UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OF 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
November 8, 1999 (Date of earliest event reported)
UGLY DUCKLING CORPORATION
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 000-20841 86-0721358
(State or Other (Commission (IRS Employer
Jurisdiction File Number) Identification No.)
of Incorporation)
2525 East Camelback Road, Suite 500, Phoenix, Arizona 85016
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (602) 852-6600
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
Attached hereto as Exhibit 99.1 is a copy of Ugly Duckling Corporation's
press release dated November 8, 1999 titled "Ugly Duckling Completes Acquisition
of Virginia Dealerships" which describes the Company's acquistion of 5 buy-here
pay-here locations in the Richmond Virginia area, and related inventory and loan
portfolio.
(c) Exhibits
EXHIBIT
NUMBER DESCRIPTION
- -------- -----------
99.1 Ugly Duckling Corporation Press Release Dated November 8, 1999
Titled "Ugly Duckling Completes Acquisition of Virginia Dealerships"
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UGLY DUCKLING CORPORATION
(Registrant)
By /s/ JON D. EHLINGER
-----------------------------
(Signature)
Jon D. Ehlinger
Secretary
Date November 8, 1999
CONTACTS: Steven T. Darak
Senior Vice President and Chief Financial Officer
(602) 852-6600
Investor Relations
Ugly Duckling Corporation
[email protected]
FOR IMMEDIATE RELEASE
November 8, 1999
UGLY DUCKLING COMPLETES ACQUISITION OF VIRGINIA DEALERSHIPS
Company Enters New Market with Five Dealerships and Finance Company Portfolio
PHOENIX - November 8, 1999 - Ugly Duckling Corporation (Nasdaq NM: UGLY), the
largest and fastest growing used car sales company focused exclusively on the
sub-prime market, today announced that it has completed its acquisition of
certain assets of Virginia Auto Mart, a Virginia-based sub-prime automobile
sales and finance company. The assets acquired include five used car dealerships
in the greater Richmond metropolitan area, including vehicle inventory and a
loan portfolio of approximately $8.0 million. Additional terms of the
transaction were not disclosed.
"This acquisition brings our total number of used car dealerships to 72, and
more importantly, opens a new geographic market for us," said Gregory Sullivan,
President and Chief Executive Officer of Ugly Duckling Corporation. "Our
strategy continues to focus on adding new dealerships at an accelerated pace,
either to fill in existing markets or enter new markets with multiple locations.
We expect to add a minimum of 20 dealerships by the end of 2000, through a
combination of acquisitions and de novo projects. Including today's acquisition,
Ugly Duckling has added 30 new dealerships over the past two years."
Headquartered in Phoenix, Arizona, Ugly Duckling Corporation is the largest and
fastest growing operator of used car dealerships focused exclusively on the
sub-prime market. The Company underwrites, finances and services sub-prime
contracts generated at its 72 Ugly Duckling dealerships. Cygnet Dealer Finance
provides operating lines of credit and other financing arrangements for
non-affiliated used car dealers. The Company also services sub-prime auto loans
for third parties.
(This press release includes statements that constitute forward looking
statements within the meaning of the safe harbor provisions of the Private and
Securities Litigation Reform Act of 1995. Forward-looking statements are often
characterized by the words "believes," "estimates," "projects," "expects" or
similar expressions. Forward-looking statements in this release relate, among
other matters, to growth in the Company's dealerships through acquisitions and
de novo dealership openings. Factors that could cause or contribute to
differences from these forward-looking statements include, but are not limited
to: any decline in consumer acceptance of the Company's car sales strategies or
marketing campaigns; any inability of the Company to finance its operations in
light of a tight credit market for the sub-prime industry and any deterioration
in the used car finance industry or increased competition in the used car sales
and finance industry. Other factors are detailed in the sections entitled
"Management's Discussion and Analysis of Financial Condition and Results of
Operations -- Risk Factors," "Factors That May Affect Future Results and
Financial Condition" and "Factors That May Affect Future Stock Performance" in
Ugly Duckling Corporation's most recent reports on Form 10-K and Form 10-Q
(including Exhibit 99 to any such Form 10-Q), and elsewhere in Ugly Duckling
Corporation's Securities and Exchange Commission filings. By making these
forward-looking statements, the Company undertakes no obligation to update these
statements for revisions or changes after the date of this press release.
References to Ugly Duckling Corporation as the largest and fastest growing
operator of used car dealerships focused exclusively on the sub-prime market is
management's belief based upon its knowledge of the industry and not on any
current independent third party study.)
For additional information on Ugly Duckling Corporation, please dial
1-800-PRO-INFO (776-4636) and enter ticker symbol UGLY or visit the Company's
web-site at WWW.UGLYDUCKLING.COM.
