 |
|
|
November 9, 2005
Medallion Financial Corp. Reports 2005 Third Quarter Results
- Net Investment Income After Taxes Increased 73% To $0.18 Per Share
- Medallion Extends Stock Buyback
- Credit Quality Remains Strong
- Dividend Declared
- Medallion To Present At Financial Services Conference
Charts
- Consolidated Income Statements
- Consolidated Balance Sheets
NEW YORK, NY - Novebmer 9, 2005 -- Medallion Financial Corp. (NASDAQ: TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets in small business and consumer lending, announced that net investment income after income taxes increased 73% to $3,186,000 or $.18 per diluted common share in the 2005 third quarter, up from $1,841,000 or $0.10 in the 2004 third quarter. Medallion loans grew to $434,000,000 from $348,000,000 in the last 12 months, an increase of $86,000,000 or 25%. Commercial loans grew to $161,000,000 from $134,000,000 in the last 12 months, an increase of $27,000,000 or 20%. Total assets grew to $783,000,000 from $658,000,000 in the last 12 months, an increase of $125,000,000 or 19%. All these levels were record highs for the Company.
"We are extremely pleased with our results this quarter," commented President Andrew Murstein. "Our net investment income is the highest it has been since 2000 and our asset growth has exceeded our expectations. We are starting to build some momentum that we hope to carry forward into the future."
Mr. Murstein continued, "Now that we have consummated the sale of our Business Lenders unit, we have further increased what was already a strong balance sheet. As a result of our increased liquidity, we are announcing the extension of our previously announced stock buyback program. Our capital remains strong, with $168,000,000 of equity and $605,000,000 of borrowed funds, for a debt to equity ratio of 3.6 to 1. We have improved our leverage from 2.7 to 1 a year ago, and plan on continuing to leverage our balance sheet so that we can continue to improve our return on equity and increase shareholder value."
Chief Financial Officer Larry Hall stated, "Strong loan demand across the board, combined with maintaining our credit quality and managing our expenses have led to our improved performance over the last several quarters. We have the equity and infrastructure in place to be a much larger company, and as we continue to grow our assets, we expect our profits will continue to increase."
Net interest margin increased to 4.50% for the quarter, up from 4.43% a year ago. Loans 90 days or more past due dropped to 2.2% during the 2005 third quarter from 3.7% in the 2004 third quarter.
The Board of Directors increased the Company's dividend to $0.14 per share continuing an upward trend that goes back to 2002. The dividend will be payable on December 12th to shareholders of record as of November 28th. Since Medallion's IPO, the Company has paid out more than $85,000,000 in dividends to shareholders, representing more than $6 per share.
Medallion is also pleased to announce that it will be a presenting company at the upcoming Nobel Financial Group Small-Cap Conference at the Seminole Hard Rock Hotel & Casino in Hollywood, Florida. Medallion's Executive Vice President, Chief Operating Officer and Chief Credit Officer Brian O'Leary will make his presentation at 4:15 p.m. on November 10, 2005. For conference information, contact Mark Pinvidic at mpinvidic@noblefinancialgroup.com or at 1-800-688-6262.
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 billion to its taxicab, commercial, and consumer customers.
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.
|
|
|
