EX-99.1 3 a2122984zex-99_1.txt EXHIBIT 99.1 Exhibit 99.1 For Immediate Release FOR: FROM: Ameritrans Capital Corporation Gregory FCA Communications Inc. For More Information Contact: For More Information Contact: Gary Granoff Kathy Keyser (212) 355-2449 (610) 642-8253 AMERITRANS REPORTS FIRST QUARTER FISCAL 2004 RESULTS New York, NY, November 14, 2003 - Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today reported financial results for the quarter ended September 30, 2003. For the quarter ended September 30, 2003, total investment income was $1.44 million compared to $1.61 million during the prior comparable period. Ameritrans reported a net loss available to common shareholders for the first quarter of fiscal 2004 of ($202,773), or ($0.10) per basic and diluted common share, versus net income of $222,356, or $0.11 per basic and diluted common share for the same period of fiscal 2002. The decrease in total investment income was primarily due to the impact of lower interest rates charged on new and modified loans. Although lower interest rates favorably affected interest expense for the quarter through debt refinancing, it was more than offset by the writedown of the Chicago loan portfolio and related foreclosure expenses, which resulted in the decrease in net income for the period. The Company's net loan portfolio at September 30, 2003 was $53.8 million versus $56.0 million at September 30, 2002. Commenting on the results, Gary C. Granoff, Ameritrans' president said, "As expected, it was another difficult quarter for Ameritrans as we continue to deal with problems in our Chicago medallion loan program and the decreasing interest rate environment. However, we are making considerable progress toward the eventual resolution of these issues. We remain committed to our business and we believe that Ameritrans will return to profitability in the third or fourth quarter of this fiscal year ending June 30, 2004." Ameritrans Capital Corporation is a specialty finance company engaged in making loans to and investments in small businesses. Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation, was licensed by the United States Small Business Administration as a Small Business Investment Company (SBIC) in 1980. The company maintains its offices at 747 Third Avenue; 4th Floor; New York, NY 10017. # # # THIS ANNOUNCEMENT CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PRESENTLY ANTICIPATED OR PROJECTED. AMERITRANS CAPITAL CORPORATION CAUTIONS INVESTORS NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS TO MANAGEMENT'S EXPECTATIONS ON THIS DATE. CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Three Months Ended September 30, 2003 September 30, 2002 ------------------ ------------------ INVESTMENT INCOME Interest on loans receivable $ 1,390,175 $ 1,551,000 Fees and other income 51,224 57,233 ------------------ ------------------ TOTAL INVESTMENT INCOME 1,441,399 1,608,233 ------------------ ------------------ OPERATING EXPENSES Interest 372,753 540,686 Salaries and employee benefits 246,547 219,913 Legal fees 62,421 61,927 Miscellaneous administrative expenses 378,361 293,104 Loss on assets acquired in satisfaction of loans, net 29,901 9,724 Directors' fee 13,250 13,250 Foreclosure expense 209,630 78,186 Write off and depreciation on interest and loans receivable 255,892 73,229 ------------------ ------------------ TOTAL OPERATING EXPENSES 1,568,755 1,290,019 ------------------ ------------------ OPERATING (LOSS) INCOME (127,356) 318,214 ------------------ ------------------ OTHER INCOME Rental income 13,836 - Gain on sale of securities 5,665 - ------------------ ------------------ TOTAL OTHER INCOME 19,501 - ------------------ ------------------ (LOSS) INCOME BEFORE INCOME TAXES (107,855) 318,214 INCOME TAXES 10,543 11,483 ------------------ ------------------ NET (LOSS) INCOME $ (118,398) $ 306,731 ------------------ ------------------ DIVIDENDS ON PREFERRED STOCK $ (84,375) $ (84,375) ------------------ ------------------ NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS $ (202,773) $ 222,356 ------------------ ------------------ WEIGHTED AVERAGE SHARES OUTSTANDING - Basic 2,035,600 2,035,600 ================= ================== - Diluted 2,035,600 2,035,600 ================= ================== NET (LOSS) INCOME PER COMMON SHARE - Basic $ (0.10) $ 0.11 ================= ================== - Diluted $ (0.10) $ 0.11 ================= ==================
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2003 JUNE 30, 2003 ------------------ ------------- ASSETS Loans receivable $ 54,083,564 $ 55,306,678 Less: unrealized depreciation on loans receivable (238,500) (238,500) ------------------ ------------- Loans receivable, net 53,845,064 55,068,178 Cash and cash equivalents 302,205 498,669 Accrued interest receivable, net of unrealized depreciation of $775,800 and $691,000, respectively 1,241,868 1,321,591 Assets acquired in satisfaction of loans 1,142,189 1,142,189 Receivables from debtors on sales of assets acquired in satisfaction of loans 431,258 431,258 Equity securities 1,054,046 929,405 Property, auto and leasehold improvements, net 475,427 173,100 Medallions owned 300,300 - Prepaid expenses and other assets 644,827 527,511 ------------------ ------------- TOTAL ASSETS $ 59,437,184 $ 60,091,901 ================== ============= LIABILITIES Debentures payable to SBA $ 10,480,000 $ 9,200,000 Notes payable, banks 32,379,902 34,130,000 Accrued expenses and other liabilities 631,983 485,710 Accrued interest payable 97,217 219,671 Dividends payable 84,375 84,375 ------------------ ------------- TOTAL LIABILITIES 43,673,477 44,119,756 ------------------ ------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock 500,000 shares authorized, none issued or outstanding - - 9 3/8% cumulative participating redeemable preferred stock $.01 par value, $12.00 face value, 500,000 shares authorized; 300,000 shares issued and outstanding 3,600,000 3,600,000 Common stock, $.0001 par value: 5,000,000 shares authorized; 2,045,600 shares issued, 2,035,600 outstanding 205 205 Additional paid-in-capital 13,869,545 13,869,545 Accumulated deficit (1,400,498) (1,197,725) Accumulated other comprehensive income (235,545) (229,880) ------------------ ------------- 15,833,707 16,042,145 Less: Treasury stock, at cost, 10,000 shares of common stock (70,000) (70,000) ------------------ ------------- TOTAL STOCKHOLDERS' EQUITY 15,763,707 15,972,145 ------------------ ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 59,437,184 $ 60,091,901 ================== =============