Mint Leasing Management Expects Stronger Second Half
HOUSTON — For the second quarter of this year, Mint Leasing, a subprime leasing company, reported that its ability to generate revenues from new leases was "greatly restricted" by the lack of available financing.
Company officials indicated that its line of credit with Sterling Bank was fully utilized during the time frame and this "prevented" the company from expanding its lease portfolio.
The management team indicated that if additional capital had been available, revenues would have been higher because leasing demand by brand-name dealers has significantly grown over the past year.
"Demand for our unique vehicle leasing services among the more than 150 dealerships that we partner with in 17 states has been very strong, largely due to the contraction in direct leasing activities by commercial banks and the leasing arms of most automobile companies," explained Jerry Parish, chief executive officer.
"Unfortunately, we were unable to take advantage of this demand as our bank line of credit was substantially maxed out during the second quarter and first half of 2009," he continued.
Looking to the second half of the year, the management team expects stronger results thanks to the availability of up to $10 million under a new credit facility.
"This new facility increases our total borrowing capacity, and we should be able to deploy the additional capital to expand our lease portfolio in coming months," Parish said.
For the three-month quarter, the company posted revenues of about $5.8 million and a net loss of $816,083.
For the six-month time frame, Mint Leasing reported revenues of about $12 million and a net loss of $963,860.
On a non-GAAP basis, the company noted that it generated positive adjusted EBITDA, which is a non-GAAP measure, of $178,538 for the six month period.