Mill City Ventures III, Ltd. Reports 2024 Second Quarter Financial Results

Rhea-AI Summary

Mill City Ventures III, (NASDAQ:MCVT) reported its 2024 second quarter financial results, showing mixed performance. Pre-tax earnings from lending operations increased by 45% to $490,570 in Q2 2024, compared to $337,457 in the prior-year period. For the six-month period, pre-tax earnings reached $962,150, resulting in earnings per share of $0.12, a significant improvement from a loss of $(0.10) per share in the prior year.

However, investment income from lending operations decreased slightly by 2% to $888,629 in Q2 2024, and by 3% to $1.72 million for the six-month period. Shareholder equity increased to $19.4 million, and the company's cash position improved significantly to $5.4 million as of June 30, 2024. CEO Douglas Polinsky expressed optimism about future investment opportunities and the company's potential for growth in providing short-term liquidity to borrowers and long-term returns to shareholders.

Positive

• Pre-tax earnings from lending operations increased by 45% in Q2 2024
• Six-month pre-tax earnings reached $962,150, resulting in EPS of $0.12
• Shareholder equity increased to $19.4 million from $18.6 million
• Cash position improved significantly to $5.4 million from $376,024

Negative

• Investment income from lending operations decreased by 2% in Q2 2024
• Six-month investment income declined by 3% to $1.72 million

Insights

Financial Analyst

Mill City Ventures III's Q2 2024 results show a mixed picture. The 45% increase in pre-tax earnings from lending operations is a positive sign, indicating improved operational efficiency. However, the 2% decrease in investment income for the quarter and 3% decrease for the six-month period suggest challenges in revenue generation.

The improvement in shareholder equity and significant increase in cash position ($5.4 million vs $376,024) provide a strong liquidity buffer for future operations and potential investments. The shift from a loss to $0.12 earnings per share for the six-month period is noteworthy, signaling a turnaround in profitability.

While the CEO's optimism is encouraging, investors should carefully monitor the company's ability to convert its cash reserves into profitable investments in the coming quarters.

Market Research Analyst

Mill City Ventures operates in the non-bank lending and specialty finance sector, which has seen increased demand due to tightening traditional banking regulations. The company's improved earnings despite slightly decreased revenue suggest successful cost management strategies.

The substantial increase in cash reserves positions Mill City well to capitalize on potential market opportunities, especially in an environment where many businesses may be seeking alternative financing options. However, the challenge lies in effectively deploying this capital to generate higher returns.

Investors should watch for the company's ability to maintain its improved profitability while growing its loan portfolio. The CEO's statement about "scratching the surface" implies potential for market expansion, but this should be backed by concrete growth strategies in future communications.

MINNEAPOLIS, MN / ACCESSWIRE / August 15, 2024 / 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, 2024.

2Q 2024 Highlights

• Pre-tax earnings from lending operations increased in the second quarter to $490,570 from $337,457 in the prior-year period, a 45% increase. In the six-month period, pre-tax earnings reached $962,150 compared to a loss of $(690,332) in the prior-year period resulting in a net earnings of $0.12 earnings per share compared to a loss of $(0.10) per share in the prior-year period.

• Investment income from lending operations decreased 2% to $888,629 in the three-month period ended June 30, 2024, from $907,502 in the prior-year period. For the six-month period, investment income was $1.72 million compared to $1.77 million in the prior-year period, a 3% decrease.

• Shareholder equity increased to $19.4 million from $18.6 million at December 31, 2023.

• At June 30, 2024, the Company had $5.4 million in cash, compared with $376,024 at December 31, 2023.

Chief Executive Officer, Douglas Polinsky, expressed optimism based on the Company cash position and the investment opportunities believed to be available for the remainder of 2024. "We are excited to complete 2024 and continue the Company's successes moving through 2024 and beyond. We believe we have only scratched the surface of what the Company is capable of in terms of providing valuable short-term liquidity to borrowers and long-term reliable returns to our shareholders."

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:

Joseph A. Geraci
Chief Financial Officer
Mill City Ventures III, Ltd.
jg@millcityventures3.com

SOURCE: Mill City Ventures III Ltd.

View the original press release on accesswire.com

FAQ

What was Mill City Ventures III's (MCVT) pre-tax earnings for Q2 2024?

Mill City Ventures III's pre-tax earnings from lending operations for Q2 2024 were $490,570, a 45% increase from $337,457 in the prior-year period.

How did Mill City Ventures III's (MCVT) investment income change in Q2 2024?

Mill City Ventures III's investment income from lending operations decreased by 2% to $888,629 in Q2 2024, compared to $907,502 in the prior-year period.

What was Mill City Ventures III's (MCVT) cash position as of June 30, 2024?

As of June 30, 2024, Mill City Ventures III had $5.4 million in cash, a significant increase from $376,024 at December 31, 2023.

What was Mill City Ventures III's (MCVT) earnings per share for the six-month period ending June 30, 2024?

Mill City Ventures III reported earnings of $0.12 per share for the six-month period ending June 30, 2024, compared to a loss of $(0.10) per share in the prior-year period.