MicroFinancial Inc (MFI, Financial) filed Quarterly Report for the period ended 2012-09-30.
Microfinancial, Inc. has a market cap of $99.9 million; its shares were traded at around $6.67 with a P/E ratio of 10.9 and P/S ratio of 1.8. The dividend yield of Microfinancial, Inc. stocks is 3.4%. Microfinancial, Inc. had an annual average earning growth of 5.7% over the past 5 years.
Our selling, general and administrative (SG&A) expenses include costs of maintaining corporate functions including accounting, finance, collections, legal, human resources, sales and underwriting, and information systems. SG&A expenses also include commissions, service fees and other marketing costs associated with our portfolio of leases and rental contracts. SG&A expenses increased by $0.6 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011. The increase in SG&A during the third quarter of 2012 was attributable to increases in compensation-related expenses of $326,000, marketing and promotion costs of $75,000, cost of equipment sales of $68,000, and other net increases of $97,000. The number of employees as of September 30, 2012, was 145 compared to 133 as of September 30, 2011.
We maintain an allowance for credit losses on our investment in leases, service contracts and rental contracts at an amount that we believe is sufficient to provide adequate protection against losses in our portfolio. Our provision for credit losses increased by $0.3 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011, while net charge-offs increased by 7.0% to $4.5 million. The provision was based on providing a general allowance on leases funded during the period and our analysis of actual and expected losses in our portfolio. The decrease in the allowance as a percentage of revenue reflects improvements in delinquency levels of the lease portfolio.
Total revenues for the nine months ended September 30, 2012, were $44.0 million, an increase of $3.4 million, or 8.4%, from the nine months ended September 30, 2011. The overall increase was due to an increase of $2.2 million in income on financing leases, an increase of $0.9 million in rental income and a $0.3 million increase in loss and damage waiver fees. The increase in income on financing leases is a result of the continued growth in new lease originations. The increase in loss and damage waiver fees is related to an increase in the number of leases subject to such fees as the overall lease portfolio grows. The increase in rental income is the result of TimePayment lease contracts coming to term and converting to rentals.
We maintain an allowance for credit losses on our investment in leases, service contracts and rental contracts at an amount that we believe is sufficient to provide adequate protection against losses in our portfolio. Our provision for credit losses increased by $0.8 million for the nine months ended September 30, 2012, as compared to the nine months ended September 30, 2011. Net charge-offs increased by 4.8% to $14.1 million. The provision is based on providing a general allowance on leases funded during the period and our analysis of actual and expected losses in our portfolio. The decrease in the allowance as a percentage of revenue reflects improvements in delinquency levels of the lease portfolio.
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Microfinancial, Inc. has a market cap of $99.9 million; its shares were traded at around $6.67 with a P/E ratio of 10.9 and P/S ratio of 1.8. The dividend yield of Microfinancial, Inc. stocks is 3.4%. Microfinancial, Inc. had an annual average earning growth of 5.7% over the past 5 years.
Highlight of Business Operations:
Total revenues for the three months ended September 30, 2012, were $15.0 million, an increase of $1.3 million, or 9.2%, from the three months ended September 30, 2011. The overall increase was due to an increase of $0.9 million in income on financing leases, an increase of $0.3 million in rental income and an increase of $0.1 million in revenue from loss and damage waiver fees. The increase in income on financing leases is a result of the continued growth in new lease originations. The increase in rental income is the result of TimePayment lease contracts coming to term and converting to rentals. The increase in loss and damage waiver fees is related to an increase in the number of leases subject to such fees as the overall lease portfolio grows. Most of our service contract revenue is derived from our LeaseComm portfolio, for which we have not purchased any new security service contracts since 2004. Consequently, our service contract revenue from LeaseComm represents a less significant portion of our revenue stream over time. Beginning in the second quarter of 2012, TimePayment has been acquiring a limited number of service contracts.Our selling, general and administrative (SG&A) expenses include costs of maintaining corporate functions including accounting, finance, collections, legal, human resources, sales and underwriting, and information systems. SG&A expenses also include commissions, service fees and other marketing costs associated with our portfolio of leases and rental contracts. SG&A expenses increased by $0.6 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011. The increase in SG&A during the third quarter of 2012 was attributable to increases in compensation-related expenses of $326,000, marketing and promotion costs of $75,000, cost of equipment sales of $68,000, and other net increases of $97,000. The number of employees as of September 30, 2012, was 145 compared to 133 as of September 30, 2011.
We maintain an allowance for credit losses on our investment in leases, service contracts and rental contracts at an amount that we believe is sufficient to provide adequate protection against losses in our portfolio. Our provision for credit losses increased by $0.3 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011, while net charge-offs increased by 7.0% to $4.5 million. The provision was based on providing a general allowance on leases funded during the period and our analysis of actual and expected losses in our portfolio. The decrease in the allowance as a percentage of revenue reflects improvements in delinquency levels of the lease portfolio.
Total revenues for the nine months ended September 30, 2012, were $44.0 million, an increase of $3.4 million, or 8.4%, from the nine months ended September 30, 2011. The overall increase was due to an increase of $2.2 million in income on financing leases, an increase of $0.9 million in rental income and a $0.3 million increase in loss and damage waiver fees. The increase in income on financing leases is a result of the continued growth in new lease originations. The increase in loss and damage waiver fees is related to an increase in the number of leases subject to such fees as the overall lease portfolio grows. The increase in rental income is the result of TimePayment lease contracts coming to term and converting to rentals.
We maintain an allowance for credit losses on our investment in leases, service contracts and rental contracts at an amount that we believe is sufficient to provide adequate protection against losses in our portfolio. Our provision for credit losses increased by $0.8 million for the nine months ended September 30, 2012, as compared to the nine months ended September 30, 2011. Net charge-offs increased by 4.8% to $14.1 million. The provision is based on providing a general allowance on leases funded during the period and our analysis of actual and expected losses in our portfolio. The decrease in the allowance as a percentage of revenue reflects improvements in delinquency levels of the lease portfolio.
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