[0] Ameritrans Reports Strong Third Quarter Operating Results; One-Time Charges, Increases in Reserves Mask Solid Increase in Per Share Earnings.Business Editors NEW YORK--(BUSINESS WIRE)--May 16, 2001 Ameritrans Capital Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMTC AMTC Applied Media Technologies Corporation AMTC Aerospace Manufacturing Technology Centre (Canada) AMTC American Modeling and Talent Convention AMTC Army Missile Test Center (White Sands Missile Range, NM) ) reported total investment income of $1.84 million during the third quarter ended March 31, 2001, compared to $1.82 million during the prior comparable period. Net income for the three months ended March 31, 2001 was $16,783, or $0.0096 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share, versus net income of $252,911, or $0.1447 per diluted common share in the third quarter of fiscal 2000. The total loans receivable at March 31, 2001 were $56.4 million versus total loans receivable of $56.8 million at June June: see month. 30, 2000. The company also announced a dividend of $0.1125 for the quarter. The dividend was declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. on April 30, 2001 and payable May 31, 2001 to holders of record as of May 25, 2001. Of the $196,380 dividend, which is being paid out of the company's capital surplus, $87,115 is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the company's current earnings. Commenting on the results, Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. C. Granoff Granoff may refer to:
v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: merger agreement with Medallion impacted our quarterly results. Excluding the charges associated with the terminated merger agreement, we improved our net income by seventy percent. Moreover, we moderated the growth of our portfolio in light of the anticipated merger, but have now begun to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. on growing our portfolio through diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. into asset based loans and investments, as well as other specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. business lending opportunities that would enhance shareholder value." P. Granoff said he was optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op regarding future earnings prospects in the coming year through reduced interest cost and margin expansion. "During the quarter, we only partially benefitted from the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in interest rates, which started in late January January: see month. . The effects of these reduced rates will be more substantial in the coming quarters, reducing our interest expense on $22 million in floating rate debt. Meanwhile, prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. have been minimal while we have maintained rates on new loans, resulting in anticipated margin improvement." P. The figures for the three and nine months ended March 31, 2001 reflect a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $413,187 to write off merger costs, associated with the termination of the agreement and plan of merger between the company and Medallion Financial Corporation. P. Excluding the one-time write off of the merger costs, net income for the three months ended March 31, 2001 was $429,970, or $0.2463 per diluted common share. Included in our adjusted performance for the quarter is a gain on sale of equity securities of $109,507. P. For the nine months ended March 31, 2001 the company reported total investment income of $5.07 million as compared to $5.10 million for the nine months ended March 31, 2000. Net income for the period was $418,779, down 25.6% from $563,519 for the prior comparable period. Net income in the nine month period was negatively impacted in the first fiscal quarter, when the company added $192,000 to its reserve for loss account, which increased the company's reserves from $380,000 to $572,000. Net income per diluted share for the nine months ended March 31, 2001 was $0.2399 versus net income per diluted share of $0.3223 for the prior period, a decrease of 25.5%. P. For the nine months ended March 31, 2001, net income, excluding the one time write off of the merger costs, was $831,966, or $0.4766 per common share. Ameritrans Capital Corporation is a specialty finance company engaged in making loans to and investments in small businesses. Ameritrans' wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Elk