Attached files
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| 8-K - FORM 8-K - MICROFINANCIAL INC | d523233d8k.htm |
Exhibit 99.1
| April 17, 2013 | Contact: | |||||
| 4:01 pm | Dave Mossberg | |||||
| Three Part Advisors, LLC | ||||||
| Tel: 817-310-0051 |
MICROFINANCIAL INCORPORATED ANNOUNCES
FIRST QUARTER 2013 RESULTS
Burlington, MA — April 17, 2013 — MicroFinancial Incorporated (NASDAQ:MFI) a financial intermediary specializing in vendor based leasing and finance programs for microticket transactions, today announced financial results for the first quarter ended March 31, 2013.
Quarterly Highlights:
| • | Net income increased by 12.7% to $2.3 million or $0.15 per diluted share on 14,786,580 shares; |
| • | Increased cash received from customers by 6.6% to $31.0 million, representing $2.10 per diluted share as compared to the first quarter of 2012; |
| • | Increased total revenues by 7.4% to $15.3 million as compared to the same period last year; |
| • | Contract originations were $20.1 million, down from $21.6 million for the same period in 2012; |
| • | Reduced net charge-offs by 20.1% to $4.2 million as compared to the same period last year; and |
| • | Paid a quarterly dividend of $0.9 million during the first quarter, representing $0.06 per share. |
First Quarter Results:
Net income for the first quarter of 2013 was $2.3 million, or $0.15 per diluted share on 14,786,580 shares as compared to $2.0 million or $0.14 per diluted share based upon 14,600,775 shares for the same period last year.
Revenue for the quarter ended March 31, 2013 increased 7.4% to $15.3 million compared to $14.2 million in the first quarter of 2012 due primarily to increases in leasing revenues associated with our new lease originations and an increase in rental income. Income on leases was $10.2 million, an increase of $0.6 million from the same period last year, and rental income was $2.5 million, an increase of $0.2 million from the same period last year. Other revenue components contributed $2.6 million, an increase of $0.3 million from the same period last year.
Total operating expenses for the quarter increased 5.8% to $11.5 million from $10.9 million in the first quarter of 2012. Selling, general and administrative expenses increased $0.3 million to $4.7 million from $4.4 million for the same period last year primarily due to increases in
personnel related expenses. The first quarter 2013 provision for credit losses remained flat at $4.9 million. First quarter 2013 net charge-offs decreased to $4.2 million from $5.2 million in the comparable period of 2012 while recoveries increased slightly to $1.4 million from $1.3 million for the same period in 2012. Depreciation and amortization expense for the first quarter of 2013 increased $0.3 million to $1.3 million as compared to the first quarter of 2012 due primarily to an increase in the number of TimePayment contracts coming to maturity and converting to rentals as well as an increase in the number of service contracts.
Cash received from customers increased 6.6% to $31.0 million during the first quarter of 2013. New originations for the quarter decreased 7.2% to $20.1 million as compared to $21.6 million in the first quarter of 2012. Headcount at March 31, 2013 was 151 as compared to 141 for the same period last year.
Richard Latour, President and Chief Executive Officer said, “We are pleased with our overall financial performance for the quarter. Despite the decline in origination dollars year over year, we realized a 7.8% increase in the number of applications and a 9.0% increase in the number of contracts originated. The decrease in origination dollars resulted from a decline in the average funded amount from approximately $5,400 in the first quarter of 2012 to $4,600 in the first quarter of 2013. Total revenues increased by 7.4% and net income improved 12.7% from the first quarter of 2012. Net charge-offs declined by $1.0 million and cash received from customers increased by $1.9 million as compared to the first quarter of 2012. We approved 255 new dealers during the quarter. In addition, we realized a 10.9% after tax return on average equity and a 5.4% after tax return on average assets.”
MICROFINANCIAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| (Unaudited) March 31, 2013 |
December 31, 2012 |
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| ASSETS | ||||||||
| Cash and cash equivalents |
$ | 2,959 | $ | 3,557 | ||||
| Restricted cash |
475 | 1,213 | ||||||
| Net investment in leases: |
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| Receivables due in installments |
212,526 | 213,466 | ||||||
| Estimated residual value |
23,829 | 24,176 | ||||||
| Initial direct costs |
1,730 | 1,751 | ||||||
| Less: |
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| Advance lease payments and deposits |
(3,146 | ) | (3,278 | ) | ||||
| Unearned income |
(60,937 | ) | (62,244 | ) | ||||
| Allowance for credit losses |
(14,747 | ) | (14,038 | ) | ||||
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| Net investment in leases |
159,255 | 159,833 | ||||||
| Investment in service contracts, net |
1,179 | 797 | ||||||
| Investment in rental contracts, net |
1,120 | 1,037 | ||||||
| Property and equipment, net |
1,619 | 1,534 | ||||||
| Other assets |
1,541 | 1,658 | ||||||
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| Total assets |
$ | 168,148 | $ | 169,629 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| March 31, 2013 |
December 31, 2012 |
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| Revolving line of credit |
$ | 69,254 | $ | 70,380 | ||||
| Accounts payable |
2,377 | 3,220 | ||||||
| Dividends payable |
39 | 40 | ||||||
| Other liabilities |
2,624 | 2,545 | ||||||
| Income taxes payable |
1,015 | 653 | ||||||
| Deferred income taxes |
8,889 | 10,399 | ||||||
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| Total liabilities |
84,198 | 87,237 | ||||||
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| Stockholders’ equity: |
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| Preferred stock, $.01 par value; 5,000,000 shares authorized; no shares issued at March 31, 2013 and December 31, 2012 |
— | — | ||||||
| Common stock, $.01 par value; 25,000,000 shares authorized; 14,501,080 and 14,470,219 shares issued at March 31, 2013 and December 31, 2012, respectively |
145 | 145 | ||||||
| Additional paid-in capital |
47,670 | 47,500 | ||||||
| Retained earnings |
36,135 | 34,747 | ||||||
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| Total stockholders’ equity |
83,950 | 82,392 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 168,148 | $ | 169,629 | ||||
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MICROFINANCIAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended March 31, |
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| 2013 | 2012 | |||||||
| Revenues: |
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| Income on financing leases |
$ | 10,204 | $ | 9,635 | ||||
| Rental income |
2,503 | 2,317 | ||||||
| Income on service contracts |
176 | 85 | ||||||
| Loss and damage waiver fees |
1,441 | 1,287 | ||||||
| Service fees and other |
971 | 920 | ||||||
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| Total revenues |
15,295 | 14,244 | ||||||
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| Expenses: |
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| Selling general and administrative |
4,662 | 4,356 | ||||||
| Provision for credit losses |
4,881 | 4,896 | ||||||
| Depreciation and amortization |
1,305 | 1,008 | ||||||
| Interest |
670 | 633 | ||||||
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| Total expenses |
11,518 | 10,893 | ||||||
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| Income before provision for income taxes |
3,777 | 3,351 | ||||||
| Provision for income taxes |
1,511 | 1,340 | ||||||
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| Net income |
$ | 2,266 | $ | 2,011 | ||||
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| Net income per common share: |
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| Basic |
$ | 0.16 | $ | 0.14 | ||||
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| Diluted |
$ | 0.15 | $ | 0.14 | ||||
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| Weighted-average shares: |
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| Basic |
14,495,411 | 14,284,087 | ||||||
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| Diluted |
14,786,580 | 14,600,775 | ||||||
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About The Company
MicroFinancial Inc. (NASDAQ:MFI), headquartered in Burlington, MA, is a financial intermediary specializing in microticket leasing and financing. We have been in operation since 1986.
Statements in this release that are not historical facts, including statements about future dividends or growth plans, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as “believes,” “anticipates,” “expects,” “views,” “will” and similar expressions are intended to identify forward-looking statements. We caution that a number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Readers should not place undue reliance on forward-looking statements, which reflect our views only as of the date hereof. We undertake no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. We cannot assure that
we will be able to anticipate or respond timely to changes which could adversely affect our operating results. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results or other factors may result in fluctuations in the price of our common stock. For a more complete description of the prominent risks and uncertainties inherent in our business, see the risk factors described in documents that we file from time to time with the Securities and Exchange Commission.