Elk Associates Funding Makes Announcement.NEW YORK--(BUSINESS WIRE)--Aug. 29, 1997--Elk Associates Funding Corporation announced today that its financial results for the fiscal year ending June 30, 1997 are being filed with the US Securities and Exchange Commission on Form NSAR NSAR Semi-Annual Report (for investment companies) NSAR National Select Agent Registry NSAR Non-Steroidal Anti-Rheumatic (agents) NSAR National System of Agricultural Research , and the full financial statements are being filed in the Commission's EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. reporting data files. The Company announced that it has continued to make substantial progress in its business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , its diversification strategy, the expansion of its loan and investment portfolio, its financial standing, and level of profitability. The Company announced a substantial increase in the earnings for fiscal year ended June 30, 1997 over that of fiscal year ended June 30, 1996. The Company announced that it also had substantial growth in its loan portfolio and asset base. During the fiscal year the Company's net earnings increased 15% to a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern level of $1,049,023 at June 30, 1997 vs $914,206 at June 30, 1996. In addition, the earnings at June 30, 1996 contained certain one-time recoveries from sales of defaulted assets acquired that did not repeat in fiscal 1997, and accordingly, the Company's earnings growth from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was actually more than a 20% increase year to year. Total investment income increased 31% to $4,034,913 for fiscal year June 30, 1997 which was substantially in excess of the $3,084,412 received during fiscal year ended June 30, 1996. The Company's Loan portfolio grew 38% (over a $9,000,000 increase) in the last fiscal year to $32,924,206 at June 30, 1997 from $23,840,421 at June 30, 1996. Total assets also increased 38% (over $10,000,000) to $37,026,021 at June 30, 1997 from $26,721,186 at June 30, 1996. The Company announced that its portfolio of taxi medallion loans in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. was $17,260,487 at June 30, 1997, an increase of 4% over the portfolio of $16,586,681 at June 30, 1996. The Company further announced that the largest increase in its loan portfolio came from the increase in its Chicago taxi medallion loan portfolio. The Chicago taxi medallion loan portfolio increased by a net increase of $5,787,349 or 255% to $9,511,105 at June 30, 1997 from $3,723,756 at June 30, 1996. The Company further announced that its Boston taxi medallion portfolio increased approximately 17% to $1,029,996 at June 30, 1997 from $883,323 at June 30, 1996. The Company also announced that it had successfully diversified into the Dade County Dade County can refer to the following places:
The Company announced that its earnings at June 30, 1997 after income tax was $1,020,347, which consisted of realized cash earnings of $995,347 and non cash gains from the sale of a 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. to a borrower in exchange for a debt instrument of $25,000. Furthermore, the Company's balance sheet now also reflects unrealized appreciation (at June 30, 1997) on its equity investments in the common stock of certain corporations that own Chicago taxi medallions. The amount of unrealized appreciation at June 30, 1997 was recorded at $58,241. During the fiscal year ended June 30, 1997, the Company also refinanced an 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 debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. in the amount of $408,000 that matured in March, 1997 by selling a new debenture guaranteed by SBA in the amount of $430,000. In addition, the common stockholders paid in capital increased by an additional $711,448 as a result of the reduction of the SBA's interest in the restricted capital account. The remaining balance of $1,679,820 in the SBA's restricted capital account will continue to decrease, and the Company's additional paid in capital account will continue to increase, at the rate of $59,287 per month until November, 1999 when, provided the Company remains in compliance with applicable SBA requirements, the restricted capital account is scheduled to be zero. During the fiscal year ended June 30, 1997, the Company was able to increase its credit lines with commercial banks to $20,000,000 from $14,000,000 at June 30, 1996. The Company also substantially increased the amount utilized under these lines by increasing outstanding bank debt to $16,820,000 at June 30, 1997 from $6,625,000 at June 30, 1996. The substantial increase in bank debt was primarily utilized to increase the size of the Company's loan and investment portfolio, and to allow the Company to be in compliance with its compensating balance Compensating balance An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided. compensating balance requirements that the Company is required to maintain with its banks. Due to the compensating balance requirements, the Company's cash position increased to $1,853,032 at June 30, 1997 from $1,072,783 at June 30, 1996. During the fiscal year ended June 30, 1997, the Company distributed cash dividends of .18 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. in July, 1996 (as a part distribution of earnings from the fourth quarter of the fiscal year ended June 30, 1996); 20.75 cents per share in September, 1996 (consisting of 6.75 cents per share final distribution of earnings from the fiscal year ended June 30, 1996), and .14 cents per share on account of the first quarter of fiscal year ending June 30, 1997. Thereafter, dividends were paid at the rate of .17 cents per share in December, 1996, and .18 cents in April, 1997. A dividend of .18 cents per share for the fourth quarter of the fiscal year was paid in August, 1997. Management has calculated that a final dividend of approximately .10 cents per share should be declared by the Board of Directors at the next meeting in order to pay out the amount of remaining retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. earned during the fiscal year, in order to be in compliance with applicable tax regulations concerning Regulated Investment Companies Regulated investment company An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided. . Management expects that this dividend will be declared during September, 1997 and paid at the end of September, or in early October, 1997. Accordingly, on an accrual basis A method of accounting that reflects expenses incurred and income earned for Income Tax purposes for any one year. Taxpayers who use the accrual method must include in their taxable income any money that they have the right to receive as payment for services, once it , and after payment of a final anticipated dividend of .10 cents per share, the Company will have paid out .77 cents per share from realized earnings for the fiscal year ended June 30, 1997. The Company believes that its business prospects at the present time are excellent and that it will continue to finance New York City, Chicago, Boston and Miami taxi medallion owners as its principal source of loans. The Company also expects to continue to finance diversified businesses as opportunities arise that meet the Company's loan and investment criteria by utilizing a combination of loans and equity investments. During the fiscal year ended June 30, 1997, the Company also was able to amend its Certificate of Incorporation certificate of incorporation n. some states issue a certificate to prove a corporation's existence upon the filing of Articles of Incorporation. In most states the Articles are sufficient proof. and enter into an agreement with SBA whereby the Company will be allowed to make loans and investments into small business concerns that are not owned by persons who are socially or economically disadvantaged individuals. The Company believes that this change will open many opportunities to the Company that it was previously unable to consider due to its license requirements with SBA. Elk Associates Funding Corporation is a 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. Small Business Investment Company 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. The Company was licensed by the SBA in 1980. The Company's shares are listed in the Pink Sheets under the symbol "EKFG". 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 , New York 10017. The contact person is Gary C. Granoff, President. The Company's telephone number is 1-212-355-2449 or 1-800-214-1047. The Company's fax number is 1-212-759-3338. CONTACT: Elk Associates Funding Corp. Gary C. Granoff 212/355-2449 1-800-214-1047 Fax: 212/759-3338 |
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