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May 9, 2005
Medallion Financial Corp. Announces First Quarter Results
- Operating Earnings reach $0.16 per share
- Loan Portfolio reaches record high
- Stock Buy Back extended
- Dividend Increased
Charts
- Consolidated Income Statements
- Consolidated Balance Sheets
NEW YORK, N.Y., May 9, 2005 -- Medallion Financial Corp. (NASDAQ: TAXI), a specialty finance company with a leading position in servicing the taxicab industry and in commercial and consumer lending to targeted niche industries, announced net investment income after taxes of $2,760,000, or $0.16 per diluted share for the 2005 first quarter, compared to a loss of $62,000 or $0.00 per share, in the 2004 first quarter. Net increase in net assets resulting from operations was $2,236,000 or $0.13 per share for the 2005 quarter, compared to a loss of $1,380,000 or $0.08 per share in the 2004 quarter.
The taxicab medallion loan portfolio increased to $408,271,000, up from $392,131,000 at year-end. The commercial and consumer loan portfolios increased to $216,171,056 from $203,165,639. Total assets increased to $734,817,000 from $709,910,000.
Over the last 12 months, taxicab medallion loans have grown by 33%, commercial loans by 40%, and total assets by 53%.
Andrew Murstein, President of Medallion stated, "We are very pleased with our continuing trends of increased margins and quarterly earnings. During this quarter, we reached several all-time highs, including an outstanding medallion loan portfolio of $408,000,000, and total assets under management of $845,000,000. New York City medallion prices have also continued to rise during the quarter. Since late 2001, corporate medallion values have increased from $195,000 per medallion to approximately $390, 000 today. With another New York City taxicab medallion auction of newly issued medallions scheduled for later this year, along with strong loan demand, we expect our portfolio to continue to grow. We remain very well positioned for the future."
Larry Hall, CFO stated, "Loan quality continued to remain strong, and remains one of the hallmarks of Medallion Financial. Delinquent loans more than 90 days past due have decreased to 2.9% of the loan portfolio from 5.7% one year ago. Finally, we are also pleased to announce the extension of our stock repurchase program for an additional six-month period. As our book value per share has risen to $9.86 from $8.74 one year ago, we feel it is both accretive to our earnings and our book value to continue repurchasing our stock. With the sale of most of the assets of our Business Lenders, LLC subsidiary expected to close by the end of this quarter upon final regulatory approval, we expect to receive significant cash, thus further strengthening our liquidity and balance sheet."
The Company also announced that its Board of Directors declared a dividend of $0.12 per share on its common stock for the 2005 first quarter, an increase from $0.11 in the fourth quarter, and up from $0.08 a year ago. The dividend is payable on May 31,
2005 to shareholders of record on May 20, 2005. Since the Company's initial public
offering in 1996, the Company has paid out over $85,000,000 in dividends, or $5.89 per share.
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 commercial and consumer loans financing small businesses in other targeted markets. The Company and its subsidiaries have lent over$2 billion to the taxicab industry and commercial equipment industries.
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 "Investment Considerations," in Medallion's 2004 Annual Report on Form 10-K.
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