BURLINGTON, Mass., Oct. 15, 2014 (GLOBE NEWSWIRE) -- MicroFinancial Incorporated (Nasdaq:MFI), a financial intermediary specializing in vendor-based leasing and finance programs for microticket transactions, today announced financial results for the third quarter and the nine months ended September 30, 2014. Quarterly Highlights:
- Net income increased by 11.9% to $2.9 million or $0.20 per diluted share based upon 14,735,988 shares as compared to the same period last year;
- Cash received from customers was $36.1 million or $2.45 per diluted share which represents an increase of 6.0% as compared to the same period last year;
- Revenue increased by 3.1% to $16.2 million as compared to the same period last year;
- Originations increased by 25.8% to $29.7 million as compared to $23.6 million in the same period last year; and
- The Company paid a cash dividend of $0.07 per share.
Cash received from customers in the third quarter increased 6.0% to $36.1 million compared to $34.0 million during the same period in 2013. New lease originations in the quarter increased by 25.8% to $29.7 million as compared to $23.6 million in the same period last year.
Year to Date Highlights:- Net income increased to $7.5 million or $0.51 per diluted share based on 14,738,190 shares which represents an increase of 2.4% as compared to the same period last year;
- Cash received from customers was $105.8 million or $7.18 per diluted share which represents an increase of 8.1% as compared to the same period last year;
- Revenue increased by 2.2% to $47.7 million as compared to the same period last year; and
- Originations increased by 19.2% to $80.5 million as compared to $67.6 million in the same period last year.
Total operating expenses for the nine months ended September 30, 2014 increased 1.1% to $34.9 million compared to $34.5 million for the same period last year. Selling, general and administrative expenses increased by 4.3% or $0.6 million to $14.7 million primarily due to increases in compensation related expenses associated with increased headcount and increased bank service charges. The provision for credit losses decreased to $13.7 million for the nine months ended September 30, 2014, as compared to $14.4 million for the same period last year. Year to date net charge-offs increased to $14.3 million as compared to $12.9 million for the same period last year. Year to date cash from customers increased by 8.1% or $7.9 million to $105.8 million as compared to $97.9 million for the same period last year.
Richard Latour, President and Chief Executive Officer said, "We are very pleased with our overall performance through the first nine months of 2014. During this period, we have continued to see an increased demand for the products and services we offer. We realized a 21% increase in the number of lease applications processed for a total of 70,069 applications and a 20% increase in application dollars for a total of over $404 million. The number of contracts funded during the first nine months of 2014 increased to 16,624 representing $80.5 million which represents increases of approximately 17% and 19% over 2013 performance, respectively. Through September, we also increased the number of new vendor approvals for 2014 to a total of 1,108 which represents an increase of 40% over the 790 vendors approved over the same period in 2013."| MICROFINANCIAL INCORPORATED | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (In thousands, except share data) | ||||
| (Unaudited) | ||||
| September 30, 2014 | December 31, 2013 | |||
| ASSETS | ||||
| Cash and cash equivalents | $ 1,271 | $ 2,246 | ||
| Restricted cash | 1,604 | 1,107 | ||
| Net investment in leases: | ||||
| Receivables due in installments | 224,844 | 214,628 | ||
| Estimated residual value | 22,821 | 23,070 | ||
| Initial direct costs | 2,415 | 1,732 | ||
| Less: | ||||
| Advance lease payments and deposits | (2,974) | (3,010) | ||
| Unearned income | (60,536) | (58,772) | ||
| Allowance for credit losses | (14,857) | (15,379) | ||
| Net investment in leases | 171,713 | 162,269 | ||
| Investment in service contracts, net | 2,862 | 2,058 | ||
| Investment in rental contracts, net | 961 | 1,059 | ||
| Property and equipment, net | 1,698 | 1,333 | ||
| Other assets | 2,207 | 2,980 | ||
| Deferred income taxes, net | 1,604 | -- | ||
| Total assets | $ 183,920 | $ 173,052 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| September 30, 2014 | December 31, 2013 | |||
| Revolving line of credit | $ 85,526 | $ 72,566 | ||
| Accounts payable | 3,629 | 2,993 | ||
| Dividends payable | 77 | 63 | ||
| Other liabilities | 1,684 | 2,272 | ||
| Deferred income taxes | -- | 6,678 | ||
| Total liabilities | 90,916 | 84,572 | ||
| Stockholders' equity: | ||||
| Preferred stock, $.01 par value; 5,000,000 shares authorized; no shares issued at September 30, 2014 and December 31, 2013 | -- | -- | ||
| Common stock, $.01 par value; 25,000,000 shares authorized; 14,433,154 and 14,435,498 shares issued at September 30, 2014 and December 31, 2013, respectively | 144 | 144 | ||
| Additional paid-in capital | 47,576 | 47,475 | ||
| Retained earnings | 45,284 | 40,861 | ||
| Total stockholders' equity | 93,004 | 88,480 | ||
| Total liabilities and stockholders' equity | $ 183,920 | $ 173,052 | ||
| MICROFINANCIAL INCORPORATED | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (In thousands, except share and per share data) | ||||
| (Unaudited) | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenues: | ||||
| Income on financing leases | $ 10,463 | $ 10,303 | $ 30,750 | $ 30,866 |
| Rental income | 2,741 | 2,660 | 8,226 | 7,845 |
| Income on service contracts | 413 | 250 | 1,108 | 640 |
| Loss and damage waiver fees | 1,616 | 1,474 | 4,699 | 4,361 |
| Service fees and other | 1,002 | 1,056 | 2,948 | 3,000 |
| Total revenues | 16,235 | 15,743 | 47,731 | 46,712 |
| Expenses: | ||||
| Selling, general and administrative | 4,862 | 4,618 | 14,730 | 14,121 |
| Provision for credit losses | 4,318 | 4,790 | 13,743 | 14,414 |
| Depreciation and amortization | 1,454 | 1,355 | 4,319 | 3,970 |
| Interest | 750 | 679 | 2,111 | 2,009 |
| Total expenses | 11,384 | 11,442 | 34,903 | 34,514 |
| Income before provision for income taxes | 4,851 | 4,301 | 12,828 | 12,198 |
| Provision for income taxes | 1,964 | 1,721 | 5,341 | 4,886 |
| Net income | $ 2,887 | $ 2,580 | $ 7,487 | $ 7,312 |
| Net income per common share: | ||||
| Basic | $0.20 | $0.18 | $0.52 | $0.51 |
| Diluted | $0.20 | $0.18 | $0.51 | $0.49 |
| Weighted-average shares: | ||||
| Basic | 14,431,592 | 14,433,695 | 14,427,695 | 14,469,077 |
| Diluted | 14,735,988 | 14,744,158 | 14,738,190 | 14,773,263 |
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.
CONTACT: Dave Mossberg Three Part Advisors, LLC Tel: 817-310-0051
