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August 9, 2005
Medallion Operating Income Best Since 2000
- Net Investment Income After Taxes Reaches $3,753,000 or$0.22 Per Share
- Medallion Loans Grow 29% From a Year Ago
- Total Assets Grow 25% From a Year Ago
Charts
- Consolidated Income Statements
- Consolidated Balance Sheets
NEW YORK, NY - August 9, 2005 -- Medallion Financial Corp. (NASDAQ: TAXI), a specialty commercial finance company with a leading position servicing the taxi industry and targeted niche markets, announced net investment income after taxes of $3,753,000 or $0.22 per diluted common share for the 2005 second quarter, the highest such amount in the last 5 years, and an increase of $2,243,000 from $1,510,000 or $0.08 in the 2004 second quarter.
Medallion loans grew to $423,799,000 from $328,616,000 in the last 12 months, an increase of $95,183,000 or 29%. Total assets increased to $761,001,000 from $608,710,000 a year ago, an increase of $152,291,000 or 25%. Managed assets reached $869,226,000 at June 30, 2005.
This is the highest the medallion portfolio has been in the sixty-eight year history of the company, the highest managed assets have been, and the highest net investment income after taxes since 2000.Net increase in net assets resulting from operations was $447,000 or $.03 per share in the 2005 quarter, compared to $249,000 or $0.01 per share in the 2004 quarter. This reflects approximately $1,000,000 of refinancing fees the Company received from a few large loans, and a $2,597,000 decline in the value of the Company's investment in Clear Channel stock during the quarter, approximately $2,000,000 of which has been recovered to date in the third quarter.
Andrew Murstein, President of Medallion Financial, stated, "We are extremely pleased with our second quarter results. Our improved net investment income demonstrates the power of our asset growth and improved leverage on our bottom line. Our loan demand is robust, and we expect continued growth ahead especially with another planned medallion auction towards the end of this year. Medallion Bank is performing better than anticipated. It has contributed significantly to our earnings since opening for business only eighteen months ago. With the added growth of the consumer business, their loan production has been running on a seasonal pace of approximately $5,000,000 per month, up from less than $250,000 per month a year ago. The consumer portfolio is yielding over 18% and its 90 day past due delinquencies are under 1%. This has helped our overall yields to increase, and our net interest margin to reach 4.74% in the quarter."
Larry Hall, Medallion's CFO, stated, "We are making progress in achieving our goal of improved leverage on our balance sheet. With over $165,000,000 of equity, we improved our leverage to 3.5 to 1, up from 2.8 to 1 a year ago. We believe this is still far less than most other finance companies and banks, which typically have leverage of two to four times this amount. As we continue to grow our balance sheet, the benefits of improved leverage should allow our earnings to increase. Credit quality also remains good, as total delinquencies 90 days past due decreased to 2.5% from 4.8% one year ago."
Medallion also announced that its Board of Directors has declared and will pay a cash dividend of $0.13 per share. The dividend will be payable on August 31, 2005 to shareholders of record on August 19, 2005. The Company has now declared $0.25 per share of dividends for the first six months of 2005, up from $0.16 for the first six months of 2004, for an increase of 56%.
About Medallion Financial
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 financing small businesses and other targeted industries and niches. The Company and its subsidiaries have lent over $2 billion to the taxicab industry and small business.
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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