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Union Acceptance's CEO John Stainbrook and CFO Rick Brown talk to The Wall Street Transcript

11 September 2000

Union Acceptance's CEO John Stainbrook and CFO Rick Brown talk to The Wall Street Transcript

    NEW YORK--Sept. 11, 2000--The Wall Street Transcript has published an in-depth interview with John Stainbrook, CEO, and Rick Brown, CFO, both at Union Acceptance , in which they talk at length about the company's future.
    The entire 1,900-word interview is available free online at http://www.twst.com/ceos.htm
    Stainbrook gives an overview of the company. "Union Acceptance Corporation (or UAC) is a spin-off of Union Federal Bank, one of the largest thrifts in Indiana. We operated as the consumer-lending department within the thrift here in Indianapolis for several years. In 1995, the thrift completed the spin-off of UAC and we became a publicly traded company. UAC is a specialized finance company. Our business is acquiring receivables from automobile dealers across the United States at profitable interest rate spreads. We're only doing business with new car franchised dealers and we are purchasing prime or near prime contracts from these dealerships. We service those receivables, collect them, and frequently securitize them in the public asset-backed market."
    Stainbrook explains, "Increasing the average number of contracts received per dealer translates into significant volume. We're currently operating in 39 states in over 60 major metropolitan areas, creating a tremendous opportunity for us to grow within these markets. Geographic growth is another strategy. Overall, there are approximately 15,000 new car franchise dealers that meet the criteria that we look at to do business. Currently, we are doing business with only 5,000 of those."
    Looking forward, Stainbrook states, "With respect to our future potential, based on our research, we operate in a market that exceeds $273 billion. Given that our fiscal 2000 acquisitions were $1.4 billion, there is tremendous potential for growth in this market."
    This interview is part of a 94-page Specialty Finance Industry Issue available at http://www.twst.com/info/info168.htm or by calling (212) 952-7433
    The Wall Street Transcript is a premier weekly investment publication serving serious long-term investors for over 37 years.
    The Wall Street Transcript has launched a new free service where investors can ask Union Acceptance (or any public company) a question at http://www.qawire.com
    The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations. For subscription information call (800) 246-7673.