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
Date of Report (date of earliest event reported) January 29, 1998
The Money Store Inc.
(Exact name of registrant as specified in its charter)
Delaware 001-10785 22-2293022
(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) ID Number)
2840 Morris Avenue, Union, New Jersey 07083
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (908) 686-2000
N/A
(Former name or former address, if changed since last report)
Item 5. Other Event
As further described in the Press Release attached hereto as Exhibit 99.1, The
Money Store Inc. announced on January 29, 1998 that it has ceased originating
loans in its non-prime auto finance division and intends to close the division's
origination network of approximately 35 branches, as well as the division's
production center in Sacramento, California. The information contained in the
above described press release is hereby incorporated by reference in this form
8-K.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
Exhibit No. Description of Exhibit
99.1 Press Release of The Money Store Inc. dated
January 29, 1998
<PAGE>
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 thereunto duly authorized.
THE MONEY STORE INC.
By: /S/ MICHAEL H. BENOFF
Name: Michael H. Benoff
Title: Executive Vice President and
Chief Financial Officer
Dated: January 29, 1998
<PAGE>
EXHIBIT INDEX
EXHIBIT NO.
Description of Exhibit
99.1 Press Release of The Money Store Inc. dated January 29, 1998.
NEWS RELEASE
FOR: The Money Store Inc. Contact: The Money Store Inc.
2840 Morris Avenue Jeff Rogers
Union, New Jersey 07083 (916) 554-8333
FOR IMMEDIATE RELEASE: JANUARY 29, 1998
THE MONEY STORE TO CLOSE AUTO FINANCE DIVISION
The Money Store (NYSE:MON) today announced that it has ceased originating loans
in its non-prime auto finance division as part of an overall corporate strategy
to focus on more profitable areas of lending. The Company will continue to
service its existing auto loan portfolio.
As a result of this action, the auto finance division will be treated as a
discontinued operation for accounting purposes. The loss from discontinued
operations is anticipated to be approximately $38 million (0.58/share) for the
fourth quarter of 1997 and approximately $42 million ($0.65/share) for the
entire year.
"We are taking this action today in order to concentrate on our traditional
areas of business - home equity, commercial and student lending," stated Marc
Turtletaub, president and chief executive officer. "This move strengthens the
Company by removing a significant amount of ongoing credit risk in our loan
portfolio and reducing the downward pressure that the auto division would have
exerted on earnings in 1998. This action should enable us to enter the new year
with a stronger balance sheet. With this move we are optimistic about our
prospects for 1998."
Today's action comes in the wake of the Company's previous announcement in
September, 1997, citing concerns in the auto finance division. Current plans
include the closing of the division's origination network of approximately 35
branches, as well as the division's production center in Sacramento, California.
In total, approximately 400 positions will be eliminated. The ongoing servicing
of the existing auto loan portfolio will continue to be performed in Sacramento.
As of September 30, 1997 the auto serviced loan portfolio was $776 million,
representing 5.1% of the Company's total serviced loan portfolio.
The Money Store is a national financial services company headquartered in Union,
NJ. The Company is one of America's leading home equity lenders, the nation's
leading Small Business Administration (SBA) lender and one of the country's
largest originators of government-guaranteed student loans.
Except for historical information contained herein, the matters set forth in
this news release are forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially from those in
the forward-looking statements. For more complete information concerning factors
which could affect the Company's financial results, reference is made to the
Company's registration statements, reports and other documents filed with the
Securities and Exchange Commission.
