AutoBond Announces Second Quarter 1999 Results
16 August 1999
AutoBond Announces Second Quarter 1999 Results and Updates Delinquency Statistics
AUSTIN, Texas, Aug. 16 -- AutoBond Acceptance Corporation
(Amex: ABD), ("AutoBond"), listed on the Amex under the symbol ABD, is
reporting a second quarter 1999 loss of $1.18 per share on a net loss of
$7,710,568.
AUTOBOND ACCEPTANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
1998 1999
(Unaudited)
ASSETS
Cash and cash equivalents $ 5,170,969 $ 372,374
Receivable from Dynex Capital, Inc. 6,573,107 ---
Finance contracts held for sale, net 867,070 5,680,606
Collateral acquired, net 70,957 106,700
Retained interest in
securitizations--Trading 4,586,908 3,419,684
Retained interest in
securitizations--Available for Sale 9,286,443 6,421,763
Debt issuance costs 729,206 552,824
Due from affiliates 396,015 416,187
Property, plant, and equipment, net 1,187,421 1,117,358
Other assets 1,463,046 1,060,255
Total assets $ 30,331,142 $19,147,751
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes Payable $ 10,166,969 $ 10,239,641
Non-recourse debt 3,185,050 2,017,826
Payables and accrued liabilities 1,324,951 1,087,278
Deferred income taxes 101,800 ---
Total liabilities $ 14,778,770 $ 13,344,745
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value;
5,000,000 shares authorized; $ 10,856,000 $ 10,856,000
1,125,000 shares of 15% Series
A cumulative preferred
stock, $10 liquidation preference,
issued and outstanding,
(Dividends in arrears of $843,750)
Common stock, no par value;
25,000,000 shares authorized; 1,000 1,000
6,531,311 shares issued and outstanding
Capital in excess of stated capital 8,291,481 8,291,481
Due from shareholders (10,592) (10,592)
(Accumulated deficit) (3,057,602) (12,806,968)
Investment in common stock agreement (527,915) (527,915)
Total shareholders' equity $15,552,372 $5,803,006
Total liabilities and
shareholders' equity $30,331,142 $19,147,751
AUTOBOND ACCEPTANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
1998 1999 1998 1999
Revenues:
Interest income $ 527,284 $ 616,391 $ 1,665,782 $ 1,080,377
Gain on sale of
finance contracts 2,768,879 215,099 6,636,820 1,754,285
Servicing income 811,348 979,366 1,317,942 1,985,140
Other income (205,864) 77,803 (79,716) 853,795
Total revenues 3,901,647 1,888,659 9,540,828 5,673,597
Expenses:
Provision for
credit losses --- --- 100,000 60,465
Interest expense 1,085,401 804,750 2,375,806 1,518,120
Salaries and
benefits 2,468,567 2,664,660 4,866,332 5,813,691
General and
administrative 1,790,620 1,817,064 2,874,884 3,686,387
Impairment of retained
interest in
securitizations 5,589,802 1,520,750 5,877,825 2,572,207
Other operating
expenses 879,815 873,028 1,528,869 1,873,893
Total expenses 11,814,205 7,680,252 17,623,716 15,524,763
Loss before
income taxes (7,912,558) (5,791,593) (8,082,888) (9,851,166)
(Benefit) provision for
income taxes (2,678,770) 1,497,100 (2,727,962) (101,800)
Net loss (5,233,788) (7,288,693) (5,354,926) (9,749,366)
Income attributable
to preferred stock 411,318 421,875 596,250 843,750
Net loss attributable
to common
shareholders $(5,645,106) $(7,710,568) $(5,951,176)$(10,593,116)
Delinquency Statistics:
AutoBond's overall delinquency trends, as reflected below, remain strong
from December 1997 when the Company assumed full servicing responsibilities
from its former servicer. Delinquencies as a percent of total outstanding
portfolio balance ($) for all trusts for the years ended December 31, 1997 and
December 31, 1998, and through July 1999, are:
Bucket December 1997 December 1998 July 1999
60-89 Days: 5.8% 3.7% 2.5%
90 + Days: 4.5% 2.5% 1.8%
Total 60+ Days: 10.3% 6.2% 4.3%
Improvement in Performance of Acquired Contracts:
Comparative seasoning delinquency statistics for 1997 and 1998, and 1998
since inception of the All Program, are:
MOS. 1997 PRODUCTION
OUT.
0 - 29 DAYS 30 - 59 DAYS 60 - 89 DAYS 90 + DAYS
0 99.8% 0.1% 0.0% 0.0%
1 96.9% 3.1% 0.1% 0.0%
2 91.7% 7.0% 1.2% 0.0%
3 83.8% 12.2% 3.6% 0.5%
4 78.8% 15.0% 4.7% 1.5%
5 76.9% 15.1% 5.8% 2.1%
6 77.8% 13.9% 5.9% 2.4%
7 78.6% 14.1% 5.3% 2.0%
8 80.2% 12.9% 5.2% 1.7%
9 81.3% 13.2% 4.3% 1.2%
10 81.8% 12.8% 4.6% 0.8%
11 82.5% 12.7% 4.4% 0.4%
12 82.4% 13.4% 4.0% 0.2%
13 82.3% 13.3% 4.3% 0.1%
14 82.3% 13.5% 4.1% 0.1%
15 83.6% 12.8% 3.5% 0.1%
16 82.4% 13.3% 4.2% 0.1%
17 82.8% 12.8% 4.3% 0.1%
18 82.6% 13.3% 3.9% 0.2%
19 82.3% 13.5% 4.2% 0.1%
20 83.2% 13.1% 3.6% 0.1%
21 83.0% 13.2% 3.6% 0.1%
22 83.1% 12.9% 3.8% 0.1%
23 82.3% 14.0% 3.7% 0.1%
24 84.0% 12.6% 3.3% 0.1%
25 83.6% 12.8% 3.3% 0.3%
26 83.7% 11.2% 4.7% 0.4%
27 84.2% 11.2% 4.4% 0.2%
MOS. 1998 PRODUCTION
OUT.
