Medallion Financial Corp. (MM) (NASDAQ:TAXI)
Historical Stock Chart
3 Years : From May 2010 to May 2013
Medallion Financial Corp. (Nasdaq: TAXI), a specialty finance company
with a leading position servicing the taxicab industry and other niche
markets, announced that earnings or net increase in net assets resulting
from operations was $4,280,000 or $0.24 per diluted common share in the
2011 first quarter, up $4,171,000 from $109,000 or $0.01 per diluted
common share in the 2010 first quarter. Net investment income after
income taxes was $2,841,000 or $0.16 per diluted common share in the
2011 first quarter, up $609,000 or 27% from $2,232,000 or $0.13 per
diluted common share in the 2010 first quarter.
On a combined basis with Medallion Bank, the Company’s unconsolidated
wholly-owned portfolio company, net investment income after taxes was
$7,218,000 or $0.41 per diluted common share for the 2011 first quarter,
compared to $7,020,000, or $0.40 per diluted common share for the 2010
first quarter. As the Company continues to use Medallion Bank as a
primary funding source, it refers more loans to Medallion Bank for
origination to take advantage of current short term borrowing rates as
low as 0.45%.
Medallion Financial’s net interest margin was 5.17% for the 2011 first
quarter, up from 4.95% in the 2010 first quarter. On a combined basis
with Medallion Bank, the net interest margin was approximately the same
at 6.7% reflecting the continued low cost of funds at the bank, and the
Bank’s higher-yielding consumer loan portfolio.
Andrew Murstein, President of Medallion Financial stated, “We are
extremely pleased with the quarter’s operating results. We continued to
see strong taxi medallion collateral values demonstrated through price
appreciation in taxi medallions throughout 2010 and continuing to date
through 2011. Prices for corporate medallions in New York City increased
23% since 2009, and are currently at over $930,000 per medallion through
May 2011. We continue to experience zero losses on any taxi medallion
loan we have originated. In addition, our loan to value ratio on our
entire medallion portfolio is under 50%.”
Larry D. Hall, Chief Financial Officer of Medallion Financial stated,
“We continue to focus very intently on the credit quality of our loan
portfolios. Unlike many other financial institutions, our credit quality
has not only remained very good, but has improved, even in these
turbulent times. Loans more than 90 days past due, on a combined basis
with Medallion Bank, were at 1.26% at March 31, 2011, down from 1.43% at
year end, and down from 1.29% a year ago.
“Medallion Financial’s capital and liquidity levels remained strong with
over $51,000,000 of availability from our funding sources and Medallion
Financial’s leverage continues to be well under the industry norms with
a debt to equity ratio of only 2.22 to 1. In addition, Medallion Bank
had over $62,000,000 of deposit-raising capacity.”
Mr. Hall continued, “In addition, the Company recently entered into
lending arrangements with new bank funding sources and extended its
facility agreement with another bank. These arrangements will complement
the Company’s existing facilities by providing the Company with greater
liquidity and low funding costs to finance its growing taxi medallion
portfolio. We could not be more pleased with our new and extended credit
relationships. This is a reflection of many positive factors, including
how well our existing medallion lending facilities have performed to
date and the continued financial health, profitability, and prospects of
Medallion Financial. These credit arrangements ensure we have the
funding necessary to effectively grow the portfolio over the years
ahead. We look forward to working with our funding sources and
anticipate strong relationships going forward.”
Medallion Financial’s on-balance sheet taxicab medallion loan portfolio
decreased slightly to $310,000,000 from $311,000,000 a year ago, due to
the funding of most new loan originations by Medallion Bank, and the
Company’s sale of loan participations to third party banks. However,
total managed medallion loans increased 13% to $664,000,000 from
$589,000,000 a year ago.
Medallion Financial’s on-balance sheet commercial loan portfolio was
roughly flat at $74,000,000. The managed commercial loan portfolio
increased 1% to $134,000,000 from $133,000,000 a year ago. Medallion
Bank’s consumer loan portfolio increased 1% to $185,000,000 from
$182,000,000 a year ago. Overall total managed assets increased 9% to
$1.119 billion, from $1.027 billion a year ago.
