AMTPQ Ameritrans Capital Corporation (CE)

Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today reported financial results for the quarter ended March 31, 2008. Highlights for Third Quarter ending March 31, 2008: Total Assets of $64.6 million Total interest income increased 16% to $1.6 million Net Asset Value at March 31, 2008 of $5.21 per share Continued improved performance across all investment portfolios Continued expansion of middle market corporate loan portfolio Total investment income for the three months ended March 31, 2008 and 2007 was $1.68 million and $1.49 million, respectively. For the three months ended March 31, 2008 and 2007, Ameritrans reported net income available to common stockholders (after payment of the preferred dividends) of $7,552 for the third quarter of fiscal year 2008, or $0.00 per basic and diluted common share compared to a net loss available to common stockholders of ($203,197), or ($0.06) per basic and diluted common share for the same period of fiscal year 2007. On an operating basis after taking into account other income and expense, and before payment of the Company's preferred stock dividends, the Company reported net income of $91,297 for the quarter ended March 31, 2008, compared to a net loss of ($118,822) for the quarter ended March 31, 2007. For the nine months ended March 31, 2008, net loss available to common stockholders (after payment of the preferred dividends) totaled ($226,329), or ($0.07) per basic and diluted common share compared to a net loss available to common stockholders of ($341,559), or ($0.10) per basic and diluted common share for the same period of fiscal year 2007. On an operating basis after taking into account other income and expense, and before payment of the Company's preferred stock dividends, the Company reported net income of $26,796 for the nine months ended March 31, 2008, compared to a net loss of ($88,434) for the nine months ended March 31, 2007. Commenting on the results, Gary C. Granoff, Ameritrans' Chairman and CEO, said, "We are extremely pleased with our portfolio performance during the quarter ending March 31, 2008. Given the turmoil in the credit markets, we are pleased to show both growth and profitability. Our portfolios remain stable, with record low delinquencies. The taxicab medallion market continues to be extremely competitive. The Chicago medallion market continued its increase in medallion prices with the current price of approximately $130,000 per medallion. We continue to adhere to our strict underwriting standards which has allowed the Company to enjoy low default and loss rates on these assets." Michael Feinsod, President of Ameritrans, added, "With our core medallion and diversified lending businesses stable and profitable, we continue to focus on new investment opportunities. We are also re-focusing our efforts on enhancing our balance sheet and seeking the most attractive sources of permanent capital and debt capital possible." Mr. Feinsod continued, "During the quarter, our credit lines were increased and we continue to look for new investments. We are especially appreciative of this expanded credit and our relationships with our banks. The disruptions in the credit markets and among traditional lenders continues to create what we believe are compelling investment opportunities. Our strong underwriting capabilities coupled with our unique capital structure provide an excellent foundation to expand our lending and investing activities. We continue to work with potential new partners to grow both our traditional SBIC lending business while deploying more capital in investments that are not subject to SBA guidelines." Mr. Feinsod added �We believe the quality and diversity of our investments favorably position our portfolio in this environment. From an earnings perspective, our high percentage of lower risk first lien assets at attractive spreads should provide a more stable earnings stream and more predictable dividend. We continue to actively explore ways to expand our portfolio.'' During the third quarter, Ameritrans completed two shareholder meetings. These votes, among other things, approved: The Advisory Agreement between Ameritrans and Velocity Capital Advisors (currently pending SBA review and approval) Modification of Elk�s and Ameritrans� fundamental investment policies Authorization of private placements of both common and preferred stock offerings. In April, 2008, a series of contracts were executed with respect to equity investments the Company held in Chicago taxicab medallions. If and when these transactions close, the Company will receive approximately $395,000 of revenue concerning the liquidation and sale of its stock ownership interest in said investments. Ameritrans Capital Corporation is an internally managed, closed-end investment company that has elected to be regulated as a business development company (�BDC�) under the Investment Company Act of 1940, as amended. Ameritrans originates, structures and manages a portfolio of medallion loans, secured business loans and selected equity securities. Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation is licensed by the United States Small Business Administration as a Small Business Investment Company (SBIC) in 1980. The Company maintains its offices at 747 Third Avenue, 4th Floor, New York, NY 10017. This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. Ameritrans Capital Corporation cautions investors not to place undue reliance on forward-looking statements, which speak only as to management's expectations on this date. AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2008 (UNAUDITED) AND JUNE 30, 2007 � ASSETS � � March 31, 2008(unaudited) � June 30, 2007 � Loans receivable $ 57,056,417 $ 57,693,496 Less: unrealized depreciation on loans receivable � (282,708 ) � (286,550 ) Loans receivable, net 56,773,709 57,406,946 � Cash and cash equivalents 1,090,182 251,394 Accrued interest receivable, net of unrealized depreciation of $20,000 and $51,500, respectively 725,820 596,553 Assets acquired in satisfaction of loans 38,250 56,030 Receivables from debtors on sales of assets acquired in satisfaction of loans 278,940 225,625 Equity investments 2,312,995 2,837,719 Investment in life settlement contracts 2,587,455 1,910,077 Furniture, equipment and leasehold improvements, net 163,462 183,043 Prepaid expenses and other assets � 625,039 � � 477,496 � � TOTAL ASSETS $ 64,595,852 � $ 63,944,883 � AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) AS OF MARCH 31, 2008 (UNAUDITED) AND JUNE 30, 2007 LIABILITIES AND STOCKHOLDERS� EQUITY � � March 31, 2008(unaudited) June 30, 2007 LIABILITIES Debentures payable to SBA $ 12,000,000 $ 12,000,000 Notes payable, banks 30,495,697 29,332,500 Notes payable, related parties 100,000 150,000 Accrued expenses and other liabilities 454,557 431,577 Accrued interest payable 180,404 301,591 Dividends payable � 84,375 � � 84,375 � � TOTAL LIABILITIES � 43,315,033 � � 42,300,043 � � COMMITMENTS AND CONTINGENCIES (Notes 3,4, 5, 6 and 9) � STOCKHOLDERS' EQUITY Preferred stock 9,500,000 and 500,000 shares authorized, respectively, none issued or outstanding - - 9 3/8% cumulative participating callable preferred stock $0.01 par value, $12.00 face value, 500,000 shares authorized; 300,000 shares issued and outstanding 3,600,000 3,600,000 Common stock, $0.0001 par value; 45,000,000 and 50,000,000 shares authorized, respectively; 3,405,583 and 3,401,208 shares issued and 3,395,583 and 3,391,208 shares outstanding, respectively 341 340 Additional paid-in-capital 21,139,504 21,119,817 Deferred compensation (Note 7) (40,639 ) (94,475 ) Stock options outstanding (Note 7) 133,613 118,475 Accumulated deficit (3,281,781 ) (2,987,539 ) Accumulated other comprehensive loss � (200,219 ) � (41,778 ) � 21,350,819 21,714,840 Less: Treasury stock, at cost, 10,000 shares of common stock � (70,000 ) � (70,000 ) � TOTAL STOCKHOLDERS' EQUITY � 21,280,819 � � 21,644,840 � � TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 64,595,852 � $ 63,944,883 � AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED) � � � � Three Months Ended March 31, 2008 Three Months Ended March 31, 2007 Nine MonthsEnded March 31, 2008 Nine MonthsEnded March 31, 2007 INVESTMENT INCOME Interest on loans receivable $ 1,598,059 $ 1,376,993 $ 4,707,598 $ 3,978,125 Gain on sale of medallions and automobiles - 19,058 - 28,373 Realized losses on equity securities, net - - (29,914 ) - Equity in loss of investee (Note 2) - (44,675 ) (161,469 ) (83,183 ) Fees and other income 80,884 126,531 236,429 364,750 Leasing income � - � � 13,566 � � - � � 76,383 � � TOTAL INVESTMENT INCOME � 1,678,943 � � 1,491,473 � � 4,752,644 � � 4,364,448 � OPERATING EXPENSES Interest 587,253 537,964 1,897,087 1,619,609 Salaries and employee benefits 437,890 423,811 1,223,314 1,041,889 Occupancy costs 62,168 59,764 199,211 169,506 Professional fees 154,214 244,701 503,057 603,371 Other administrative expenses 340,482 331,680 872,816 879,814 Loss and impairments on assets acquired in satisfaction of loans, net - 6,400 - 38,069 Write off and depreciation on interest and loans receivable, net � 5,009 � � 5,975 � � 30,363 � � 100,624 � TOTAL OPERATING EXPENSES � 1,587,016 � � 1,610,295 � � 4,725,848 � � 4,452,882 � NET INCOME (LOSS) $ 91,927 � $ (118,822 ) $ 26,796 � $ (88,434 ) DIVIDENDS ON PREFERRED STOCK $ (84,375 ) $ (84,375 ) $ (253,125 ) $ (253,125 ) � NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 7,552 � $ (203,197 ) $ (226,329 ) $ (341,559 ) � WEIGHTED AVERAGE SHARES OUTSTANDING - Basic and diluted � 3,395,583 � � 3,391,208 � � 3,394,835 � � 3,391,208 � � NET INCOME (LOSS) PERCOMMON SHARE - Basic and diluted $ 0.00 � $ (0.06 ) $ (0.07 ) $ (0.10 )