For Immediate Release
From:
Ameritrans Capital Corporation
For more information Contact:
Gary C. Granoff
(800) 214-1047
Ameritrans Reports Third Quarter Fiscal 2006 Results
New York, NY, May 16, 2006 – Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP, AMTCW) yesterday reported financial results for the quarter ended March 31, 2006. Ameritrans reported a net loss of ($209,827) available to common shareholders for the third quarter of fiscal year 2006 or ($0.07) versus a net loss of ($14,075) or ($0.01) per basic and diluted common share for the same period of fiscal year 2005. On an operating basis, before payment of the Company's preferred stock dividends, but after provisions for income tax, the Company reported an operating loss of ($125,452) for the quarter ended March 31, 2006, compared to an operating income of $70,300 during the quarter ended March 31, 2005.
For the Company's third fiscal quarter, total investment income was $1.231 million compared to $1.394 million during the prior comparable period. The Company's interest income decreased $163,674 to $1.049 million as compared to the same period of fiscal year 2005. The decrease in interest income can be attributed primarily to a decrease in the total outstanding loan portfolio for the quarter.
The Company's interest income for the nine months ended March 31, 2006 decreased $55,934 to $3.441 million as compared to the same period of fiscal year 2005, as a result of a reduction in the overall loan portfolio. The Company's net loan portfolio at March 31, 2006 was $49.9 million versus $52.0 million at June 30, 2005.
Commenting on the results, Gary C. Granoff, Ameritrans' President said, "During the third quarter ended March 31, 2006, we were active in making new loans but also received certain prepayments of existing loans. We are concentrating our efforts in growing the portfolio of Elk Associates Funding Corporation and with the new capital we raised for Ameritrans pursuant to our recent private offering, we are making new loans and investments in areas of business not restricted by applicable SBA Regulations that affect all of our loans and investments for Elk. The increased capital that we have raised for Ameritrans through the private offering of its securities will help us significantly in our plans for the expansion and diversification of the Company's business and investment opportunities."
The Company filed a registration statement on Form N-2 relating to the securities issued pursuant to the private offering on March 15, 2006, which was declared effective by the SEC on April 25, 2006.
Ameritrans Capital Corporation is a specialty finance company engaged in making loans to and investments in small businesses. Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation was licensed by the United States Small Business Administration as a Small Business Investment Company (SBIC) in 1980. The Company maintains its offices at 747 Third Avenue, 4th Floor; New York, NY 10017.
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This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act 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.
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2006 (UNAUDITED) AND JUNE 30, 2005
ASSETS
March 31, 2006 | June 30, 2005 | |
Loans receivable | $49,817,026 | $52,060,254 |
Less: unrealized depreciation on loans receivable | (225,000) | (150,000) |
Loans receivable, net | 49,592,026 | 51,910,254 |
Cash and cash equivalents | 808,188 | 327,793 |
Accrued interest receivable, net of unrealized depreciation of $36,800 and $59,000, respectively | 685,529 | 756,701 |
Assets acquired in satisfaction of loans | 381,939 | 384,528 |
Receivables from debtors on sales of assets acquired in satisfaction of loans | 398,575 | 455,184 |
Equity securities | 907,103 | 908,457 |
Furniture, equipment and leasehold improvements, net | 229,778 | 329,573 |
Medallions under lease | 1,994,401 | 2,282,201 |
Prepaid expenses and other assets | 414,606 | 531,904 |
TOTAL ASSETS | $55,412,145 | $57,886,595 |
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2006 (UNAUDITED) AND JUNE 30, 2005
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, 2006 | June 30, 2005 | |
LIABILITIES | ||
Debentures payable to SBA | $12,000,000 | $12,000,000 |
Notes payable, banks | 20,827,500 | 29,770,652 |
Accrued expenses and other liabilities | 429,398 | 604,942 |
Accrued interest payable | 115,810 | 256,285 |
Dividends payable | 84,375 | 84,375 |
TOTAL LIABILITIES | 33,457,083 | 42,716,254 |
COMMITMENTS AND CONTINGENCIES (Notes 3, 4 and 5) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock 500,000 shares authorized, none issued or outstanding | - | - |
9 3/8% cumulative participating callable preferred stock $ 0.01 par value, $12.00 face value, 500,000 shares authorized; 300,000 shares issued and outstanding | 3,600,000 | 3,600,000 |
Common stock, $ 0.0001 par value; 5,000,000 shares authorized; 3,401,208 and 2,045,600 shares issued and 3,391,208 and 2,035,600 shares outstanding at March 31, 2006 and June 30, 2005, respectively | 340 | 205 |
Additional paid-in-capital | 21,127,636 | 13,869,545 |
Accumulated deficit | (2,544,154) | (2,127,134) |
Accumulated other comprehensive loss | (158,760) | (102,275) |
22,025,062 | 15,240,341 | |
Less: Treasury stock, at cost, 10,000 shares of common stock | (70,000) | (70,000) |
TOTAL STOCKHOLDERS' EQUITY | 21,955,062 | 15,170,341 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $55,412,145 | $57,886,595 |
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND NINE MONTHS ENDED
MARCH 31, 2006 AND 2005 (UNAUDITED)