Exhibit 99.1
For Further Information: | ||
At Medallion Financial Corp. | At Zlokower Company | |
437 Madison Avenue, New York, NY 10022 | Public Relations | |
Andrew Murstein, President | Harry Zlokower | |
Larry D. Hall, CFO | David Closs | |
(212) 328-2100 or 1-877-Medallion | (212) 447-9292 |
FOR IMMEDIATE RELEASE
MEDALLION ANNOUNCES SECOND QUARTER RESULTS
Net Increase in Net Assets Increases to $0.23 per share, highest in nearly 2 years
Delinquencies Continue to decrease to an all time low
Dividend Raised to $0.17, highest in over 5 years
NEW YORK, N.Y. – August 8, 2006 - Medallion Financial Corp. (NASDAQ: TAXI), a specialty finance company with a leading position servicing the taxi industry and targeted niche markets, announced net increase in net assets resulting from operations of $4,076,000, or $0.23 per diluted share in the 2006 second quarter, up from $447,343 or $0.03 per diluted share in the 2005 second quarter, an increase of $3,628,657. Net increase in net assets resulting from operations increased to $5,862,238, or $0.33 per diluted share for the 2006 six months, up from $2,683,320, or $0.15 per diluted share for the 2005 six months, an increase of $3,179,000.
Medallion loans grew to $468,026,518, from $423,798,555 a year ago, an increase of $44,794,012 or 11%. Commercial loans were at $146,642,378, down from $155,765,264, a decrease of $9,122,886 or 6%. Excluding the sale of a divested business, Business Lenders, commercial loans increased $10,226,000 or 7%. Consumer loans grew to $103,938,426, from $76,628,773, an increase of $27,309,653 or 36%. The total yield in the quarter across the entire portfolio increased to 8.99% from 8.25% a year ago.
(more)
Medallion Announces Earnings, Page 2
Net investment income after taxes was $2,431,000 in the 2006 second quarter, a decrease from the prior period primarily due to higher loan payoffs, as well as lower amounts of interest recoveries. However, results of the June New York city taxi medallion auction, for which we expect to generate additional fundings from new and existing customers, will be reflected in upcoming quarterly results, as those transactions begin to close. New York City medallion prices increased at the recent auction going for as much as $540,000 per taxi medallion. Net investment income was also impacted by stronger earnings at Medallion Bank, which resulted in a higher tax provision. Medallion Bank continues to be the Company’s fastest growing and lowest cost funding source. As the Company’s only significant taxpaying entity, Medallion Bank’s retained earnings resulted in increased shareholders’ equity by over $1,700,000 in the quarter.
Andrew Murstein, President of Medallion, stated, “We are pleased with our second quarter results, as the bottom line number is the highest it has been in several years. Medallion Bank is performing better than anticipated. It has contributed significantly to our earnings since opening for business less than 3 years ago. The consumer portfolio is yielding over 18%, and their 90-days past due delinquencies continued to decrease and remain below 1%.”
Larry Hall, Medallion’s Chief Financial Officer, stated, “Credit quality remains outstanding. Over 90 day delinquencies have dropped to just 1.9%. This is the lowest level they have been since our IPO over 10 years ago.”
Medallion also announced that its Board of Directors has declared and will pay a cash dividend of $0.17 per share for the quarter. The dividend will be payable on August 30, 2006 to shareholders of record on August 18, 2006. The dividend is the highest amount the company has paid in over 5 years. The Company has now declared $0.33 per share of dividends over the first six months of 2006, up from $0.25 for the first six months of 2005, an increase of 32%.
(more)
Medallion Announces Earnings, Page 3
About Medallion Financial
Medallion Financial Corp. is a specialty finance company with a leading position in the origination and servicing of loans financing the purchase of taxicab medallions and related assets. The Company also originates and services loans financing small businesses and other targeted industries and niches. The Company and its subsidiaries have lent over $2.5 billion to the taxicab industry and small business.
# # # #
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, and growth. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those factors discussed under the heading “Risk Factors,” in Medallion’s 2005 Annual Report on Form 10-K.
(Financial Tables Follow)
Medallion Financial Corp.
