SAN ANTONIO, March 5, 2002 (PRIMEZONE) -- AutoFund Servicing, Inc. (OTCBB:AFSR) announced today that the Board of Directors has completed agreements with a new lender of Auto portfolios. The lender has agreed to finance $2 million at terms far more favorable than that of the previous lender/partner.
According to Mr. James Haggard, Chairman of the Board and President of AutoFund Servicing, Inc.: "Management has done a great job at cutting the fat in our operating cost. As of this date our operating cost has been reduced by as much as 35% over last year and more is yet to come.
"In January of this year I instructed management to begin looking at ways to cut overhead and increase profit and they have," continued Haggard. "At that same time we began looking for less costly ways of acquiring Auto portfolios. Our new lender is just that, a lender, not a partner who would share in the profit as well as charge high interest. We have now come to terms on a $2 million loan with a real lender at reasonable rates. The $2 million loan will afford us the opportunity to purchase $200 million in additional Auto portfolios and, with our reduced operating cost, we can now expect earnings per share of 11 cents. This may be a first for us but it's just the beginning and we are excited."
ABOUT THE COMPANY
AutoFund Servicing, Inc. is a third-party collection and recovery service provider to auto loan finance companies. Its clients include banks, buy-here/pay-here companies, and auto finance companies that have bad debt accounts. These auto loan accounts have, for the most part, been written off or charged off by the company that provided the vehicle loan to the customer, and the debt is still owed by a customer whose vehicle may or may not have been repossessed. AutoFund Servicing aggressively seeks accounts from these companies to process for recovery.
AutoFund Servicing purchases large numbers of these accounts, at pennies on the dollar, from companies that wish to liquidate certain delinquent accounts from their portfolio. Then AutoFund, through its large professional staff, attempts to collect the monies owed on these accounts; it also provides data storage services for clients and generates reports from this data for its clients.
Certain statements about the Company's future expectations, including future revenues, earnings and transactions, as well as all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results and other corporate developments could differ materially from that which has been anticipated in such statements.