BURLINGTON, Mass., April 18, 2012 (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 first quarter ended March 31, 2012.
Quarterly Highlights:
- Realized net income of $2.0 million or $0.14 per diluted share on 14,600,775 shares;
- Increased cash received from customers by 12.9% to $29.1 million, representing $1.99 per diluted share as compared to the first quarter of 2011;
- Increased total revenues by 6.7% to $14.2 million as compared to the same period last year;
- Increased lease originations by 17.8% to $21.6 million as compared to the same period last year;
- Increased lease applications by 21.0% to $104.4 million and increased approved lease applications by 15.8% to $58.3 million as compared to the same period last year; and
- Paid a quarterly dividend of $0.9 million during the first quarter, representing $0.06 per share.
First Quarter Results:
Net income for the first quarter of 2012 was $2.0 million, or $0.14 per diluted share on 14,600,775 shares. Net income in the first quarter of 2011 was also $2.0 million or $0.14 per diluted share based upon 14,533,102 shares.
Revenue for the quarter ended March 31, 2012 increased 6.7% to $14.2 million compared to $13.3 million in the first quarter of 2011 due primarily to increases in leasing revenues associated with our new lease originations and an increase in rental income. Income on leases was $9.6 million, an increase of $0.5 million from the same period last year, and rental income was $2.3 million, an increase of $0.3 million from the same period last year. Other revenue components contributed $2.3 million, an increase of $0.1 million from the same period last year.
Total operating expenses for the quarter increased 8.4% to $10.9 million from $10.0 million in the first quarter of 2011. Selling, general and administrative expenses increased $0.4 million to $4.4 million from $4.0 million for the same period last year primarily due to increases in personnel related expenses and legal fees. The first quarter 2012 provision for credit losses increased slightly to $4.9 million as compared to $4.8 million during the first quarter of 2011 primarily due to an increase in the first quarter net charge-off levels. First quarter 2012 net charge-offs increased to $5.2 million from $5.0 million in the comparable period of 2011 while recoveries remained flat from the same period last year at $1.3 million. Depreciation and amortization expense for the first quarter of 2012 increased $0.3 million to $1.0 million as compared to the first quarter of 2011 due primarily to an increase in the number of TimePayment contracts coming to maturity and converting to rentals.
Net cash provided by operations in the first quarter of 2012 increased 8.3% to $22.3 million versus $20.6 million for the same period last year. New originations for the quarter increased 17.8% to $21.6 million as compared to $18.4 million in the first quarter of 2011. Headcount at March 31, 2012 was 141 as compared to 119 for the same period last year.
Richard Latour, President and Chief Executive Officer, said, "We are very pleased with our overall financial performance for the quarter and we are encouraged by the growth in our application volume and lease originations. Our net investment in leases at the end of the first quarter was approximately $151 million, an increase of approximately 8% over the same period in 2011. Despite this growth, we have continued to maintain a conservative leverage ratio at less than 1.1 times debt to shareholder equity."
| MICROFINANCIAL INCORPORATED | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except share data) | ||
| March 31, | December 31, | |
| 2012 | 2011 | |
| ASSETS | ||
| (Unaudited) | ||
| Cash and cash equivalents | $ 2,487 | $ 2,452 |
| Restricted cash | 369 | 382 |
| Net investment in leases: | ||
| Receivables due in installments | 202,640 | 200,499 |
| Estimated residual value | 23,528 | 23,287 |
| Initial direct costs | 1,519 | 1,476 |
| Less: | ||
| Advance lease payments and deposits | (3,394) | (3,530) |
| Unearned income | (60,559) | (59,946) |
| Allowance for credit losses | (12,857) | (13,180) |
| Net investment in leases | 150,877 | 148,606 |
| Investment in rental contracts, net | 943 | 898 |
| Property and equipment, net | 1,855 | 1,911 |
| Other assets | 943 | 1,093 |
| Total assets | $ 157,474 | $ 155,342 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| March 31, | December 31, | |
| 2012 | 2011 | |
| Revolving line of credit | $ 62,981 | $ 62,740 |
| Capital lease obligation | -- | 1 |
| Accounts payable | 2,425 | 2,546 |
| Dividends payable | 22 | 19 |
| Other liabilities | 2,648 | 2,220 |
| Deferred income taxes | 12,273 | 12,093 |
| Total liabilities | 80,349 | 79,619 |
| Stockholders' equity: | ||
| Preferred stock, $.01 par value; 5,000,000 shares authorized; | ||
| no shares issued at March 31, 2012 and December 31, 2011 | -- | -- |
| Common stock, $.01 par value; 25,000,000 shares authorized; | ||
| 14,297,524 and 14,257,324 shares issued at March 31, 2012 and December 31, 2011, respectively | 143 | 143 |
| Additional paid-in capital | 46,982 | 46,727 |
| Retained earnings | 30,000 | 28,853 |
| Total stockholders' equity | 77,125 | 75,723 |
| Total liabilities and stockholders' equity | $ 157,474 | $ 155,342 |
| MICROFINANCIAL INCORPORATED | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (In thousands, except share and per share data) | ||
| (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2012 | 2011 | |
| Revenues: | ||
| Income on financing leases | $ 9,635 | $ 9,101 |
| Rental income | 2,317 | 2,006 |
| Income on service contracts | 85 | 108 |
| Loss and damage waiver fees | 1,287 | 1,201 |
| Service fees and other | 920 | 932 |
| Total revenues | 14,244 | 13,348 |
| Expenses: | ||
| Selling general and administrative | 4,356 | 3,953 |
| Provision for credit losses | 4,896 | 4,752 |
| Depreciation and amortization | 1,008 | 681 |
| Interest | 633 | 663 |
| Total expenses | 10,893 | 10,049 |
| Income before provision for income taxes | 3,351 | 3,299 |
| Provision for income taxes | 1,340 | 1,270 |
| Net income | $ 2,011 | $ 2,029 |
| Net income per common share: | ||
| Basic | $ 0.14 | $ 0.14 |
| Diluted | $ 0.14 | $ 0.14 |
| Weighted-average shares: | ||
| Basic | 14,284,087 | 14,246,750 |
| Diluted | 14,600,775 | 14,533,102 |
About The Company
MicroFinancial Inc. (Nasdaq:MFI), headquartered in Burlington, MA, is a financial intermediary specializing in microticket leasing and financing. We have been in operation since 1986.
The MicroFinancial Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10883
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.