The Company’s net asset value per share, or book value per share
increased to $9.41, up from $9.13 one year ago, in part due to improved
profitability in Medallion Bank, which is a taxable C Corp. and is
entitled to retain its after tax earnings, and to the Company’s stock
repurchase transactions. The Company also announced an increase in the
dividend to $0.17 per share for the 2011 first quarter, bringing total
amount to $0.63 over the last four quarters. This equates to a yield of
approximately 7.0% based on the closing price of the Company’s stock on
May 4, 2011. The current dividend will be paid on May 31, 2011, to
shareholders of record on May 20, 2011. Since the Company’s initial
public offering in 1996, the Company has paid in excess of $157,000,000
or $10.03 per share in dividends.
Medallion Financial Corp. is a specialty finance company with a
leading position in the origination and servicing of loans financing the
purchase of taxicab medallions and related assets. The Company
also originates and services loans in other commercial industries, and
its wholly-owned portfolio company, Medallion Bank, also originates and
services consumer loans. The Company and its subsidiaries have
lent over $3.9 billion to its taxicab industry and other small
businesses.
Please note that this press release contains forward-looking
statements that involve risks and uncertainties relating to business
performance, cash flow, costs, sales, net investment income, earnings,
and growth. Medallion’s actual results may differ significantly
from the results discussed in such forward-looking statements. Factors
that might cause such a difference include, but are not limited to,
those factors discussed under the heading “Risk Factors,” in Medallion’s
2010 Annual Report on Form 10-K.
MEDALLION FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Dollars in thousands, except per share data)
2011
2010
Total investment income
$
9,597
$
9,230
Total interest expense
3,502
3,514
Net interest income
6,095
5,716
Total noninterest income
409
796
Salaries and benefits
2,207
3,056
Professional fees
331
591
Occupancy expense
227
334
Other operating expenses
898
299
Total operating expenses
3,663
4,280
Net investment income before income taxes
2,841
2,232
Income tax (provision) benefit
-
-
Net investment income after income taxes
2,841
2,232
Net realized gains (losses) on investments
9
(8,222
)
Net change in unrealized depreciation on investments
(216
)
(1,244
)
Net change in unrealized appreciation on Medallion Bank and other
controlled subsidiaries
1,646
7,343
Net unrealized appreciation on investments
1,430
6,099
Net realized/unrealized gains (losses) on investments
1,439
(2,123
)
Net increase in net assets resulting from operations
$
4,280
$
109
Net investment income after income taxes per common share
Basic
$
0.16
$
0.13
Diluted
0.16
0.13
Net increase in net assets resulting from operations per common
share
Basic
$
0.25
$
0.01
Diluted
0.24
0.01
Dividends declared per share
$
0.17
$
0.15
Weighted average common shares outstanding
Basic
17,400,233
17,575,877
Diluted
17,548,036
17,714,766
MEDALLION FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
March 31, 2011
December 31, 2010
Assets
Medallion loans, at fair value
$
310,499
$
323,126
Commercial loans, at fair value
74,406
76,866
Investment in Medallion Bank and other controlled subsidiaries, at
fair value
79,935
78,735
Equity investments, at fair value
4,971
4,789
Investment securities, at fair value
-
-
Net investments
469,811
483,516
Cash and cash equivalents
16,316
17,303
Accrued interest receivable
1,347
1,441
Fixed assets, net
356
419
Goodwill, net
5,069
5,069
Other assets, net
43,391
42,564
Total assets
$
536,290
$
550,312
Liabilities
Accounts payable and accrued expenses
$
5,908
$
5,102
Accrued interest payable
765
1,913
Funds borrowed
365,308
380,532
Total liabilities
371,981
387,547
Commitments and contingencies
-
-
Total shareholders' equity (net assets)
164,309
162,765
Total liabilities and shareholders' equity
$
536,290
$
550,312
Number of common shares outstanding
17,468,973
17,400,233
Net asset value per share
$
9.41
$
9.35
Total managed loans
$
983,043
$
967,690
Total managed assets
1,118,773
1,093,379
|
