AutoBond Announces First Quarter Earnings
15 May 1998
AutoBond Announces First Quarter Earnings
AUSTIN, Texas, May 15 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the Amex under the symbol ABD, is
reporting a first quarter 1998 loss of $121,138 (fully diluted -$0.05 per
share) versus net income of $179,028 ($0.03 per share) for the first quarter
1997. The first quarter 1998 earnings per share calculation incorporates the
preferred stock dividend expected to be paid on June 30, 1998. Revenue for
the first quarter 1998 was $5,351,158 versus $4,288,571 for the first quarter
1997.
Due primarily to the completion of a preferred stock offering, total
shareholders' equity increased to $26,590,744 at March 31, 1998. This
reflects an increase in shareholders' equity of $11,419,553 from
December 31, 1997.
AutoBond's delinquencies decreased in the first quarter 1998, evidence of
both an improving credit trend and the benefits associated with in-house
servicing. As of the end of the first quarter 1998 the 60-89 days past due
delinquencies amounted to 3.37% (versus 5.85% at the end of 1997) and the
90 plus days past due delinquencies amounted to 5.15% (versus 4.47% at the end
of 1997). The static pool repossession experience through the first quarter
1998 was essentially stable and evidences declining default rates with
sufficient seasoning. For example, through the first quarter 1998, finance
contracts acquired in 1994 experienced gross annualized default rates below
7% while finance contracts acquired in 1995 experienced gross annualized
default rates below 10%.
AutoBond currently has 6,531,311 shares outstanding. 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 in
1997 acquired contracts nationwide from dealers in approximately 40 states.
AUTOBOND ACCEPTANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, March 31,
1997 1998
ASSETS
Cash and cash equivalents $159,293 $60,873
Restricted funds 6,904,264 12,539,071
Finance contracts held for sale, net 1,366,114 3,084,818
Collateral acquired, net 150,908 244,406
Class B certificates 7,878,306 7,899,649
Retained interest in beneficial
interest of trust 5,083,213 8,789,925
Interest-only strip receivables 9,427,986 10,092,548
Debt issuance cost 605,847 2,522,025
Trust receivable 9,627,144 8,861,634
Other assets 1,830,410 2,978,144
Total assets 43,033,485 57,073,093
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Revolving credit facilities $7,639,201 $4,679,740
Notes payable 9,841,043 15,237,728
Accounts payable and accrued
liabilities 3,386,685 1,509,271
Bank overdraft 2,936,883 3,168,151
Payable to affiliates 554,233 2,452,175
Deferred income taxes 3,504,249 3,435,284
Total liabilities 27,862,294 30,482,349
Commitments and contingencies
Shareholders' equity:
Preferred stock no par value; 5,000,000 shares
authorized; no and 1,150,000 shares of 15%
Series A cumulative preferred stock,
$10 liquidation preference, issued and
outstanding, respectively -- 11,250,000
Common stock, no par value; 25,000,000
shares authorized, 6,512,500 and
6,531,311 shares issued and outstanding 1,000 1,000
Additional paid-in capital 8,781,669 9,133,241
Due from shareholders (187,555) (210,055)
Unrealized appreciation on interest-only
strip receivables 1,049,256 1,010,875
Retained earnings 5,526,821 5,405,683
Total shareholders' equity 15,171,191 26,590,744
Total liabilities and
shareholders' equity $43,033,485 $57,339,403
AUTOBOND ACCEPTANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
March 31,
1997 1998
Revenues:
Interest income $514,092 $1,138,498
Gain on sale of finance contracts 3,575,747 3,867,941
Servicing fee income 191,819 506,593
Other income (loss) 6,913 (161,874)
Total revenues 4,228,571 5,351,158
Expenses:
Provision for credit losses -- 100,000
Interest expense 872,625 1,290,405
Salaries and benefits 1,539,654 2,397,765
General and administrative 1,216,024 1,084,264
Other operating expenses 389,014 649,054
Total expenses 4,017,317 5,521,488
Income before income taxes 271,254 (170,330)
Provision for income taxes 92,226 (49,192)
Net income (loss) 179,028 (121,l38)
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) on
interest-only strip receivables 203,409 (38,381)
Other comprehensive income (loss) 203,409 (38,381)
Comprehensive income (loss) $382,437 $(159,519)
Earnings per common share basic:
Net income (loss) $0.03 $(O.05)
Earnings per common share diluted:
Net income (loss) $0.03 $(O.05)
The accompanying notes are an integral part of the consolidated
financial statements.
SOURCE AutoBond Acceptance Corporation