Consolidated Income Statements
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Total investment income | $ | 16,497,773 | $ | 14,137,562 | $ | 32,944,967 | $ | 27,103,822 | ||||||||
Total interest expense | 8,544,379 | 5,870,877 | 15,973,107 | 11,092,212 | ||||||||||||
Net interest income | 7,953,394 | 8,266,685 | 16,971,860 | 16,011,610 | ||||||||||||
Gain on sales of loans | — | 375,431 | — | 614,950 | ||||||||||||
Other income | 883,757 | 1,142,481 | 1,283,674 | 1,815,719 | ||||||||||||
Total noninterest income | 883,757 | 1,517,912 | 1,283,674 | 2,430,669 | ||||||||||||
Salaries and benefits | 2,885,872 | 2,786,788 | 5,325,105 | 5,750,804 | ||||||||||||
Professional fees | 552,201 | 482,121 | 1,162,984 | 987,378 | ||||||||||||
Other operating expenses | 1,663,441 | 2,077,902 | 3,263,928 | 3,949,624 | ||||||||||||
Total operating expenses | 5,101,514 | 5,346,811 | �� | 9,752,017 | 10,687,806 | |||||||||||
Net investment income before income taxes | 3,735,637 | 4,437,786 | 8,503,517 | 7,754,473 | ||||||||||||
Income tax provision | 1,304,979 | 684,371 | 2,306,550 | 1,241,032 | ||||||||||||
Net investment income after taxes | 2,430,658 | 3,753,415 | 6,196,967 | 6,513,441 | ||||||||||||
Net realized gains (losses) on investments | 2,286,887 | (682,815 | ) | 45,464 | 1,365,072 | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | (641,479 | ) | (2,623,257 | ) | (380,193 | ) | (5,195,493 | ) | ||||||||
Net realized/unrealized loss on investments | 1,645,408 | (3,306,072 | ) | (334,729 | ) | (3,830,421 | ) | |||||||||
Net increase in net assets resulting from operations | $ | 4,076,066 | $ | 447,343 | $ | 5,862,238 | $ | 2,683,020 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 17,283,907 | 16,969,568 | 17,248,007 | 17,063,025 | ||||||||||||
Diluted | 17,799,377 | 17,413,963 | 17,760,920 | 17,507,421 | ||||||||||||
Net investment income after income taxes per share | ||||||||||||||||
Basic | $ | 0.14 | $ | 0.22 | $ | 0.36 | $ | 0.38 | ||||||||
Diluted | 0.14 | 0.22 | 0.35 | 0.37 | ||||||||||||
Net increase in net assets resulting from operations per share | ||||||||||||||||
Basic | $ | 0.24 | $ | 0.03 | $ | 0.34 | $ | 0.16 | ||||||||
Diluted | 0.23 | 0.03 | 0.33 | 0.15 | ||||||||||||
Dividends declared per share | $ | 0.17 | $ | 0.13 | $ | 0.33 | $ | 0.25 | ||||||||
Medallion Financial Corp.
Consolidated Balance Sheets
June 30, 2006 | December 31, 2005 | |||||
ASSETS | ||||||
Medallion loans | $ | 468,026,518 | $ | 449,672,510 | ||
Commercial loans | 146,642,378 | 145,796,651 | ||||
Consumer loans | 103,938,426 | 85,678,412 | ||||
Equity investments | 23,576,495 | 24,012,508 | ||||
Investment securities | 19,553,841 | 18,092,838 | ||||
Net investments | 761,737,658 | 723,252,919 | ||||
Cash | 38,931,640 | 43,035,506 | ||||
Accrued interest receivable | 3,410,694 | 3,580,460 | ||||
Fixed assets, net | 718,603 | 614,858 | ||||
Goodwill, net | 5,007,583 | 5,007,583 | ||||
Other assets | 16,092,120 | 17,481,876 | ||||
Total assets | $ | 825,898,298 | $ | 792,973,202 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Accounts payable and accrued expenses | $ | 3,926,554 | $ | 4,837,461 | ||
Accrued interest payable | 2,334,458 | 1,759,737 | ||||
Floating rate borrowings | 343,242,211 | 323,664,951 | ||||
Fixed rate borrowings | 308,652,473 | 296,357,214 | ||||
Total liabilities | 658,155,696 | 626,619,363 | ||||
Total shareholders’ equity | 167,742,602 | 166,353,839 | ||||
Total liabilities and shareholders’ equity | $ | 825,898,298 | $ | 792,973,202 | ||
Number of common shares outstanding | 17,312,915 | 17,173,297 | ||||
Net asset value per share | $ | 9.69 | $ | 9.69 | ||
Total managed loans | $ | 726,803,702 | $ | 690,280,561 | ||
Total managed assets | 834,094,678 | 802,106,190 | ||||