FOR IMMEDIATE RELEASE
Contact: Joe Boyle,
Chief Executive Officer
Affinity Technology Group, Inc.
803-758-2511
AFFINITY ANNOUNCES FOURTH-QUARTER AND YEAR-END RESULTS
Columbia, South Carolina, April 2, 2002 - Affinity Technology Group, Inc. [OTCBB:AFFI] today announced financial
results for the fourth quarter and for the full year ended December 31, 2001.
Revenues from continuing operations for the quarter were $87 thousand, with a loss from continuing
operations of $1.8 million, or $0.04 per share. For the comparable period in 2000, revenues from continuing
operations were $564 thousand and the Company reported a loss from continuing operations of $4.2 million, or $0.14
per share. The weighted average number of shares outstanding during the three months ended December 31, 2001 was
40.2 million, compared to 30.5 million for the same period in 2000.
For the year, revenues from continuing operations were $1.3 million, with a loss from continuing operations of $3.7
million, or $0.10 per share, compared to revenues from continuing operations of $1.7 million in 2000, with a loss from
continuing operations of $8.7 million, or $0.29 per share. The weighted average number of shares outstanding during the
twelve months ended December 31, 2001 was 38.0 million, compared to 30.2 million for the same period in 2000.
In the fourth quarter of 2001, the Company tendered the stock of its mortgage banking subsidiary, Surety Mortgage, Inc.,
in full satisfaction of a $1 million note and recognized a gain on the disposal of $892 thousand, which is excluded
from the fourth quarter and overall loss from continuing operations in 2001. Surety's net income for the fourth
quarter and for 2001 was $343 thousand and $467 thousand, respectively, compared to a net loss of $133 thousand and
$535 thousand in the comparable periods in 2000, respectively. All such amounts are excluded from the Company's
results of continuing operations.
Net losses for the fourth quarter and the full year ended December 31, 2001, which includes the gain on the disposal of
Surety and its operating results, were $523 thousand, or $0.01 per share, and $2.3 million, or $0.06 per share,
respectively. For the fourth quarter and the full year ended December 31, 2000, net losses were $4.3 million, or $0.14
per share, and $9.2 million, or $0.30 per share, respectively.
Joe Boyle, Chairman, President and Chief Executive Officer, stated, "In 2001 we continued to focus on reducing our cost
structure, which included further reductions in our workforce, fulfilling and exiting long-term lease obligations, and
eliminating excess overhead. As a result, we reduced combined SG&A and research and development costs by $3.1 million
in 2001 compared to 2000.
"With the disposal of Surety, we further reduced our infrastructure and eliminated the risk of having excess overhead in
the event that the mortgage market tightens. Our goal has been to position the Company to operate at minimum expense
levels in order to pursue a low cost patent licensing strategy. As indicated in the Company's recent SEC filings, we
are attempting to raise additional capital to address the deficiency in the Company's capital position and to pursue a
strategy to exploit the value of our patent portfolio."
Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties,
including those related to general economic conditions, consumer and industry acceptance of automated delivery
channels, and regulatory risks, that may cause actual results to differ materially from those projected.
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Three Months
Ended December 31,
|
|
Twelve Months Ended
December 31,
|
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|
2001
|
|
2000
|
|
2001
|
|
2000
|
| Revenues |
|
|
|
|
|
|
|
|
|
Transactions
|
|
$58,618
|
|
$ 102,341
|
|
$ 265,666
|
|
$ 544,168
|
|
Sales and rental
|
|
--
|
|
--
|
|
--
|
|
3,000
|
|
Professional Services
|
|
1,700
|
|
--
|
|
249,871
|
|
319,503
|
|
Patent license fees
|
|
20,000
|
|
325,000
|
|
20,000
|
|
510,000
|
|
Other Income
|
|
6,859
|
|
136,756
|
|
750,407
|
|
346,404
|
Total revenues
|
|
87,177
|
|
564,097
|
|
1,285,944
|
|
1,723,075
|
| Costs and expenses |
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
10,618
|
|
71,445
|
|
63,751
|
|
344,931
|
|
Research & development
|
|
82,052
|
|
90,048
|
|
496,441
|
|
683,600
|
|
Selling, general and administrative expenses
|
|
1,290,140
|
|
1,990,188
|
|
3,847,807
|
|
6,791,767
|
|
Impairment loss
|
|
448,945
|
|
2,608,773
|
|
448,945
|
|
2,608,773
|
Total costs and expenses
|
|
1,831,755
|
|
4,760,454
|
|
4,856,944
|
|
10,429,071
|
| Operating loss |
|
(1,744,578)
|
|
(4,196,357)
|
|
(3,571,000)
|
|
(8,705,996)
|
| Interest income |
|
--
|
|
9,430
|
|
10,101
|
|
64,155
|
| Interest expense |
|
(12,711)
|
|
(14,885)
|
|
(115,557)
|
|
(26,277)
|
| Loss from continuing operations |
|
(1,757,289)
|
|
(4,201,812)
|
|
(3,676,456)
|
|
(8,668,118)
|
| Income (loss) from operations |
|
|
|
|
|
|
|
|
| of discontinued subsidiary |
|
342,775
|
|
(132,551)
|
|
467,188
|
|
(534,978)
|
| Gain on disposal of subsidiary |
|
891,569
|
|
--
|
|
891,569
|
|
--
|
| Net loss |
|
$ (522,945)
|
|
$ (4,334,363)
|
|
$ (2,317,699)
|
|
$ (9,203,096)
|
| Loss per share basic and dilluted: |
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ (0.04)
|
|
$ (0.14)
|
|
$ (0.10)
|
|
$ ( 0.29)
|
| Net loss per share |
|
$ (0.01)
|
|
$ (0.14)
|
|
$ (0.06)
|
|
$ ( 0.30)
|
| Shares used in computing net loss per share |
|
40,231,355
|
|
30,539,490
|
|
38,004,089
|
|
30,242,054
|
| |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
December 31,
|
|
December 31,
|
|
|
|
|
| |
|
2001
|
|
2000
|
|
|
|
|
| Balance Sheet |
|
|
|
|
|
|
|
|
| Cash and Short Term Investments |
|
$ 27,720
|
|
$ 646,198
|
|
|
|
|
| Total Current Assets |
|
701,696
|
|
4,000,063
|
|
|
|
|
| Total Assets |
|
927,657
|
|
5,638,453
|
|
|
|
|
| Total Liabilities |
|
584,219
|
|
3,312,139
|
|
|
|
|
| Stockholders' Equity |
|
343,438
|
|
2,326,314
|
|
|
|
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Affinity Technologies 2001 year end
Form 10-K
Requires Adobe
Acrobat Reader
|
