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May 8, 2008
Medallion Financial Corp. Reports 2008 First Quarter Results
- Earnings per share increase to $0.22 per share
- Credit quality remains excellent with record low delinquencies
- NYC wheelchair accessible medallion prices reach $656,000, a record high
- $0.19 per share dividend declared
Charts
- Consolidated Statements of Operations
- Consolidated Balance Sheets
NEW YORK, NY - May 8, 2008 -- 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, increased 4% to $3,921,000 or $0.22 per diluted common share in the 2008 first quarter, up from $3,780,000 or $0.21 per diluted common share in the 2007 first quarter.
Medallion's on balance sheet taxicab medallion loan portfolio increased 7% to $476,000,000 at the end of the 2008 first quarter, up from $444,000,000 a year ago, and the on balance sheet commercial loan portfolio increased 2% to $93,000,000, up from $91,000,000 a year ago. Including Medallion Bank, our unconsolidated wholly-owned portfolio investment, and loans serviced for third parties, the managed medallion loan portfolio increased 9% to $587,000,000, up from $536,000,000 a year ago. The managed commercial loan portfolio increased 5% to $167,000,000, up from $160,000,000 a year ago. In addition, Medallion Bank's consumer loan portfolio increased 25% to $148,000,000, up from $118,000,000 a year ago. Total assets under management increased 9% to $1,024,000,000, up from $940,000,000 a year ago.
Andrew Murstein, President of Medallion stated, "We are very pleased with our continuing trends of increased growth and profitability. During this quarter, New York City medallion prices continued to rise. Just last week, the city auctioned off 86 wheelchair accessible medallions for as much as $656,000, an all time high for all taxi medallions, despite a provision calling for a central dispatch system to match wheelchair passengers with accessible vehicles. The industry has never been stronger."
Larry Hall, CFO stated, "The weighted average yield on our managed loan portfolio at the end of the 2008 first quarter increased, even in this interest rate environment, to 9.28%, compared to 9.10% a year ago. In addition, we continue to utilize Medallion Bank, which has our lowest cost of funds, to fund much of our growth. Our weighted average managed cost of funds dropped to 5.37% in the quarter, down from 5.60% a year ago. As a result, our net interest margin, which included interest recoveries, reached 4.81%.
Our loan quality, which is one of the hallmarks of Medallion, not only remained strong, but actually improved. On a managed basis, including Medallion Bank, delinquent loans 90 days or more past due dropped to 0.3%, down from 1.6% a year ago. Consumer loans remained flat at 0.4% from one year ago. Commercial loans decreased to 0.4%, down from 4.1% one year ago. On a combined basis the totals were .4%, down 75% from 1.6% one year ago. This is an outstanding accomplishment, especially given the recent state of other financial institutions." The Company also announced that its Board of Directors declared a dividend of $0.19 per share on its common stock for the 2008 first quarter. The dividend is payable on June 2, 2008 to shareholders of record on May 16, 2008. Since the Company's initial public offering in 1996, the Company has paid out over $121,500,000 in dividends, or $7.96 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 other commercial loans in targeted niche industries and its wholly owned portfolio company Medallion Bank also originates and services consumer loans. The Company and its subsidiaries have lent over $3 billion.
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 2007 Annual Report on Form 10-K.
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