Associates Funding Corporation, was licensed by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Small Business Administration as a Small Business Investment Company (SBIC SBIC Small Business Investment Company SBIC Sustainable Buildings Industry Council SBIC Singapore Bioimaging Consortium (Singapore) SBIC School Bus Information Council SBIC Saudi Basic Industries Corporation SBIC Scsi Bus Interface Controller ) in 1980. The company maintains its offices at 747 Third Avenue; 4th Floor; New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10017. This announcement contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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
March 31, 2001 (Unaudited) and June 30, 2000
March 31, 2001 June 30, 2000
ASSETS
Loans receivable $ 56,435,260 $ 56,806,579
Less: allowance for loan losses (572,000) (380,000)
------------ ------------
55,863,260 56,426,579
Cash and cash equivalents 603,427 376,507
Accrued interest receivable 1,015,553 928,765
Assets acquired in satisfaction
of loans 944,503 609,106
Receivable from debtors on
sales of assets acquired in
satisfaction of loans 426,553 743,954
Equity securities 416,766 631,974
Furniture, fixtures and
leasehold improvements, net 94,249 110,019
Prepaid expenses and other assets 274,594 467,720
------------ ------------
TOTAL ASSETS $ 59,638,905 $ 60,294,624
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Debentures payable to SBA 8,880,000 8,880,000
Notes payable, banks 37,250,000 37,800,000
Accrued expenses and other
liabilities 409,781 365,328
Accrued interest payable 246,495 365,270
Dividends Payable 196,380 --
------------ ------------
TOTAL LIABILITIES 46,982,656 47,410,598
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $.0001 par value:
5,000,000 shares authorized;
1,745,600 shares issued and
outstanding 175 175
Additional paid-in capital 13,471,474 13,471,474
Accumulated deficit (834,322) (725,057)
Accumulated other
comprehensive income 18,922 137,434
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 12,656,249 12,884,026
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 59,638,905 $ 60,294,624
============ ============
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three and Nine Months Ended March 31, 2001 and 2000
Three Months Ended Nine Months Ended
March 31 March 31,
2001 2000 2001 2000
---- ---- ---- ----
INVESTMENT INCOME
Interest on
loans receivable $1,655,672 $1,612,746 $4,696,174 $4,519,669
Fees and other
income 73,896 118,675 255,932 409,991
Gain on sale of
equity security 109,507 90,748 121,637 166,917
---------- ---------- ---------- ----------
TOTAL INVESTMENT
INCOME 1,839,075 1,822,169 5,073,743 5,096,577
---------- ---------- ---------- ----------
OPERATING EXPENSES
Interest 904,712 887,450 2,649,482 2,433,497
Salaries and
employee benefits 199,409 202,743 509,013 483,871
Legal fees 58,985 94,495 139,022 332,044
Miscellaneous
administrative
expenses 213,373 169,809 654,627 607,726
Loss on assets
acquired in
satisfaction of
loans, net 19,474 30,240 75,242 32,175
Directors' fee 10,500 11,625 10,000 31,875
Bad debt expense -- 89,080 194,298 170,130
Recapitalization
costs -- 77,104 -- 423,045
Writeoff of
Merger Costs 413,187 -- 413,187 --
---------- ---------- ---------- ----------
TOTAL OPERATING
EXPENSES 1,819,640 1,562,546 4,644,872 4,514,363
---------- ---------- ---------- ----------
OPERATING INCOME 19,435 259,623 428,871 582,214
---------- ---------- ---------- ----------
NET INCOME
BEFORE INCOME
TAXES 19,435 259,623 428,871 582,214
INCOME TAXES 2,652 6,712 10,092 18,695
---------- ---------- ---------- ----------
NET INCOME (LOSS) $16,783 $252,911 $418,779 $563,519
========== ========== ========== ==========
OTHER
COMPREHENSIVE
(LOSS) INCOME
Net reclassification
adjustment for
gains included in
net income and
unrealized gain on
equity security (118,512) (149,999) (118,512) (149,999)
COMPREHENSIVE
(LOSS) INCOME (101,729) 102,912 300,267 413,520
================================================
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic 1,745,600 1,745,600 1,745,600 1,745,600
========== ========== ========== ==========
Diluted 1,745,600 1,746,572 1,745,600 1,748,360
========== ========== ========== ==========
NET INCOME (LOSS)
PER COMMON SHARE
Basic $0.0096 $0.1449 $0.2399 $0.3228
========== ========== ========== ==========
Diluted $0.0096 $0.1447 $0.2399 $0.3223
========== ========== ========== ==========
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