Medallion Financial Lost $5.7 Million In 4th Qtr
NEW YORK (AP) ¿ Medallion Financial Corp., a finance company serving the taxicab industry, said Friday it swung to a $5.8 million loss in the fourth quarter as it made allowances for investments that are no longer being pursued.
The value of those investments was about $9.3 million, the company said. Medallion Financial said it lost 33 cents a share, in the October-December period, compared with a profit of $2.8 million, or 16 cents a share, in the fourth quarter of 2008.
Without the special allowances, New York-based Medallion Financial said it would have earned $3.6 million, or 20 cents a share, in the last quarter.
Medallion Financial's president, Andrew Murstein, said the company looked at more than 100 possible acquisitions "and did not feel any of the targets were appropriate to recommend to our shareholders for a vote."Murstein said the company continued to benefit from solid collateral for the loans it made because the price of taxi medallions, or licenses, has been rising. The company hasn't had any losses on taxi medallion loans made in New York City, he said. Medallion Financial says it has loaned more than $3.5 billion to the taxi industry and other small businesses. The tax industry remains resilient despite the distressed economy because consumers and companies have cut back on more expensive limousine and town-car services, and taxi ridership continues at high levels, said Murstein. The company's net investment income in the fourth quarter was $8.2 million, down from $15.1 million a year earlier. On a combined basis with its subsidiary Medallion Bank it was nearly unchanged at $24.7 million. Medallion Bank received $9.7 million under the federal financial bailout program. In addition, a $30 billion small-business lending fund for banks recently proposed by President Barack Obama could benefit Medallion Financial if it is approved by Congress, company officials said Friday.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV