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, May 16, 2005- Ameritrans Capital Corporation
(NASDAQ: AMTC, AMTCP) reported financial results for the quarter
ended March 31, 2005. For the Company's third fiscal
quarter, total investment income was $1.39 million compared to
$1.43 million during the prior comparable period. Ameritrans
reported a net loss available to common shareholders for the
third quarter of fiscal 2005 of ($14,075) or ($0.01) per basic
and diluted common share, versus a net loss for the third
quarter of fiscal 2004 of ($135,998) or ($.07) per basic and
diluted common share. The Company's net loan portfolio at
March 31, 2005 was $52.9 million versus $54.1 million at
March 31, 2004. Not included in the net loan portfolio at March 31, 2005
is $2.38 million of medallions owned versus $1.42 million at March 31, 2004,
which are represented through inter-company receivables from wholly-owned
subsidiaries. The Company's net equity securities at March
31, 2005 were $1,196,838 versus $1,011,507 at March 31, 2004.
For the nine months ended March 31, 2005, Ameritrans reported
total investment income of $3.99 million, compared to $4.30 million
during the prior comparable period. Net loss available
to common shareholders for the nine months ended March 31,
2005 was ($425,353) or ($.21) per share versus ($616,963) or
($.30) per share for the nine months ended March 31, 2004.
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 Company had a net income of
$70,300 for the three months ended March 31, 2005 and
a net loss of ($51,623) for the three months ended March 31, 2004. On an
operating basis the net loss was ($172,228) for the nine months
ended March 31, 2005 versus ($363,838) for the nine months ended
March 31, 2004.
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
nine 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 an $81,356 expense
and which totaled $471,415 for the first nine months. These
charges were essentially for a small number of diversified loans
which were written down to estimated net realizable value."
Granoff continued, "Although we have experienced a difficult
nine months, 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
March 31, 2005 (Unaudited) and June 30, 2004
ASSETS
March 31, 2005 June 30, 2004
Loans receivable $53,414,168 $49,900,989
Less: unrealized
depreciation on
loans receivable (541,401) (509,770)
Loans receivable, net 52,872,767 49,391,219
Cash and cash equivalents 755,127 416,600
Accrued interest receivable, net
of unrealized depreciation of
$92,000 and $30,500, respectively 786,946 969,912
Assets acquired in satisfaction
of loans 474,728 1,421,723
Receivables from debtors on sales of
assets acquired in satisfaction
of loans 463,233 422,158
Equity securities 1,196,838 1,038,617
Furniture, equipment and leasehold
improvements, net 370,506 439,262
Medallions Under Lease 2,382,201 2,382,201
Prepaid expenses and other assets 599,873 610,214
TOTAL ASSETS $59,902,219 $57,091,906
The accompanying notes are an integral part of these financial
statements.
.
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2005 (Unaudited) and June 30, 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, 2004 June 30, 2004
LIABILITIES
Debentures payable to SBA $12,000,000 $12,000,000
Notes payable, banks 31,970,652 28,908,652
Accrued expenses and other
liabilities 791,089 578,790
Accrued interest payable 124,908 271,630
Dividends payable 84,375 84,375
TOTAL LIABILITIES 44,971,024 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 (2,327,761) (1,902,408)
Accumulated other
comprehensive loss (140,794) (248,883)
15,001,195 15,318,459
Less: Treasury stock, at cost,
10,000 shares of common stock (70,000) (70,000)
TOTAL STOCKHOLDERS' EQUITY 14,931,195 15,248,459
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $59,902,219 $57,091,906
The accompanying notes are an integral part of these financial
statements.
AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended March 31, 2005
(Unaudited)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
INVESTMENT INCOME
Interest on loans receivable $1,213,236 $1,249,444 $3,497,001 $3,970,646
Fees and other income 129,594 130,030 318,821 238,476
Leasing income 50,826 48,837 176,159 86,385
TOTAL INVESTMENT INCOME 1,393,656 1,428,311 3,991,981 4,295,507
OPERATING EXPENSES
Interest 449,279 345,172 1,272,435 1,060,604
Salaries and employee benefits 292,927 275,959 848,672 763,525
Occupancy costs 46,336 50,383 141,953 148,624
Professional fees 148,914 152,349 480,212 507,231
Other administrative expenses 314,838 321,188 857,791 927,697
Loss and impairments on assets acquired in
satisfaction of loans, net 18,198 5,102 50,745 41,171
Foreclosure expense - 46,769 14,194 310,302
Write off and depreciation
on interest and loans
receivable 81,356 254,159 471,415 865,713
TOTAL OPERATING EXPENSES 1,351,848 1,451,081 4,137,417 4,624,867
OPERATING LOSS 41,808 (22,770) (145,436) (329,360)
OTHER INCOME (EXPENSE)
(Loss) gain on sale of
securities - - (50,000) 5,665
Gain on sale of asset acquired 32,829 - 34,713 -
Equity in loss of investee - (24,747) (4,021) (24,747)
TOTAL OTHER INCOME (EXPENSE) 32,829 (24,747) (19,308) (19,082)
LOSS BEFORE PROVISION
FOR INCOME TAXES 74,637 (47,517) (164,744) (348,442)
PROVISION FOR INCOME TAXES 4,337 4,106 7,484 15,396
NET LOSS $ 70,300 $ (51,623) $(172,228) $(363,838)
DIVIDENDS ON PREFERRED STOCK $ (84,375) $ (84,375) $(253,125) $(253,125)
NET LOSS AVAILABLE TO
COMMON SHAREHOLDERS $ (14,075) $(135,998) $(425,353) $(616,963)
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 $ (0.01) $ (0.07) $ (0.21) $ (0.30)
- Diluted $ (0.01) $ (0.07) $ (0.21) $ (0.30)