Financial Highlights
For Quarter and Six Month Periods Ended June 30, 1999 and 1998
Consolidated Results of Operations
(In thousands, except used cars sold and per share data)
Six Months ended Three Months ended
June 30, June 30,
--------------------- --------------------
1999 1998 1999 1998
--------- --------- --------- --------
Used cars sold 24,170 18,138 11,416 8,699
Total revenues $ 255,850 176,441 $ 125,732 88,737
Used car sales $ 204,319 142,496 $ 97,876 69,523
Cost of used cars
sold (115,656) (78,968) (55,559) (39,237)
Provision for
credit losses (55,196) (30,350) (26,635) (14,988)
--------- --------- --------- ---------
Net revenue from
dealerships 33,467 33,178 15,682 15,298
--------- --------- --------- ---------
Interest earnings 32,327 12,229 18,323 6,024
Gain on sale of
loans -- 8,273 -- 3,659
Servicing and
other earnings 19,204 13,443 9,533 9,531
Total operating
expenses (72,334) (53,073) (35,232) (28,193)
--------- --------- --------- ---------
Operating income 12,664 14,050 8,306 6,319
Interest expense (9,473) (2,871) (5,818) (1,369)
--------- --------- --------- ---------
Earnings before
income taxes 3,191 11,179 2,488 4,950
Income taxes (1,301) (4,507) (1,020) (2,007)
--------- --------- --------- ---------
Earnings (loss):
Continuing
operations 1,890 6,672 1,468 2,943
Discontinued
operations - net -- (5,595) -- --
--------- --------- --------- ---------
Net earnings $ 1,890 1,077 $ 1,468 2,943
Earnings per
share - basic:
Continuing operations $ 0.12 $ 0.36 $ 0.10 $ 0.16
Net earnings $ 0.12 $ 0.06 $ 0.10 $ 0.16
Earnings per
share - diluted:
Continued operations $ 0.12 $ 0.35 $ 0.10 $ 0.16
Net earnings $ 0.12 $ 0.06 $ 0.10 $ 0.16
Shares used in:
Basic computation 15,292 18,570 14,940 18,590
Diluted computation 15,495 18,930 15,210 18,980
For the Quarter and Six Months Ended June 30, 1999 and 1998
Consolidated Operating Expenses
(In Thousands)
Six Months ended Three Months ended
June 30, June 30,
----------------- -----------------
1999 1998 1999 1998
------- ------- ------- -------
Dealership Operations:
Dealerships -
retail operations
Selling and
marketing $11,935 9,096 5,571 4,218
General and
administrative 22,508 19,835 11,394 9,329
Depreciation
and amortization 1,653 1,228 862 615
------- ------- ------- -------
Dealerships -
retail operations 36,096 30,159 17,827 14,162
------- ------- ------- -------
Loan Servicing -
general and admin 9,150 8,834 4,566 4,279
Loan Servicing -
depr. and amort 562 648 280 311
Corporate and Other -
general and admin 9,959 6,075 4,621 3,456
Corporate and Other -
depr. and amort 1,058 450 537 249
------- ------- ------- -------
56,825 46,166 27,831 22,457
------- ------- ------- -------
Non Dealership Operations:
Cygnet Dealer Program 2,181 1,240 1,104 660
Cygnet Loan Servicing 11,502 4,369 5,356 4,369
Corporate and Other 1,826 1,298 941 707
------- ------- ------- -------
15,509 6,907 7,401 5,736
Total Operating Expenses $72,334 53,073 35,232 28,193
For the Quarter and Six Months Ended June 30, 1999 and 1998
Segment Information - Operating Income
(In Thousands)
For the six months ended June 30, 1999
------------------------------------------
Dealership Operations
------------------------------------------
Company Dealership Corporate
Dealerships Receivables and Other
------------------------------------------
Used car sales $ 204,319 -- --
Cost of used cars sold (115,656) -- --
Provision for credit losses (42,024) (11,529) --
Interest earnings -- 25,959 170
Servicing and other income 13 5,178 178
Operating expenses (36,096) (9,712) (11,017)
--------- --------- ---------
Operating income (loss) $ 10,556 9,896 (10,669)
Division Totals $ 9,783
Total Operating Income
------------------------------------------
Non Dealership Operations
------------------------------------------
Cygnet Loan Corporate
Dealer Servicing and Other
------------------------------------------
Used car sales -- -- --
Cost of used cars sold -- -- --
Provision for credit losses (1,643) -- --
Interest earnings 5,569 627 2
Servicing and other income 1,909 11,926 --
Operating expenses (2,181) (11,502) (1,826)
--------- --------- ---------
Operating income (loss) 3,654 1,051 (1,824)
Division Totals $ 2,881
Total Operating Income $ 12,664
