OUR NEW PROFILE IS:   (NASDAQ: MCVT)

 

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

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

 

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Hello Everyone,

I hope that you were able to catch our last profile.  It was one of the stronger movers that we have seen so far this year.

The stock gapped up and opened at $10.30 and yesterday it hit $14.75 for a 43% move in just a few sessions.

We have a new profile that we want you to turn your attention to immediately.

Pull up MCVT right now before the open.

As borrowers continue seeking alternative financing sources, MCVT, a short-term nonbank lending and specialty finance company could be answering this demand with its specialty financing solutions

Founded in January 2006, Mill City specialized in providing bespoke short-term lending solutions to public and private companies facing short-term liquidity issues.

Mill City ordinarily provides nonbank lending and specialty finance to companies and individuals with both collateral and a short-term source of liquidity anticipated to be available by the time the loan matures. The principal specialty finance solutions the company provides are high-interest, short-term lending arrangements.

The loans the company provides typically have maturities of nine months or less and involve a pledge of collateral or, in the case of loans made to companies, personal guarantees by the borrower’s principals.

Since commencing short-term nonbank lending operations in January 2020, both the average loan size and weighted interest rate have increased year over year.

Specialty finance firms make it easier for consumers and small to mid-size businesses to get loans they may find difficult to obtain from traditional banks.

They have easily won the hearts of some customers who were yearning to bypass long bureaucratic processes in favor of more straightforward procedures like completing loan applications and payments digitally with no initial fees and low-interest rates.

Thanks to this financing option, people who do not qualify for a traditional bank loan because of bad credit history are now turning to the alternative lending market for their capital needs.

Unlike some other players in the industry, Mill City specializes in investments in debt and equity securities of public and private companies looking to fund operations, whether for starting up, acquiring another company or fuelling growth.

Over the years, Mill City notes that it has provided non-bank lending and specialty finance to companies and individuals on both a secured and unsecured basis. The primary specialty finance solutions the company offers are high-interest, short-term lending arrangements.

Designed for individuals, business owners, real estate owners, house redevelopers and small business owners, the company’s lending arrangements occasionally involve the company obtaining collateral as security for the borrower’s repayment of funds.

The loans the company provides typically have maturities ranging from nine to 12 months and may involve a pledge of collateral or, in the case of loans made to companies, personal guarantees by the borrower’s principals.

Nature Of Lending Operations

• Non-bank lending and specialty finance
• Asset-backed loans
• Settled claim purchases
• Tax anticipation loans
• Real estate bridge loans
• Litigation finance
• Public market companies
• Title loans
• Opportunistic acquisitions
• Mortgages

Since commencing non-bank lending operations in January 2020, its average loan size and weighted rate trajectory have increased year over year. This change resulted from the company’s focus on making higher-dollar loans that usually have additional features such as the quality of the borrower and collateral levels.

Key Investment Considerations

• Management has experience in entrepreneurial ventures and finance.
• The company is not subject to many of the regulatory limitations that govern other traditional lenders or institutional competitors.
• Mill City runs on lean operating costs, which allows for greater income statement leverage.
• Management continually focuses on moving the blended portfolio returns up and to the right in the context of proper risk mitigation.
• The company takes advantage of inorganic growth opportunities in the market through complementary and accretive acquisitions.

For a bespoke lender that provides custom and tailored lending to meet a customer’s needs, Mill City could have an advantage over competitors, with a significant driver being that it is not subject to many of the regulatory limitations that govern traditional lenders or institutional competitors.

Mill City Ventures III, Ltd. Provides 2nd Quarter Fiscal 2022 Guidance Revenue Increased 83% Year Over Year and 83% for 6-Month Period

MINNEAPOLIS, MN / ACCESSWIRE / August 10, 2022 / Mill City Ventures III, Ltd. (NASDAQ:MCVT), a leading non-bank lender and specialty finance company is pleased to provide guidance for the second quarter of the 2022 fiscal year.

For the second quarter ending June 30, 2022, the company expects revenue to exceed approximately $1.2M, an estimated 83% year-over-year increase compared to approximately $675,000 for second quarter of fiscal 2021. Six-month revenue is expected to exceed approximately $2.2M compared to approximately $1.2M for the same period of fiscal 2021, also representing an 83% increase.

Commenting on the guidance, Chief Executive Douglas M. Polinsky said, “The demand for loans from our borrowers has been vibrant and we continue to work diligently for the benefit of our borrowers and stockholders.”

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.”

Mill City Provides Short-Term Funding to Facilitate Merger of Podcast Platforms

MINNEAPOLIS, MN / ACCESSWIRE / October 18, 2022 / Mill City Ventures III, Ltd. (“Mill City” or the “Company”) (NASDAQ:MCVT) announced today it has provided $2.225 million of short-term debt financing to Liberated Syndication Inc. (“Libsyn”), a leading “Podcasting As A Service” platform, to facilitate Libsyn’s recently announced acquisition of German podcast company Julep Media GmbH (“Julep”).

Founded in 2004, Libsyn is one of the first podcast hosting companies in the industry and today hosts over 75,000 shows and delivers over 6 billion downloads a year to listeners around the world. Libsyn accelerated its effort into podcast advertising in 2021 through a merger with AdvertiseCast LLC. Libsyn has indicated that with the combination of Julep, the combined companies will connect over 3,000 creators to over 750 advertisers who are looking to tap into the fast-growing podcast media market. In addition, Libsyn indicates that per the PwC / IAB Podcast Advertising Revenue Report, podcast advertising revenues are forecasted to exceed $2B in 2022 and almost triple to over $4B by 2024.

Brad Tirpak, Libsyn’s CEO, said, “Libsyn is thrilled to welcome Julep to our growing platform of advertising solutions for creators. Germany is one of the largest podcast markets in Europe, and Julep provides Libsyn with the immediate scale to become a leading force in podcast monetization in both Germany and the broader European market. We are grateful for our partnership with Mill City in helping us complete this transaction in a timely and efficient manner that delivered value to both sides.”

Mill City Chief Financial Officer, Joseph Geraci, said, “We have noted in the past that the market for our type of lending is robust and underserved by larger financial institutions. Our ability to create unique and tailored financing solutions allows us to service many different kinds of financial needs. Providing funding to meet a short-term liquidity need in furtherance of the closing of the merger of two companies is just one more example of where we can create solid results for our investors subject to well-managed risks.”

The debt financing matures in 180 days.

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Sincerely,