Allied Capital Lending Corp. announces second quarter earnings.WASHINGTON--(BUSINESS WIRE)--Aug. 12, 1996--Allied Capital Lending Capital lending is the process of a large company, or corporation, offering financing on large "ticket" items to encourage the customer to purchase that item. Many major corporations have set up finance divisions, or subsidiaries, to help the customer purchase their product over Corp. (Nasdaq:ALCL ALCL Anaplastic Large Cell Lymphoma ALCL Assembly Line Communications Link ) announced second quarter results Monday Monday: see week. . Net income for the second quarter of 1996 totaled $1.1 million, or 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , as compared to $1.2 million, or 29 cents per share, for the second quarter of 1995. Since June June: see month. 30, 1995, the weighted average shares outstanding have increased approximately 4% as a result of stock issuances to participants in the dividend reinvestment plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. and the rights offering that was completed in June of 1996. During the second quarter of 1996, net investment income was down because the company sold fewer loans to the secondary market, thus limiting the amount of premium income realized on loan sales. Loan sales were down due to the slower pace of loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. in the first quarter of 1996. Loan originations were strong in the second quarter of 1996, and thus loan sales activity and premium income should be stronger in the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. quarters. During the three month period, Allied Capital Lending originated loans totaling approximately $15.1 million, a 19% increase over loan originations made during the second quarter of 1995. Net of repayments and changes in portfolio valuations and secondary market sales, total loans have increased 13% since Dec. 31, 1995. At June 30, 1996, the company had a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of loans to small businesses totaling approximately $32 million. The backlog is lower than it has historically been because the company is now a preferred lender, and loans now generally take less time to process and close through the SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government . Net income for the six months ended June 30, 1996 was $2.5 million, or 55 cents per share, a slight decrease from $2.6 million, or 59 cents per share, for the first six months of 1995. For the six month period, total investment income increased 16% to $4.2 million. Net investment income decreased to $2.3 million from $2.6 million for the prior comparative period, again as a result of the effect that declining secondary market premium income had on operating results. "Our loan origination activity is very strong," Katherine Katherine “intolerably curst and shrewd and froward.” [Br. Lit.: The Taming of the Shrew] See : Shrewishness Marien, Allied Capital Lending's president remarked. "Loan sales in the second quarter were down due to the slower origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real pace during the first quarter of 1996 which resulted from the extended federal government shutdown  This article or section may deal primarily with the U.S. and may not present a worldwide view. , and the fact that we are now funding more
construction loans, which are larger but take longer to fully disburse dis·burse tr.v. dis·bursed, dis·burs·ing, dis·burs·es To pay out, as from a fund; expend. See Synonyms at spend. [Obsolete French desbourser, from Old French desborser and get to the point of sale. "We are encouraged, however, by the second quarter loan closings. We expect to sell these loans for gains in the third and fourth quarters." -0- (in thousands, except per share amounts)
6/30/96 Per share 12/31/95 Per share
------- --------- -------- ---------
Financial Position
Information
------------------
Total investments $ 53,218 -- $ 47,147 --
Total assets 60,606 -- 55,480 --
Shareholders' equity
(NAV) 39,502 $ 7.99 32,884 $ 7.50
3 mos. ended 3 mos. ended
6/30/96 Per share 6/30/95 Per share
------- --------- ------- ---------
Operating Information --------------------- Total investment income $ 1,937 $ 0.43 $ 1,771 $ 0.40 Net investment income 891 0.20 1,231 0.28 Net realized losses (24) (0.01) (48) (0.01) Net realized income 867 0.19 1,183 0.27 Net unrealized apprec/(deprec) 279 0.06 65 0.02 Net income $ 1,146 $ 0.25 $ 1,248 $ 0.29 Actual shares outstanding 4,943 -- 4,377 -- Weighted avg. shares outstanding 4,549 -- 4,377 -- Distributions to Shareholders ---------------- Regular dividends -- $ 0.30 -- $0.2825
6 mos. ended 6 mos. ended
6/30/96 Per share 6/30/95 Per share
------- --------- ------- ---------
Operating Information
---------------------
Total investment
income $ 4,190 $ 0.94 $ 3,598 $ 0.82
Net investment
income 2,302 0.52 2,625 0.60
Net realized losses (84) (0.02) (38) (0.01)
Net realized income 2,218 0.50 2,587 0.59
Net unrealized
apprec/(deprec) 258 0.05 6 0.00
Net income $ 2,476 $ 0.55 $ 2,593 $ 0.59
Actual shares outstanding 4,943 -- 4,377 -- Weighted avg. shares outstanding 4,469 -- 4,377 -- Distributions to Shareholders ---------------- Regular dividends -- $ 0.60 -- $0.5525-0- Quarterly Cash Dividend Declared At their most recent meeting, the board of directors of Allied Capital Lending Corp. declared the company's quarterly cash dividend of 30 cents per share. The company has paid consistent quarterly dividends since its public offering in 1993. The dividend is payable as follows: -0-
Amount: 30 cents per share
Ex-dividend date: Sept. 11, 1996
Record date: Sept. 13, 1996
Payable date: Sept. 30, 1996-0-
Allied Capital Lending Corp. is a business development company traded on Nasdaq National Market, symbol ALCL. The company is engaged in making loans of up to $2 million to small, private businesses primarily through Small Business Administration (SBA) loan programs. A recent quote of the stock was $14.25 per share. There are 5,117,521 total shares outstanding. For additional information or a copy of the company's annual report, please contact Allied Capital's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at 202/973-6383 or fax to 202/659-2053. CONTACT: Allied Capital, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. Suzanne Sparrow, 202/973-6326 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion