Challenges Mounting For Medallion Financial Entering 2016
James Hickman • 46 Comments
James Hickman • 46 Comments
Mon, Nov. 28, 12:32 PM
Mon, Nov. 7, 10:09 AM
- Q3 net increase in net assets from operations of $5M or $0.21 per share vs. $7.3M and $0.30 one year ago. Expectations had been for just $0.14.
- Combined with Medallion Bank, NIM of 6.77% vs. 6.89% a year ago. The home improvement division has an average interest rate of about 9.7% - way lower than than the 16.8% rate for the marine and RV division, but with substantially stronger credits.
- President Andrew Murstein notes the quarter was profitable despite large valuation allowances taken against medallion loans and owned medallions. Murstein and team believe the NYC medallion industry is stabilizing and remind combined actual losses in medallion lending YTD have been just 75 basis points, or $3.6M, while reserves top 6.4%, or $40.5M.
- NAV per share of $11.61 up from $11.42 at the start of the year.
- MFIN +15.3% o $3.76.
- Medallion Financial Earnings Center
Mon, Nov. 7, 9:10 AM
Mon, Aug. 22, 7:24 PM
- Medallion Financial (NASDAQ:MFIN) had declared $0.05/share quarterly dividend, -80% decrease from prior dividend of $0.25.
- Payable Aug. 31; for shareholders of record Aug. 24; ex-div Aug. 22.
Tue, Aug. 2, 10:22 AM
- The company earned $4.568M or $0.19 per share in Q2, down from $8.1M and $0.33 one year ago.
- For Medallion Financial, loans 90 days or more past due of 10.9% vs. 8% three months earlier. Medallion loans 90 days or more past due of 13.5% vs. 9.5%. Net realized losses of 1.52% during quarter vs. a gain of 1.4% for all 2015.
- Needing capital, Medallion Bank isn't kicking any dividends upstairs to Medallion Financial (MFIN -20.8%). The MFIN dividend is subsequently cut to $0.05 per share from $0.25. Among the uses of that capital: The Bank anticipates doing deals with marketplace lending platforms, at which it expects to earn in excess of 50% ROE.
- The company is considering whether it might abandon its current structure as a BDC and RIC.
- Previously: Medallion Financial reports Q2 results (Aug. 2)
Tue, Aug. 2, 9:10 AM
Tue, May 10, 9:08 AM
- Medallion Financial (NASDAQ:TAXI): Q1 EPS of $0.28 beats by $0.01.
- Revenue of $6.5M (-32.9% Y/Y) misses by $2.14M.
Tue, Apr. 5, 4:00 PM| Tue, Apr. 5, 4:00 PM | 53 Comments
Wed, Feb. 17, 12:23 PM
- Q4 earnings of $6.911M or $0.29 beat estimates by a penny, and full-year earnings of $29.376M or $1.20 per share compared to $28.692M and $1.14 in 2014.
- Book value per share of $11.42 vs. current price of $7.62.
- Combined with Medallion Bank, net interest margin of 6.95% gained nine basis points from the year-ago quarter. Medallion Bank's consumer lending portfolio grew 31% Y/Y. President Andrew Murstein notes 80% of earnings in 2015 came from non-taxi related loan products.
- On a combined basis, loans 90 days past due rose to 2.2% from 1.5% in Q3. Medallion loans 90 days past due rose to 3.8% from 1.8%. The current LTV of the combined taxi medallion portfolio is 76% vs. 60% a year ago. Loan loss reserves of 2.35% up 18 bps from Q3, and 44 bps from a year ago.
- Medallion loans of $308.4M slipped 1% Y/Y, and now make up 51% of the investment portfolio vs. 59% a year ago.
- Previously: Medallion Financial beats by $0.01 (Feb. 17)
- TAXI +17.8%
Wed, Feb. 17, 9:12 AM
- Medallion Financial (NASDAQ:TAXI): Q4 EPS of $0.29 beats by $0.01.
Nov. 4, 2015, 9:17 AM
- Medallion Financial (NASDAQ:TAXI): Q3 EPS of $0.30 beats by $0.02.
- Revenue of $8.38M (-9.8% Y/Y) misses by $2.55M.
Sep. 21, 2015, 12:41 PM
Sep. 21, 2015, 11:00 AM
- Barron's took note of not just a cheap valuation and stronger operating numbers than what otherwise might be expected, but also a short position of 3.3M shares, or 15% of the float.
- These shorts have to contend with a double-digit dividend yield (the company contends it has no intention of cutting the payout), and a buyback authorization of $26M, enough to repurchase about 17% of the float at Friday's closing price.
- Medallion Financial (TAXI +20.1%)
- Previously: Barron's: Medallion Financial is a buy (Sept. 19)
Sep. 21, 2015, 9:19 AM
Sep. 19, 2015, 8:27 AM
- A quick check of the scorecard: Medallion Financial (NASDAQ:TAXI) is off 65% from a recent top hit less than two years ago, including a halving in the stock price in just the last year. At the current price of $6.17, TAXI sells for about 6x estimated earnings and at just 60% of book value. The dividend yield is roughly 16%, and Medallion President Andrew Murstein calls the chances of it being cut "slim to none."
- "Even with medallion values having declined, earnings haven't been affected," says Sandler O'Neill analyst Alex Twerdahl, arguing the concern over Uber has obscured the rest of the company's businesses. He rates the stock a Buy with a price target of $12.
- Other businesses? The company began diversifying away from medallions more than a decade ago (a move it was criticized for at the time). Consumer loans accounted for 40% of managed loans in Q2, and 64% of earnings. Medallion loans account for 51% of managed loans, but just 19% of interest income.
- What's more, taxi cab ridership may not be going away. The number of yellow cab rides slipped 8% to 165M in 2014 from a peak of 179M in 2012, but revenue fell just 1.7%. The early data for this year has revenue as flat to down slightly.
- “This Uber thing is overdone," says mutual fund manager Sam Stewart. "Uber isn’t going to drive taxis out of business. It’s both - not either/or.”
- Source: Barron's Jack Willoughby
Aug. 4, 2015, 10:52 AM
- Q2 net increase in net assets from operations of $8.1M or $0.33 per share vs. $7.1M and $0.28 one year ago. Net investment income of $4.3M or $0.18 per share vs. $3.8M and $0.15.
- 64% of earnings came from consumer lending businesses, and consumer loans originated by Medallion Bank grew 30%.
- On a combined basis with Medallion Bank, net interest margin of 6.93% vs. 7.11% a year ago.
- Combined with Medallion Bank, loans 90 days or more past due of 1%, up from 0.5% in Q1. Medallion loans 90 days or more past due of 1.3% up from 0.3% in Q1. Medallion loans of $309.5M fell 3% Y/Y, and now represent 57% of the investment portfolio vs. 63% a year ago.
- The commercial loan portfolio of $75.3M up 28% Y/Y, and now makes up 14% o the investment portfolio, up from 12%.
- Stock buyback is raised to $26M from $12.5M still remaining. This would be good for about 12% of the float at the current price.
- Previously: Medallion Financial beats by $0.03, misses on total investment income (Aug. 4)
- TAXI +13.7%