0 - 29 DAYS 30 - 59 DAYS 60 - 89 DAYS 90 + DAYS
0 99.9% 0.1% 0.0% 0.0%
1 98.1% 1.9% 0.0% 0.0%
2 95.4% 4.4% 0.3% 0.0%
3 92.5% 6.4% 1.0% 0.0%
4 90.6% 7.5% 1.9% 0.0%
5 89.4% 8.3% 2.3% 0.0%
6 88.7% 8.8% 2.5% 0.0%
7 87.6% 9.5% 2.8% 0.0%
8 87.5% 9.7% 2.8% 0.1%
9 86.9% 10.0% 3.0% 0.2%
10 86.6% 10.2% 2.9% 0.3%
11 87.6% 9.3% 2.8% 0.3%
12 88.0% 9.5% 2.2% 0.3%
13 88.3% 9.2% 2.3% 0.2%
14 86.9% 10.5% 2.6% 0.0%
15 86.4% 10.4% 3.2% 0.0%
16 86.0% 10.8% 3.3% 0.0%
17 84.4% 12.4% 3.2% 0.0%
18 85.7% 11.6% 2.7% 0.0%
MOS. ALL PROGRAM PRODUCTION
OUT.
0 - 29 DAYS 30 - 59 DAYS 60 - 89 DAYS 90 + DAYS
0 99.9% 0.1% 0.0% 0.0%
1 98.5% 1.5% 0.0% 0.0%
2 97.0% 2.9% 0.2% 0.0%
3 94.9% 4.5% 0.5% 0.0%
4 93.5% 5.4% 1.0% 0.1%
5 91.6% 6.7% 1.7% 0.0%
6 90.2% 7.8% 2.0% 0.0%
7 87.9% 9.2% 2.8% 0.0%
8 88.4% 9.1% 2.5% 0.0%
9 86.5% 11.2% 2.3% 0.0%
Impact of the AutoBond Lending Latitude (All) Program:
The Company continues to recognize the benefit and effectiveness of the
credit-scoring model incorporated into the AutoBond Lending Latitude (ALL)
Program. The positive delinquency performance of contracts funded through the
program, on a tier-by-tier basis, as noted below, reflects that contracts in
the first two acquisition tiers perform better than those in the third tier,
which in turn, perform better than those in the bottom tiers. This evident
trend proves the credit scoring model works as intended.
Delinquency statistics for contracts acquired through the All Program by
tier, from 10/1/98 through 1/31/99, follow as of July 31, 1999.
0-29 30-59 60-89 90+ 0-29 30-59 60-89 90+
DAYS DAYS DAYS DAYS DAYS DAYS DAYS DAYS
MOS.
OUT. Tier 1 and 2 Tier 3
0 100.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0%
1 99.7% 0.3% 0.0% 0.0% 98.4% 1.6% 0.0% 0.0%
2 98.0% 2.0% 0.0% 0.0% 97.5% 2.3% 0.2% 0.0%
3 97.4% 2.5% 0.1% 0.0% 95.4% 4.4% 0.3% 0.0%
4 95.9% 3.4% 0.6% 0.0% 94.4% 5.2% 0.4% 0.0%
5 94.8% 4.3% 0.9% 0.0% 92.9% 5.7% 1.4% 0.0%
6 92.9% 6.2% 0.9% 0.0% 92.3% 6.2% 1.5% 0.0%
7 92.7% 6.3% 1.0% 0.0% 91.2% 6.7% 2.1% 0.0%
8 92.9% 5.4% 1.7% 0.0% 92.0% 6.7% 1.3% 0.0%
9 91.4% 7.8% 0.8% 0.0% 90.0% 7.6% 2.4% 0.0%
MOS.
OUT. Tier 4 Tier 5
0 99.8% 0.2% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0%
1 98.6% 1.4% 0.0% 0.0% 97.8% 2.2% 0.0% 0.0%
2 96.8% 3.1% 0.1% 0.0% 96.1% 3.6% 0.3% 0.0%
3 94.3% 5.1% 0.6% 0.0% 94.1% 5.1% 0.8% 0.0%
4 93.7% 5.0% 1.3% 0.1% 90.7% 7.7% 1.5% 0.1%
5 92.0% 6.4% 1.6% 0.0% 87.5% 9.7% 2.7% 0.1%
6 90.2% 7.9% 1.9% 0.0% 86.4% 10.2% 3.3% 0.0%
7 87.2% 10.1% 2.7% 0.0% 82.6% 12.4% 4.8% 0.2%
8 86.7% 10.5% 2.8% 0.0% 84.5% 11.9% 3.6% 0.0%
9 83.8% 12.8% 3.4% 0.0% 84.2% 14.3% 1.5% 0.0%
AutoBond is a specialty consumer finance company engaged in underwriting,
acquiring, servicing, and securitizing retail installment contracts originated
primarily by franchised automobile dealers in connection with the sale of
used, and to a lesser extent, new vehicles to selected consumers with limited
access to traditional sources of credit. AutoBond is located in Austin, Texas
and is licensed to acquire contracts nationwide from dealers in approximately
40 states. AutoBond currently has 6,531,311 common and 1,125,000 preferred
shares outstanding.
NOTE: This is not an offer to buy or sell securities or assets of any
kind.