For Immediate Release
FROM:
Ameritrans Capital Corporation
For more information Contact:
Gary C. Granoff
(800) 214-1047
AMERITRANS REPORTS SECOND QUARTER FISCAL 2005 RESULTS
New York, NY, February 14, 2005- Ameritrans Capital Corporation
(NASDAQ: AMTC, AMTCP) reported financial results for the quarter
ended December 31, 2004. For the Company's second fiscal
quarter, total investment income was $1.32 million compared to
$1.41 million during the prior comparable period. Ameritrans
reported a net loss available to common shareholders for the
second quarter of fiscal 2005 of ($411,615) or ($0.20) per basic
and diluted common share, versus a net loss for the second
quarter of fiscal 2004 of ($278,191) or ($.14) per basic and
diluted common share. The Company's net loan portfolio at
December 31, 2004 was $51.9 million versus $53.2 million at
December 31, 2003. Not included in the net loan portfolio for
both periods is $2.38 million of medallions owned which are
represented through inter-company receivables from wholly-owned
subsidiaries. The Company's net equity securities at December
31, 2004 were $1,090,857 versus $1,043,379 at December 31, 2003.
For the six months ended December 31, 2004, Ameritrans reported
total investment income of $2.60 million, compared to $2.87
million during the prior comparable period. Net loss available
to common shareholders for the six months ended December 31,
2004 was ($411,278) or ($.20) per share versus ($480,964) or
($.24) per share for the six months ended December 31, 2003.
The above information takes into account the effect on common
stockholders after payment of the preferred dividends paid on
the Company's outstanding 9 3/8 cumulative participating
preferred stock. On an operating basis the net loss was
($327,240) for the three months ended December 31, 2004 and
($193,816) for the three months ended December 31, 2003. On an
operating basis the net loss was ($242,528) for the six months
ended December 31, 2004 versus ($312,214) for the six months ended
December 31, 2003.
Commenting on the results, Gary C. Granoff, Ameritrans'
president said, "On a current operating basis, our gross
investment income during the past quarter and during the last
six months has been negatively impacted by loans made during the
prior fiscal year in the lower interest rate environment and due
to an increase in our interest expense on our bank loans since
the Fed began raising short term interest rates. While we are
making new loans to borrowers at higher interest rates than
during the last fiscal year, it will take time for the loan
portfolio to generate higher gross interest income from new
loans."
Mr. Granoff stated further, "This past quarter was also
negatively impacted by charges to our write off and depreciation
on interest and loans receivables account by a $288,541 expense
and which totaled $390,059 for the first six months. These
charges were essentially for a small number of diversified loans
which were written down to estimated net realizable value.
Furthermore, during the quarter ended December 31, 2004 we wrote
off one equity investment by a separate loss on sale of
securities for $50,000. We do not presently anticipate that
the second half of the current fiscal year will be negatively
impacted by any significant additional charges to our write off
and depreciation on interest and loans receivables account."
Granoff continued, "Although we have experienced a difficult
quarter and first half, we have continued to increase the size
of our loan portfolio and we are actively making new loans and
investments which on an operating basis should help restore us
to profitable operations in the future."
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, New York 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
December 31, 2004 (Unaudited) and June 30, 2004
ASSETS
December 31, 2004 June 30, 2004
Loans receivable $52,584,197 $49,900,989
Less: unrealized
depreciation on
loans receivable (723,289) (509,770)
Loans receivable, net 51,860,908 49,391,219
Cash and cash equivalents 489,074 416,600
Accrued interest receivable, net
of unrealized depreciation of
$92,000 and $30,500, respectively 742,205 969,912
Assets acquired in satisfaction
of loans 730,655 1,421,723
Receivables from debtors on sales of
assets acquired in satisfaction
of loans 186,333 422,158
Equity securities 1,090,857 1,038,617
Furniture, equipment and leasehold
improvements, net 392,385 439,262
Medallions 2,382,201 2,382,201
Prepaid expenses and other assets 620,135 610,214
TOTAL ASSETS $58,494,753 $57,091,906
.
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2004 (Unaudited) and June 30, 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, 2004 June 30, 2004
LIABILITIES
Debentures payable to SBA $12,000,000 $12,000,000
Notes payable, banks 30,645,652 28,908,652
Accrued expenses and other
liabilities 599,739 578,790
Accrued interest payable 275,698 271,630
Dividends payable 84,375 84,375
TOTAL LIABILITIES 43,605,464 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 authorized;
2,045,600 shares issued,
2,035,600 outstanding 205 205
Additional paid-in-capital 13,869,545 13,869,545
Accumulated deficit (2,313,686) (1,902,408)
Accumulated other
comprehensive loss (196,775) (248,883)
14,959,289 15,318,459
Less: Treasury stock, at cost,
10,000 shares of common stock (70,000) (70,000)
TOTAL STOCKHOLDERS' EQUITY 14,889,289 15,248,459
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $58,494,753 $57,091,906
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Six Months Ended December 31, 2004 and 2003
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
INVESTMENT INCOME
Interest on loans receivable $1,154,708 $1,331,027 $2,283,765 $2,721,202
Fees and other income 88,687 57,222 189,227 108,446
Leasing income 73,796 23,712 125,333 37,548
TOTAL INVESTMENT INCOME 1,317,191 1,411,961 2,598,325 2,867,196
OPERATING EXPENSES
Interest 441,000 342,679 823,156 715,432
Salaries and employee benefits 293,081 241,019 555,745 487,566
Occupancy costs 46,434 48,178 95,617 98,241
Professional fees 195,734 241,999 331,298 354,882
Other administrative expenses 297,485 315,423 542,953 606,509
Loss on assets acquired in
satisfaction of loans, net 22,154 6,168 32,547 36,069
Foreclosure expense 9,194 53,902 14,194 263,532
Write off and depreciation
on interest and loans
receivable 288,541 355,662 390,059 611,554
TOTAL OPERATING EXPENSES 1,593,623 1,605,030 2,785,569 3,173,785
OPERATING LOSS (276,432) (193,069) (187,244) (306,589)
OTHER INCOME (EXPENSE)
(Loss) gain on sale of
securities (50,000) - (50,000) 5,665
Gain on sale of asset acquired 1,884 - 1,884
Equity in loss of investee (2,010) - (4,021) -
TOTAL OTHER INCOME (EXPENSE) (50,126) - (52,137) 5,665
LOSS BEFORE PROVISION
FOR INCOME TAXES (326,558) (193,069) (239,381) (300,924)
PROVISION FOR INCOME TAXES 682 747 3,147 11,290
NET LOSS $(327,240) $(193,816) $(242,528) $(312,214)
DIVIDENDS ON PREFERRED STOCK $ (84,375) $ (84,375) $(168,750) $(168,750)
NET LOSS AVAILABLE TO
COMMON SHAREHOLDERS $(411,615) $(278,191) $(411,278) $(480,964)
WEIGHTED AVERAGE SHARES OUTSTANDING
- Basic 2,035,600 2,035,600 2,035,600 2,035,600
- Diluted 2,035,600 2,035,600 2,035,600 2,035,600
NET LOSS PER COMMON SHARE
- Basic $ (0.20) $ (0.14) $ (0.20) $ (0.24)
- Diluted $ (0.20) $ (0.14) $ (0.20) $ (0.24)