AutoInfo, Inc. Announces Second Quarter 1999 Results
17 August 1999
AutoInfo, Inc. Announces Second Quarter 1999 Results
STAMFORD, Conn.--Aug. 16, 1999--AutoInfo, Inc. (OTC BB:AUTO) today announced results of its operations for the six months and quarter ended June 30, 1999. For the six months ended June 30, 199, the Company reported revenues of $50,000 and a net loss of $1,021,000 or $ .13 per share, as compared with revenues of $52,000 and a net loss of $4,837,000, or $ .61 per share, for the six months ended June 30, 1998, which included a loss from discontinued operations of $5,613,000 and an extraordinary gain on debt extinguishment of $1,703,000. For the three months ended June 30, 1999, the Company reported revenues of $15,000 and a net loss of $541,000 or $ .07 per share as compared with revenues of $27,000 and a net loss of $4,268,000, or $ .53 per share, for the three months ended June 30, 1998, which included a loss from discontinued operations of $5,427,000 and an extraordinary gain on debt extinguishment of $1,703,000.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 June 30, 1999, the Company had cash and short term investments of approximately $1.1 million.
William Wunderlich, President and Chief Financial Officer of AutoInfo, stated, "we have continued to significantly reduce operating overhead during the second 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 OPERATIONS
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
1999 1998 1999 1998
--------- -------- ------- --------
Revenues $ 50,000 $ 52,000 $ 15,000 $ 27,000
---------- ----------- ----------- -----------
Costs and expenses:
Interest expense 484,000 34,000 238,000 19,000
Operating expenses 586,000 945,000 318,000 552,000
---------- ----------- ----------- -----------
Total operating
expenses 1,071,000 979,000 556,000 571,000
---------- ----------- ----------- -----------
Loss from continuing
operations (1,021,000) (927,000) (541,000) (544,000)
Loss from
discontinued
operations -- (5,613,000) -- (5,427,000)
----------- ----------- ---------- -----------
Loss from operations
before
extraordinary item (1,021,000) (6,540,000) (541,000) (5,971,000)
Extraordinary item
- gain on debt
extinguishment -- 1,703,000 -- 1,703,000
---------- ----------- ----------- -----------
Net (loss) income $(1,021,000) $(4,837,000) $ (541,000) $(4,268,000)
========== =========== =========== ===========
Basic and diluted
(loss) income per
share:
From continuing
operations $ (.13) $ (.12) $ (.07) $ (.07)
From discontinued
operations -- (.70) -- (.67)
Extraordinary item -- .21 -- .21
-------- ----------- ----------- -----------
Basic and diluted
net (loss) income
per share (.13) (.61) (.07) (.53)
======== =========== =========== ===========
Weighted average number
of common and
common equivalent
shares 7,997,000 8,008,000 7,997,000 8,019,000
---------- --------- --------- ---------
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1999 1998
---------------- ------------------
(Unaudited) (Audited)
Cash and short-term investments $ 1,150,000 $ 2,399,000
Investment in subsidiaries (742,000) (742,000)
Other assets 17,000 353,000
---------------- ------------------
Total assets $ 425,000 $ 2,010,000
---------------- ------------------
Subordinated notes and other debt $ 9,400,000 $ 10,038,000
Other liabilities 602,000 536,000
Stockholders' (deficit) equity (9,577,000) (8,564,000)
---------------- ------------------
Total liabilities and
stockholders' (deficit) equity $ 425,000 $ 2,010,000
---------------- ------------------