Medallion Financial Corp. Announces Second Quarter
Results
Core Earnings Increase to $0.17 Per Share;
Dividend Increased to $0.15 Per Share;
Media Revenues Increase 32%
NEW YORK, Aug. 9 Medallion Financial Corp. ,
the leading finance company serving the taxi industry, and the world's largest
taxitop advertising company, announced operating earnings for the 2001 second
quarter of $2,599,000 or $0.17 per diluted common share, compared to operating
earnings of $2,331,000, or $0.16 per share for the 2001 first quarter.
Total Assets increased to $588,000,000, from $549,000,000 in the first
quarter. Total assets under management also increased substantially to
$820,000,000 as the company continued to syndicate out portions of its loans
to banks and other financial institutions looking for high quality paper.
During the quarter, the Company also continued its focus and programs on cost
reductions and efficiencies.
Media revenues rose sharply to $3,863,000 from $3,355,000 in the 2001
first quarter and from $2,937,000 in the 2000 second quarter, an increase of
32%.
Andrew Murstein, President of Medallion stated, "We are happy to see the
continued improvement in our quarterly earnings. The last several months were
very important for Medallion as we raised $40,000,000 of new equity, received
a $72,000,000 commitment for long term funds from the SBA, acquired another
company in one of our core lines of business, taxi top advertising, and
renewed the bank facility for Medallion Funding, our major subsidiary. We are
very happy with where we are right now in implementing our corporate
strategy."
James E. Jack, Medallion's C.F.O. stated, "One of the things that
impressed me most, and one of the reasons I joined Medallion has always been
their focus on growth and credit quality. While other financial institutions
often find it a challenge to add high quality yielding loans, Medallion
through its niche lending philosophy continues to excel. For the quarter
Medallion loans yielded 8.95%, or 220 basis points over prime. Commercial
loans yielded 10.62%, or 387 basis points over prime."
Mr. Jack concluded, "Our capital and liquidity position is as strong as
ever reflecting the recent equity offering, SBA commitment and bank credit
renewal. As banks continue to retrench from the small business loan
marketplace, and consolidation continues in our industry, we see great
opportunities for us to take advantage of."
Medallion also announced that its Board of Directors has raised its
dividend, and will pay a cash dividend on its common stock for the second
quarter of 2001 of $0.15 per share, up from $0.14 last quarter. The second
quarter dividend will be payable on September 10, 2001 to shareholders of
record on August 31, 2001.
Medallion Financial Corp.
Consolidated Income Statement
2Q 2001
2Q 01 1Q 01 2Q 00
Interest income on investments 11,413,800 13,329,179 13,726,862
Interest income on s/t investments 204,357 44,952 59,759
Investment income 11,618,157 13,374,131 13,786,621
Notes payable to banks 5,694,719 5,790,472 3,468,060
Senior secured notes 838,927 821,865 821,865
SBA debentures/Preferred 451,583 433,172 402,768
Commercial paper 27,287 155,529 2,223,077
Interest expense 7,012,516 7,201,038 6,915,770
Net interest income 4,605,641 6,173,093 6,870,851
Gain on sale of loans 278,857 433,180 818,198
Accretion of negative goodwill 0 0 169,916
Equity in earnings of
unconsolidated subsidiary 116,989 (427,184) 146,865
Other income 1,017,496 971,246 979,249
Non-interest income 1,413,342 977,242 2,114,228
Salaries and benefits 2,159,230 2,677,076 2,404,565
Professional fees 586,336 395,247 478,231
Rent expense 191,036 255,825 276,357
Amortization of goodwill 135,095 135,095 105,357
Administrative and advisory fees 1,882 3,135 42,659
Other operating expenses 346,769 1,352,463 1,427,848
Expenses 3,420,348 4,818,841 4,735,017
Net investment income 2,598,635 2,331,494 4,250,063
Net realized gain (loss) on
investments (602,548) (898,413) (1,063,151)
Change in net unrealized apprec
(deprec) 382,928 893,264 1,013,689
Net realized/unrealized loss on
investments (219,620) (5,149) (49,462)
Income tax benefit (provision) (14,757) (37,116) 59,883
Net increase in net assets resulting
from operations 2,364,258 2,289,229 4,260,483
Weighted average shares
Basic 15,215,002 14,571,731 14,533,384
Diluted 15,220,407 14,583,299 14,581,668
Earnings per share as reported
Basic 0.16 0.16 0.29
Diluted 0.16 0.16 0.29
Net investment income per share
Basic 0.17 0.16 0.29
Diluted 0.17 0.16 0.29
Medallion Financial Corp.
Consolidated Balance Sheets
2Q 2001
30-Jun-01 31-Dec-00
ASSETS
Medallion loans 272,971,622 299,302,548
Commercial loans 198,584,956 212,721,373
Equity investments 2,089,465 2,129,685
Net investments 473,646,043 514,153,606
Investments in unconsolidated
subsidiary 4,352,183 1,856,421
Total investments 477,998,226 516,010,027
Cash 81,812,352 15,652,878
Accrued interest receivable 9,250,886 8,701,981
Servicing fee Receivable 6,019,796 6,632,516
Fixed assets net 2,018,755 2,050,808
Goodwill net 5,384,992 5,650,045
Other assets 5,731,489 6,016,747
Total assets 588,216,496 560,715,002
LIABILITIES
Accounts payable 7,426,846 7,723,812
Dividends payable 0 5,244,281
Accrued interest payable 1,411,085 3,887,589
Notes payable to banks
and demand notes 314,720,000 305,700,000
Commercial paper 237,128 24,066,269
Notes payable Bond 45,000,000 45,000,000
SBA debentures/Preferred 31,860,000 21,360,000
Total liabilities 400,655,059 412,981,951
SHAREHOLDERS EQUITY
Common stock 181,822 145,467
Capital in excess of par 183,561,561 146,379,377
Accumulated undistributed income 3,818,054 1,208,207
Total Shareholders equity 187,561,437 147,733,051
Total Liabilities and
shareholders equity 588,216,496 560,715,002
Number of common shares outstanding 18,182,035 14,546,637
Net asset value per share 10.32 10.16
