Old Market Capital Corp (OMCC, Financial) released its 8-K filing on November 13, 2024, detailing its financial performance for the second quarter of fiscal year 2025. The company, formerly known as Nicholas Financial Inc., is transitioning from a specialized consumer finance company to a holding company with a controlling interest in Amplex Electric, Inc., a broadband service provider.
Financial Performance and Strategic Challenges
Old Market Capital Corp reported a net loss of $0.45 million attributable to common shareholders for the quarter ending September 30, 2024, a significant improvement from the $10.5 million loss in the same period last year. This translates to a basic and diluted net loss per share of $0.07, compared to $1.44 in the previous year. The company's restructuring efforts, including the acquisition of Amplex Electric, have led to increased operating expenses, which rose by 147.5% to $3.98 million.
Key Financial Achievements
The acquisition of Amplex Electric has started to bear fruit, contributing $3 million in revenue and $410,000 in income during the quarter. This acquisition is pivotal as it diversifies OMCC's revenue streams and positions the company for future growth in the broadband sector. The approval of a $21.3 million RUS Loan for Amplex further strengthens its financial position, providing a foundation for expansion over the next five years.
Income Statement and Balance Sheet Insights
For the six months ended September 30, 2024, OMCC reported a net loss of $3.7 million, down from $8.9 million in the previous year. Operating expenses increased by 158% to $8 million, driven by restructuring costs and the transition of operations from Canada to the U.S. The company's balance sheet shows total assets of $80.3 million, with cash and cash equivalents rising to $29.5 million from $19 million at the end of March 2024.
| Financial Metric | Q2 2025 | Q2 2024 |
|---|---|---|
| Total Revenue | $2.96 million | - |
| Net Loss | $0.45 million | $10.5 million |
| Operating Expenses | $3.98 million | $1.6 million |
Management Commentary and Future Outlook
“The OMCC Management Team is excited about the strong quarterly performance from Amplex. Amplex contributed nearly $3 million in revenue and $410 thousand of income for the quarter. A large opportunity set for future projects will allow for continued growth and increased contributions to OMCC’s bottom line. In addition to Amplex, the OMCC Management Team is focused on reducing operating expenses and finding additional investment opportunities that are accretive to shareholder value,” commented Jeffrey Royal, CEO of Old Market Capital.
Analysis and Conclusion
Old Market Capital Corp's strategic shift and restructuring efforts are beginning to show positive results, as evidenced by the narrowed losses and contributions from Amplex Electric. The company's focus on broadband services and potential future acquisitions could provide significant growth opportunities. However, the increased operating expenses and restructuring costs remain a challenge that the company needs to manage effectively to ensure long-term profitability and shareholder value.
Explore the complete 8-K earnings release (here) from Old Market Capital Corp for further details.
