Exhibit 99
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April 25, 2007 | Contact: | |
4:01 PM | Richard F. Latour | |
President and CEO | ||
Tel: 781-994-4800 |
MICROFINANCIAL INCORPORATED ANNOUNCES
FIRST QUARTER 2007 RESULTS
FIRST QUARTER 2007 RESULTS
Woburn, MA — April 25, 2007 — MicroFinancial Incorporated (AMEX-MFI), a financial intermediary specializing in vendor based leasing and financing programs for microticket transactions, today announced financial results for the first quarter ended March 31, 2007.
Net income for the quarter improved 59% to $1.2 million, or $0.09 per diluted share, compared to net income of $0.8 million, or $0.05 per diluted share, in the first quarter of 2006.
Revenue for the quarter ended March 31, 2007 was $7.5 million compared to $8.9 million in the first quarter of 2006. Income on leases was $2.0 million, up $1.4 million from the same period last year and rental income was $3.9 million, down $1.8 million from March 31, 2006. Other income components contributed $1.6 million for the quarter, down $1.0 million from the same period last year.
Richard Latour, President and Chief Executive Officer said, “I am pleased with the progress we made in the first quarter with respect to our originations. In the first quarter of 2007, new contract originations dramatically improved to $10.1 million compared to $2.9 million in the first quarter of 2006. In addition, we approved 155 new vendors during the quarter, bringing our total vendor list to approximately 1,350. We also processed over 7,700 applications, an increase of over 4,800 applications as compared to the same period last year.”
Total operating expenses for the quarter declined 27.4% to $5.6 million from $7.7 million in the first quarter of 2006. Selling, general and administrative expenses of $3.6 million decreased $0.6 million compared to the same period last year, primarily due to reductions in legal and collection expenses. The first quarter provision for credit losses decreased slightly to $1.5 million from $1.6 million for the same period in 2006, while net charge-offs decreased to $1.9 million versus $2.8 million in the first quarter of 2006. Depreciation and amortization expense of $0.5 million declined 73.8% compared to the same period last year, primarily due to a decline in the number of rental and service contracts combined with a greater percentage of the applicable assets becoming fully depreciated. As a result of lower debt balances, interest expense declined 84.4% to $13,000 as compared to the first quarter of 2006.
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Mr. Latour added, “As we look ahead to the rest of 2007, our management team remains focused on increasing originations through rebuilding our vendor base, as well as, looking for new portfolio and additional growth opportunities.”
Although the investment in service and rental contracts continued to decline in the first quarter of 2007, the total investment in lease receivables due in installments, estimated residuals, rentals and service contracts were up $21.5 million to $55.2 million as compared to the same period last year. In the first quarter of 2007, receivables delinquent in excess of 31 days declined $1.7 million to $5.4 million versus year end 2006.
As of March 31, 2007 cash and cash equivalents were $24.0 million. Cash received from customers for the quarter was $9.5 million compared to $12.2 million during the same period in 2006.
MICROFINANCIAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, | March 31, | |||||||
2006 | 2007 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 28,737 | $ | 23,970 | ||||
Net investment in leases: | ||||||||
Receivables due in installments | 40,455 | 49,597 | ||||||
Estimated residual value | 3,859 | 4,966 | ||||||
Initial direct costs | 302 | 386 | ||||||
Less: | ||||||||
Advance lease payments and deposits | (50 | ) | (52 | ) | ||||
Unearned income | (13,682 | ) | (17,993 | ) | ||||
Allowance for credit losses | (5,223 | ) | (4,810 | ) | ||||
Net investment in leases | 25,661 | 32,094 | ||||||
Investment in service contracts, net | 613 | 481 | ||||||
Investment in rental contracts, net | 313 | 168 | ||||||
Property and equipment, net | 655 | 653 | ||||||
Other assets | 652 | 507 | ||||||
Deferred income taxes, net | 3,090 | 3,090 | ||||||
Total assets | $ | 59,721 | $ | 60,963 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
December 31, | March 31, | |||||||
2006 | 2007 | |||||||
Notes payable | $ | 5 | $ | 24 | ||||
Accounts payable | 1,038 | 511 | ||||||
Dividends payable | 691 | 695 | ||||||
Other liabilities | 1,110 | 1,420 | ||||||
Income taxes payable | 741 | 1,338 | ||||||
Total liabilities | 3,585 | 3,988 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2006 and March 31, 2007 | — | — | ||||||
Common stock, $.01 par value; 25,000,000 shares authorized; 13,811,442 and 13,891,596 shares issued at December 31, 2006 and March 31, 2007, respectively | 138 | 139 | ||||||
Additional paid-in capital | 44,136 | 44,452 | ||||||
Retained earnings | 11,862 | 12,384 | ||||||
Total stockholders’ equity | 56,136 | 56,975 | ||||||
Total liabilities and stockholders’ equity | $ | 59,721 | $ | 60,963 | ||||
MICROFINANCIAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended | ||||||||
March 31, | ||||||||
2006 | 2007 | |||||||
Revenues: | ||||||||
Income on financing leases | $ | 672 | $ | 2,033 | ||||
Rental income | 5,721 | 3,924 | ||||||
Income on service contracts | 555 | 361 | ||||||
Loss and damage waiver fees | 551 | 444 | ||||||
Service fees and other | 1,103 | 386 | ||||||
Interest income | 315 | 323 | ||||||
Total revenues | 8,917 | 7,471 | ||||||
Expenses: | ||||||||
Selling general and administrative | 4,207 | 3,568 | ||||||
Provision for credit losses | 1,610 | 1,523 | ||||||
Depreciation and amortization | 1,765 | 463 | ||||||
Interest | 81 | 13 | ||||||
Total expenses | 7,663 | 5,567 | ||||||
Income before provision for income taxes | 1,254 | 1,904 | ||||||
Provision for income taxes | 490 | 687 | ||||||
Net income | $ | 764 | $ | 1,217 | ||||
Net income per common share: | ||||||||
Basic | $ | 0.06 | $ | 0.09 | ||||
Diluted | $ | 0.05 | $ | 0.09 | ||||
Weighted-average shares: | ||||||||
Basic | 13,762,979 | 13,860,534 | ||||||
Diluted | 13,905,902 | 14,072,449 | ||||||
About The Company
MicroFinancial Inc. (AMEX: MFI), is a financial intermediary specializing in microticket leasing and financing. MicroFinancial has been operating since 1986, and is headquartered in Woburn, Massachusetts.
MicroFinancial Inc. (AMEX: MFI), is a financial intermediary specializing in microticket leasing and financing. MicroFinancial has been operating since 1986, and is headquartered in Woburn, Massachusetts.
Statements in this release that are not historical facts, including statements about future dividends or growth plans, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as “believes,” “anticipates,” “expects,” “views,” “will” and similar expressions are intended to identify forward-looking statements. We caution that a number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Readers should not place undue reliance on forward-looking statements, which reflect
our views only as of the date hereof. We undertake no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. We cannot assure that we will be able to anticipate or respond timely to changes which could adversely affect our operating results. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results or other factors may result in fluctuations in the price of our common stock. For a more complete description of the prominent risks and uncertainties inherent in our business, see the risk factors described in documents that we file from time to time with the Securities and Exchange Commission.