Medallion Financial Corporation Announces
First Quarter Earnings
- Portfolio Yields Increase
- Taxi Tops Increase 50% to 10,800
NEW YORK, May 15 Medallion Financial Corp. ,
a leading finance company servicing the taxi industry in the United States,
and one of the nation's largest taxi top advertising companies, announced
operating earnings for the first quarter ending March 31, 2001 of $2,289,229,
or $.16 per share.
Andrew Murstein, President of Medallion Financial, stated, "We are very
pleased with our first quarter earnings which came in slightly ahead of First
Call estimates. We are even more pleased with the yield on our portfolio and
how well it has performed over the last year. Our yields increased from 9.96%
in the first quarter of 2000, to 10.26% in the first quarter of 2001. This
was accomplished in a much lower interest rate environment as the Fed lowered
rates significantly over the last year. We have very strong loan demand right
now and we can selectively choose those loans that meet our high standards of
yield and loan quality. Our loan quality continues to remain outstanding."
Total assets now stand at $548,658,592, down from $560,715,002 at
December 31, 2000. Assets under management have grown to $780 million at
March 31, 2001. Mr. Murstein continued, "Our loan syndication program
continues to work well as many banks are interested in participating in the
loans that we generate due in part to the banks requirements to make women and
minority-owned business loans, as well as community reinvestment act loans.
We are able to charge servicing fees when we participate these loans out, thus
reducing our capital exposure while increasing our yields."
Medallion Media, the Company's taxi top division had record revenues of
$3,355,000 for the quarter, up from $2,276,321 in the first quarter of 2000,
an increase of 47%. Taxi Tops under management also increased dramatically
from 7,200 in the first quarter of 2000 to 10,800 in the first quarter of
2001, an increase of 50%. "During the quarter we continued our nationwide
expansion. We continue to see very strong demand for our taxi tops, as they
are one of, if not the lowest cost outdoor advertising medium available. We
continue to be sold out in New York and are also seeing price increases as
well."
The Company also announced that its Board of Directors will pay a cash
dividend on its common stock for the first quarter of 2001 of $0.14 per share.
The first quarter dividend will be payable on June 5, 2001 to shareholders of
record on May 25, 2001.
James Jack, Medallion's new Chief Financial Officer, stated "One of the
many things that attracted me to Medallion was their ability to provide the
best of both worlds to their shareholders, a stock with a dividend yield and
growth potential. In today's market environment that is unique and should be
very attractive. As a regulated investment company we are required to
distribute 90% or more of our earnings each quarter, and in the past we have
also distributed a special year-end dividend. One of the things I am working
on is to continue to diversify the Company's funding sources and lower its
cost of funds. As our earnings rise and we continue to build momentum, we
hope to increase the dividend each quarter."
As previously reported Mr. Jack joined Medallion on May 1. Previously he
had spent the majority of his career at Associates First Capital where over a
thirty year period he oversaw the finance company's growth from $2 billion in
assets to over $50 billion, as a Director and Chief Financial Officer.
Mr. Murstein concluded, "Even though we had a very good quarter, much of
the Fed's rate reduction won't be seen in our earnings and have yet to fully
impact our results. Typically in a lower interest rate environment we tend to
do better. The end of period bank cost of funds decreased from 7.09% to
6.46%. We see many good opportunities ahead of us, and we are well positioned
to continue to grow the company."
Medallion Financial Corp. is a specialty finance company with a leading
position in the origination and servicing of loans financing the purchase of
taxicab medallions and related assets. The Company also originates and
services commercial loans financing small businesses in other targeted
industries, and operates one of the largest taxicab rooftop advertising
business in the nation. The Company and its subsidiaries have lent more than
$1,000,000,000 to the taxicab industry and for small business loans. As a
regulated investment company (RIC), Medallion complies with the requirement to
distribute at least 90% of its income to shareholders, and as a consequence,
pays no corporate income tax on the amount of income distributed.
Please note that this press release contains forward-looking statements,
which involve risks and uncertainties. Medallion's actual results may differ
significantly from the results discussed in such forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those factors discussed under the heading "Investment Considerations," in
Medallion's 2000 Annual Report on Form 10K.
Medallion Financial Corp.
Consolidated Balance Sheets
March 31, 2001 December 31, 2000
ASSETS
Medallion &
Commercial
installment loans 285,341,499 299,302,548
Commercial installment
loans 205,383,711 212,721,373
Equity investments 1,729,545 2,129,685
Net Investments 492,454,755 514,153,606
Investments in
unconsolidated
subsidiary 2,117,365 1,856,421
Total investments 494,572,120 516,010,027
Cash 24,513,968 15,652,878
Accrued interest
receivable 9,601,269 8,701,981
Servicing fee
receivable 6,355,354 6,632,516
Fixed assets net 1,940,839 2,050,808
Goodwill net 5,517,519 5,650,045
Other assets 6,157,523 6,016,747
Total assets 548,658,592 560,715,002
LIABILITIES
Accounts payable 9,720,525 7,723,812
Dividends payable 0 5,244,281
Accrued interest payable 1,925,079 3,887,589
Notes payable to
banks and demand notes 319,470,000 305,700,000
Commercial paper 763,708 24,066,269
Notes payable Bond 45,000,000 45,000,000
SBA debentures/Preferred 21,360,000 21,360,000
Total liabilities 398,239,312 412,981,951
SHAREHOLDERS EQUITY
Common stock 145,821 145,467
Capital in excess of par 146,776,023 146,379,377
Accumulated undistributed
income 3,497,436 1,208,207
Total Shareholders
equity 150,419,280 147,733,051
Total Liabilities and
shareholders equity 548,658,592 560,715,002
Number of common
shares outstanding 14,582,035 14,546,637
Net asset value per share 10.32 10.16
Medallion Financial Corp.
Consolidated Income Statement
1Q 01 1Q 00
Interest income on investments 13,329,179 14,451,072
Interest income on s/t investments 44,952 79,877
Investment income: 13,374,131 14,530,949
Notes payable to banks 5,790,472 3,304,556
Senior secured notes 821,865 821,865
SBA debentures/Preferred 433,172 409,418
Commercial paper 155,529 2,281,159
Interest expense: 7,201,038 6,816,998
Net Interest income 6,173,093 7,713,951
Gain on sale of loans 433,180 686,098
Accretion of negative goodwill 0 180,600
Equity in earnings of
unconsolidated subsidiary (427,184) (319,349)
Other Income 971,246 799,907
Non-interest income 977,242 1,347,256
Salaries and benefits 2,677,076 2,455,981
Professional fees 395,247 416,617
Rent expense 255,825 243,879
Amortization of goodwill 135,095 136,578
Administrative and advisory fees 3,135 61,541
Other operating expenses 1,352,463 1,380,550
Expenses 4,818,841 4,695,146
Net Investment Income 2,331,494 4,366,061
Net realized gain (loss)
on investments (898,413) 246,749
Change in net unrealized apprec
(deprec) 893,264 (112,711)
Net realized/unrealized
loss on investments (5,149) 134,038
Income tax benefit (provision) 37,116 154
Net Increase in net assets
resulting from operations 2,289,229 4,499,945
Weighted average shares
Basic 14,571,731 14,524,428
Diluted 14,583,299 14,591,352
Earnings per share as reported
Basic 0.16 0.31
Diluted 0.16 0.31
Net Investment Income per share
Basic 0.16 0.30
Diluted 0.16 0.30
Note - The 2000 first quarter numbers have been restated to reflect the
Freshstart merger in October 2000.
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