BURLINGTON, Mass., April 16, 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 first quarter ended March 31, 2014.
Quarterly Highlights:
- Net income decreased by $0.2 million to $2.1 million or $0.14 per diluted share on 14,759,188 shares;
- Increased cash received from customers by 11.5% to $34.6 million, representing $2.34 per diluted share as compared to the first quarter of 2013;
- Increased total revenues by 2.6% to $15.7 million as compared to the same period last year;
- Increased originations by 14.8% to $23.0 million, up from $20.1 million for the same period in 2013;
- The Company repurchased 66,552 shares for during the quarter at a total cost of approximately $536 thousand; and
- Paid a quarterly dividend of $1.0 million during the first quarter, representing $0.07 per share.
First Quarter Results:
Net income for the first quarter of 2014 was $2.1 million, or $0.14 per diluted share on 14,759,188 shares as compared to $2.3 million or $0.15 per diluted share based upon 14,786,580 shares for the same period last year.
Revenue for the quarter ended March 31, 2014 increased 2.6% to $15.7 million compared to $15.3 million in the first quarter of 2013 due primarily to increases in rental income and income on service contracts. Income on leases remained flat at $10.2 million, and rental income was $2.7 million, an increase of $0.2 million from the same period last year. Other revenue components contributed $2.8 million, an increase of $0.2 million from the same period last year.
Total operating expenses for the quarter increased 4.2% to $12.0 million from $11.5 million in the first quarter of 2014. Selling, general and administrative expenses increased $0.1 million to $4.8 million from $4.7 million for the same period last year primarily due to increases in personnel related expenses. The first quarter 2014 provision for credit losses increased to $5.0 million from $4.9 million in the same period last year. First quarter 2014 net charge-offs increased to $5.8 million from $4.2 million in the comparable period of 2013 and include recoveries which increased slightly to $1.5 million from $1.4 million. Depreciation and amortization expense for the first quarter of 2014 increased $0.2 million to $1.5 million as compared to the first quarter of 2013 due primarily to an increase in the number of TimePayment contracts coming to maturity and converting to rentals as well as an increase in the number of service contracts.
Cash received from customers increased 11.5% to $34.6 million during the first quarter of 2014. New originations for the quarter increased 14.8% to $23.0 million as compared to $20.1 million in the first quarter of 2013. Headcount at March 31, 2014 was 157 as compared to 151 for the same period last year.
Richard Latour, President and Chief Executive Officer said, "We are pleased with our overall financial performance for the quarter. Through the first three months of 2014, we are starting to see the improvements from the changes we made to our sales force structure at the end of 2013. We increased the number of lease applications processed by approximately 10% to 20,050 and increased our lease application dollars by approximately 17%. In addition, we increased new vendor approvals by approximately 33% for the quarter to 338 along with an increase in our lease originations by approximately 15% to $23.0 million as compared to the same period last year. Cash received from customers continues to improve and increased approximately 11.5% or $3.6 million to $34.6 million as compared to the first quarter of 2013. The average deal size increased slightly from approximately $4,600 in the first quarter of 2013 to $4,900 in the first quarter of 2014."
| MICROFINANCIAL INCORPORATED | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except share data) | ||
| (Unaudited) | ||
| March 31, | December 31, | |
| 2014 | 2013 | |
| ASSETS | ||
| Cash and cash equivalents | $2,447 | $2,246 |
| Restricted cash | 1,618 | 1,107 |
| Net investment in leases: | ||
| Receivables due in installments | 211,758 | 214,628 |
| Estimated residual value | 22,618 | 23,070 |
| Initial direct costs | 1,821 | 1,732 |
| Less: | ||
| Advance lease payments and deposits | (2,972) | (3,010) |
| Unearned income | (57,357) | (58,772) |
| Allowance for credit losses | (14,565) | (15,379) |
| Net investment in leases | 161,303 | 162,269 |
| Investment in service contracts, net | 2,254 | 2,058 |
| Investment in rental contracts, net | 1,059 | 1,059 |
| Property and equipment, net | 1,360 | 1,333 |
| Other assets | 1,473 | 2,980 |
| Total assets | $171,514 | $173,052 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| March 31, | December 31, | |
| 2014 | 2013 | |
| Revolving line of credit | $71,145 | $72,566 |
| Accounts payable | 3,091 | 2,993 |
| Dividends payable | 57 | 63 |
| Other liabilities | 1,957 | 2,272 |
| Income taxes payable | 1,900 | -- |
| Deferred income taxes | 3,959 | 6,678 |
| Total liabilities | 82,109 | 84,572 |
| Stockholders' equity: | ||
| Preferred stock, $.01 par value; 5,000,000 shares authorized; no shares issued at March 31, 2014 and December 31, 2013 | -- | -- |
| Common stock, $.01 par value; 25,000,000 shares authorized; 14,417,185 and 14,435,498 shares issued at March 31, 2014 and December 31, 2013, respectively | 144 | 144 |
| Additional paid-in capital | 47,312 | 47,475 |
| Retained earnings | 41,949 | 40,861 |
| Total stockholders' equity | 89,405 | 88,480 |
| Total liabilities and stockholders' equity | $171,514 | $173,052 |
| MICROFINANCIAL INCORPORATED | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (In thousands, except share and per share data) | ||
| (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2014 | 2013 | |
| Revenues: | ||
| Income on financing leases | $10,153 | $10,204 |
| Rental income | 2,716 | 2,503 |
| Income on service contracts | 331 | 176 |
| Loss and damage waiver fees | 1,527 | 1,441 |
| Service fees and other | 971 | 971 |
| Total revenues | 15,698 | 15,295 |
| Expenses: | ||
| Selling general and administrative | 4,820 | 4,662 |
| Provision for credit losses | 5,034 | 4,881 |
| Depreciation and amortization | 1,474 | 1,305 |
| Interest | 668 | 670 |
| Total expenses | 11,996 | 11,518 |
| Income before provision for income taxes | 3,702 | 3,777 |
| Provision for income taxes | 1,590 | 1,511 |
| Net income | $2,112 | $2,266 |
| Net income per common share: | ||
| Basic | $0.15 | $0.16 |
| Diluted | $0.14 | $0.15 |
| Weighted-average shares: | ||
| Basic | 14,434,339 | 14,495,411 |
| Diluted | 14,759,188 | 14,786,580 |
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.
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.