National Auto Finance Co. Announces Quarter Ending June 30, 1999
17 August 1999
National Auto Finance Company, Inc. Announces Quarter Ending June 30, 1999 Results
JACKSONVILLE, Fla.--Aug. 16, 1999--National Auto Finance Company, Inc. (OTC BB:NAFI) today announced that it filed its Quarterly Report on Form 10-Q today, which reflects a loss of $1.7 million or $(0.10) per share for the quarter ended June 30, 1999 vs. a loss of $4.3 million or $(0.48) for the quarter ended June 30, 1998. The loss of $1.7 million includes one-time financial restructuring expenses of approximately $900,000.
Commenting on the announcement, Keith B. Stein, Chief Executive Officer, said, "We are pleased to see trends continue in a positive direction. Considering the challenges this Company has seen during fiscal years 1997 and 1998, we are excited about the prospects for future profitability."
National Auto Finance is a specialized consumer finance company engaged in the purchase, securitization and servicing of automobile loans primarily originated by manufacturer-franchised automobile dealers for non-prime consumers. The Company markets its products and services to dealers through the efforts of its direct sales force and through strategic referral and marketing alliances with financial and other institutions that have established relationships with dealers. The Company has active contractual relationships with approximately 775 dealers in 35 states.
Except for the historical information contained herein, this news release contains statements that are forward-looking statements within the meaning of applicable federal securities laws and are based upon the Company's current expectations and assumptions which are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. Primary factors that could cause actual results to differ include the availability of financing on terms and conditions acceptable to the Company, the ability of the Company to securitize its finance contracts in the asset-backed securities market on terms and conditions acceptable to the Company, and changes in the quality or composition of the serviced loan receivable portfolio. Certain of these as well as other factors are described in more detail in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, and in certain other reports filed by the Company with the Securities and Exchange Commission.
NATIONAL AUTO FINANCE COMPANY, INC.
Balance Sheets
June 30, 1999 and December 31, 1998
(in thousands)
June 30, Dec. 31,
1999 1999
Assets: (unaudited)
-------- --------
Cash and cash equivalents $ 6,989 $ 9,540
Retained interest in securitizations,
at estimated fair value 34,053 34,117
Furniture, fixtures and equipment, net 3,483 3,277
Deferred financing costs 4,603 2,759
Other assets 1,294 1,039
-------- --------
Total assets $ 50,422 $ 50,732
======== ========
Liabilities:
Accounts payable and accrued expenses $ 2,083 $ 2,444
Accrued interest payable-related
parties 873 117
Junior Subordinated Notes-related
parties 2,096 1,940
Senior Subordinated Notes 54,113 53,578
Notes payable
777 1,017
-------- --------
Total liabilities $ 59,942 $ 59,096
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Commitments and Contingencies
Mandatory Redeemable Preferred Stock
series A-$0.01 par value; $1,000
stated value; 1,000,000 shares
authorized; 2,295 shares outstanding;
redeemable in January 2005,
stated at redemption value 2,496 2,415
Stockholders' Equity (Capital Deficit):
Common Stock -$0.01 par value;
20,000,000 shares authorized;
17,280,762 shares outstanding 173 90
Paid-in-capital 38,325 36,261
Accumulated deficit (50,514) (47,130)
-------- --------
Total stockholders' equity
(capital deficit) (12,016) (10,779)
-------- --------
Total liabilities, mandatory
redeemable preferred stock and
Stockholders' equity (capital deficit) $ 50,422 $ 50,732
======== ========
NATIONAL AUTO FINANCE COMPANY, INC.
Statements of Operations (unaudited)
For the Three and Six Months Ended June 30, 1999 and 1998
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30 June 30
-------------------- --------------------
1999 1998 1999 1998
Revenue: -------- -------- -------- --------
Securitization
related income $ 3,039 $ 1,380 $ 4,508 $ 1,454
Servicing income 1,411 1,643 2,859 2,915
Interest income 372 599 814 1,295
Other income 80 78 443 156
-------- -------- -------- --------
Total revenue 4,902 3,700 8,624 5,820
======== ======== ======== ========
Expenses:
Servicing expenses 736 2,326 1,593 4,630
Interest expense 2,105 2,112 4,210 3,643
Salaries and
employee benefits 1,158 1,659 2,232 3,302
Direct loan
acquisition
expenses 239 573 493 1,223
Depreciation expense 356 232 704 419
Other operating
expenses 1,943 1,088 2,855 2,025
-------- -------- -------- --------
Total expenses 6,537 7,990 12,087 15,242
-------- -------- -------- --------
Loss before
income taxes (1,635) (4,290) (3,463) (9,422)
Income taxes -- -- -- --
-------- -------- -------- --------
Net loss (1,635) (4,290) (3,463) (9,422)
Preferred stock
dividends 40 40 80 80
-------- -------- -------- --------
Loss attributed to
common shareholders $ (1,675) $ (4,330) $ (3,543) $ (9,502)
-------- -------- -------- --------
Per Share Data:
Loss per common share
- basic and diluted $ (0.10) $ (0.48) $ (0.28) $ (1.05)
Weighted average
common shares
outstanding:
Basic and diluted 16,731 9,031 12,881 9,031