Ameritrans Reports Third Quarter Results.Business Editors NEW YORK--(BUSINESS WIRE)--May 16, 2003 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) , AMTCP) today reported total investment income of $1.55 million during the quarter ended March 31, 2003, compared to $1.64 million during the prior comparable period. Citing weakness in the Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. market, Ameritrans reported a net loss available to common shareholders for the three months ended March 31, 2003 of $182,222, or $0.09 per basic and 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 $215,671, or $0.12 per basic and diluted common share, in the third quarter of fiscal 2002. This consisted of the net loss from operations of $97,847 for the quarter and the impact of dividends paid on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of $84,375. The net loss from operations was the result of an increase in write offs for loan losses, foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. expenses, and expenses related to preparing a post-effective amendment to a registration statement for the public warrants issued in April 2002. Net loss per common share also reflects higher weighted average shares outstanding in the quarter ended March 31, 2003. The weighted average shares outstanding for the period were 2,035,600 versus 1,745,600 in the quarter ended March 31, 2002. The Company's loan portfolio at March 31, 2003 was $57.0 million versus $53.8 million at March 31, 2002. At March 31, 2003 Ameritrans book value was $6.25 per basic and diluted common share. 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:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. $340,000 in profits before the write-offs, foreclosure expenses, and legal and accounting charges related to the post-effective amendment to the registration statement. Our loan portfolio continues to grow, and we intend to continue to take advantage of the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate environment, which will allow us to reduce our cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. and improve our margins. As a result of the loss, the Company's directors have determined not to declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. a dividend on AMTC's common stock for the third quarter." For the nine months ended March 31, 2003, Ameritrans reported total investment income of $4.7 million, compared to $4.6 million during the prior comparable period. Net income available to common shareholders for the nine months ended March 31, 2003 was $215,046, or $0.11 per basic and diluted common share, versus $860,298, or $0.49 per basic and diluted common share, in the first nine months of fiscal 2002. Net income available to common shareholders for the nine month period was impacted by dividends paid on preferred stock of $253,125, as well as increased loan loss write offs, foreclosure expenses, and expenses related to the post-effective amendment to the registration statement. Net income per common share also reflects higher weighted average shares outstanding in the nine months ended March 31, 2003. Granoff commented, "We are starting to see a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the demand for medallions in the Chicago market. We are continuing to sell medallions acquired through foreclosure and we are currently in the process of arranging leasing programs to operate medallions owned by Ameritrans through newly formed subsidiary corporations. As a result, we intend to lease many of the medallions we will own at the end of the forclosure process and expect that this leasing income will have a positive impact on our Chicago operations. We do, however, expect additional one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. cash and non-cash charges 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. in the fourth quarter as we move toward completing the foreclosure of medallions loans that are in default and placing them back in operation." "While our third quarter is disappointing, we believe that Ameritrans is taking the necessary steps to address the difficulties in the Chicago taxi market and to enable these medallions to become working assets  The of this article or section may be compromised by "weasel words".You can help Wikipedia by removing weasel words. as soon as practicable practicable adj. when something can be done or performed. ." Ameritrans Capital Corporation is a specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. 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. (TABLES TO FOLLOW)
