AutoTradeCenter has released its third quarter report, for the period ended Dec. 31, 2000. "This report reflects the company’s successful transition to a solely Internet remarketing business, with the sale of its wholesale operations in New Mexico, Texas and Oregon," said spokesperson Lucy Seegan. "The report also states a debt reduction of over $5 million, as well as substantially reduced operating expenses."
AutoTradeCenter also announced it has completed the sale of its wholesale subsidiary (known as Auto Network Group) located in Scottsdale, Ariz., to Air Park Motors of Scottsdale LLC.
Air Park Motors is owned by automobile brokers, formerly performing under work for hire agreements, with AutoTradeCenter (ATC) in its wholesale operation. According to the terms of the agreement, Airpark purchased vehicles from ATC at carrying book value, as reported on the books of ATC, and assumes all responsibility for selling these vehicles.
Company Reports $5.5 Million Loss in 2000
Revenues from Internet operations were $201,000 and $645,000 for the quarter and nine months ended Dec. 31, 2000, respectively. The company incurred a net loss of $3 million or $0.09 per share and $5.5 million or $0.17 per share for the respective periods reported. Results of operations from the discontinued wholesale subsidiaries are stated separately in the same report.
“This marks an exciting milestone for AutoTradeCenter," said Roger L. Butterwick, company president. "The disposition of our wholesale operations has resulted in the retiring of substantial debt as well as the virtual elimination of financial risk associated with the ownership of used-car inventory. The third quarter results of the wholesale operations clearly supports management’s decision to discontinue the wholesale subsidiaries, and concentrate on the company’s business plan and core competency, successful internet remarketing.
“With the disposition of the wholesale operations, all ATC resources are focused on our core Internet remarketing business," Butterwick said. "This total concentration enables us to take full advantage of every opportunity in an explosive off-lease arena, to stimulate progress, maximize profitability and increase shareholder value.
“Industry reports that 2001 may be the most volatile year for off-lease portfolios as losses are clearly on the rise,” Butterwick continued. “Our three-year agreement with American Honda Finance Corporation announced this month, and our new agreement with American Suzuki Motor Corporation, clearly positions the company to achieve profitability by expanding Internet activities and generating greater revenues, thereby increasing shareholder value.”
In the continuance of Internet activity development, the company anticipates the receipt of the first draw down of approximately $1.5 million from a private placement of $2 million by Feb. 28.
The company’s 10Q filing with the SEC can be accessed through the EDGAR reporting system located at www.sec.gov. The company’s financial statements for the third quarter and nine months ended Dec. 31, 2000 are posted in the Investor Relations section on its Web site, www.autotradecenter.com.
About AutoTradeCenter
AutoTradeCenter (ATC) is an Internet-based business-to-business automotive remarketing company.
On its Web site, www.autotradecenter.com, the company markets its services to automobile manufacturers, captive finance companies, lease and rental companies, and financial institutions across the U.S. who can use the site's many features for more efficient buying, selling and trading.
ATC powers the American Honda Finance Corporation’s Vehicle Inter-Dealer Purchase System “VIPS” and American Suzuki Motor Corporation’s PROline, utilizing Internet technology and remarketing services.
For more information on AutoTradeCenter.com Inc., visit www.autotradecenter.com or contact Public Relations at lseegan@autotradecenter.com.
