AmeriCredit Corp., Fort Worth, Texas
Record net income of $17.4 million for the fiscal quarter ending Dec. 31, 45.9 percent ahead of the year-ago quarter. For the six months ended Dec. 31, the company purchased $1.2 billion worth of auto loans, nearly double the year-ago period. AmeriCredit plans to have at least 174 branch offices this year, compared with 108 at the end of 1997.
Consumer Portfolio Services, Irvine, Calif.
Net income rose 29.5 percent in the third quarter of 1998, to $6.2 million. Year to date, net income gained 33.1 percent to $17.8 million. The company sold $240.3 million worth of contracts in the third quarter, up 60.2 percent. The company said in its third-quarter report that from then on, it would not exceed $200 million worth of contracts per quarter. Consumer Portfolio had signed up 4,381 dealers as of Sept. 30.
Credit Acceptance Corp., Southfield, Mich.
Net income of $5.6 million for the third quarter of 1998, vs. a loss of $27.7 million in the year-ago quarter. The company is using more conservative standards that reduced originations but increased collections. Originations for the first nine months of 1998 were $478 million, down from $776 million in the year-ago period.
First Investors Financial Services, Houston
Net income of $389,000 for the fiscal quarter ended Oct. 31, 1998, on a portfolio of about $156 million. Earnings were down 27 percent compared with the year-ago quarter. Operates in 23 states, with about 2,000 dealers signed up. First Investors acquired Atlanta-based Auto Lenders Acceptance Corp. in October 1998. That roughly doubled the size of the company.
Household International, Prospect Heights, Ill.
More than doubled its auto lending portfolio in 1998, from $883 million at the end of 1997, to almost $1.8 billion. Including other business areas such as credit cards, net income for the giant consumer lender jumped 71 percent in the fourth quarter of 1998, to $350 million.
Onyx Acceptance Corp., Foothill Ranch, Calif.
Does not consider itself 'subprime' per se, rather prime-risk and 'near-prime.' Net income of $6.1 million in 1998, vs. $1.3 million in 1997. Bought $1 billion in contracts in 1998, up 72 percent.
TFC Enterprises Inc., Norfolk, Va.
Does business as the Finance Co., a specialist in loans to the military. Bought $197.1 million worth of loans in 1998, up 27 percent. Net income of $4 million in 1998, vs. $707,000 in 1997. The company lost $6.8 million in 1996.
Aegis Consumer Funding Group Inc., Marietta, Ga.
Reported Feb. 19 that it was sold to a new majority shareholder, Prairie Boy's Investments Inc. of Largo, Fla. Aegis said its previous majority shareholder and largest creditor, III Finance Ltd., would cut off its funding this month.
Arcadia Financial Ltd., Minneapolis
Earned $5 million net income in the fourth quarter of 1998 but had a net loss of $83.2 million for the full year, exceeding a loss of $59 million in 1997. By the end of 1998, the company stopped buying certain high-risk loans and stopped retailing repossessed vehicles. Changed its name from Olympic Financial Ltd. in April 1997.
Asta Funding Inc., Englewood Cliffs, N.J.
Lost $3 million in the fiscal year ended Sept. 30, 1998. Licensed in 10 Eastern states, Asta has an auto portfolio of about $14.5 million, said CFO Mitchell Herman. Besides its auto lending business, the company in 1998 went into the 'distressed receivables' business, buying nonperforming loans from banks.
AutoBond Acceptance Corp., Austin, Texas
AutoBond stopped originating new loans Feb. 9 in a dispute with its primary lender, Dynex Capital Inc. Meanwhile, AutoBond is seeking new financing, said CFO Adrian Katz. In the third quarter of 1998, the company had a net loss of $2.1 million, vs. a profit of $512,000 in the year-ago quarter.
Eagle Finance Corp., Gurnee, Ill.
Stopped originating subprime auto loans at the end of 1997 but continues to service a portfolio of around $37 million. President Bob Braasch said March 3 that the company expects Ameristar Financial Co. to acquire Eagle Finance this month, and the company will continue to service loans for other lenders.
