 4.22% 3.54% 3.46% 2.50%
29 3.73% 4.23% 3.59% 3.58%
30 3.75% 4.29% 3.69% 3.61%
31 3.79% 4.31% 3.77% 3.64%
32 3.85% 4.33% 3.75%
33 3.88% 4.37% 3.77%
34 3.90% 4.39% 3.79%
35 3.94% 4.39%
36 3.94% 4.42%
37 3.94% 4.42%
38 3.99% 4.43%
39 3.96%
40 3.96%
41 3.95%
Trust 98-1 98-A 98-B 98-C 99-A 99-B
Month
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 0.01% 0.01% 0.00% 0.02% 0.00% 0.00%
3 0.02% 0.03% 0.02% 0.02% 0.02%
4 0.08% 0.07% 0.08% 0.04% 0.05%
5 0.14% 0.14% 0.19% 0.15% 0.11%
6 0.24% 0.23% 0.33% 0.27%
7 0.40% 0.37% 0.45% 0.46%
8 0.53% 0.55% 0.61% 0.57%
9 0.68% 0.73% 0.82%
10 0.85% 1.03% 0.95%
11 1.04% 1.28%
12 1.20% 1.54%
13 1.33% 1.77%
14 1.46%
15 1.61%
16 1.71%
17
18
19
20
21
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23
24
25
26
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28
29
30
31
32
33
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35
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