EQS-News

As More Consumers And Investors Seek Alternative Financing, This Company’s Specialty Financing Could Provide Answers - Seite 2

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.

Financials

The company’s product offerings could be positively affecting growth, as shown in Mill City’s recent financial results for the three- and six-month periods that ended June 30, which could be good news for investors.

Q2 2022 Highlights

• Investment income from lending operations increased 83% to $1.24 million in the three months ended June 30, up from $675,549 in the prior year.

For the six-month period, investment income from lending operations was $2.24 million, compared to $1.2 million at the same time a year ago, an 83% increase.

• Pretax earnings from lending operations increased in the second quarter to $734,250 from $425,393 in the prior year, a 73% increase.

• In the six-month period, pretax earnings from lending operations reached $1.2 million compared to $438,377 in the prior year period, a 171% increase.

• Shareholder equity increased to $14.4 million on June 30, 2022, from $13.4 million on Dec. 31, 2021.

• As of June 30, 2022, the company had $629,572 in cash, compared with $1,936,148 as of Dec. 31, 2021.

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.