Ameritrans Cap Corp 4/18/07 (MM) (NASDAQ:AMTCW)
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Ameritrans Capital Corporation (NASDAQ:AMTC, AMTCP,
AMTCW) today reported financial results for the quarter ended
September 30, 2005. For the Company's first fiscal quarter, total
investment income was flat at $1.281 million compared to $1.281
million during the prior comparable period. Interest income increased
by $20,726 over the comparable prior period, while fees and other
income decreased by $18,239. Leasing income decreased by $2,069 over
the comparable period.
Ameritrans reported a net loss of ($75,431) available to common
shareholders for the first quarter of fiscal year 2006 or ($0.03)
versus a net profit of $337 or $0.00 per basic and diluted common
share for the same period of fiscal year 2005. On an operating basis,
before payment of the Company's preferred stock dividends, but after
provisions for income tax, the Company reported an operating profit of
$8,944 for the quarter ended September 30, 2005 compared to an
operating profit of $84,612 during the quarter ended September 30,
2004.
The Company's net loan portfolio at September 30, 2005 was $51.4
million versus $47.7 million at September 30, 2004.
Commenting on the results, Gary C. Granoff, Ameritrans' president
said, "During the first fiscal quarter September 30, 2005, our
earnings were negatively impacted by an increase in our interest
expense of $157,117 over our interest expense for the first quarter
ended September 30, 2004. In addition other administrative expenses
increased by $36,321 during the quarter ended September 30, 2005 as
compared to the quarter ended September 30, 2004. In comparing the two
quarters we were positively impacted during the quarter ended
September 30, 2005 by a reduction in professional fees of $65,752, and
we were positively impacted by a reduction in write off and
depreciation on interest and loans receivable of $65,670."
Granoff further stated "We are continuing to take measures to
build our loan portfolio on a conservative but profitable basis which
should have a beneficial effect by increasing our gross income as
transactions are completed. Our new loans in the diversified business
loan area are being done on an adjustable basis so that periodically
(quarterly, semi-annually or annually, depending on the terms of the
respective transactions) we will be adjusting the interest rate
payable by the borrower to current market rates. Our margins have been
decreased by the numerous increases in short term market rates of
interest charged by our banks. To partially offset anticipated future
increases in short term interest rates, the Company recently completed
two separate $5,000,000 interest rate swaps to lock in rates of 6.20%
for a two year period and 6.23% for a three year period starting from
mid October, 2005. The interest rate swaps should assist the Company
in controlling its interest costs on the floating portion of its bank
debt against continued upward increases in interest rates."
Granoff added: "Our Chicago taxi medallion loan portfolio has
continued to improve, and the Chicago taxi industry has stabilized.
Our lending operations in Chicago have continued to produce new loan
activity. In addition, during the quarter ended September 30, 2005, we
were able to complete closings on the sale of nineteen (19) medallions
being foreclosed in our Chicago taxi medallion loan portfolio that
were pending at June 30, 2005. During the quarter we were also able to
execute contracts with two purchasers to sell an additional eleven
(11) foreclosed Chicago medallions. Presently, we are negotiating the
sale of an additional six (6) Chicago medallions being foreclosed, and
we anticipate that we may be able to complete these transactions
totaling sales of seventeen (17) foreclosed medallions by the end of
January 2006. If we are able to complete the sale of seventeen (17)
medallions then the sales of all medallions being foreclosed by the
Company in Chicago at September 30, 2005 will have been completed."
