National Auto Credit Announces Results for Year End and Q4
16 May 2000
National Auto Credit Announces Financial Results for Year End and Fourth Quarter of Fiscal 2000
SOLON, Ohio, May 15 National Auto Credit, Inc.
(OTC Bulletin Board: NAKD) today announced financial results for its year
ended January 31, 2000 and the fourth quarter of fiscal year 2000.
For the year ended January 31, 2000, National Auto Credit had a net loss
of $13,315,000 or $.47 per share. Revenues declined 54.1% to $7,476,000. The
results include fiscal 2000 expenses relating to certain litigation and non-
recurring charges of $11,308,000, $4,666,000 for the write-down of assets held
for sale and $2,224,000 in costs relating to the repurchase of shares. For
the year ended January 31, 1999, National Auto Credit had a net loss of
$15,615,000 or $.55 per share on revenues of $16,279,000. The fiscal 1999 net
loss included non-recurring charges of $9,585,000.
For the three months ended January 31, 2000, the Company had a loss from
continuing operations of $4,053,000 or $.15 per share and a net loss of
$3,312,000 or $.12 per share. Revenues declined 27.9% to $2,031,000. The
results for the fourth quarter of fiscal 2000 include expenses relating to
certain litigation and non-recurring charges of $5,666,000 and $4,666,000 for
the write-down of assets held for sale. For the quarter ended January 31,
1999, National Auto Credit had a loss from continuing operations of $4,696,000
or $.16 per share and a net loss of $4,246,000 or $.15 per share on revenues
of $2,818,000. The fourth quarter 1999 net loss included non-recurring
charges of $2,997,000.
National Auto Credit had previously announced that in March 2000 it had
substantially sold all of the automobile retail installment loans remaining in
the Company's portfolio, and that in April 2000 the Company had purchased a
50% membership interest in Angelika Film Center, LLC which owns and operates
the Angelika Film Center. The Angelika is a multiplex cinema and cafe complex
in the Soho District of Manhattan in New York City. In releasing its annual
results the Company added that the sale of the loans will result in an
aggregate loss of approximately $2.1 million, which the Company will report in
the quarter ending April 30, 2000, and that the Company's Board of Directors
is considering various additional strategic business alternatives, including,
but not limited to, the purchase of one or more existing operating businesses
or the entry into one or more businesses.
National Auto Credit, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands, Except Share Amounts)
January 31,
2000 1999
ASSETS
Cash and cash equivalents $54,333 $32,109
Installment loans, net 29,306 70,401
Property and equipment, net of accumulated
depreciation of $5,219, and $5,262,
respectively 7,677 8,558
Assets held for sale 6,861 --
Affordable housing investments -- 10,270
Income taxes refundable 3,664 3,295
Other assets 2,121 2,659
TOTAL ASSETS $103,962 $127,292
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Self-insurance claims $ 4,089 $ 4,880
Accrued income taxes 2,926 6,510
Other liabilities 13,068 16,126
Total 20,083 27,516
COMMITMENTS AND CONTINGENCIES -- --
STOCKHOLDERS' EQUITY
Preferred stock - $.05 par value,
authorized 2,000,000 shares, none issued -- --
Common stock - $.05 par value,
authorized 40,000,000 shares, issued 29,963,301
and 29,982,512 shares, respectively 1,498 1,500
Additional paid-in capital 166,139 166,168
Retained deficit (69,104) (55,789)
Treasury stock, at cost, 4,195,598 and
1,345,968 shares, respectively (14,654) (12,103)
Total 83,879 99,776
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $103,962 $127,292
National Auto Credit, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
Twelve Months Ended Three Months Ended
January 31, January 31,
2000 1999 2000 1999
REVENUE
Interest income $7,331 $15,322 $2,015 $2,611
Fees and other
income 145 957 16 207
Total 7,476 16,279 2,031 2,818
COSTS AND EXPENSES
Provision for credit
losses (6,118) 2,961 (2,932) 766
Operating 10,272 11,078 1,925 2,744
General and
administrative 4,750 4,994 848 1,237
Litigation and non-
recurring charges 11,308 9,585 5,666 2,997
Write-down of
assets held for
sale 4,666 -- 4,666 --
Cost related to
purchase of shares 2,224 -- -- --
Interest (income)
expense (2,284) 3,726 (803) (230)
Total 24,818 32,344 9,370 7,514
LOSS FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES (17,342) (16,065) (7,339) (4,696)
Benefit for income
taxes (3,286) -- (3,286) --
LOSS FROM CONTINUING
OPERATIONS (14,056) (16,065) (4,053) (4,696)
DISCONTINUED
OPERATIONS,
NET OF TAX 741 450 741 450
NET LOSS $(13,315) $(15,615) $(3,312) $(4,246)
BASIC AND DILUTED
(LOSS) EARNINGS
PER SHARE
Continuing operations $(.50) $(.56) $(.15) $(.16)
Discontinued
operations .03 .01 .03 .01
Net loss per share $(.47) $(.55) $(.12) $(.15)
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING (000'S)
Basic and diluted 28,169 28,609 26,790 28,644