SAN ANTONIO, March 7, 2002 (PRIMEZONE) -- After careful evaluation of its projected cost of Auto portfolios and expected operating cost, the Board of Directors of AutoFund Servicing, Inc. (OTCBB:AFSR) announces that 11 cents per share is in the company's forecast.
According to Mr. James Haggard, Chairman of the Board and President of AutoFund Servicing, "Eleven cents on twenty million outstanding common shares is in our grasp, when you take our history into play. We have consistently acquired Auto portfolios for 1% to 1.5% of face value and the cost of collecting these portfolios has not been more than 40% of the face value. Now with the new lender in place, an essential part of the puzzle is about to close. The new $2,000,000 loan will afford us the opportunity to purchase $200,000,000 in additional Auto portfolios and, with our reduced operating cost, we can now expect earnings per share of 11 cents."
ABOUT THE COMPANY:
AutoFund Servicing, Inc is a third-party collection and recovery service provider to auto loan finance companies. Our 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 who 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 the 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.