National Auto Credit Announces Financial Results for Second Quarter Fiscal 2001
14 September 2000
National Auto Credit Announces Financial Results for Second Quarter Fiscal 2001
SOLON, Ohio, Sept. 13 National Auto Credit, Inc.
(OTC Bulletin Board: NAKD) today announced financial results for its second
fiscal quarter ended July 31, 2000 and first six months of its fiscal year
2001.
For the three months ended July 31, 2000, the Company had a loss from
continuing operations of $815,000 or $0.02 per share on the basis of
34,757,000 average shares outstanding and a net loss of $139,000. For the
comparable three months ended July 31, 1999, the Company had a loss from
continuing operations and net loss of $4,697,000 or $0.16 per share on
28,641,000 average shares outstanding. Revenues for the second quarter of
fiscal 2001 declined to $1,379,000 from $2,206,000 for second quarter for
fiscal 2000. Costs and expenses declined to $2,194,000 for the three months
ended July 31, 2000 from $6,903,000 for the second quarter of fiscal 2000.
Revenues declined due to the Company's sale, in March 2000, of substantially
all of its loans. The decline in interest income from loans was partially
offset by interest earned from the Company's investment of the proceeds of the
sales. Costs and expenses declined as the result of the reduction of the
Company's staffing levels which began in the last quarter of fiscal 2000 and
were completed in the second quarter of fiscal 2001 when the Company completed
the sale of its loans and ceased its loan underwriting, processing and
collection activities. The results for the second quarter of fiscal 2001
include a gain of $695,000 from loan sales during the quarter, charges of
$500,000 recorded when the Company's option to acquire additional
entertainment assets from Reading Entertainment, Inc. ("Reading") expired
unexercised and $723,000 to write-down certain assets being held for sale.
The net loss for the second quarter of fiscal 2001 also included income from
discontinued operations of $676,000, or $.02 per share, reflecting the
favorable settlement of certain self-insurance claims relating to the
Company's discontinued automobile rental operations.
For the six months ended July 31, 2000, the Company had a loss from
continuing operations of $6,538,000 or $0.21 per share and a net loss of
$5,862,000 or $0.19 per share on the basis of 31,546,000 average shares
outstanding. For the comparable first half of fiscal 2000, the Company had a
loss from continuing operations and net loss of $8,840,000 or $0.31 per share
on 28,636,000 average shares outstanding. Revenues for the first half of
fiscal 2001 declined to $2,871,000 from $4,778,000 'for the six months ended
July 31, 1999. Costs and expenses declined to $9,409,000 for the six months
ended July 31, 2000 from $13,618,000 for the first half of fiscal 2000. Both
revenues and expenses decreased due to the decline in the size of the
Company's loan portfolio and the eventual sale, in March 2000, of
substantially all of the Company's loans. The decline in interest income from
loans was partially offset by interest earned from the Company's investment of
the proceeds of the sales. The results of the first half of fiscal 2001
include aggregate losses of $1,709,000 from loan sales, the $500,000 charge
relating to the unexercised Reading option and write-down of assets held for
sale of $874,000.
At July 31, 2000, the Company had cash and cash equivalents of $55,351,000
and marketable securities of $19,804,000.
National Auto Credit, Inc.
Condensed Consolidated Balance Sheets
(In Thousands, Except Share Amounts)
(Unaudited)
July 31, January 31,
2000 2000
ASSETS
Cash and cash equivalents $55,351 $54,333
Marketable securities 19,804 -
Installment loans, net - 29,306
Investment in AFC 10,567 -
Property and equipment, net
of accumulated depreciation
of $5,130, and $5,219, respectively 6,824 7,677
Assets held for sale 6,138 6,861
Income taxes refundable 3,663 3,664
Other assets 2,138 2,121
TOTAL ASSETS $104,485 $103,962
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Self-insurance claims $2,425 $4,089
Accrued income taxes 2,306 2,926
Other liabilities 12,234 13,068
Total 16,965 20,083
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY
Preferred stock - $.05 par value,
authorized 2,000,000 shares, issued
100 and 0 shares, respectively - -
Common stock - $.05 par value
authorized 40,000,000 shares, issued
36,712,319 and 29,963,301 shares,
respectively 1,836 1,498
Additional paid-in capital 173,075 166,139
Retained deficit (80,368) (69,104)
Accumulated other comprehensive income (185) -
Treasury stock, at cost, 1,957,945
and 4,195,598 shares, respectively (6,838) (14,654)
Total 87,520 83,879
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $104,485 $103,962
National Auto Credit, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
July 31, July 31,
2000 1999 2000 1999
REVENUE
Interest income from loans $- $1,684 $404 $3,786
Interest income from
investments 1,304 480 2,284 905
Income from AFC investment 60 - 60 -
Other income 15 42 123 87
Total 1,379 2,206 2,871 4,778
COSTS AND EXPENSES
Provision for credit
losses (166) (368) (1,022) (186)
(Gain)loss on sale of loans (695) - 1,709 -
Operating 156 2,653 1,439 5,726
General and administrative 1,269 1,087 2,494 2,593
Litigation and non-recurring
charges 407 2,031 3,415 3,985
Cost related to purchase of
shares - 1,500 - 1,500
Write-down of assets held
for sale 723 - 874 -
Write-off of option 500 - 500 -
Total 2,194 6,903 9,409 13,618
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (815) (4,697) (6,538) (8,840)
Provision for income taxes - - - -
LOSS FROM CONTINUING
OPERATIONS (815) (4,697) (6,538) (8,840)
DISCONTINUED OPERATIONS,
NET OF TAX 676 - 676 -
NET LOSS $ (139) $(4,697) $(5,862) $(8,840)
BASIC AND DILUTED (LOSS)
EARNINGS PER SHARE
Continuing operations $(.02) $(.16) $(.21) $(.31)
Discontinued operations .02 - .02 -
Net (loss) earnings
per share $- $(.16) $(.19) $(.31)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING
Basic and diluted 34,757 28,641 31,546 28,636