Marlin Business Services Corp. (MRLN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Marlin Business Services Corp. has a market cap of $150.5 million; its shares were traded at around $11.75 with a P/E ratio of 40.5 and P/S ratio of 1.7. MRLN is in the portfolios of Michael Price of MFP Investors LLC, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC.
Net income. Net income of $1.6 million was reported for the three-month period ended June 30, 2010, resulting in diluted earnings per share of $0.12. Last years net income of $0.9 million for the three-month period ended June 30, 2009 reflects an after-tax gain of approximately $0.4 million due to the gain on derivatives. Excluding the impact of this after-tax gain in 2009, net income would have been $0.5 million for the three-month period ended June 30, 2009, resulting in adjusted diluted earnings per share of $0.04 for the three-month period ended June 30, 2009. The exclusion of the impact on derivatives removes the volatility resulting from derivatives activities subsequent to discontinuing hedge accounting in July 2008.
The provision for credit losses decreased $4.3 million, or 63.2%, to $2.5 million for the three-month period ended June 30, 2010 from $6.8 million for the same period in 2009, primarily due to a reduced portfolio size, lower charge-offs and improved delinquencies. During the three months ended June 30, 2010, net interest and fee income decreased $2.7 million, or 19.0%, primarily due to a 32.5% decrease in average total finance receivables. The decrease in income was partially mitigated by reductions in other expenses, which decreased $0.6 million, or 7.1%, for the three-month period ended June 30, 2010, compared to the same period in 2009.
Overall, our average net investment in total finance receivables for the three-month period ended June 30, 2010 decreased 32.5% to $395.9 million compared to $586.6 million for the three-month period ended June 30, 2009. Although we continue to respond to current economic conditions with restrictive credit standards, we have begun rebuilding the sales organization to increase originations.
During the three months ended June 30, 2010, we generated 3,009 new leases with a cost of $31.7 million compared to 1,831 new leases with a cost of $15.8 million generated for the three months ended June 30, 2009. Much of the change in volume is the result of increasing sales staffing levels, which were 33 at June 30, 2009 and 69 at June 30, 2010. Approval rates also rose from 36% for the quarter ended June 30, 2009 to 49% for the quarter ended June 30, 2010 due to the improved credit quality of the applications received.
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Marlin Business Services Corp. has a market cap of $150.5 million; its shares were traded at around $11.75 with a P/E ratio of 40.5 and P/S ratio of 1.7. MRLN is in the portfolios of Michael Price of MFP Investors LLC, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Since our founding in 1997, we have grown to $495.0 million in total assets at June 30, 2010. Our assets are substantially comprised of our net investment in leases and loans which totaled $380.7 million at June 30, 2010.Net income. Net income of $1.6 million was reported for the three-month period ended June 30, 2010, resulting in diluted earnings per share of $0.12. Last years net income of $0.9 million for the three-month period ended June 30, 2009 reflects an after-tax gain of approximately $0.4 million due to the gain on derivatives. Excluding the impact of this after-tax gain in 2009, net income would have been $0.5 million for the three-month period ended June 30, 2009, resulting in adjusted diluted earnings per share of $0.04 for the three-month period ended June 30, 2009. The exclusion of the impact on derivatives removes the volatility resulting from derivatives activities subsequent to discontinuing hedge accounting in July 2008.
The provision for credit losses decreased $4.3 million, or 63.2%, to $2.5 million for the three-month period ended June 30, 2010 from $6.8 million for the same period in 2009, primarily due to a reduced portfolio size, lower charge-offs and improved delinquencies. During the three months ended June 30, 2010, net interest and fee income decreased $2.7 million, or 19.0%, primarily due to a 32.5% decrease in average total finance receivables. The decrease in income was partially mitigated by reductions in other expenses, which decreased $0.6 million, or 7.1%, for the three-month period ended June 30, 2010, compared to the same period in 2009.
Overall, our average net investment in total finance receivables for the three-month period ended June 30, 2010 decreased 32.5% to $395.9 million compared to $586.6 million for the three-month period ended June 30, 2009. Although we continue to respond to current economic conditions with restrictive credit standards, we have begun rebuilding the sales organization to increase originations.
During the three months ended June 30, 2010, we generated 3,009 new leases with a cost of $31.7 million compared to 1,831 new leases with a cost of $15.8 million generated for the three months ended June 30, 2009. Much of the change in volume is the result of increasing sales staffing levels, which were 33 at June 30, 2009 and 69 at June 30, 2010. Approval rates also rose from 36% for the quarter ended June 30, 2009 to 49% for the quarter ended June 30, 2010 due to the improved credit quality of the applications received.
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