Monaco Finance Inc., Denver
Reported Feb. 17 its sole source of working capital, Pacific USA Holdings Corp. - which also controls a majority of shareholder votes - was stopping funding. Appointed James Moran as CEO on Feb. 17, but he quit a week later. Monaco lost $3.2 million in the third quarter of 1998, double a year-ago loss, even though revenues increased 56 percent at the same time.
National Auto Credit Inc., Solon, Ohio
Has not reported earnings since December 1997, when it announced a loss of $18.4 million for the quarter ended Oct. 31, 1997. Its auditors then quit, saying they 'could no longer rely on management's representations.' The stock was delisted from the New York Stock Exchange. Today, the company plans a comeback. It named a new president, Richard Cohen, in January.
National Auto Finance Co., Jacksonville, Fla.
Lost $5.7 million in the third quarter of 1998, vs. a loss of $8.8 million in the year-ago quarter. The company broke some of its agreements last year with its lender, First Union National Bank.
NAL Acceptance, Margate, Fla.
An insurance company, Conseco Inc. of Carmel, Ind., bought a majority interest last year. Conseco also owns the former General Acceptance Corp. of Bloomington, Ind., now known as Consumer Acceptance Corp. Between the two, Conseco has about a $300 million subprime auto portfolio, said Conseco CFO Jim Rosensteele. The former NAL Financial Group Inc. filed for Chapter 11 bankruptcy protection in March 1998 and came out of bankruptcy last fall. It services but no longer originates loans. Conseco's strategy is for Consumer Acceptance to generate loans and for NAL to service them.
Ugly Duckling Corp., Phoenix
Lost $4.6 million on continuing operations in the fourth quarter of 1998, vs. a year-ago profit of $3.8 million. For the full year, earnings on continuing operations were $3.6 million, down from $9.5 million. In February 1998, Ugly Duckling killed Champion Financial Services Inc., a subprime subsidiary set up to buy loans from dealers outside the Ugly Duckling chain. A separate subsidiary, Cygnet Financial Corp., services portfolios that were originated by other subprime lenders, including companies on the rocks. Ugly Duckling now funds only loans generated by its own used-car lots, said CFO Steven Darak.
WFS Financial Inc., Irvine, Calif.
Does not consider itself a subprime specialist since it now does well over half prime-risk loans. Net loss of $16.6 million in 1998, vs. net income of $31.3 million in 1997. Profit of $430,000 in the fourth quarter, vs. $6.4 million in the year-ago quarter. The company consolidated 143 offices into 21 'regional business centers' and 26 'satellite offices,' plus it eliminated 400 positions, or 19 percent of the work force.
First Enterprise Financial Group Inc., Evanston, Ill.
Ceased operations a year ago.
First Merchants Acceptance Corp., Deerfield, Ill.
Filed July 1997. A subsidiary of Ugly Duckling Corp. is servicing the former First Merchants portfolio.
Jayhawk Acceptance Corp., Dallas
Filed February 1997. Dumped auto lending to concentrate on medical finance. Emerged from bankruptcy court proceedings in October 1997. Jayhawk continues to service its own, diminishing auto portfolio.
Mercury Finance Co., Chicago
Could emerge from bankruptcy court proceedings as soon as this month.
NAL Financial Group Inc., Margate, Fla.
Filed March 1998. Came out of bankruptcy court proceedings in late 1998. (See the 'Troubled Waters' entry above.)
Reliance Acceptance Group Inc., San Antonio
Filed February 1998. A subsidiary of Ugly Duckling Corp. is servicing the former Reliance portfolio.
Search Financial Services Inc., Dallas
Stopped purchasing subprime auto loans in February 1998.
AutoInfo Inc., Montvale, N.J.
Out of auto finance, according to Bill Wunderlich, president. Through September 1998, the company lost $10.3 million year to date, vs. a loss of $826,000 in the year-ago period.
Imperial Credit Industries Inc., Torrance, Calif.
Stopped funding Automotive Marketing Network Inc. in Boca Raton, Fla., in July 1998. A subsidiary of Ugly Duckling Corp. is servicing the former AMN portfolio.
Jayhawk Acceptance Corp., Dallas
Now concentrating on medical finance.
The Money Store, Union, N.J.
Closed its auto lending division in 1998.
Bloomberg News Service contributed to this report