Ameritrans Cap Corp 4/18/07 (MM) (NASDAQ:AMTCW)
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Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP, AMTCW) yesterday
reported financial results for the quarter ended September 30, 2006.
Ameritrans reported a net loss of ($51,348) available to common
shareholders for the first quarter of fiscal year 2007 or ($0.02) versus
a net loss of ($75,431) or ($0.03) per basic and diluted common share
for the same period of fiscal year 2006. On an operating basis, before
payment of the Company’s preferred stock
dividends, before provisions for income tax, the Company reported an
operating profit of $35,082 for the quarter ended September 30, 2006
compared to an operating profit of $18,668 during the quarter ended
September 30, 2005.
The Company’s interest income for the three
months ended September 30, 2006 increased $74,358 or 6% to $1,224,141 as
compared to the three months ended September 30, 2005. The increase in
investment income between the periods can be attributed to higher
average interest rates charged on the total loan portfolio for the
quarter. Fees and other income increased by $96,786 or 117% to $179,087
as compared to the three months ended September 30, 2005. The increase
is primarily attributed to an increase in loan origination fees of
approximately $74,000 and an increase in other income of approximately
$21,000. The Company also had approximately $28,000 of other income from
its share of equity in income of investee.
Commenting on the results, Gary C. Granoff, Ameritrans' President, said,
"During the quarter ended September 30, 2006, the Company was positively
impacted by increases in interest income, fees and other income. We had
positive earnings on an operating basis before taking into account
payment of our preferred dividend."
Mr. Granoff further stated, "We are continuing to take measures to
expand our loan portfolio on a conservative but profitable basis which
should continue to have a beneficial effect by increasing our gross
income as transactions are completed. Our new loans in the diversified
business loan area and in the Ameritrans loan portfolio are being done
primarily on an adjustable basis so that periodically we will be
adjusting the interest rate payable by the borrower to reflect current
market rates. Our margins have leveled after a cease in the numerous
increases in short term market rates of interest charged by our banks.
Our interest rate swaps have assisted the Company to control our
interest costs on the floating portion of our bank debt against
continued upward increases in interest rates."
Mr. Granoff added, "Our Chicago taxi medallion loan portfolio has
continued to improve, and prices for medallions in Chicago have
continued to increase. We have continued to sell off some of our
medallions and we are presently in discussion with several parties
regarding the sale of our remaining 24 medallions. We have very few
foreclosures of medallions pending in Chicago at this time. During the
quarter we further expanded the Ameritrans side of the business, with
our new loans deployed at initial rates of approximately 12.5% on a
weighted basis. During the quarter, we also invested approximately $1.1
million in the new area of life settlement contracts. We anticipate
additional investment opportunities in the future in this area."
Ameritrans Capital Corporation is a specialty finance company engaged in
making loans to and investments in small businesses. Ameritrans' wholly
owned subsidiary Elk Associates Funding Corporation was licensed by the
United States Small Business Administration as a Small Business
Investment Company (SBIC) in 1980. The Company maintains its offices at
747 Third Avenue, 4th Floor, New York, NY 10017.
This announcement contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those presently
anticipated or projected. Ameritrans Capital Corporation cautions
investors not to place undue reliance on forward-looking statements,
which speak only as to management's expectations on this date.
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 (UNAUDITED) AND JUNE 30, 2006
ASSETS
September 30, 2006
June 30, 2006
Loans receivable
$
49,858,894
$
49,855,530
Less: unrealized depreciation on loans receivable
(186,550)
(290,300)
Loans receivable, net
49,672,344
49,565,230
Cash and cash equivalents
819,677
846,623
Accrued interest receivable, net of unrealized depreciation of
$31,500 and $31,500, respectively
671,842
662,846
Assets acquired in satisfaction of loans
253,251
288,251
Receivables from debtors on sales of assets acquired in satisfaction
of loans
650,772
482,525
Equity securities
1,883,604
1,782,924
Investment in life settlement contracts
1,129,724
-
Furniture, equipment and leasehold improvements, net
223,325
244,340
Medallions under lease
1,706,901
1,706,901
Prepaid expenses and other assets
453,682
439,171
TOTAL ASSETS
$
57,465,122
$
56,018,811
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 (UNAUDITED) AND JUNE 30, 2006
LIABILITIES AND STOCKHOLDERS’ EQUITY
September 30, 2006
June 30, 2006
LIABILITIES
Debentures payable to SBA
$
12,000,000
$
12,000,000
Notes payable, banks
22,882,500
20,927,500
Accrued expenses and other liabilities
660,953
880,203
Accrued interest payable
148,900
367,465
Dividends payable
84,375
84,375
TOTAL LIABILITIES
35,776,728
34,259,543
