Exhibit 99.1
For Immediate Release
For: From:
Ameritrans Capital Corporation Gregory FCA Communications Inc.
For More Information Contact: For More Information Contact:
Gary Granoff Kathy Keyser
(212) 355-2449 (610) 642-8253
Ameritrans Reports Fourth Quarter and Fiscal Year 2003 Results
New York, NY, October 8, 2003 - Ameritrans Capital Corporation (NASDAQ: AMTC,
AMTCP) today reported financial results for the fiscal year and quarter ended
June 30, 2003. For the quarter ended June 30, 2003, investment income was $1.54
million compared to $1.63 million during the prior comparable period. For the
fiscal year ended June 30, 2003, Ameritrans reported investment income of $6.28
million as compared to $6.27 million for the prior year.
Ameritrans reported a net loss available to common shareholders for the quarter
ended June 30, 2003 of $157,332, or $0.08 per basic and diluted common share,
versus a net income of $110,160, or $0.05 per basic and diluted common share, in
the fourth quarter of fiscal 2002. The net loss was the result of a continued
increase in write offs for loan losses and foreclosure expenses, which
negatively impacted earnings by approximately $300,000 during the fourth
quarter. For the fiscal year ended June 30, 2003, Ameritrans reported a net
income available to common shareholders of $57,714, or $0.03 per basic and
common diluted share, versus net income of $970,458 or $0.54 per basic and
diluted common share for fiscal year 2002.
The Company's loan portfolio at June 30, 2003 was $55.1 million versus $54.8
million at June 30, 2002.
1
President of Ameritrans, Gary C. Granoff stated, "Financial results during 2003
were negatively impacted by the increased loan loss writeoffs and the higher
foreclosure expenses that occurred during the second half of the year. Our loan
portfolio has continued to grow and we intend to take advantage of the favorable
interest rate environment, which is allowing us to reduce our cost of funds and
improve our margins."
Granoff continued, "However, given our combined efforts to continue building
reserves for our problem loans in our Chicago taxi medallion portfolio, the
Company's directors have elected not to declare a dividend on our common stock
for the fourth quarter of fiscal 2003 ended June 30, as well as for the first
quarter of fiscal 2004 ended September 30. We did, however, declare a regular
quarterly dividend on our preferred stock for the fourth quarter of fiscal 2003
ended June 30 and the first quarter of fiscal 2004 ended September 30."
Mr. Granoff further stated that, "The Company is continuing to actively market
and sell or lease its medallions in Chicago and complete pending foreclosure
sales. As a result of these steps, the Company will continue to incur related
expenses until this process has been completed."
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.
2
CONSOLIDATED STATEMENTS OF INCOME
Years Ended June 30, 2003 and 2002
- --------------------------------------------------------------------------------
2003 2002
----------- -----------
Investment income:
Interest on loans receivable $ 6,072,399 $ 5,984,678
Fees and other income 209,680 285,041
----------- -----------
Total investment income 6,282,079 6,269,719
----------- -----------
Operating expenses:
Interest 2,076,861 2,632,918
Salaries and employee benefits 879,074 769,633
Legal fees 304,097 232,494
Other administrative expenses 1,342,129 961,257
Loss on assets acquired in satisfaction of loans, net 77,343 78,907
Directors' fees 36,250 29,750
Foreclosure expenses 313,678 126,565
Write off and depreciation on interest and loans receivable 852,512 393,145
----------- -----------
Total operating expenses 5,881,944 5,224,669
----------- -----------
Operating income 400,135 1,045,050
----------- -----------
Other income:
Net gain from rental activities -- 2,700
Gain on sale of securities 2,976 --
----------- -----------
Total other income 2,976 2,700
----------- -----------
Income before income taxes 403,111 1,047,750
Income taxes 7,897 8,854
----------- -----------
Net income 395,214 1,038,896
Dividends on preferred stock (337,500) (68,438)
----------- -----------
Net income available to common shareholders $ 57,714 $ 970,458
=========== ===========
Weighted Average Shares Outstanding
Basic 2,035,600 1,800,614
=========== ===========
Diluted 2,035,600 1,800,614
=========== ===========
Earnings Per Common Share
Basic $ 0.03 $ 0.54
=========== ===========
Diluted $ 0.03 $ 0.54
=========== ===========
3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years Ended June 30, 2003, and 2002
- --------------------------------------------------------------------------------
2003 2002
----------- -----------
Net income $ 395,214 $ 1,038,896
Other comprehensive income
Unrealized loss on equity securities arising during the period (200,338) (43,612)
----------- -----------
Total comprehensive income $ 194,876 $ 995,284
=========== ===========
4
CONSOLIDATED BALANCE SHEETS
June 30, 2003 and 2002
- --------------------------------------------------------------------------------
2003 2002
------------ ------------
Assets
Loans receivable $ 55,306,678 $ 55,029,831
Less unrealized depreciation on loans receivable (238,500) (238,500)
------------ ------------
Loans receivable, net 55,068,178 54,791,331
Cash and cash equivalents 498,669 774,062
Accrued interest receivable, net of unrealized depreciation of $691,000 in
2003 and $300,000 in 2002 1,321,591 1,103,347
Assets acquired in satisfaction of loans 1,142,189 1,108,088
Receivables from debtors on sales of assets acquired in satisfaction of loan 431,258 367,271
Equity securities 929,405 443,327
Furniture, equipment and leasehold improvements, net 173,100 107,757
Prepaid expenses and other assets 527,511 313,033
------------ ------------
Total assets $ 60,091,901 $ 59,008,216
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Debentures payable to SBA $ 9,200,000 $ 7,860,000
Notes payable, bank 34,130,000 33,720,000
Accrued expenses and other liabilities 485,710 434,339
Accrued interest payable 219,671 258,358
Dividends payable 84,375 68,438
------------ ------------
Total liabilities 44,119,756 42,341,135
------------ ------------
Commitments and contingencies
Stockholders' equity:
Preferred stock 500,000 shares authorized, none issued or outstanding -- --
9-3/8% cumulative participating redeemable 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 (1,197,725) (703,127)
Accumulated other comprehensive loss (229,880) (29,542)
------------ ------------
16,042,145 16,737,081
Less: Treasury stock, at cost, 10,000 shares
of common stock (70,000) (70,000)
------------ ------------
Total stockholders' equity 15,972,145 16,667,081
------------ ------------
Total liabilities and stockholders' equity $ 60,091,901 $ 59,008,216
============ ============
5