SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of Earliest Event Reported): April 22, 1997
National Auto Finance Company, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-22067 65-0688619
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(Commission File Number) (I.R.S. Employer
Identification No.)
621 N.W. 53rd Street, Suite 200
Boca Raton, Florida 33487
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(Address of Principal Executive Offices) (Zip Code)
(561) 997-2747
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(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
Filed herewith is a copy of the National Auto Finance Company, Inc.
(the "Company") Press Release, dated April 22, 1997, announcing its first-
quarter results for the three months ended March 31, 1997. The nature of
the Company's business is such that the results for any interim period are
not necessarily indicative of the results for a full year.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
(a) Financial Statements of Business Acquired:
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
(99) Press Release, dated April 22, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereto duly authorized.
April 29, 1997
NATIONAL AUTO FINANCE COMPANY, INC.
By: /s/ Kevin Adams
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Name: Kevin Adams
Title: Chief Financial Officer
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NATIONAL AUTO FINANCE COMPANY, INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
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(99) Press Release,
dated April 22, 1997
EXHIBIT (99)
NAFI Reports First Quarter Results
April 22, 1997
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Contact: Roy E. Tipton Keith B. Stein
President Vice Chairman
(800) 999-7535 (800) 533-8573
NATIONAL AUTO FINANCE COMPANY, INC.
REPORTS POSITIVE FIRST QUARTER RESULTS
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REVENUES INCREASE 115%
BOCA RATON, Fla. (April 22, 1997) - National Auto Finance Company,
Inc. (Nasdaq/NM:NAFI) today announced financial results for the first
quarter ended March 31, 1997.
For the three months ended March 31, 1997, total revenues
increased 115% to $5.6 million compared with $2.6 million for the
first quarter of 1996. Net income (before the effects of a one-time,
non-cash, deferred income tax charge to earnings of $4.5 million to
reflect a deferred income tax liability arising from the
reorganization of the Company's business from a partnership form to a
taxable corporate form in connection with the Company's initial public
offering in January 1997) rose to $1.0 million, or $.14 per share, for
the first quarter of 1997 compared with pro forma net income of $0.5
million, or $.07 per share, for the year-earlier period.
Management believes that net income before such charge is the
appropriate evaluation of the Company's operating performance because
of the consistency of such presentation. National Auto Finance
reported a net loss of $3.5 million, or $.51 per share, for the first
quarter of 1997, including the one-time deferred tax charge.
The Company reported that purchases of motor vehicle retail
installment sales contracts from automobile dealers totaled $35.7
million for the quarter ended March 31, 1997, an increase of 145% over
loan purchase volume of $14.6 million for the prior-year period.
Commenting on the results, Roy E. Tipton, president of National
Auto Finance Company, said, "We are very pleased with our first
quarter results. We expect continued growth in loan volume and
revenues through the expansion of our channels of marketing, and have
a positive outlook for the remainder of 1997."
National Auto Finance is a specialized consumer finance company
engaged in the purchase, securitization and servicing of car loans
originated by automobile dealers for non-prime consumers. The Company
markets its products and services to dealers through the efforts of
its direct sales force and through strategic referral and marketing
alliances with financial and other institutions that have established
relationships with dealers.
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EXHIBIT (99)
NAFI Reports First Quarter Results
April 22, 1997
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This news release contains statements that are forward-looking
within the meaning of applicable federal securities laws and are based
upon the Company's current expectations and assumptions which are
subject to a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated. Primary
factors that could cause actual results to differ include the
availability of financing on terms and conditions acceptable to the
Company, the availability of the Company to securitize its finance
contracts in the asset-backed securities market on terms and
conditions acceptable to the Company, and changes in the quality or
composition of the serviced loan receivable portfolio. Certain of
these as well as other factors are described in more detail in the
Company's Annual Report on Form 10-K for the year ended December 31,
1996.
NATIONAL AUTO FINANCE COMPANY, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE DATA)
Three Months Ended
March 31,
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Revenue 1997 1996
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Gain on sales of loans $ 4,542 $ 2,097
Finance charges earned 19 --
Other income 1,028 494
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5,589 2,591
Total expenses 3,959 1,789
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Income before income taxes 1,630 802
Income tax, expense current 630 301(1)
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Net income $ 1,000 $ 501
Deferred income taxes from reorganization of
partnership 4,500(2) --
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Net income (loss) as adjusted $ (3,500) $ 501
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Earnings per share before deferred tax expense $ 0.14 --
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Earnings (loss) per share as adjusted $ (0.51)(2) --
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Pro forma earnings per share -- $ 0.07
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Weighted average shares and share equivalents 6,902
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Pro forma shares outstanding 6,726
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(1) Pro forma income taxes for the three-month period ended March 31, 1996,
calculated as if the Company had operated as a "C" Corporation.
(2) Includes the effects of a one-time, non-cash charge for deferred income
taxes arising from the reorganization of the Company from a partnership
form to a taxable corporate form in connection with the Company's initial
public offering in January 1997.
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EXHIBIT (99)
NAFI Reports First Quarter Results
April 22, 1997
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NATIONAL AUTO FINANCE COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1997 1996
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<S> <C> <C>
Assets:
Cash and cash equivalents $ 10,897 $ 5,066
Finance receivables, net 1,019 --
Excess spread receivable 29,988 23,404
Fixed assets, net 679 514
Other assets 1,721 2,216
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Total assets $ 44,304 $ 31,200
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LIABILITIES AND OWNERSHIP EQUITY
Liabilities:
Subordinated debt $ 14,316 $ 19,700
Other liabilities 6,812 4,904
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Total liabilities 21,128 24,604
Ownership and Stockholders' Equity:
Stockholders (partners) equity(1) 23,176 6,596
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Total Liabilities and Ownership Equity $ 44,304 $ 31,200
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<FN>
(1) Equity for December 31, 1996, reflects partners capital of National Auto
Finance Company, L.P.
</FN>
</TABLE>