COMMITMENTS AND CONTINGENCIES (Notes 3, 4, 5, 6 and 8)
STOCKHOLDERS' EQUITY
Preferred stock 500,000 shares authorized, none issued or outstanding
-
-
9 3/8% cumulative participating callable preferred stock $ 0.01 par
value, $12.00 face value, 500,000 shares authorized; 300,000 shares
issued and outstanding
3,600,000
3,600,000
Common stock, $ 0.0001 par value; 10,000,000 shares authorized;
3,401,208 shares issued and 3,391,208 shares outstanding
340
340
Additional paid-in-capital
21,119,817
21,119,817
Accumulated deficit
(2,734,662)
(2,683,314)
Accumulated other comprehensive loss
(227,101)
(207,575)
21,758,394
21,829,268
Less: Treasury stock, at cost, 10,000 shares of common stock
(70,000)
(70,000)
TOTAL STOCKHOLDERS' EQUITY
21,688,394
21,759,268
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
57,465,122
$
56,018,811
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(UNAUDITED)
Three Months Ended September 30, 2006
Three Months Ended September 30, 2005
INVESTMENT INCOME
Interest on loans receivable
$
1,224,141
$
1,149,783
Fees and other income
179,087
82,301
Leasing income
22,971
49,468
TOTAL INVESTMENT INCOME
1,426,199
1,281,552
OPERATING EXPENSES
Interest
536,146
539,273
Salaries and employee benefits
282,858
276,238
Occupancy costs
54,638
54,716
Professional fees
174,025
69,812
Other administrative expenses
316,386
281,789
Loss and impairments on assets acquired in satisfaction of loans, net
29,748
3,000
Foreclosure expenses, net
(2,466)
2,208
Write off and depreciation on interest and loans receivable
27,921
35,848
TOTAL OPERATING EXPENSES
1,419,256
1,262,884
OPERATING INCOME
6,943
18,668
OTHER INCOME
Equity in income of investee
28,139
-
INCOME BEFORE PROVISION FOR INCOME TAXES
35,082
18,668
PROVISION FOR INCOME TAXES
2,055
9,724
NET INCOME
$
33,027
$
8,944
DIVIDENDS ON PREFERRED STOCK
$
(84,375)
$
(84,375)
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS
$
(51,348)
$
(75,431)
WEIGHTED AVERAGE SHARES OUTSTANDING
- Basic
3,391,208
2,035,600
- Diluted
3,391,208
2,035,600
NET LOSS PER COMMON SHARE
- Basic
$
(0.02)
$
(0.03)
- Diluted
$
(0.02)
$
(0.03)
Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP, AMTCW)
yesterday reported financial results for the quarter ended September
30, 2006. Ameritrans reported a net loss of ($51,348) available to
common shareholders for the first quarter of fiscal year 2007 or
($0.02) versus a net loss of ($75,431) or ($0.03) per basic and
diluted common share for the same period of fiscal year 2006. On an
operating basis, before payment of the Company's preferred stock
dividends, before provisions for income tax, the Company reported an
operating profit of $35,082 for the quarter ended September 30, 2006
compared to an operating profit of $18,668 during the quarter ended
September 30, 2005.
The Company's interest income for the three months ended September
30, 2006 increased $74,358 or 6% to $1,224,141 as compared to the
three months ended September 30, 2005. The increase in investment
income between the periods can be attributed to higher average
interest rates charged on the total loan portfolio for the quarter.
Fees and other income increased by $96,786 or 117% to $179,087 as
compared to the three months ended September 30, 2005. The increase is
primarily attributed to an increase in loan origination fees of
approximately $74,000 and an increase in other income of approximately
$21,000. The Company also had approximately $28,000 of other income
from its share of equity in income of investee.
Commenting on the results, Gary C. Granoff, Ameritrans' President,
said, "During the quarter ended September 30, 2006, the Company was
positively impacted by increases in interest income, fees and other
income. We had positive earnings on an operating basis before taking
into account payment of our preferred dividend."
Mr. Granoff further stated, "We are continuing to take measures to
expand our loan portfolio on a conservative but profitable basis which
should continue to have a beneficial effect by increasing our gross
income as transactions are completed. Our new loans in the diversified
business loan area and in the Ameritrans loan portfolio are being done
primarily on an adjustable basis so that periodically we will be
adjusting the interest rate payable by the borrower to reflect current
market rates. Our margins have leveled after a cease in the numerous
increases in short term market rates of interest charged by our banks.
Our interest rate swaps have assisted the Company to control our
interest costs on the floating portion of our bank debt against
continued upward increases in interest rates."
Mr. Granoff added, "Our Chicago taxi medallion loan portfolio has
continued to improve, and prices for medallions in Chicago have
continued to increase. We have continued to sell off some of our
medallions and we are presently in discussion with several parties
regarding the sale of our remaining 24 medallions. We have very few
foreclosures of medallions pending in Chicago at this time. During the
quarter we further expanded the Ameritrans side of the business, with
our new loans deployed at initial rates of approximately 12.5% on a
weighted basis. During the quarter, we also invested approximately
$1.1 million in the new area of life settlement contracts. We
anticipate additional investment opportunities in the future in this
area."
