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): May 1, 1998
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) 997-2413
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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 and incorporated herein by reference is a copy of the
National Auto Finance Company, Inc. (the "Company") Press Release, dated May 1,
1998, announcing the Company's strategic restructuring and the filing of its
Annual Report on Form 10-K, which includes a qualified opinion from the
Company's auditor, KPMG Peat Marwick LLP.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(a) Exhibits.
(99) Press Release, dated May 1, 1998.
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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 May 1, 1998
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SIGNATURE
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.
Date: May 1, 1998.
NATIONAL AUTO FINANCE COMPANY, INC.
By: /s/ Kevin G. Adams
Name: Kevin G. Adams
Title: Senior Vice President, Finance
EXHIBIT 99
[National Auto Finance Company, Inc. Logo]
Contact: Roy E. Tipton Keith B. Stein
President Vice Chairman
(800) 999-7535 (800) 533-8573
NATIONAL AUTO FINANCE COMPANY, INC.
ANNOUNCES STRATEGIC RESTRUCTURING
BOCA RATON, Fla. (May 1, 1998) - National Auto Finance Company, Inc.
(Nasdaq/NM:NAFI) today announced that it filed its Annual Report on Form 10-K
yesterday, which reflects the previously announced loss of $18.6 million for the
year ended December 31, 1997. In the audited financial statements included in
the Form 10-K, the Company's auditor, KPMG Peat Marwick LLP, qualified its audit
opinion by raising an issue about the Company's ability to continue as a going
concern. In light of these developments, the Company believes it may be more
difficult to raise additional capital in the foreseeable future, and, as a
result, the Company has determined that a strategic restructuring of its
operations is necessary.
In the initial phase of this restructuring, the Company expects to
focus its originations in the areas of the highest geographic volume and
continue originating loans pursuant to certain of its strategic alliances. The
Company will also tighten its underwriting criteria, become more selective in
the types of vehicles and customers that it will finance, and increase its loan
yields.
The Company is continuing to develop a revised business model
reflective of these strategies and expects to announce in the near future
additional steps to reposition its business. The Company is currently reviewing
several strategic options to expand the business of its service center.
Commenting on the announcement, Gary L. Shapiro, Chairman and Chief
Executive Officer, said, "We are disappointed with the results of operations in
1997 and the resulting need to restructure our operations. We are, however, very
committed to redirecting our efforts on the most profitable
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NAFI Announces Strategic Restructuring
Page 2
May 1, 1998
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segments of our business and we believe that these initial steps are necessary
to give the Company the best chance for success under difficult circumstances.
The emphasis on our service capabilities reflects our view that collections and
servicing are a business opportunity for the Company. We also will continue to
work with our lenders, financing sources and securitized trusts' insurer to
obtain the support and necessary waivers of our loan covenant violations to best
ensure the continuation of the business of the Company on a redirected basis."
National Auto Finance is a specialized consumer finance company engaged in
the purchase, securitization and servicing of automobile loans primarily
originated by manufacturer-franchised 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. The Company has contractual relationships with
approximately 2,600 dealers in 40 states.
This news release contains statements that are forward-looking statements
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 ability 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, 1997, and in certain other reports filed by the Company with the
Securities and Exchange Commission.
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