Email us with questions or comments: nmarshi.bdcreporter@gmail.com           α

Medallion Financial: IIIQ 2016 Earnings

Beleaguered Medallion Financial (MFIN) has issued a press release with IIIQ 2016 earnings highlights.

comment

The BDC Reporter says: “There are huge goings on at the Company besides recently switching its ticker from TAXI to MFIN”.

“Of course, there’s the process of downsizing and working out of the myriad medallion taxi loans at both the holding company level and at Medallion Bank”.

“Then there’s a new business strategy aimed at consumer lending”.

“Plus a new dividend strategy. The pay-out has been cut to a de minimis level after being regularly upped in recent years”.

“Finally, still undecided is whether Medallion will choose to cease to be a Registered Investment Company (or “RIC”) and become a regular tax paying C Corporation.”

Adds: “Unfortunately, management does not schedule Conference Calls with its analysts and investors to engage on these critical issues “.

Warns: “We suggest not drawing any conclusions from the press release alone given the scarcity of details about these changes, and the structure of the Company which is an amalgamation of different legal entities, each with different regulations and oversight. That makes combined financial statements very difficult to dissect, and essentially impossible in a press release”.

Suggests: “Wait for the 10-Q filing, which has not yet been published, but which is usually a cornucopia of information not available anywhere else.”