Ameritrans First Quarter Investment Income Rises.Business Editors/Banking Writers NEW YORK--(BUSINESS WIRE)--November 16, 2000 Ameritrans Capital Corporation (Nasdaq: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) ) announced today that the company's investment income was $1.6 million for the three months ended September September: see month. 30, 2000, an increase of nearly 7% over the investment income of $1.5 million for the three months ended September 30, 1999. Net income for the period was $87,751, a decrease of 74% from the net income of $336,724 for the prior comparable period. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the period were $0.05, a 74% decrease from the $0.19 diluted earnings per share recorded for the comparable prior period. The company's loan portfolio grew from $53.7 million as of September 30, 1999 to $57.6 million as of September 30, 2000. The increase in the company's investment income is mainly due to the 7% increase in the size of the loan portfolio. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Ameritrans chairman and chief executive officer 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:
emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to a $192,000 increase in our allowance for loan losses." He added, "Ameritrans had a $235,315 increase in interest expenses from the prior comparable period, which was attributable to increased bank borrowings, and higher interest rates. This was partially offset by income from our interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. transaction of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $42,000 during the quarter." Granoff said that the company continues to grow its portfolio in a prudent manner as management works toward consummating its merger with Medallion Financial Corporation. The Company also announced that it amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its merger agreement with Medallion Financial Corp., pursuant to which Ameritrans and Medallion agreed (i) that the average closing sale price per share of Medallion's common stock on the NASDAQ Market during the Determination Period (as defined in the Merger Agreement) at which either party shall have the right to terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. the Merger Agreement shall be reduced from $15.00 to $14.00 per share; (ii) that the purchase price (i.e., number of Medallion shares) to be paid to the Company's shareholders if the average price per share of Medallion common stock during the Determination Period is between $14.00 and $14.99 shall be calculated by dividing $8.01 by such average closing price of the Medallion common stock; (iii) to the modification A change or alteration in existing materials. Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales. of certain representations by the company; (iv) that the date by which Medallion shall have obtained either approval of the Company's lenders to the merger or shall have obtained financing suitable to it shall be extended from November November: see month. 1, 2000, to November 30, 2000; and (v) the date by which the merger must be completed shall be extended from December December: see month. 31, 2000, to January January: see month. 31, 2001, unless the only condition remaining to be satisfied under the Agreement is obtaining 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 approval, in which event, such outside date shall be February February: see month. 23, 2001. The amendment to the merger agreement is included in the Company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. which is being filed with the Securities and Exchange Commission. The Company also stated that it is presently in discussions with Medallion regarding a further extension of the date by which Medallion shall have obtained either the consent of the Company's lenders or financing satisfactory to Medallion. 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 has been 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 (SBA) as a Small Business Investment Company since 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 certain 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 STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended September 30, 2000 and 1999
Three Months Ended
September 30,
2000 1999
---- ----
INVESTMENT INCOME
Interest on loans receivable $1,548,345 $1,404,270
Fees and other income 75,983 114,561
---------- ----------
TOTAL INVESTMENT INCOME 1,624,328 1,518,831
---------- ----------
OPERATING EXPENSES
Interest 962,499 727,184
Salaries and employee benefits 141,494 145,009
Legal fees 38,291 94,968
Miscellaneous administrative expenses 183,066 196,676
Loss on assets acquired in
satisfaction of loans, net 14,588 59
Directors' fee 250 15,000
Bad debt expense 194,298 --
---------- ----------
TOTAL OPERATING EXPENSES 1,534,486 1,178,896
---------- ----------
OPERATING INCOME 89,842 339,935
NET INCOME BEFORE INCOME TAXES 89,842 339,935
INCOME TAXES 2,091 3,211
---------- ----------
NET INCOME $ 87,751 $ 336,724
========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 1,745,600 1,745,600
========== ==========
Diluted 1,750,684 1,749,894
========== ==========
NET INCOME PER COMMON SHARE
Basic $ 0.0503 $ 0.1929
========== ==========
Diluted $ 0.0501 $ 0.1924
========== ==========
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2000 (Unaudited) and June 30, 2000
Sept. 30, 2000 June 30, 2000
ASSETS
Loans receivable $ 57,633,533 $ 56,806,579
Less: allowance for loan losses (572,000) (380,000)
-------------- --------------
57,061,533 56,426,579
Cash and cash equivalents 504,647 376,507
Accrued interest receivable 796,487 928,765
Assets acquired in satisfaction
of loans 666,555 609,106
Receivable from debtors on sales
of assets acquired in satisfaction
of loans 736,736 743,954
Equity securities 670,762 631,974
Furniture, fixtures and leasehold
improvements, net 102,556 110,019
Prepaid expenses and other assets 508,329 467,720
-------------- --------------
TOTAL ASSETS $ 61,047,605 $ 60,294,624
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Debentures payable to SBA $ 8,880,000 $ 8,880,000
Notes payable, banks 38,500,000 37,800,000
Accrued expenses and other
liabilities 405,697 365,328
Accrued interest payable 290,131 365,270
-------------- --------------
TOTAL LIABILITIES $ 48,075,828 $ 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 (637,306) (725,057)
Accumulated other comprehensive
income 137,434 137,434
-------------- --------------
TOTAL STOCKHOLDERS' EQUITY 12,971,777 12,884,026
-------------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 61,047,605 $ 60,294,624
============== ==============
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