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May 9, 2006
Medallion Financial Corp. Reports Record 2006 First Quarter Results
- Net investment income after taxes increases 36% to $0.21 per share.
- Net interest margin increases to 4.89%.
- Loan portfolio reaches record highs with more than 10,000 loans.
- Corporate NYC Medallion prices reach record highs of $450,000.
- Dividend increased 33% from last year's quarter to $0.16 per share.
Charts
- Consolidated Income Statements
- Consolidated Balance Sheets
- Selected Financial Trends
NEW YORK, NY - May 9, 2006 -- Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets in small business commercial and consumer lending, announced that net investment income after taxes increased 36% to $3,766,000 or $0.21 per diluted common share for the 2006 first quarter, up from $2,760,000 or $0.16 per diluted common share for the 2005 first quarter. Net investment income before taxes increased 44% to $4,768,000 or $0.27 per diluted common share for the 2006 first quarter, up from $3,317,000 or $0.19 per diluted common share for the 2005 first quarter.
Medallion loans increased 22% to $498,000,000, from $408,000,000 during the last 12 months. Commercial loans remained at $147,000,000. Consumer loans increased 31% to $90,000,000, from $69,000,000. Total assets increased 14% to $836,000,000, from $735,000,000. Medallion loans, consumer loans, and total assets were record highs for the Company.
Andrew Murstein, President of Medallion stated, "We are very pleased with our continuing trends of strong net interest margins and solid and improving quarterly earnings. During this quarter, New York City medallion prices continued to rise. Since late 2001, corporate medallion values have increased from $195,000 per medallion to approximately $450,000 today. With another New York City taxicab medallion auction of newly issued medallions scheduled for June of this year, we think the prices may continue to increase during 2006."
Larry Hall, CFO stated, "During the quarter we experienced a new level of growth for Medallion, as we now have more than 10,000 loans on our books for the very first time. In addition, as we use our bank, which has been growing rapidly, our margins have continued to increase. As our bank is our only large taxable entity, we are also able to retain its earnings for future growth. That is partly why our pre-tax earnings were so high this quarter. Our loan quality continues to remain strong, and remains one of the hallmarks of Medallion. Delinquent loans 90 days or more past due for the entire Company have decreased to 2.2% of the loan portfolio, from 2.9% one year ago. Loan losses in our bank were also better than anticipated, and loans 90 days or more past due were less than one half of one percent."
The Company also announced that its Board of Directors declared a dividend of $0.16 per share on its common stock for the 2006 first quarter, an increase from $0.12 a year ago. The dividend is payable on May 25, 2006 to shareholders of record on May 12, 2006. Since the Company's initial public offering in 1996, the Company has paid out over $95,000,000 in dividends, or $6.47 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 in targeted niche industries. The Company and its subsidiaries have lent over$2.3 billion, primarily to the taxicab industry and also to various commercial enterprises and to consumers.
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 2005 Annual Report on Form 10-K.
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