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
September 30, 2005 (Unaudited) and June 30, 2005
ASSETS
September 30, June 30, 2005
2005
-------------- --------------
Loans receivable $ 51,503,498 $ 52,060,254
Less: unrealized depreciation on loans
receivable (150,000) (150,000)
-------------- --------------
Loans receivable, net 51,353,498 51,910,254
Cash and cash equivalents 634,524 327,793
Accrued interest receivable, net of
unrealized deprecation of $24,500 and
$59,000, respectively 677,981 756,701
Assets acquired in satisfaction of
loans 384,528 384,528
Receivables from debtors on sales of
assets acquired in satisfaction of
loans 414,475 455,184
Equity securities 857,364 908,457
Furniture, equipment and leasehold
improvements, net 312,957 329,573
Medallions under lease 2,224,701 2,282,201
Prepaid expenses and other assets 543,462 531,904
-------------- --------------
TOTAL ASSETS $ 57,403,490 $ 57,886,595
============== ==============
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2005 (Unaudited) and June 30, 2005
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, June 30, 2005
2005
-------------- --------------
LIABILITIES
Debentures payable to SBA $ 12,000,000 $ 12,000,000
Notes payable, banks 29,650,652 29,770,652
Accrued expenses and other
liabilities 497,786 604,942
Accrued interest payable 126,860 256,285
Dividends payable 84,375 84,375
-------------- --------------
TOTAL LIABILITIES 42,359,673 42,716,254
-------------- --------------
COMMITMENTS AND CONTINGENCIES
(Notes 3,4 and 5)
STOCKHOLDERS' EQUITY
Preferred stock 500,000 shares
authorized, non issued or
outstanding
9 3/8% cumulative participating
callable preferred stock $.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, $.0001 par value;
5,000,000 shares authorized; 2,045,600
shares issued, 2,035,600 outstanding 205 205
Additional paid-in-capital 13,869,545 13,869,545
Accumulated deficit (2,202,565) (2,127,134)
Accumulated other comprehensive
expenses (153,368) (102,275)
-------------- --------------
15,113,817 15,240,341
Less: Treasury stock, at cost, 10,000
shares of common stock (70,000) (70,000)
-------------- --------------
TOTAL STOCKHOLDERS EQUITY 15,043,817 15,170,341
-------------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY $ 57,403,490 $ 57,886,595
============== ==============
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 2005 and 2004 (Unaudited)
Three Months
Three Months Ended
Ended September September 30,
30, 2005 2004
--------------- ---------------
INVESTMENT INCOME
Interest on loans receivable $ 1,149,783 $ 1,129,057
Fees and other income 82,301 100,540
Leasing income 49,468 51,537
--------------- ---------------
TOTAL INVESTMENT INCOME 1,281,552 1,281,134
--------------- ---------------
OPERATING EXPENSES
Interest 539,273 382,156
Salaries and employee benefits 276,238 262,664
Occupancy costs 54,716 49,183
Professional fees 69,812 135,564
Other administrative expenses 281,789 245,468
Loss and impairments on assets
acquired in satisfaction of loans,
net 3,000 10,393
Foreclosure expenses 2,208 5,000
Write off and depreciation on
interest and loans receivable 35,848 101,518
--------------- ---------------
TOTAL OPERATING EXPENSES 1,262,884 1,191,946
--------------- ---------------
OPERATING INCOME 18,668 89,188
--------------- ---------------
OTHER EXPENSE
Equity in loss of investee - (2,011)
--------------- ---------------
TOTAL OTHER EXPENSE - (2,011)
--------------- ---------------
INCOME BEFORE PROVISION FOR
INCOME TAXES 18,668 87,177
PROVISION FOR INCOME TAXES 9,724 2,465
--------------- ---------------
NET INCOME $ 8,944 $ 84,712
--------------- ---------------
DIVIDENDS ON PREFERRED STOCK $ (84,375) $ (84,375)
--------------- ---------------
NET (LOSS) INCOME AVAILABLE TO
COMMON SHAREHOLDERS $ (75,431) $ 337
--------------- ---------------
WEIGHTED AVERAGE SHARES OUTSTANDING
- Basic $ 2,035,600 2,035,600
--------------- ---------------
- Diluted $ 2,035,600 2,035,600
--------------- ---------------
NET LOSS PER COMMON SHARE
- Basic $ (0.03) 0.00
- Diluted $ (0.03) 0.00
*T