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Ameritrans Capital Corp. Reports Operating Results (10-Q)

February 11, 2011 | About:
10qk

10qk

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Ameritrans Capital Corp. (AMTC) filed Quarterly Report for the period ended 2010-12-31.

Ameritrans Cap has a market cap of $3.4 million; its shares were traded at around $1 with and P/S ratio of 2.05.

Highlight of Business Operations:

Commercial Loans as of December 31, 2010 decreased by $2,652,810, or 29%, to $6,550,226, as compared with $9,203,036 at December 31, 2009. The decrease in Commercial Loans was due, primarily, to loan amortization and paid off loans of approximately $1,984,000 and foreclosure on two loans that had been carried at an aggregate of $1,047,000, partially offset by new loans aggregating $365,000.

Corporate Loans outstanding as of December 31, 2010 increased by $5,936,562, or 47%, to $18,588,847, as compared with $12,652,285 outstanding at December 31, 2009. This increase was primarily attributable to new loans of approximately $15,600,000, partially offset by payoffs of approximately $9,000,000 and the reduction of the fair value of certain loans of approximately $700,000.

Professional fees for the three months ended December 31, 2010 increased $48,970 to $350,743, or approximately 16%, when compared with $301,773 for the three months ended December 31, 2009. Included in professional fees are accounting fees relating to the Companys internal controls; consulting fees in connection with the Companys chief financial officer; legal fees to non-related parties; general legal fees to both related and non-related parties; legal fees related to the Companys life settlement portfolio; fees for accounting services and audit fees. Accounting fees for internal controls decreased approximately $10,000 to $10,548 when compared to the three months ended December 31, 2009. In 2009, documentation with regard to controls was being improved, therefore, more fees were spent on implementation. Consulting fees related to the Companys chief financial officer, who started in July 2010, were $53,000 in the 2010 quarter as compared with $0 in the comparable 2009 period. Legal fees to non-related parties increased approximately $60,000 to $173,067 when compared to the three months ended December 31, 2009, primarily, as a result of increased legal activity related to potential financing issues. Legal fees to related parties decreased approximately $6,700 to $0 when compared with the three months ended December 31, 2009 due to curtailment of assignments during the current period. Legal fees associated with the Companys life settlement portfolio decreased to $0 during the three months ended December 31, 2010 from approximately $32,000 in the comparable prior period because of the activity relating to resolution of issues during the earlier period. Accounting fees increased approximately $6,600 to $56,550 when compared with the three months ended December 31, 2009. Audit fees decreased approximately $22,000 to $41,770 when compared with the three months ended December 31, 2009. This decrease was due to a reduction in audit fees attributable to changes in the Companys investment portfolio and other efficiencies.

Professional fees for the six months ended December 31, 2010 increased $106,421 to $617,032, or approximately 21%, when compared with $510,611 for the six months ended December 31, 2009. Accounting fees for internal controls decreased approximately $19,000 when compared to the six months ended December 31, 2009. Consulting fees related to the Companys chief financial officer, who started in July 2010, was $86,000 in the 2010 six-month period and $0 in the comparable 2009 period. Legal fees to non-related parties increased approximately $118,000 to $272,000 in the 2010 period when compared with $154,000 for the six months ended December 31, 2009 and were comprised significantly of fees related to capital raises, SEC compliance, foreclosures and office lease issues. Legal fees to related parties decreased to $0 in the 2010 six-month period from $4,500 in the prior fiscal years first-half due to curtailment of assignments during the current period. Legal fees associated with the Companys life settlement portfolio decreased to $0 during the six months ended December 31, 2010 from approximately $59,000 in the comparable prior period because of the activity relating to resolution of issues during the earlier period. Accounting fees were relatively flat, going from $111,000 in 2009 six-month period to $112,000 in the 2010 six-month period. Audit fees decreased approximately $19,000 to $85,000, when compared with $104,000 for the six months ended December 31, 2009. This decrease was due to a reduction in audit fees attributable to changes in the Companys investment portfolio and other efficiencies.

The decrease in net assets resulting from operations decreased $2,256,687, or 61% to $1,438,192 for the six months ended December 31, 2010 from $3,694,879 for the six months ended December 31, 2009. This change in net assets from operations between periods was attributable primarily to a net decrease in investment loss of approximately $288,000 (primarily attributable to an increase in interest income resulting from the larger investment portfolio of approximately $343,000, as partially offset by an increase in expenses of approximately $55,000), a decrease in net realized loss from investments of approximately $495,000 and a change from unrealized depreciation on investments in the 2009 period to unrealized appreciation on investments in 2010 aggregating approximately $1,474,000.

Total assets decreased $1,830,095 to $32,079,267 at December 31, 2010 as compared with total assets of $33,909,362 at June 30, 2010. This net decrease was primarily due to a decrease in cash and equivalents of approximately $5,800,000 less a net increase in the loan portfolio of $2,860,000; an increase in assets acquired in satisfaction of loans of $1,050,000 and a net increase in other assets aggregating approximately $100,000. Total liabilities had a small decrease of approximately $223,000 between periods with a total of $25,310,000 at December 31, 2010 as compared with $25,533,000 at June 30, 2010. This decrease was substantially attributable to a decrease of $370,000 in notes payable, banks (the banks loans were paid off in July 2010), being partially offset by increases of approximately $84,000 in preferred dividends payable and approximately $37,000 in accrued expense and other liabilities.

Read the The complete Report

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10qk
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Comments

bbetra
Bbetra - 3 years ago
Looks to me that Lawyers and accountants are having big parties on stockholders shoulders. How long will this go on?
bbetra
Bbetra - 3 years ago
HOW CAN EXECUTIVES JUSTIFY THE AMOUNT OF ,OR ANY COMPENSATION , PAID TO THEM CONSIDERING BOTTOM LINE RESULTS OF THIS COMPANY. BOARD OF DIRECTORS AND COMPANY EXECUTIVES APPEAR TO BE BLEEDING THIS COMPANY. DOES IT APPEAR THAT MINORITY STOCKHOLDERS GET A HANDLE ON THIS PROBLEM?

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