AMERITRANS CAPITAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2003 (Unaudited) and June 30, 2002
ASSETS
March 31, June 30,
2003 2002
----------- -----------
Loan receivable $56,973,994 $55,029,831
Less: unrealized depreciation on loans
receivable (238,500) (238,500)
----------- -----------
56,735,494 54,791,331
Cash and cash equivalents 763,213 774,062
Accrued interest receivable, net of
unrealized depreciation of $399,000 and
$206,272, respectively 1,465,484 1,197,075
Assets acquired in satisfaction of loans 942,189 1,108,088
Receivables from debtors on sales of assets
acquired in satisfaction of loans 431,258 367,271
Equity securities 964,563 443,327
Furniture, fixtures and leasehold
improvements, net 168,333 107,757
Prepaid expenses and other assets 487,652 219,305
----------- -----------
TOTAL ASSETS $61,958,186 $59,008,216
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, June 30,
2003 2002
----------- -----------
LIABILITIES
Debentures payable to SBA $ 9,200,000 $ 7,860,000
Notes payable, banks 35,780,000 33,720,000
Accrued expenses and other liabilities 436,761 434,339
Accrued interest payable 127,229 258,358
Dividends payable 84,375 68,438
----------- -----------
TOTAL LIABILITIES 45,628,365 42,341,135
----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock 500,000 shares authorized
respectively, none issued or outstanding - -
9 3/8% Cumulative participating preferred
stock $.01 par value, $12.00 face value,
500,000 shares authorized; 300,000 shares
issued and outstanding 3,600,000 3,600,000
Common stock, $.0001 par value:
5,000,000 shares authorized;
2,045,600 shares issued and
2,035,600 shares outstanding 205 205
Additional paid-in-capital 13,869,545 13,869,545
Accumulated deficit (1,040,387) (703,127)
Accumulated other comprehensive loss (29,542) (29,542)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 16,399,821 16,737,081
----------- -----------
Treasury stock, at cost, 10,000 shares
common stock (70,000) (70,000)
----------- -----------
NET STOCKHOLDERS' EQUITY 16,329,821 16,667,081
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $61,958,186 $59,008,216
=========== ===========
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Unaudited)
For the Three Months and Nine Months Ended March 31, 2003 and 2002
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2003 2002 2003 2002
---------- ---------- ---------- ----------
INVESTMENT INCOME
Interest on loans
receivable $1,499,081 $1,533,452 $4,593,638 $4,433,111
Fees and other income 48,604 104,855 151,149 204,328
---------- ---------- ---------- ----------
TOTAL INVESTMENT
INCOME 1,547,685 1,638,307 4,744,787 4,637,439
---------- ---------- ---------- ----------
OPERATING EXPENSES
Interest 555,249 652,857 1,622,264 2,025,435
Salaries and
employee
benefits 220,055 215,292 654,103 554,741
Legal fees 82,152 84,708 235,415 183,263
Miscellaneous
administrative
expenses 331,886 281,296 954,472 706,440
Loss on assets
acquired in
satisfaction of
loans, net 57,800 14,494 72,464 64,660
Directors' fee 11,750 6,375 27,250 19,075
Foreclosure
expenses 161,667 - 281,838
Write off and
depreciation of
interest and
loans
receivable 220,530 161,088 412,884 215,931
---------- ---------- ---------- ----------
TOTAL OPERATING
EXPENSES 1,641,089 1,416,110 4,260,690 3,769,545
---------- ---------- ---------- ----------
(LOSS) INCOME
BEFORE INCOME
TAXES (93,404) 222,197 484,097 867,894
---------- ---------- ---------- ----------
INCOME TAXES 4,443 6,526 15,926 7,596
---------- ---------- ---------- ----------
NET (LOSS)
INCOME (97,847) 215,671 468,171 860,298
---------- ---------- ---------- ----------
DIVIDENDS ON PREFERRED
STOCK (84,375) - (253,125) -
---------- ---------- ---------- ----------
NET (LOSS) INCOME
AVAILABLE TO
COMMON
STOCKHOLDERS $ (182,222) $ 215,671 $ 215,046 $ 860,298
---------- ---------- ---------- ----------
WEIGHTED AVERAGE
SHARES OUTSTANDING
- Basic 2,035,600 1,745,600 2,035,600 1,745,600
========== ========== ========== ==========
- Diluted 2,035,600 1,745,600 2,035,600 1,745,600
========== ========== ========== ==========
NET (LOSS) INCOME PER
COMMON SHARE
- Basic $ (0.09) $ 0.12 $ 0.11 $ 0.49
========== ========== ========== ==========
- Diluted $ (0.09) $ 0.12 $ 0.11 $ 0.49
========== ========== ========== ==========
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