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, 2011.
- Increased cash received from customers by 18.0% to $25.8 million representing $1.77 per diluted share as compared to the first quarter of 2010;
- Increased net income to $2.0 million as compared to $0.6 million for the same period last year;
- Increased total revenues by 8.4% to $13.3 million as compared to the same period last year;
- Reduced total expenses by 11.9% as compared to the same period in last year;
- Improved net charge-offs by 29% from $7.0 million to $5.0 million; and
- Approved 452 new vendors during the quarter.
First Quarter Results:
Net income for the first quarter of 2011 was $2.0 million, or $0.14 per diluted share on 14,533,102 shares, compared with results in the first quarter of 2010, which included net income of $0.6 million or $0.04 per diluted share based upon 14,409,175 shares.Revenue for the quarter ended March 31, 2011 increased to $13.3 million compared to $12.3 million in the first quarter of 2010 due primarily to the increase in leasing revenues associated with our new lease originations. Income on leases was $9.1 million, up $1.0 million from the same period last year, and rental income was $2.0 million, which is consistent with the same period last year. Other revenue components contributed $2.2 million for the quarter which is also consistent with the same period last year. Total operating expenses for the quarter decreased 11.9% to $10.0 million from $11.4 million in the first quarter of 2010. Selling, general and administrative expenses increased $0.8 million to $4.0 million from $3.2 million for the same period last year related primarily to increases in personnel related expenses, rent expense, and bank service charges. The first quarter 2011 provision for credit losses decreased $2.2 million to $4.8 million as compared to the first quarter of 2010. This decrease was due primarily to lower delinquency levels and lower charge off levels. First quarter 2011 net charge-offs decreased to $5.0 million from $7.0 million in the comparable period of 2010 while recoveries increased slightly to $1.3 million from $0.9 million. Interest expense for the first quarter of 2011 decreased $0.1 million to $0.7 million as compared to the first quarter of 2010 due to lower interest rates being offset by higher average outstanding debt balances on our revolving line of credit.