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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): March 4, 1997
NATIONAL AUTO FINANCE COMPANY, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
0-22067 65-0688619
(Commission File Number) (I.R.S. Employer Identification No.)
621 N.W. 53RD STREET, SUITE 200
BOCA RATON, FLORIDA 33487
(Address of Principal Executive Offices) (Zip Code)
(561) 997-2747
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
(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 March 4, 1997, announcing its year-end results
for the year ended December 31, 1996 which includes the Condensed Consolidated
Statements of Income for the Company for the three and twelve months ended
December 31, 1996 and December 31, 1995 and the Condensed Consolidated Balance
Sheets as of December 31, 1996 and December 31, 1995. All normal recurring
adjustments that are, in the opinion of management, necessary for a fair
presentation of the results of operations for the periods presented have been
included. 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 March 4, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
Date: March 7, 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
- ----------- ----------- ----
(99) Press Release,
dated March 4, 1997
FOR IMMEDIATE RELEASE
March 4, 1997
Contact: Larry Getlen
Communications Group
561-392-2300
NATIONAL AUTO FINANCE COMPANY, INC.
ANNOUNCES STRONG YEAR-END
RESULTS AND EXERCISE OF
UNDERWRITERS' OVER-ALLOTMENT OPTION
Boca Raton, Florida (March 4, 1997) - National Auto Finance Company, Inc.
(NASDAQ:NAFI) today announced strong revenues and net income for the year and
fourth quarter ended December 31, 1996.
For the year 1996, total revenues increased 88% to $14.7 million compared with
$7.8 million for the twelve months ended December 31, 1995. The Company's pro
forma net income increased 56% to $2.8 million, or $.42 per share, compared with
pro forma net income of $1.8 million (excluding the net income from $5 million
of contracts purchased in 1994 and sold pursuant to a securitization in the
first quarter of 1995), or $.27 per share, for the twelve months ended December
31, 1995. Because the Company operated as a limited partnership prior to the
completion of its initial public offering on January 29, 1997, the Company's pro
forma results have been reported as if it had been taxable as a corporation
(with 6,726,000 shares outstanding) for the full year 1996.
For the fourth quarter of 1996, total revenues increased 145%, to $4.9 million
compared with $2.0 million for the fourth quarter of 1995. The Company's pro
forma net income for the fourth quarter increased 163% to $869,000, or $.13 per
share, compared with pro forma net income of $330,000, or $.05 per share, for
the fourth quarter of 1995.
The Company reported that purchases of motor vehicle retail installment sales
contracts from automobile dealers totaled $84.7 million for the year ended
December 31, 1996, an increase of 84.1% over loan purchase volume of $46.0
million for the twelve months ended December 31, 1995. For the fourth quarter of
1996, purchases of contracts increased 150% to $28.5 million compared with $11.4
million for the same period of 1995.
The aggregate outstanding principal balance of contracts serviced by the Company
at December 31, 1996 was $102.9 million, 139%
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higher than the $43.1 million of contracts serviced at
December 31, 1995.
Roy E. Tipton, president of National Auto Finance, stated, "We are very pleased
with the strong performance of the Company in 1996. The additional financial
strength resulting from our initial public offering in January will enable us to
continue to pursue our deliberate, disciplined growth strategy designed to
position National Auto Finance as a leading company in the non-prime automotive
finance industry."
National Auto Finance also announced the expansion of its relationship with the
sales finance group of First Union National Bank of North Carolina to include
more than 1,500 additional automotive dealers in the Northeastern United States.
National Auto created a strategic alliance with First Union in April 1996 to
provide for joint marketing of the Company's products and services to an initial
network of 1,800 dealers in the Southeast. With the expansion of the strategic
alliance, both National Auto's and First Union's sales personnel will market
National Auto's products and services to approximately 3,300 automotive dealers
in the First Union network, covering most of the Eastern seaboard.
"This alliance has exceeded both parties' expectations in terms of enhancing
market penetration," said Mr. Tipton. "First Union has been an ideal partner in
expanding our business, and we view this expansion as another step toward
increasing our industry prominence."
In a separate development, National Auto Finance also reported that on February
24, 1997, Raymond James & Associates, Inc., as representative of the
underwriters of the Company's initial public offering of common stock, exercised
in full the over-allotment option to purchase an additional 300,000 shares of
the Company's common stock on the same terms as the initial public offering. The
Company's initial public offering consisted of 2,000,000 shares that were sold
to the public at $8.50 per share on January 29, 1997.
All of the 300,000 additional shares were sold by the Company, bringing the
total number of shares outstanding to 7,026,000. The Company intends to use the
estimated net proceeds of $2.4 million from the exercise of the over-allotment
option to support securitizations of loan receivables, provide working capital,
and for general working capital purposes.
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"The underwriters' exercise of the over-allotment option demonstrates, in our
view, the continued strong support of the investing public for National Auto
Finance," said Mr. Tipton.
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.
For further information, please contact Roy E. Tipton, president, or Keith B.
Stein, vice chairman, at (561) 997-2413.
[Financial Tables Follow]
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National Auto Finance Company, Inc.
Condensed Consolidated Statements of Income
(Amounts in thousands, except net earnings per share)
Three Months Twelve Months
Ended Ended
December 31, December 31,
------------ ------------
1996 1995 1996 1995
---- ---- ---- ----
Gain on sales of loans $3,989 $1,567 $12,178 $6,487
Gain on securitization of
Loans purchased prior
to January 16, 1995 0 0 0 639
Other Income 947 397 2,614 685
----- ----- ------ -----
Total revenues 4,936 1,964 14,792 7,811
Total Expenses 3,546 1,432 10,300 4,530
----- ----- ------ -----
Net income before taxes 1,390 532 4,492 3,281
Proforma Income Taxes 521 202 1,688 1,066
----- ----- ------ -----
Net Income $ 869 $ 330 $2,804 $2,215
===== ===== ===== =====
Pro forma net
earnings per share $ 0.13 $ 0.05 $ 0.42 $ 0.33
----- ----- ----- -----
Pro forma shares
outstanding 6,726 6,726 6,726 6,726
----- ----- ----- -----
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National Auto Finance Company, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
As of
December 31,
------------
1996 1995
---- ----
Assets
Cash & Cash equivalents $ 5,066 $ 824
Excess spread receivable 23,404 10,314
Fixed assets, net 514 273
Other assets 2,216 592
------ ------
Total Assets $31,200 $12,003
------ ------
Liabilities and
Ownership Equity
Liabilities
Subordinated debt 19,700 8,088
Pro forma Deferred Taxes 2,955 1,267
Accounts payable &
other liabilities 1,949 468
------ ------
Total Liabilities $24,604 $ 9,823
Ownership Equity
Preferred Capital 2,250 482
Partners Capital 4,346 1,698
------ ------
Total Partners Capital 6,596 2,180
Total Liabilities
and Ownership Equity $31,200 $12,003
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