MicroFinancial Reports Year-end and Fourth Quarter, 2005
Year-End net Loss: $1.7MM MicroFinancial Incorporated (AMEX-MFI), a financial intermediary specializing in vendor based leasing and finance programs for microticket size transactions in the range of $500 to $15,000, announced its financial results for the fourth quarter and the year ended December 31, 2005. Fourth quarter revenue for the period ended December 31, 2005 was $8.9 million compared to $12.4 million in the prior year's fourth quarter. Revenues for the year ended December 31, 2005 were $39.3 million, compared to $60.4 million during fiscal 2004. The net loss for the year ending December 31, 2005 was $1.7 million, versus a net loss of $10.2 million for the previous year. The fourth quarter provision for credit losses decreased to $1.6 million from $10.0 million for the same period in 2004, while net charge-offs decreased to $2.2 million versus $18.8 million. Sequentially, amounts greater than 31 days delinquent on December 31, 2005 decreased to $18.1 million from $20.1 million on September 30, 2005. The benefit for income taxes decreased to $21 thousand for the fourth quarter of 2005 from a $10.6 million tax benefit for the same period last year. During 2004, the Company recorded an income tax benefit of $7.9 million that resulted from a reduction in the Company's estimate of certain tax liabilities that had been included in accrued income taxes on the Company's balance sheet. Richard Latour, President and Chief Executive Officer said, "In 2005, we made solid progress building the necessary infrastructure through the strengthening of our sales and marketing programs. Results for the fourth quarter validate these efforts, as our new contract originations improved 42% to $2.3 million over the third quarter. We also approved 145 new vendors and processed over 2,000 applications. Although TimePayment Corp had made sequential gains from quarter to quarter in 2005, the annual results clearly point us in the direction of where we need to improve upon for 2006." Full Press Release at: http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=MFI&script=410&layout=7&item_id=814542 More information on this company is available at: http://www.leasingnews.org/Conscious-Top%20Stories/micro_leasecomm.htm
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