Pmc Capital (AMEX:PMC)
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PMC Capital, Inc. Announces Third Quarter Results
DALLAS, Nov. 10 /PRNewswire-FirstCall/ -- PMC Capital, Inc. announced third
quarter and year-to-date results today. For the three months ended September
30, 2003, net increase in net assets resulting from operations ("net income")
was $694,000, or $0.05 per share, compared to $549,000, or $0.04 per share, for
the three months ended September 30, 2002. For the nine months ended September
30, 2003, net income was $2,440,000, or $0.19 per share, compared to $4,693,000,
or $0.38 per share. The reduction in net income during the nine months ended
September 30, 2003 was a result of (i) a reduction in gain on sale of assets of
$1,463,000, since a structured loan sale transaction was completed during April
2002 while there was no structured loan sale transaction completed during the
nine months ended September 30, 2003 and (ii) merger costs of $755,000 during
the nine months ended September 30, 2003 which are required to be expensed as
incurred.
On October 7, 2003, we completed our fourth joint securitization with PMC
Commercial Trust ("PMC Commercial"). PMC Capital, Inc. ("PMC Capital") and PMC
Commercial contributed loans receivable of $57.8 million and $45.4 million,
respectively, to a special purpose entity (the "2003 Joint Venture"). The 2003
Joint Venture issued, through a private placement, approximately $92.9 million
of its 2003 Loan-Backed Floating Rate Notes (the "2003 L.P. Notes") of which
approximately $52.0 million was allocated to us based on our ownership
percentage in the 2003 Joint Venture. The 2003 L.P. Notes, issued at par, which
have a stated maturity in 2023 and bear interest, reset on a quarterly basis, at
the 90-day LIBOR plus 1.25%, are collateralized by the loans receivable
transferred by us and PMC Commercial to the 2003 Joint Venture. The 2003 L.P.
Notes were rated "Aaa" by Moody's Investors Service, Inc. At inception of the
2003 Joint Venture, we owned a 56% limited partnership interest in the 2003
Joint Venture based on our share of the capital.
The following tables contain comparative selected financial data as of September
30, 2003 and December 31, 2002 and for the nine and three-month periods ended
September 30, 2003 and 2002:
FINANCIAL POSITION INFORMATION
September 30, December 31, Increase/
2003 2002 (Decrease) %
(In millions, except per share data)
Loans receivable $ 100.3 $ 87.2 15.0%
Retained interests in
transferred assets $ 36.2 $ 40.0 (9.5%)
Total investments at value $ 141.1 $ 136.2 3.6%
Total assets $ 146.0 $ 140.3 4.1%
Notes and debentures payable $ 53.5 $ 54.3 (1.5%)
Revolving credit facility $ 9.3 $ --- ---%
Total shareholders' equity $ 70.0 $ 72.0 (2.8%)
Shares outstanding 11.9 11.9 ---%
Net asset value per common
share $ 5.91 $ 6.07 (2.6%)
OPERATING INFORMATION
Nine Months Three Months
Ended September 30, Ended September 30,
2003 2002 2003 2002
(In thousands, except per share data)
Investment Income:
Interest income $ 4,905 $ 5,790 $ 1,663 $ 1,533
Income from retained
interests in transferred
assets 3,611 3,799 1,344 1,281
Advisory fee income 1,349 1,435 421 480
Premium income 477 317 133 46
Equity in income of
unconsolidated subsidiaries,
net 205 287 38 92
Other income, net 729 829 221 272
Total investment income 11,276 12,457 3,820 3,704
Expenses:
Interest 2,350 3,633 787 1,212
Salaries and related benefits 3,073 3,086 956 1,047
Merger related costs 755 --- 236 ---
General and administrative 607 678 179 196
Loss from operations of assets
acquired in liquidation 151 277 --- 170
Rent 228 249 76 81
Professional fees 315 253 134 57
Total expenses 7,479 8,176 2,368 2,763
Net investment income 3,797 4,281 1,452 941
Realized and unrealized gain
(loss) on investments:
Realized losses (793) (1,588) (211) (1,123)
Sale of assets --- 1,463 --- ---
Change in unrealized
appreciation (depreciation)
on investments (564) 537 (547) 731
Total realized and unrealized
gain (loss) on investments (1,357) 412 (758) (392)
Net increase in net assets
resulting from operations $ 2,440 $ 4,693 $ 694 $ 549
Basic and diluted earnings per
common share $ 0.19 $ 0.38 $ 0.05 $ 0.04
Certain matters discussed in this press release are "forward-looking
statements." These forward-looking statements can generally be identified as
such because the context of the statement will include words such as the Company
"expects," "anticipates" or words of similar import. Similarly, statements that
describe the Company's future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are subject to
certain risks and uncertainties, including the financial performance of the
Company, real estate conditions and market valuations of its stock, which could
cause actual results to differ materially from those currently anticipated.
Although the Company believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, the Company can give no
assurance that its expectations will be attained. Shareholders, potential
investors and other readers are urged to consider these factors carefully in
evaluating the forward-looking statements. The forward-looking statements made
herein are only made as of the date of this press release and the Company
undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
DATASOURCE: PMC Capital, Inc.
CONTACT: Investor Relations of PMC Capital, Inc., +1-972-349-3256
Web site: http://www.pmccapital.com/