AMTCW Ameritrans Cap Corp 4/18/07 (MM)

Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP, AMTCW) yesterday reported financial results for the quarter ended March 31, 2006. Ameritrans reported a net loss of ($209,827) available to common shareholders for the third quarter of fiscal year 2006 or ($0.07) versus a net loss of ($14,075) or ($0.01) per basic and diluted common share for the same period of fiscal year 2005. On an operating basis, before payment of the Company's preferred stock dividends, but after provisions for income tax, the Company reported an operating loss of ($125,452) for the quarter ended March 31, 2006, compared to an operating income of $70,300 during the quarter ended March 31, 2005. For the Company's third fiscal quarter, total investment income was $1.231 million compared to $1.394 million during the prior comparable period. The Company's interest income decreased $163,674 to $1.049 million as compared to the same period of fiscal year 2005. The decrease in interest income can be attributed primarily to a decrease in the total outstanding loan portfolio for the quarter. The Company's interest income for the nine months ended March 31, 2006 decreased $55,934 to $3.441 million as compared to the same period of fiscal year 2005, as a result of a reduction in the overall loan portfolio. The Company's net loan portfolio at March 31, 2006 was $49.9 million versus $52.0 million at June 30, 2005. Commenting on the results, Gary C. Granoff, Ameritrans' President said, "During the third quarter ended March 31, 2006, we were active in making new loans but also received certain prepayments of existing loans. We are concentrating our efforts in growing the portfolio of Elk Associates Funding Corporation and with the new capital we raised for Ameritrans pursuant to our recent private offering, we are making new loans and investments in areas of business not restricted by applicable SBA Regulations that affect all of our loans and investments for Elk. The increased capital that we have raised for Ameritrans through the private offering of its securities will help us significantly in our plans for the expansion and diversification of the Company's business and investment opportunities." The Company filed a registration statement on Form N-2 relating to the securities issued pursuant to the private offering on March 15, 2006, which was declared effective by the SEC on April 25, 2006. 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. -0- *T AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS --------------------------- AS OF MARCH 31, 2006 (UNAUDITED) AND JUNE 30, 2005 -------------------------------------------------- ASSETS March 31, June 30, 2006 2005 ------------ ------------ Loans receivable $49,817,026 $52,060,254 Less: unrealized depreciation on loans receivable (225,000) (150,000) ------------ ------------ Loans receivable, net 49,592,026 51,910,254 Cash and cash equivalents 808,188 327,793 Accrued interest receivable, net of unrealized depreciation of $36,800 and $59,000, respectively 685,529 756,701 Assets acquired in satisfaction of loans 381,939 384,528 Receivables from debtors on sales of assets acquired in satisfaction of loans 398,575 455,184 Equity securities 907,103 908,457 Furniture, equipment and leasehold improvements, net 229,778 329,573 Medallions under lease 1,994,401 2,282,201 Prepaid expenses and other assets 414,606 531,904 ------------ ------------ TOTAL ASSETS $55,412,145 $57,886,595 ============ ============ AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS --------------------------- AS OF MARCH 31, 2006 (UNAUDITED) AND JUNE 30, 2005 -------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY March 31, June 30, 2006 2005 ------------ ------------ LIABILITIES Debentures payable to SBA $12,000,000 $12,000,000 Notes payable, banks 20,827,500 29,770,652 Accrued expenses and other liabilities 429,398 604,942 Accrued interest payable 115,810 256,285 Dividends payable 84,375 84,375 ------------ ------------ TOTAL LIABILITIES 33,457,083 42,716,254 ------------ ------------ COMMITMENTS AND CONTINGENCIES (Notes 3, 4 and 5) STOCKHOLDERS' EQUITY Preferred stock 500,000 shares authorized, none issued or outstanding - - 9 3/8% cumulative participating callable preferred stock $ 0.01 par value, $12.00 face value, 500,000 shares authorized; 300,000 shares issued and outstanding 3,600,000 3,600,000 Common stock, $ 0.0001 par value; 5,000,000 shares authorized; 3,401,208 and 2,045,600 shares issued and 3,391,208 and 2,035,600 shares outstanding at March 31, 2006 and June 30, 2005, respectively 340 205 Additional paid-in-capital 21,127,636 13,869,545 Accumulated deficit (2,544,154) (2,127,134) Accumulated other comprehensive loss (158,760) (102,275) ------------ ------------ 22,025,062 15,240,341 Less: Treasury stock, at cost, 10,000 shares of common stock (70,000) (70,000) ------------ ------------ TOTAL STOCKHOLDERS' EQUITY 21,955,062 15,170,341 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $55,412,145 $57,886,595 ============ ============ AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ------------------------------------- FOR THE THREE MONTHS AND NINE MONTHS ENDED ------------------------------------------ MARCH 31, 2006 AND 2005 (UNAUDITED) ----------------------------------- Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended March 31, March 31, March 31, March 31, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- INVESTMENT INCOME Interest on loans receivable $1,049,562 $1,213,236 $3,441,067 $3,497,001 Fees and other income 143,064 129,594 294,014 318,821 Leasing income 38,506 50,826 134,243 176,159 Loss on sale of securities - - - (50,000) ----------- ----------- ----------- ----------- TOTAL INVESTMENT INCOME 1,231,132 1,393,656 3,869,324 3,941,981 ----------- ----------- ----------- ----------- OPERATING EXPENSES Interest 501,820 449,279 1,627,274 1,272,435 Salaries and employee benefits 302,015 292,927 860,784 848,672 Occupancy costs 41,667 46,336 142,687 141,953 Professional fees 128,110 148,914 344,356 480,212 Other administrative expenses 278,881 314,838 790,619 857,791 Loss and impairments on assets acquired in satisfaction of loans, net 2,549 18,198 6,580 50,745 Foreclosure expenses - - 12,162 14,194 Write off and depreciation on interest and loans receivable 101,240 81,356 235,864 471,415 ----------- ----------- ----------- ----------- TOTAL OPERATING EXPENSES 1,356,282 1,351,848 4,020,326 4,137,417 ----------- ----------- ----------- ----------- OPERATING (LOSS)INCOME (125,150) 41,808 (151,002) (195,436) ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE) Gain on sale of asset acquired - 32,829 - 34,713 Loss on sale of automobiles - - (2,867) - Equity in loss of investee - - - (4,021) ----------- ----------- ----------- ----------- TOTAL OTHER INCOME (EXPENSE), NET - 32,829 (2,867) 30,692 ----------- ----------- ----------- ----------- (LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES (125,150) 74,637 (153,869) (164,744) ----------- ----------- ----------- ----------- PROVISION FOR INCOME TAXES 302 4,337 10,026 7,484 ----------- ----------- ----------- ----------- NET (LOSS) INCOME $(125,452) $70,300 $(163,895) $(172,228) ----------- ----------- ----------- ----------- DIVIDENDS ON PREFERRED STOCK $(84,375) $(84,375) $(253,125) $(253,125) ----------- ----------- ----------- ----------- NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $(209,827) $(14,075) $(417,020) $(425,353) ----------- ----------- ----------- ----------- WEIGHTED AVERAGE SHARES OUTSTANDING - Basic 2,975,232 2,035,600 2,409,024 2,035,600 ----------- ----------- ----------- ----------- - Diluted 2,975,232 2,035,600 2,409,024 2,035,600 ----------- ----------- ----------- ----------- NET LOSS PER COMMON SHARE - Basic $(0.07) $(0.01) $(0.17) $(0.21) - Diluted $(0.07) $(0.01) $(0.17) $(0.21) *T