Mill City Ventures III, Ltd. Reports 2022 Second Quarter Financial Results

Rhea-AI Summary

Mill City Ventures III, Ltd. (NASDAQ:MCVT) announced strong financial results for Q2 2022, reporting an 83% increase in investment income, reaching $1,236,505, compared to $675,549 in Q2 2021. Pre-tax earnings rose 73% to $734,250, with a substantial 171% increase over six months at $1,188,638. Shareholder equity climbed to $14,426,607. However, cash reserves decreased to $629,572 from $1,936,148 at the end of 2021. The CEO highlighted a strong demand for loan products and a zero-loss ratio in the loan portfolio.

Positive

• Investment income increased by 83% to $1,236,505 in Q2 2022.
• Pre-tax earnings rose 73% to $734,250 in Q2 2022.
• Shareholder equity improved to $14,426,607.
• Zero-loss ratio maintained on the loan portfolio.

Negative

• Cash reserves declined to $629,572 from $1,936,148 at the end of 2021.

MINNEAPOLIS, MN / ACCESSWIRE / August 16, 2022 / Mill City Ventures III, Ltd. (NASDAQ:MCVT) (Mill City or the "Company") a non-bank lender and specialty finance company, today announced financial results for the three-month and six-month periods ended June 30, 2022.

2Q 2022 Highlights

• Investment income from lending operations increased 83% to $1,236,505 in the three-month period ended June 30, 2022, from $675,549 in the prior year period. For the six-month period, investment income was $2,236,711 compared to $1,222,391 in the prior year period, an 83% increase.
• Pre-tax earnings from lending operations increased in the second quarter to $734,250 from $425,393 in the prior year period, a 73% increase. In the six-month period, pre-tax earnings reached $1,188,638 million compared to $438,377 in the prior year period, a 171% increase.
• Shareholder equity increased to $14,426,607 million from $13,414,049 million at December 31, 2021
• At June 30, 2022, the Company had $629,572 in cash, compared with $1,936,148 at December 31, 2021.

Commenting on the quarter, Chief Executive Officer Douglas M. Polinsky said, "The second quarter of 2022 was our 10^th record quarter for income and earnings from our lending operations as we continue to experience strong demand for our loan products. We're investing in our business as we seek to meet the demand so while our expenses were higher in the quarter, we're able to maintain solid margins. Our loan portfolio generates income with an average rate on the loans in excess of 20%, a testament to the level of demand and our ability to structure the loans with favorable terms while investing in the growth of our business. We continue to show a zero-loss ratio on our loan portfolio."

About Mill City

Founded in 2007, Mill City is a short-term non-bank lending and specialty finance company. Additional information can be found at www.sec.gov.

Forward-Looking Statements and Safe Harbor Notice

All statements other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as "projected," "expect," "possibility" and "anticipate." The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should carefully read the risk factors set forth in the Company's prospectus on Form S-1 filed with the SEC on April 26, 2022, as amended, subsequent filings and future periodic reports filed with the SEC. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.

The Company cautions that statements and assumptions made in this press release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release, other than as required by law.

Investor Contact:

TraDigital IR
John McNamara
917-658-2602
john@tradigitalir.com

SOURCE: Mill City Ventures III, Ltd.

View source version on accesswire.com:
https://www.accesswire.com/712312/Mill-City-Ventures-III-Ltd-Reports-2022-Second-Quarter-Financial-Results

FAQ

What were Mill City Ventures' earnings for Q2 2022?

Mill City Ventures reported earnings of $734,250 for Q2 2022, which is a 73% increase from the previous year.

How much did investment income increase for Mill City Ventures in the second quarter of 2022?

Investment income increased by 83% to $1,236,505 in Q2 2022.

What is the current shareholder equity of Mill City Ventures?

As of June 30, 2022, Mill City Ventures' shareholder equity stood at $14,426,607.

What is the cash position of Mill City Ventures as of June 30, 2022?

The company had $629,572 in cash on June 30, 2022, down from $1,936,148 at the end of 2021.

What is Mill City Ventures' loan portfolio loss ratio?

Mill City Ventures maintains a zero-loss ratio on its loan portfolio.