New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Marlin Business Services Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 4, 2012 04:32PM

Marlin Business Services Corp. (MRLN) filed Quarterly Report for the period ended 2012-03-31. Marlin Bus Svcs has a market cap of $182.8 million; its shares were traded at around $13.99 with a P/E ratio of 30 and P/S ratio of 2.9. The dividend yield of Marlin Bus Svcs stocks is 1.7%.



Highlight of Business Operations:

During the three months ended March 31, 2012, we generated 5,658 new leases with a cost of $72.4 million, compared to 3,984 new leases with a cost of $47.0 million generated for the three months ended March 31, 2011. Sales staffing levels increased from 94 sales account executives at March 31, 2011 to 99 sales account executives at March 31, 2012. Approval rates also rose from 56% for the quarter ended March 31, 2011 to 66% for the quarter ended March 31, 2012 due to the improved credit quality of the applications received and adjustments made to credit policy in light of the continued strong performance of recent years’ lease originations.

The provision for credit losses decreased $0.1 million, or 8.3%, to $1.1 million for the three-month period ended March 31, 2012 from $1.2 million for the same period in 2011, primarily due to lower charge-offs and improved delinquencies, partially offset by portfolio growth. For the three-month period ended March 31, 2012 compared to the three-month period ended March 31, 2011, net interest and fee income increased $2.3 million, or 21.5%, primarily due to a lower cost of funds on liabilities, partially offset by the impact of the 11.9% million increase in average total finance receivables. Other expenses increased $1.0 million, or 10.4%, for the three-month period ended March 31, 2012 compared to the three-month period ended March 31, 2011, primarily due to increased sales compensation expense and additional compensation related to the achievement of certain performance criteria determined annually.

Interest income, net of amortized initial direct costs and fees, increased $1.2 million, or 11.0%, to $12.1 million for the three-month period ended March 31, 2012 from $10.9 million for the three-month period ended March 31, 2011. The increase in interest income was due principally to the 11.9% increase in average total finance receivables, which increased $41.4 million to $390.6 million at March 31, 2012 from $349.2 million at March 31, 2011, partially offset by a decrease in average yield of 14 basis points. The increase in average total finance receivables is primarily due to the continued seasoning and development of our sales account executives, combined with adjusting our credit underwriting guidelines in response to economic conditions. The average yield on the portfolio decreased, primarily due to lower yields on the new leases compared to the yields on the leases repaying. The weighted average implicit interest rate on new finance receivables originated decreased 68 basis points to 12.71% for the three-month period ended March 31, 2012, compared to 13.39% for the three-month period ended March 31, 2011, primarily due to a change in mix of new origination types toward larger program opportunities.

Salaries and benefits expense. Salaries and benefits expense increased $1.2 million, or 20.3%, to $7.1 million for the three month period ended March 31, 2012 from $5.9 million for the same period in 2011. Salaries and benefits expense, as a percentage of average total finance receivables, was 7.23% for the three-month period ended March 31, 2012 compared with 6.80% for the same period in 2011. The increase was primarily due to increased sales compensation and additional compensation related to the achievement of certain performance criteria determined annually.

We are exposed to market risks associated with changes in interest rates and our earnings may fluctuate with changes in interest rates. The lease assets we originate are almost entirely fixed-rate. Accordingly, we generally seek to finance these assets with fixed interest borrowings and certificates of deposit that the Company issues periodically. Between term note securitization issues, we have historically financed our new lease originations through a combination of variable-rate warehouse facilities and working capital. Most recently, we have also used variable-rate long-term loan facilities to finance our new lease originations. Our mix of fixed- and variable-rate borrowings and our exposure to interest rate risk changes over time. Over the past twelve months, the mix of variable-rate borrowings to total borrowings has ranged from 46.3% to 55.4% and averaged 49.1%. At March 31, 2012, $40.8 million, or 55.4%, of our borrowings were variable-rate borrowings.

Read the The complete Report



Stocks Discussed: MRLN,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial