Onyx Acceptance Corp. Reports First-Quarter Results

Business Wire, April 23, 1996

IRVINE, Calif.--(BUSINESS WIRE)--April 23, 1996--Onyx Acceptance Corp. (NASDAQ:ONYX), a specialized automobile finance company, which just last month completed its initial public offering of $28.8 million, today reported results for the quarter ended March 31, 1996.

Net income for the first quarter of 1996 was $3,199,758, or $0.87 per share, compared to a net loss of ($740,839), or ($0.21) per share, for the same period of 1995. The company's effective income tax rate during the first quarter of 1996 was 19.64% due to the utilization of NOL carry forwards. Assuming a statutory effective income tax rate of 41.6% and that the IPO shares had been outstanding the entire quarter, net income and net income per share would be $2.3 million and $0.38, respectively. The higher earnings are the result of the Company's continuing focus on its growth strategy within the western United States.

Total revenues during the first quarter of 1996 were $6.8 million compared to $1.2 million for the same period ended March 31, 1995. Servicing income, which is earned as Onyx services loans it has securitized and sold, was $1.1 million in the first quarter of 1996, as compared to $243,000 for the quarter ended March 31, 1995.

The increase in revenues and servicing income is a result of the expansion of the Company's serviced portfolio. The serviced portfolio increased 170% to $266.3 million at March 31, 1996, from $104.9 million at March 31, 1995. The growth in the servicing portfolio was a result of the increased volume of contracts purchased. Contract purchases during the first quarter of 1996 were $73.3 million, as compared to $39.0 million for the first quarter of 1995, representing an increase of 88.0%.

Onyx commenced its securitization program in 1994 and, as of the first quarter ended March 31, 1996, had securitized and sold over $244.1 million in contracts. During the first quarter of 1996, Onyx securitized and sold $100.5 million of contracts and recorded a gain on sale of $5.3 million. There was no securitization and sale of contracts during the first quarter of 1995.

At March 31, 1996, serviced loans delinquent over 30 days totaled $2.9 million, or 1.11% of total serviced loans outstanding, compared to $408,000, or 0.39%, at March 31, 1995. Loan losses for serviced loans as a percentage of average serviced loans outstanding increased to 0.62% during the first quarter of 1996, compared to 0.05% for the first quarter of 1995. The increases in loan losses and delinquency were in line with the company's expectations as its prime auto portfolio became more seasoned.

Onyx is a consumer finance company that specializes in the purchase, securitization and servicing of prime credit quality automobile contracts. Onyx continues to focus on its growth plan and now operates in six locations in California and opened a center in Phoenix, Arizona, on April 1, 1996. -0-

             ONYX ACCEPTANCE CORPORATION and SUBSIDIARY
           CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                        AS OF MARCH 31, 1996
                             (UNAUDITED)