Ameritrans Capital Corporation is a specialty finance company
engaged in making loans to and investments in small businesses.
Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation
was licensed by the United States Small Business Administration as a
Small Business Investment Company (SBIC) in 1980. The Company
maintains its offices at 747 Third Avenue, 4th Floor, New York, NY
10017.
This announcement contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those presently
anticipated or projected. Ameritrans Capital Corporation cautions
investors not to place undue reliance on forward-looking statements,
which speak only as to management's expectations on this date.
-0-
*T
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 (UNAUDITED) AND JUNE 30, 2006
ASSETS
September June 30,
30, 2006 2006
------------ ------------
Loans receivable $49,858,894 $49,855,530
Less: unrealized depreciation on loans
receivable (186,550) (290,300)
------------ ------------
Loans receivable, net 49,672,344 49,565,230
Cash and cash equivalents 819,677 846,623
Accrued interest receivable, net of
unrealized depreciation of $31,500 and
$31,500, respectively 671,842 662,846
Assets acquired in satisfaction of loans 253,251 288,251
Receivables from debtors on sales of assets
acquired in satisfaction of loans 650,772 482,525
Equity securities 1,883,604 1,782,924
Investment in life settlement contracts 1,129,724 -
Furniture, equipment and leasehold
improvements, net 223,325 244,340
Medallions under lease 1,706,901 1,706,901
Prepaid expenses and other assets 453,682 439,171
------------ ------------
TOTAL ASSETS $57,465,122 $56,018,811
============ ============
*T
-0-
*T
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 (UNAUDITED) AND JUNE 30, 2006
LIABILITIES AND STOCKHOLDERS' EQUITY
September June 30,
30, 2006 2006
------------ ------------
LIABILITIES
Debentures payable to SBA $12,000,000 $12,000,000
Notes payable, banks 22,882,500 20,927,500
Accrued expenses and other liabilities 660,953 880,203
Accrued interest payable 148,900 367,465
Dividends payable 84,375 84,375
------------ ------------
TOTAL LIABILITIES 35,776,728 34,259,543
------------ ------------
COMMITMENTS AND CONTINGENCIES (Notes 3, 4, 5, 6 and 8)
STOCKHOLDERS' EQUITY
Preferred stock 500,000 shares authorized,
none issued or outstanding - -
9 3/8% cumulative participating callable
preferred stock $ 0.01 par value, $12.00
face value, 500,000 shares authorized;
300,000 shares issued and outstanding 3,600,000 3,600,000
Common stock, $ 0.0001 par value;
10,000,000 shares authorized; 3,401,208
shares issued and 3,391,208 shares
outstanding 340 340
Additional paid-in-capital 21,119,817 21,119,817
Accumulated deficit (2,734,662) (2,683,314)
Accumulated other comprehensive loss (227,101) (207,575)
------------ ------------
21,758,394 21,829,268
Less: Treasury stock, at cost, 10,000
shares of common stock (70,000) (70,000)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 21,688,394 21,759,268
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $57,465,122 $56,018,811
============ ============
*T
-0-
*T
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 (UNAUDITED)
Three Months Three Months
Ended Ended
September 30, September 30,
2006 2005
-------------- --------------
INVESTMENT INCOME
Interest on loans receivable $ 1,224,141 $ 1,149,783
Fees and other income 179,087 82,301
Leasing income 22,971 49,468
-------------- --------------
TOTAL INVESTMENT INCOME 1,426,199 1,281,552
-------------- --------------
OPERATING EXPENSES
Interest 536,146 539,273
Salaries and employee benefits 282,858 276,238
Occupancy costs 54,638 54,716
Professional fees 174,025 69,812
Other administrative expenses 316,386 281,789
Loss and impairments on assets
acquired in satisfaction of loans,
net 29,748 3,000
Foreclosure expenses, net (2,466) 2,208
Write off and depreciation on interest
and loans receivable 27,921 35,848
-------------- --------------
TOTAL OPERATING EXPENSES 1,419,256 1,262,884
-------------- --------------
OPERATING INCOME 6,943 18,668
OTHER INCOME
Equity in income of investee 28,139 -
-------------- --------------
INCOME BEFORE PROVISION FOR INCOME TAXES 35,082 18,668
PROVISION FOR INCOME TAXES 2,055 9,724
-------------- --------------
NET INCOME $ 33,027 $ 8,944
-------------- --------------
DIVIDENDS ON PREFERRED STOCK $ (84,375) $ (84,375)
-------------- --------------
NET LOSS AVAILABLE TO COMMON
STOCKHOLDERS $ (51,348) $ (75,431)
-------------- --------------
WEIGHTED AVERAGE SHARES OUTSTANDING
- Basic 3,391,208 2,035,600
-------------- --------------
- Diluted 3,391,208 2,035,600
-------------- --------------
NET LOSS PER COMMON SHARE
- Basic $ (0.02) $ (0.03)
- Diluted $ (0.02) $ (0.03)
---------------------------------------- -------------- --------------
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