Old Market Capital (OMCC) Q2 2025 earnings summary

Executive summary

• Completed sale of consumer finance receivables and assets to Westlake Financial, marking a strategic shift from consumer finance to telecommunications through the acquisition of Amplex Electric Inc., a broadband provider in Ohio.

• Acquired 51% of Amplex for $18.4 million in June 2024, increasing ownership to 56.5% through additional share purchases and loan conversion.

• Company rebranded from Nicholas Financial, Inc. to Old Market Capital Corporation and redomesticated from Canada to Delaware.

• Amplex contributed $3 million in revenue and $410,000 in income during Q2 FY25; management anticipates further growth from Amplex and new investments.

• Net loss attributable to common shareholders was $0.45 million for Q2 FY25, a significant improvement from $10.5 million loss in Q2 FY24.

Financial highlights

• Revenue from continuing operations was $3.0 million for the quarter and $3.4 million for the six months ended September 30, 2024, compared to $0 in the prior year periods due to the Amplex acquisition.

• Net loss for Q2 FY25 was $0.45 million, compared to $10.5 million in Q2 FY24; six-month net loss was $3.7 million, down from $8.9 million year-over-year.

• Discontinued operations generated net income of $0.8 million for the quarter and $2.9 million for the six months, compared to losses of $8.8 million and $5.8 million in the prior year.

• Operating expenses rose 147.5% year-over-year to $4.0 million in Q2 FY25, mainly due to restructuring and acquisition costs.

• Cash and cash equivalents increased to $29.5 million as of September 30, 2024, from $19.0 million at March 31, 2024.

Outlook and guidance

• Management expects continued growth from Amplex and is seeking additional accretive investments.

• Company intends to explore strategic alternatives for the use of net proceeds from the asset sale, including potential acquisitions and investments outside its traditional business.

• Focus remains on reducing operating expenses and leveraging new opportunities in broadband and other sectors.

• Amplex received approval for a $21.3 million USDA/RUS loan to finance rural broadband infrastructure, with a five-year draw period and favorable interest terms.