SIRROM CAPITAL CORPORATION REPORTS FOURTH QUARTER PRE-TAX OPERATING INCOME OF $0.59 PER SHARE.NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BUSINESS WIRE)--Jan. 20, 1998--Sirrom Capital Corporation ("SCC SCC - strongly connected component ") (NYSE NYSE See: New York Stock Exchange :SIR), today announced financial results for the fourth quarter ended December 31, 1997. Pre-tax operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. per share increased 44% to $0.59 for the fourth quarter of 1997 from $0.41 for the same prior year period on a 29% increase in the weighted average number of shares outstanding as a result of the public offering consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. in February 1997. Pre-tax operating income for the quarter rose 86% to $9,780,000 from $5,268,000 for the same quarter last year. Total revenues for the quarter were $14,771,000, an increase of 76% compared with $8,383,000 for the fourth quarter of 1996. The net increase in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. resulting from operations for the quarter was $0.65 per share compared with $0.45 per share for the fourth quarter of 1996. SCC will pay a dividend on a pre-split basis of $0.51 (fifty-one cents) per share on March 20, 1998, based on a record date of February 27, 1998. SCC intends to distribute to shareholders on a quarterly basis at least 90% of its net investment income and net short-term capital gains Short-term capital gain A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income. . SCC's loan portfolio increased 86% to $412.0 million at December 31, 1997, compared with $221.5 million at December 31, 1996. 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. for the fourth quarter of 1997 were $80.0 million, up 175% compared with $29.1 million for the same period last year. "The increase in fourth quarter originations is a result of strong demand and the addition of seven new portfolio managers in 1997," stated George M. Miller, II, President and Chief Executive Officer of SCC. During the quarter, SCC received loan repayments totaling $21.1 million. See Exhibit 1 for details of loan repayments that occurred in the fourth quarter. The Company's $10,842,000 net increase in shareholders' equity resulting from operations for thequarter was composed of pre-tax operating income of $9,780,000, realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on investments of $1,039,000, and change in unrealized appreciation of investments of $503,000, less taxes of $480,000 primarily payable on Harris Williams' pre-tax income. See Exhibit 2 for the details of the realized gains and losses that occurred in the fourth quarter. SCC also announced the addition of two portfolio managers. Evelyn Mordechai, who is located in the Stamford office, formerly served as a Senior Analyst in Investment Banking for Susquehanna Investment Group in 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. Robert Bourquin, who is located in the Nashville office, formerly served as an Associate in Investment Banking at George K. Baum & Co. in Kansas City, Missouri Kansas City is the largest city in the state of Missouri. It encompasses parts of Jackson, Clay, Cass, and Platte counties and is the anchor city of the Kansas City Metropolitan Area, the second largest in Missouri, which includes counties in both Missouri and Kansas. . Sirrom Capital Corporation is a specialty finance company that makes loans to small private businesses located in 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. and Canada that generally have revenues between $5 million and $50 million. SCC typically makes loans in the form of senior or subordinated secured debt with relatively high fixed interest rates and with warrants to purchase equity securities of the borrower. SCC also invests in micro-cap Micro-cap Micro cap refers to a company with a market capitalization of between $50 million to $300 million. Notes: A micro cap stock isn't the smallest classification (nano-cap is even smaller), but it is getting pretty small. public companies through its 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. , Tandem (Tandem Computers Inc., Cupertino, CA) A former major manufacturer of fault-tolerant computers founded in 1974 by James Treybig and provider of the early 21st century technology for HP's enterprise computing strategy. Capital, Inc. In addition, SCC provides merger and acquisition advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to small and medium-sized companies through its wholly-owned subsidiary, Harris Williams & Co. SCC is also a business development company regulated under the Investment Company Act of 1940. -0-
SIRROM CAPITAL CORPORATION & SUBSIDIARIES
Unaudited Financial Highlights
(in thousands, except per share data)
3 Months Ended 12 Months Ended
December 31, December 31,
1997 1996 1997 1996
Total revenues $ 14,771 $ 8,383 $ 48,347 $ 27,680
Pre-tax operating income $ 9,780 $ 5,268 $ 33,034 $ 17,123
Diluted earnings per share $ 0.59 $ 0.41 $ 2.09 $ 1.48
Diluted weighted average
shares outstanding 16,577 12,828 15,829 11,555
Exhibit 1: Significant Loan Repayments During the Quarter Ended
December 31, 1997
Repayment
Amount
(in thousands)
Kentucky Kingdom, Inc. $ 7,785
HPC America, Inc. 3,000
HTR, Inc. 3,000
Quest Group International, Inc. 2,874
Electronic Merchant Services, Inc. 1,494
Encor Technologies, Inc. 1,368
Corporate Flight Management, Inc. 350
Valdawn Watch Company 303
Scandia Technologies, Inc. 300
Hunt Incorporated 250
Other 344
Total repayments during the quarter $ 21,068
Exhibit 2: Realized Gains and Losses for Quarter Ended December 31,
1997
Realized
Gain (Loss)
(in thousands)
Encore Medical Corporation Common Stock $ 921
Premiere Technologies, Inc. Common Stock 903
Vista Information Solutions, Inc. Common Stock 680
Radiant Systems, Inc. Common Stock 607
Compass Plastics & Tech., Inc. Common Stock 536
Educational Medical, Inc. Common Stock 264
QuadraMed Corporation Common Stock 230
Factory Card Outlet Corp. Common Stock 214
Integrated Health Services, Inc. Common Stock 210
Kentucky Kingdom, Inc. Preferred Stock 120
Other (17)
Gold Medal Products, Inc. Loan (103)
Studley Products Corp. Preferred Stock (220)
Urethane Technologies, Inc. Warrant (363)
Assured Power, Inc. Loan (477)
Studley Products Corp. Loan (540)
Scandia Technologies, Inc. Loan (1,926)
Net realized gain (loss) on investments $1,039
CONTACT: Sirrom Capital Corp., Nashville Carl W. Stratton, 615/252-4515 |
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