EX-99 2 pressreleasefinalmay.txt For Immediate Release FROM: Ameritrans Capital Corporation For more information Contact: Gary C. Granoff (800) 214-1047 AMERITRANS REPORTS SECOND QUARTER FISCAL 2005 RESULTS New York, NY, May 16, 2005- Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) reported financial results for the quarter ended March 31, 2005. For the Company's third fiscal quarter, total investment income was $1.39 million compared to $1.43 million during the prior comparable period. Ameritrans reported a net loss available to common shareholders for the third quarter of fiscal 2005 of ($14,075) or ($0.01) per basic and diluted common share, versus a net loss for the third quarter of fiscal 2004 of ($135,998) or ($.07) per basic and diluted common share. The Company's net loan portfolio at March 31, 2005 was $52.9 million versus $54.1 million at March 31, 2004. Not included in the net loan portfolio at March 31, 2005 is $2.38 million of medallions owned versus $1.42 million at March 31, 2004, which are represented through inter-company receivables from wholly-owned subsidiaries. The Company's net equity securities at March 31, 2005 were $1,196,838 versus $1,011,507 at March 31, 2004. For the nine months ended March 31, 2005, Ameritrans reported total investment income of $3.99 million, compared to $4.30 million during the prior comparable period. Net loss available to common shareholders for the nine months ended March 31, 2005 was ($425,353) or ($.21) per share versus ($616,963) or ($.30) per share for the nine months ended March 31, 2004. The above information takes into account the effect on common stockholders after payment of the preferred dividends paid on the Company's outstanding 9 3/8 cumulative participating preferred stock. On an operating basis the Company had a net income of $70,300 for the three months ended March 31, 2005 and a net loss of ($51,623) for the three months ended March 31, 2004. On an operating basis the net loss was ($172,228) for the nine months ended March 31, 2005 versus ($363,838) for the nine months ended March 31, 2004. Commenting on the results, Gary C. Granoff, Ameritrans' president said, "On a current operating basis, our gross investment income during the past quarter and during the last nine months has been negatively impacted by loans made during the prior fiscal year in the lower interest rate environment and due to an increase in our interest expense on our bank loans since the Fed began raising short term interest rates. While we are making new loans to borrowers at higher interest rates than during the last fiscal year, it will take time for the loan portfolio to generate higher gross interest income from new loans." Mr. Granoff stated further, "This past quarter was also negatively impacted by charges to our write off and depreciation on interest and loans receivables account by an $81,356 expense and which totaled $471,415 for the first nine months. These charges were essentially for a small number of diversified loans which were written down to estimated net realizable value." Granoff continued, "Although we have experienced a difficult nine months, we have continued to increase the size of our loan portfolio and we are actively making new loans and investments which on an operating basis should help restore us to profitable operations in the future." 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, New York 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. AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, 2005 (Unaudited) and June 30, 2004 ASSETS March 31, 2005 June 30, 2004 Loans receivable $53,414,168 $49,900,989 Less: unrealized depreciation on loans receivable (541,401) (509,770) Loans receivable, net 52,872,767 49,391,219 Cash and cash equivalents 755,127 416,600 Accrued interest receivable, net of unrealized depreciation of $92,000 and $30,500, respectively 786,946 969,912 Assets acquired in satisfaction of loans 474,728 1,421,723 Receivables from debtors on sales of assets acquired in satisfaction of loans 463,233 422,158 Equity securities 1,196,838 1,038,617 Furniture, equipment and leasehold improvements, net 370,506 439,262 Medallions Under Lease 2,382,201 2,382,201 Prepaid expenses and other assets 599,873 610,214 TOTAL ASSETS $59,902,219 $57,091,906
The accompanying notes are an integral part of these financial statements. . AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, 2005 (Unaudited) and June 30, 2004 LIABILITIES AND STOCKHOLDERS' EQUITY March 31, 2004 June 30, 2004 LIABILITIES Debentures payable to SBA $12,000,000 $12,000,000 Notes payable, banks 31,970,652 28,908,652 Accrued expenses and other liabilities 791,089 578,790 Accrued interest payable 124,908 271,630 Dividends payable 84,375 84,375 TOTAL LIABILITIES 44,971,024 41,843,447 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock 500,000 shares authorized, none issued or outstanding - - 9 3/8% cumulative participating callable 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 (2,327,761) (1,902,408) Accumulated other comprehensive loss (140,794) (248,883) 15,001,195 15,318,459 Less: Treasury stock, at cost, 10,000 shares of common stock (70,000) (70,000) TOTAL STOCKHOLDERS' EQUITY 14,931,195 15,248,459 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $59,902,219 $57,091,906
The accompanying notes are an integral part of these financial statements. AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months and Nine Months Ended March 31, 2005 (Unaudited) Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended March 31, March 31, March 31, March 31, 2005 2004 2005 2004 INVESTMENT INCOME Interest on loans receivable $1,213,236 $1,249,444 $3,497,001 $3,970,646 Fees and other income 129,594 130,030 318,821 238,476 Leasing income 50,826 48,837 176,159 86,385 TOTAL INVESTMENT INCOME 1,393,656 1,428,311 3,991,981 4,295,507 OPERATING EXPENSES Interest 449,279 345,172 1,272,435 1,060,604 Salaries and employee benefits 292,927 275,959 848,672 763,525 Occupancy costs 46,336 50,383 141,953 148,624 Professional fees 148,914 152,349 480,212 507,231 Other administrative expenses 314,838 321,188 857,791 927,697 Loss and impairments on assets acquired in satisfaction of loans, net 18,198 5,102 50,745 41,171 Foreclosure expense - 46,769 14,194 310,302 Write off and depreciation on interest and loans receivable 81,356 254,159 471,415 865,713 TOTAL OPERATING EXPENSES 1,351,848 1,451,081 4,137,417 4,624,867 OPERATING LOSS 41,808 (22,770) (145,436) (329,360) OTHER INCOME (EXPENSE) (Loss) gain on sale of securities - - (50,000) 5,665 Gain on sale of asset acquired 32,829 - 34,713 - Equity in loss of investee - (24,747) (4,021) (24,747) TOTAL OTHER INCOME (EXPENSE) 32,829 (24,747) (19,308) (19,082) LOSS BEFORE PROVISION FOR INCOME TAXES 74,637 (47,517) (164,744) (348,442) PROVISION FOR INCOME TAXES 4,337 4,106 7,484 15,396 NET LOSS $ 70,300 $ (51,623) $(172,228) $(363,838) DIVIDENDS ON PREFERRED STOCK $ (84,375) $ (84,375) $(253,125) $(253,125) NET LOSS AVAILABLE TO COMMON SHAREHOLDERS $ (14,075) $(135,998) $(425,353) $(616,963) WEIGHTED AVERAGE SHARES OUTSTANDING - Basic 2,035,600 2,035,600 2,035,600 2,035,600 - Diluted 2,035,600 2,035,600 2,035,600 2,035,600 NET LOSS PER COMMON SHARE - Basic $ (0.01) $ (0.07) $ (0.21) $ (0.30) - Diluted $ (0.01) $ (0.07) $ (0.21) $ (0.30)