For Immediate Release
From:
Ameritrans Capital Corporation
For more information Contact:
Gary C. Granoff
(800) 214-1047
Ameritrans Reports First Quarter Fiscal 2005 Results
New York, NY, November 15, 2004 - Ameritrans Capital Corporation
(NASDAQ: AMTC, AMTCP) today reported financial results for the quarter
ended September 30, 2004. For the company's first fiscal quarter, total
investment income decreased $174,101 or 12% to $1.28 million compared to
$1.46 million during the prior comparable period. This decrease was mainly
due to the impact of lower average interest rates charged on new and modified
loans as well as lower outstanding loans receivable. The decrease in interest
income was offset by an increase in other fees of $49,316, primarily due to an
increase in origination fees, and increase in leasing income of $37,701.
Ameritrans reported a net profit from operations for the first quarter of
fiscal year 2005 of $84,712 versus a net loss of ($118,398) for the first
quarter of fiscal year 2004. The Company continued to increase its reserves
for loan losses during the quarter and the unrealized depreciation on loans
receivable at September 30, 2004 was $585,089 versus $303,170 at
September 30, 2003.
Ameritrans reported a net profit available to common shareholders for
the first quarter of fiscal year 2005 of $337 versus a net loss of
($202,773) or ($0.10) per basic and diluted common share for the same
period of fiscal year 2004.
The Company's net loan portfolio at September 30, 2004 was $47.7 million
versus $53.8 million at September 30, 2003. In addition to the loan portfolio
at September 30, 2004 the Company was carrying a total investment cost of
$2,382,201 for its Chicago medallions owned by its subsidiary limited liability
companies, versus a total investment cost of $0 at September 30, 2003.
Commenting on the results, Gary C. Granoff, Ameritrans' president said,
"This has been our first profitable quarter after sustaining losses on
operations over the prior six quarters. We have continued to make progress
with the resale of foreclosed medallions in our Chicago medallion loan
portfolio and we have established positive cash flow and earnings from the
medallions owned by our subsidiary limited liability companies.
The expenses and losses incurred over the last two years as a result of the
foreclosures in our Chicago taxi medallion loan portfolio have slowed
considerably, although we will continue to sustain additional loss and expense
as we complete the remaining foreclosures. We are presently in the process
of expanding our diversified loan portfolio and economic conditions have now
improved in the Chicago taxi medallion market that will permit us to take a
more aggressive role in making new loans in that market. We expect to continue
to grow the loan portfolio in upcoming quarters which we believe will have a
positive impact on our earnings. However, this will be negatively impacted by
the higher interest rates we are paying to our banks as a result of recent
increases we are paying due to increases in interest rates in the market place
that have occurred over the last six months and which we believe will continue
to occur over the next twelve months."
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.
# # #
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
September 30, 2004 (Unaudited) and June 30, 2004
ASSETS
September 30,2004 June 30, 2004
-------------------------------
<s> <c> <c>
Loans receivable $ 48,324,101 $ 49,900,989
Less: unrealized depreciation on loans receivable (585,089) (509,770)
------------- -------------
Loans receivable, net 47,739,012 49,391,219
Cash and cash equivalents 727,863 416,600
Accrued interest receivable, net of
unrealized depreciation
of $11,500 and 30,500, respectively 787,674 969,912
Assets acquired in satisfaction of loans 1,044,492 1,421,723
Receivables from debtors on sales of assets
acquired in satisfaction of loans 33,800 422,158
Equity securites 1,085,311 1,038,617
Furinture, equiptment
and leasehold improvements, net 415,823 439,262
Medallions 2,382,201 2,382,201
Prepaid expenses and other assets 713,117 610,214
---------------- -------------
TOTAL ASSETS $ 54,929,293 $ 57,091,906
================ =============
The accompanying notes are an integral part of these financial statements.
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AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2004 (Unaudited) and June 30, 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, 2004 June 30, 2004
----------------- ---------------
LIABILITIES
Debentures payable to SBA $ 12,000,000 $ 12,000,000
Notes payable, banks 26,858,652 28,908,652
Accrued expenses and other liabilities 570,994 578,790
Accrued interest payable 171,924 271,630
Dividend payable 84,375 84,375
------------------- -------------
TOTAL LIABILITIES 39,685,945 41,843,447
------------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock 500,000 shares authorized,
none issued or outstanding - -
9 3/8% cumulative participating callable
preferred stock $.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 $.0001 par value: 5,000,000 shares
uthorized; 2,045,600 shares issued, 2,035,600
outstanding 205 205
Additional paid-in-capital 13,869,545 13,869,545
Accumulated deficit (1,902,071) (1,902,408)
Accumulated other comprehensive loss (245,331) (248,883)
------------------- -------------
15,313,348 15,318,459
Less: Treasury stock, at cost, 10,000 shares of
Common stock (70,000) (70,000)
------------------- -------------
TOTAL STOCKHOLDERS' EQUITY 15,243,348 15,248,459
------------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 54,929,293 $ 57,091,906
=================== =============
The accompanying notes are an integral part of these financial statements.
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AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 2004 and 2003 (Unaudited)
Three Months Ended Three Months Ended
September 30, 2004 September 30, 2003
--------------------- -------------------
INVESTMENT INCOME
Interest on loans receivable $ 1,129,057 $ 1,390,175
Fees and other income 100,540 51,224
Leasing income 51,537 13,836
----------------- -----------------
TOTAL INVESTMENT INCOME 1,281,134 1,455,235
----------------- -----------------
OPERATING EXPENSES
Interest 382,156 372,753
Salaries and employee benefits 262,664 246,547
Occupancy costs 49,183 50,063
Professional fees 135,564 112,883
Miscellaneous administrative expenses 245,468 291,086
Loss on assets acquired in satisfaction of loans, net 10,393 29,901
Foreclosure expenses 5,000 209,630
Write off and depreciation on interest and
loans receivable 101,518 255,892
--------------- -----------------
TOTAL OPERATING EXPENSES 1,191,946 1,568,755
--------------- -----------------
OPERATING INCOME (LOSS) 89,188 (113,520)
--------------- -----------------
OTHER INCOME (EXPENSE)
Gain on sale of securities - 5,665
Equity in loss of investee (2,011) -
--------------- -----------------
TOTAL OTHER INCOME (expense) (2,011) 5,665
--------------- -----------------
INCOME (LOSS) BEFORE INCOME TAXES 87,177 (107,855)
--------------- -----------------
INCOME TAXES 2,465 10,543
--------------- -----------------
NET INCOME (LOSS) $ 84,712 $ (118,398)
--------------- -----------------
DIVIDENDS ON PREFERRED STOCK $ (84,375) $ (84,375)
--------------- -----------------
NET INCOME (LOSS) AVAILABLE TO
COMMON SHAREHOLDERS $ 337 $ (202,773)
--------------- -----------------
WEIGHTED AVERAGE SHARES OUTSTANDING
- - Basic 2,035,600 2,035,600
================ =================
- - Diluted 2,035,600 2,035,600
================ =================
NET INCOME (LOSS) PER COMMON SHARE
- - Basic $ 0.00 $ (0.10)
================ =================
- - Diluted $ 0.00 $ (0.10)
================ =================
The accompanying notes are an integral part of these financial statements.
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