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 FINANCIAL CORP. REPORTS
2007 THIRD QUARTER RESULTS
• Earnings per share increases 157% to $0.20 per share
• Delinquencies decrease to an all time low
• Total managed assets reach a record high of over $1 billion
• Dividend of $0.19 per share declared
NEW YORK, N.Y. – November 6, 2007—Medallion Financial Corp. (NASDAQ: TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that earnings, or net increase in net assets resulting from operations increased 157% to $3,602,000, or $0.20 per diluted common share for the 2007 third quarter, up from $1,401,000 or $0.08 per share for the 2006 third quarter. Net increase in net assets resulting from operations increased 60% to $11,655,000, or $0.66 per share for the 2007 nine months, up from $7,263,000, or $0.41 per share for the 2006 nine months.
Medallion’s on-balance sheet taxicab medallion loan portfolio increased 27% to $502,523,000, up from $395,898,000 a year ago. The on-balance sheet commercial loan portfolio increased 12% to $93,788,000, up from $83,849,000. Including Medallion Bank, the Company’s unconsolidated wholly-owned portfolio investment, the managed medallion loan portfolio increased 21% to $594,515,000, up from $490,549,000 one year ago. The managed commercial loan portfolio increased 10% to $168,823,000, up from
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Medallion Financial Corp. Reports 2007 Third Quarter Results, Page 2
$153,487,000 one year ago. In addition, Medallion Bank’s consumer loan portfolio increased 24% to $137,413,000, up from $111,148,000 one year ago. Total assets under management increased 18% to $1,002,491,000, up from $852,554,000 a year ago. The managed portfolio amounts were all record highs for the Company.
Andrew Murstein, President of Medallion, stated, “We are very pleased with our third quarter results. We were able to increase our medallion loan portfolio by 27% over the past year. With zero losses on any medallion loan we have originated, we believe investors will appreciate the strength of this portfolio and consider a flight to quality when evaluating our company. In an effort to also improve our return on equity in this area, we have previously made, and continue to explore making additional loans in the medallion area whereby we receive part of the appreciation if and when medallions increase in value. We have also experienced strong unrealized gains in the quarter relating to our 187 owned Chicago taxicab medallions. Chicago medallion prices have increased over the past several years to well over $100,000, up from $45,000.”
“Credit quality also remains outstanding,” said Larry Hall, Medallion’s Chief Financial Officer. “On a managed basis, including Medallion Bank, delinquent loans 90 days or more past due decreased during the year to 1.1%, down from 2.0% a year ago. These are the lowest levels they have been in the history of the Company.”
The Company also announced that its Board of Directors declared a dividend of $0.19 per share on its common stock for the 2007 third quarter. The dividend is payable on December 7, 2007 to shareholders of record on November 23, 2007. Since the Company’s initial public offering in 1996, the Company has paid out over $111,000,000 in dividends, or $7.39 per share.
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Medallion Financial Corp. Reports 2007 Third Quarter Results, 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 in other commercial industries and its wholly-owned portfolio company Medallion Bank also originates and services consumer loans. The Company and its subsidiaries have lent over $2.6 billion to the taxicab industry and other small businesses.
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 2006 Annual Report on Form 10-K.
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MEDALLION FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
(Dollars in thousands) | (As adjusted) | (As adjusted) | ||||||||||||||
Total investment income | $ | 13,555 | $ | 9,630 | $ | 37,152 | $ | 28,982 | ||||||||
Total interest expense | 8,201 | 6,118 | 22,486 | 17,615 | ||||||||||||
Net interest income | 5,354 | 3,512 | 14,666 | 11,367 | ||||||||||||
Total noninterest income | 648 | 435 | 1,697 | 2,051 | ||||||||||||
Salaries and benefits | 2,491 | 2,221 | 7,759 | 6,538 | ||||||||||||
Professional fees | 939 | 459 | 2,154 | 1,479 | ||||||||||||
Rent expense | 323 | 256 | 976 | 844 | ||||||||||||
Other operating expenses | 694 | 867 | 2,696 | 2,357 | ||||||||||||
Total operating expenses | 4,447 | 3,803 | 13,585 | 11,218 | ||||||||||||
Net investment income before income taxes | 1,555 | 144 | 2,778 | 2,200 | ||||||||||||
Income tax provision | — | — | — | — | ||||||||||||
Net investment income after income taxes | 1,555 | 144 | 2,778 | 2,200 | ||||||||||||
Net realized gains (losses) on investments | 287 | (122 | ) | 12,140 | 541 | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | 1,809 | (749 | ) | (6,357 | ) | (1,831 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on Medallion Bank and other controlled subsidiaries | (49 | ) | 2,128 | 3,094 | 6,353 | |||||||||||
Net unrealized appreciation (depreciation) on investments | 1,760 | 1,379 | (3,263 | ) | 4,522 | |||||||||||
Net realized/unrealized gains on investments | 2,047 | 1,257 | 8,877 | 5,063 | ||||||||||||
Net increase in net assets resulting from operations | $ | 3,602 | $ | 1,401 | $ | 11,655 | $ | 7,263 | ||||||||
Net increase in net assets resulting from operations per common share | ||||||||||||||||
Basic | $ | 0.21 | $ | 0.08 | $ | 0.67 | $ | 0.42 | ||||||||
Diluted | 0.20 | 0.08 | 0.66 | 0.41 | ||||||||||||
Net investment income after income taxes per common share | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.01 | $ | 0.16 | $ | 0.13 | ||||||||
Diluted | 0.09 | 0.01 | 0.16 | 0.12 | ||||||||||||
Dividends declared per share | $ | 0.19 | $ | 0.18 | $ | 0.57 | $ | 0.51 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 17,504,827 | 17,312,915 | 17,472,950 | 17,269,881 | ||||||||||||
Diluted | 17,805,203 | 17,749,934 | 17,793,571 | 17,757,496 | ||||||||||||
MEDALLION FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands) | UNAUDITED September 30, 2007 | AUDITED December 31, 2006 | ||||
Assets | ||||||
Medallion loans, at fair value | $ | 502,523 | $ | 428,249 | ||
Commercial loans, at fair value | 93,788 | 88,207 | ||||
Investment in Medallion Bank and other controlled subsidiaries, at fair value | 55,282 | 50,448 | ||||
Investment securities, at fair value | — | 9,961 | ||||
Equity investments, at fair value | 4,236 | 16,068 | ||||
Net investments | 655,829 | 592,933 | ||||
Cash | 29,719 | 15,399 | ||||
Accrued interest receivable | 2,694 | 2,178 | ||||
Fixed assets, net | 631 | 525 | ||||
Goodwill, net | 5,007 | 5,007 | ||||
Other assets, net | 21,716 | 15,563 | ||||
Total assets | $ | 715,596 | $ | 631,605 | ||
Liabilities | ||||||
Accounts payable and accrued expenses | $ | 4,290 | $ | 5,057 | ||
Accrued interest payable | 993 | 1,783 | ||||
Funds borrowed | 538,160 | 455,137 | ||||
Total liabilities | 543,443 | 461,977 | ||||
Commitments and contingencies | — | — | ||||
Total shareholders’ equity (net assets) | 172,153 | 169,628 | ||||
Total liabilities and shareholders’ equity | $ | 715,596 | $ | 631,605 | ||
Number of common shares outstanding | 17,507,315 | 17,426,415 | ||||
Net asset value per share | $ | 9.83 | $ | 9.73 | ||
Total managed loans | $ | 900,751 | $ | 795,980 | ||
Total managed assets | 1,002,491 | 907,133 | ||||