LM Funding Reports Third Quarter And Nine-Month 2016 Results

TAMPA, Fla., Nov. 14, 2016 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) (NASDAQ:LMFAW), a specialty finance company offering unique funding solutions to community associations, reported results for the three and nine month periods ended September 30, 2016.

Third Quarter 2016 Summary
  • Revenue totaled $1.01 million versus $1.61 million in Q3 2015
  • Rental revenues increased 182% to $107,000 from $38,000 in Q3 2015
  • Income statement revenue per unit increased to approximately $4,640 from $4,010 in Q3 2015
  • REO portfolio increased to 72 properties at quarter end from 33 at September 30, 2015
  • Implemented cost reduction initiative, which was completed in Q4 2016. The cost-reduction measures are expected to reduce annual costs between $2.6 million and $3.0 million.

Nine Months Ended September 30, 3016 Summary
  • Revenue totaled $4.02 million versus $5.21 million in the first nine months of 2015
  • Rental revenues increased to $230,000 from $124,000 in the first nine months of 2015
  • Income statement revenue per unit increased to approximately $5,050 from $4,640 in the first nine months of 2015

Subsequent Event
  • Initiated strategies to monetize $165 million of unsecured off-balance sheet assets

Management Commentary"Our results for the quarter were impacted by the reduction of distressed real estate transactions which were about half when compared to the third quarter of 2015," said Bruce Rodgers, founder and CEO of LM Funding. "However, due to the unique nature of our business, we expect the current slowdown and corresponding price softening in certain Florida markets will lead to future opportunities.

"To offset the reduction in transactions, we added 10 new properties to our REO portfolio which has grown to 72 properties at quarter-end, 78% of which are generating recurring rental income. Further, we have turned our focus on collecting accounts without a mortgage, which have historically paid out approximately five times more than a typical account.