lmfa-ex991

(Unless stated otherwise, all first quarter 2018 comparisons are relative to the first quarter of 2017)

TAMPA, Fla., May 14, 2018 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) (NASDAQ:LMFAW), a technology based specialty finance company offering unique funding solutions to community associations, today announced its results for the first quarter ended March 31, 2018.

Staff costs and payroll reductions saved $111,000. Additional expense savings resulted from eliminating $103,000 in marketing costs that were incurred in the first quarter of 2017 and reducing professional fees related to litigation from $267,000 in first quarter of 2017 to $61,000 for the first quarter of 2018 for a savings of $206,000. Settlement costs with associations and collection costs decreased $97,000 during the quarter.

“At the end of 2017 and first quarter of 2018, we eliminated interest expense and decreased payroll costs,” said Bruce Rodgers, LM Funding’s Chief Executive Officer. “In addition, we experienced some positive litigation developments which decreased expenses for professional fees and we realized improved revenues from our rental properties. These factors contributed to the overall positive financial direction of the Company for the first quarter of 2018,” Rodgers said.

LM Funding America, Inc., together with its subsidiaries, is a technology based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado and Illinois. The company offers funding to Associations by purchasing a certain portion of the associations’ rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association’s financial needs, including under its New Neighbor Guaranty™ program. The company was founded in 2008 and is based in Tampa, Florida. The company's common shares and warrants trade on the NASDAQ Capital Market under the symbols "LMFA" and "LMFAW”.

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company’s filings with the SEC. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company’s business, financial condition, and results of operations.

LM Funding America, Inc. and Subsidiaries Condensed Consolidated Statements of Operations
Three and Three Months Ended March 31, 2018 and 2017 (unaudited)


	March 31,
	2018			2017
Revenues:
Interest on delinquent association fees	$	550,862		$	691,648
Administrative and late fees		68,328			78,035
Recoveries in excess of cost - special product		67,537			20,939
Underwriting and other revenues		54,561			68,729
Rental revenue		222,445			164,605
Total revenues		963,733			1,023,956

Operating Expenses:
Staff costs and payroll		402,283			513,221
Professional fees		60,942			266,650
Settlement costs with associations		15,712			65,485
Selling, general and administrative		346,713			490,677
Provision for credit losses		581			-
Real estate management and disposal		119,362			130,120
Depreciation and amortization		22,155			15,438
Collection costs		602			48,094
Other operating expenses		4,301			3,072
Total operating expenses		972,651			1,532,757
Operating loss		(8,918	)		(508,801	)
Interest expense		-			126,612
Loss before income taxes		(8,918	)		(635,413	)
Income tax benefit		-			(232,512	)
Net loss	$	(8,918	)	$	(402,901	)

Loss per share:
Basic	$	(0.00	)	$	(0.12	)
Diluted		(0.00	)		(0.12	)
Weighted average number of common shares outstanding:
Basic		6,253,189			3,300,000
Diluted		6,253,189			3,300,000

LM Funding America, Inc. and Subsidiaries Condensed Consolidated Balance Sheets
March 31, 2018 (unaudited) and December 31, 2017

	March 31, 2018			December 31, 2017
	(Unaudited)
ASSETS
Cash	$	464,908		$	590,394
Finance receivables:
Original product - net (Note 2)		575,673			637,937
Special product - New Neighbor Guaranty program - net (Note 3)		338,360			339,471
Prepaid expenses and other assets		121,282			101,339
Fixed assets, net (Note 1)		58,672			69,505
Real estate assets owned (Note 1)		184,300			196,707
Other Assets		62,964			32,964
Total assets	$	1,806,159		$	1,968,317

LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable (Note 5)
Principal amount	$	15,611		$	39,028
Accounts payable and accrued expenses		338,834			477,953
Due to related party (Note 4)		27,480			-
Accrued loss litigation settlement		505,000			505,000
Other liabilities and obligations		31,709			49,353
Total liabilities		918,634			1,071,334
Stockholders’ equity:
Common stock, par value $.001; 10,000,000 shares authorized; 6,253,189 shares issued and outstanding		6,253			6,253
Additional paid-in capital		11,907,915			11,908,455
Accumulated deficit		(11,026,643	)		(11,017,725	)
Total stockholders’ equity		887,525			896,983
Total liabilities and stockholders’ equity	$	1,806,159		$	1,968,317

LM Funding America, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31, 2018 and 2017 (unaudited)

	Years ended March 31,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(8,918	)	$	(402,901	)
Adjustments to reconcile net loss to cash used in operating activities
Depreciation and amortization		22,155			15,438
Stock Compensation		(540	)		10,722
Amortization of debt issuance costs		-			24,641
Change in assets and liabilities
Accounts Receivable		(1,408	)		2,965
Prepaid Expenses		(18,532	)		(8,534	)
Other Assets		-			(880	)
Accounts Payable		3,916			10,709
Accrued Expenses		(143,035	)		(159,152	)
Advances (repayments) to related party		27,480			(48,365	)
Other Liabilities		(17,644	)		(5,230	)
Deferred taxes		-			(232,512	)
Net cash used in operating activities		(136,526	)		(793,099	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections of finance receivables - original product		62,264			33,163
Net collections of finance receivables - special product		1,108			46,796
Capital expenditures		-			(773	)
Proceeds for real estate assets owned		1,085			20,518
Net cash provided by investing activities		64,457			99,704
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayments		(23,417	)		(180,000	)
Debt issue costs		(30,000	)		-
Net cash used in financing activities		(53,417	)		(180,000	)

NET INCREASE (DECREASE) IN CASH		(125,486	)		(873,395	)
CASH - BEGINNING OF YEAR		590,394			2,268,180
CASH - END OF YEAR	$	464,908		$	1,394,785

SUPPLEMENTAL DISCLOSURES OF CASHFLOWINFORMATION
Cash paid for interest	$	-		$	101,971
Income tax	$	-		$	-