HOUSTON, May 22 /PRNewswire-FirstCall/ -- The Mint Leasing, Inc. (OTC Bulletin Board: MLES), which provides innovative leasing services to customers of franchised automobile dealers throughout the United States, today announced its operating results for the first quarter of 2009.
For the three months ended March 31, 2009, the Company reported revenues of approximately $6.2 million and a net loss of ($147,777), or ($0.00) per share. These results compared with revenues of approximately $13.9 million and a net loss of ($2,343,242), or ($0.03) per share, in the three months ended March 31, 2008. The Company's results for the first quarter of 2008 included a one-time charge of approximately $4.8 million related to the cumulative effect on prior years of changing the method of determination of allowance for doubtful accounts.
The decrease in revenues during the most recent quarter, when compared with the prior-year period, was principally due to the Company's inability to access additional financing to purchase vehicles and issue new leases. Additionally, the Company increased its inventory of used cars during the three months ended March 31, 2009, in anticipation of rising prices for used cars, which the Company has experienced during periods of prior recession and higher unemployment.
Gross profit as a percentage of revenues declined to approximately 23% in the first quarter of 2009, compared with approximately 30% in the year-earlier quarter. The decrease in gross profit was primarily attributable to the fact that during the three months ended March 31, 2009, a higher percentage of vehicle leases related to vehicles reacquired from prior lessees (which do not afford the Company as high a margin as leases of newly purchased vehicles), when compared with a greater percentage of new car leases in the first quarter of 2008.
"I believe the Company would have recorded substantially higher revenues and profitability during the first quarter if we had been able to access additional capital in order to expand our lease portfolio," stated Jerry Parish, Chief Executive Officer of The Mint Leasing, Inc. "The auto dealerships that we work with are faced with substantial and growing demand for vehicle lease financing that is not being satisfied by commercial banks or traditional leasing companies. Unfortunately, due to the 'frozen' state of certain segments of the financial markets, we have been unable to expand our bank lines or complete a securitization of our lease portfolio, which would allow us to meet the needs of our customers. The quality of new leases available to Mint has never been higher, because even car buyers with very high credit ratings are unable to lease vehicles from traditional sources due to the turmoil in financial markets. We shall continue our efforts to secure additional capital in order to expand our lease portfolio and take advantage of the tremendous growth opportunities available to the Company."
For more information regarding the Company's first quarter operating results, please see the Form 10-Q filed with the Securities and Exchange Commission on May 20, 2009 which is available on the Internet at http://www.sec.gov/.
About The Mint Leasing, Inc.
The Mint Leasing, Inc. represents an alternative to traditional financing companies by providing its innovative vehicle leasing solutions to the customers of premier automotive retailers. Most of its customers are located in Texas and six other states in the southeastern U.S. The Mint Leasing's customers are primarily comprised of brand-name automobile dealers that seek to provide leasing options to their customers, many of whom would otherwise not have the opportunity to acquire a new- or late-model-year vehicle. The Mint Leasing, Inc. is responsible for underwriting criteria and procedures, administration of the leases, and collection of payments from lessees.
The Company is headquartered in Houston, Texas, and its common stock trades on the OTC Bulletin Board under the symbol "MLES".
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. Forward-looking statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include but are not limited to, successful performance of internal plans, product or services development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties, and other risks disclosed in the Company's periodic filings with the U.S. Securities and Exchange Commission. The Company takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
Contact: R. Jerry Falkner, CFA, RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or via email at info@rjfalkner.com or The Mint Leasing, Inc. Investor Relations at investorinfo@mintleasing.com The Mint Leasing, Inc. Consolidated Balance Sheets ASSETS ($000) 3/31/2009 12/31/2008 --------- ---------- Cash and equivalents $ 882 $ 881 Investment in sales-type leases, net 44,468 45,633 Vehicle inventory 1,339 855 Property and equipment, net 116 121 Other assets 440 79 ----- ----- TOTAL ASSETS $ 47,245 $ 47,569 =========== ============ LIABILITIES AND SHAREHOLDERS' EQUITY ($000) LIABILITIES: Accounts payable and accrued liabilities $ 338 $ 450 Credit facilities 33,000 33,000 Deferred income taxes 1,373 1,447 Notes payable to related parties 435 435 ----- ----- TOTAL LIABILITIES 35,146 35,333 ------ ------ STOCKHOLDERS' EQUITY: Preferred stock Series A - - Preferred stock Series B 2 2 Common stock 82 82 Additional paid-in capital 9,227 9,218 Retained earnings 2,788 2,935 ----- ----- TOTAL STOCKHOLDERS' EQUITY 12,099 12,237 ------ ------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 47,245 $ 47,569 =========== ============ The Mint Leasing, Inc. Consolidated Statements of Income For the Three Months Ended March 31 ($000) 2009 2008 ---- ---- REVENUES Sales-type leases, net $ 4,702 $ 12,864 Amortization of unearned income related to Sales-type leases 1,541 1,043 ----- ----- Total Revenues 6,243 13,906 ------ ------ COST OF REVENUES 4,816 9,722 ----- ----- GROSS PROFIT 1,427 4,185 GENERAL AND ADMINISTRATIVE EXPENSE 1,187 1,167 INCOME BEFORE OTHER INCOME (EXPENSE) FROM CONTINUING OPERATIONS 240 3,018 OTHER INCOME (EXPENSE) Interest expense (462) (573) Other income - 24 ----- ----- Total Other Income (Expense) (462) (549) ----- ----- Income (loss) before cumulative effect of change in Accounting principle and income tax provision (222) 2,469 Cumulative effect on prior years of changing method of determination of allowance for doubtful accounts - (4,812) ------ ------ LOSS BEFORE TAXES (222) (2,343) Provision for (benefit from) Income Tax (74) - ----- ----- NET LOSS $ (148) $ (2,343) ========== =========== Weighted average shares outstanding (000) Basic and fully-diluted 81,930 70,650 ======= ======= Basic and Fully-Diluted Loss Per Share $ (0.00) $ (0.03) ========== ===========
The Mint Leasing, Inc.
CONTACT: R. Jerry Falkner, CFA, Investor Relations Counsel of RJ Falkner
& Company, Inc., 1-800-377-9893, info@rjfalkner.com, for The Mint Leasing,
Inc.; or Investor Relations of The Mint Leasing, Inc.,
investorinfo@mintleasing.com
Web Site: http://www.mintleasing.com/