For the Quarter and Six Months Ended June 30, 1999 and 1998
Segment Information - Operating Income
(In Thousands)
For the quarter ended June 30, 1999
---------------------------------------
Dealership Operations
---------------------------------------
Company Dealership Corporate
Dealerships Receivables and Other
---------------------------------------
Used car sales $ 97,876 -- --
Cost of used cars sold (55,559) -- --
Provision for credit losses (20,131) (5,658) --
Interest earnings -- 15,647 109
Servicing and other income 7 2,296 133
Operating expenses (17,827) (4,846) (5,158)
-------- -------- --------
Operating income (loss) $ 4,366 7,439 (4,916)
Division Totals $ 6,889
Total Operating Income
------------------------------------------
Non Dealership Operations
------------------------------------------
Cygnet Loan Corporate
Dealer Servicing and Other
------------------------------------------
Used car sales -- -- --
Cost of used cars sold -- -- --
Provision for credit losses (846) -- --
Interest earnings 2,251 315 1
Servicing and other income 1,862 5,235 --
Operating expenses (1,104) (5,356) (941)
-------- -------- --------
Operating income (loss) 2,163 194 (940)
Division Totals $ 1,417
Total Operating Income $ 8,306
Consolidated Balance Sheet Information
(In Thousands)
June 30, Dec. 31,
------------------- ----------
Assets: 1999 1998 1998
------- -------- -------- --------
Cash $ 1,302 1,651 2,751
Finance receivables, net 329,160 124,731 191,466
Used car inventory 37,810 34,742 44,167
Property & equipment, net 34,750 28,424 32,970
Intangible assets, net 14,985 15,852 15,530
Other assets 22,353 15,128 20,575
Discontinued operations, net 24,817 61,116 38,516
-------- -------- --------
465,177 281,644 345,975
Total Liabilities and
Stockholders' Equity:
---------------------
Accounts payable &
accrued expenses $ 35,884 24,664 22,173
Notes payable 232,952 48,190 117,294
Subordinated debt 36,943 25,000 43,741
-------- -------- --------
Total liabilities 305,779 97,854 183,208
-------- -------- --------
Total stockholders' equity 159,398 183,790 162,767
-------- -------- --------
465,177 281,644 345,975
Selected Balance Sheet Information
Finance receivables, net
(In Thousands)
June 30, Dec. 31,
--------------------- ------------
Company Dealership Originated: 1999 1998 1998
------------------------------ ---- ---- ----
Principal balances $ 256,645 32,156 93,936
Accrued interest 2,755 393 877
Loan origination costs 4,450 711 2,237
--------- --------- ---------
Principal balances,
net 263,850 33,260 97,050
Residuals in finance
receivables sold 22,559 28,418 33,331
Investments held in trust 36,581 17,894 20,564
--------- --------- ---------
Finance receivables 322,990 79,572 150,945
--------- --------- ---------
Allowance for credit losses (66,905) (5,950) (24,777)
--------- --------- ---------
Finance receivables,
net - dealerships 256,085 73,622 126,168
--------- --------- ---------
Cygnet Finance Programs:
Principal balances 77,366 44,650 51,282
Accrued interest 868 241 473
--------- --------- ---------
Principal balances, net 78,234 44,891 51,755
Residuals in finance
receivables sold 2,625 -- 2,625
Discount and allowance
on acquired loans (28,413) (11,917) (17,339)
--------- --------- ---------
Finance receivables,
net - Cygnet 52,446 32,974 37,041
Notes Receivable - Cygnet 20,629 18,135 28,257
--------- --------- ---------
Finance receivables, net $ 329,160 124,731 191,466
Finance Receivables and Allowance Credit Losses Information
Company Dealership Originations
(In Thousands)
Principal Balances
Attributable to: Retained Securitized Managed
-------------------- -------- ----------- -------
June 1999 $256,645 $126,945 $383,590
December 1998 $ 93,936 $198,747 $292,683
Delinquencies, as
Percent of Principal: Retained Securitized Managed
June 30, 1999, Over 60 Days 2.2% 3.3% 2.6%
June 30, 1999, 31 - 60 Days 3.9% 6.4% 4.7%
Over 30 Days 6.1% 9.7% 7.3%
December 31, 1998, Over 60 Days 0.5% 2.2% 1.9%
December 31, 1998, 31 - 60 Days 2.3% 5.2% 4.6%
Over 30 Days 2.8% 7.4% 6.5%
Allowance as % of
Remaining Principal Retained Securitized Managed
Dealership Portfolio - June 1999 26.1% 17.7% 23.3%
Dealership Portfolio - Dec. 1998 26.4% 20.6% 23.4% |
