MicroFinancial Incorporated (NASDAQ: MFI), a financial intermediary specializing in vendor-based leasing and finance programs for microticket transactions, today announced financial results for the second quarter and the six months ended June 30, 2011.
- Net income was $2.3 million or $0.16 per diluted share which represents an increase of 75.4% as compared to the same period last year;
- Cash received from customers was $26.7 million or $1.84 per diluted share which represents an increase of 15.6% as compared to the same period last year;
- Revenue increased by 6.7% to $13.5 million as compared to the same period last year;
- Leverage continues to be conservative at 1.04 times total liabilities to stockholders’ equity;
- The Company paid a cash dividend of $0.05 per share; and
- Net charge-offs declined by 28.3% to $4.3 million as compared to the same period last year.
Second Quarter Results:
Net income for the quarter ended June 30, 2011 was $2.3 million or $0.16 per diluted share based upon 14,503,702 shares, compared to net income of $1.3 million, or $0.09 per diluted share based upon 14,452,575 shares for the same period last year.Revenue for the second quarter increased 6.7% to $13.5 million compared to $12.6 million for the same period in 2010, driven by growth in lease revenue and rental income during the quarter. Revenue from leases was $9.1 million, up $0.6 million from the same period last year and rental income was $2.1 million, up $0.2 million as compared to the second quarter in 2010. Other revenue components contributed $2.3 million for the current quarter, up $0.1 million from the same period last year. Total operating expenses for the current quarter decreased 7.2% to $9.8 million from $10.5 million in the second quarter of 2010. Selling, general and administrative expenses increased $0.4 million to $4.0 million from $3.6 million as compared to the second quarter of last year primarily due to increases in compensation related expenses as a result of an increase in employee headcount as well as increased rent expense associated with the opening of our California office location. Headcount at June 30, 2011 was 129 as compared to 113 at the same date last year. The second quarter 2011 provision for credit losses decreased to $4.3 million from $5.6 million for the same period in 2010 due to improved delinquency trends and lower charge-off levels. During the second quarter, net charge-offs decreased to $4.3 million from $5.9 million in the same period in 2010. Depreciation and amortization expense increased to $0.8 million for the quarter due to an increase in the number of rental contracts currently being depreciated.