N-30B-2 1 cfnb25q3report.htm CFNB 2025 Q3 INTERIM REPORT cfnb25q3report.htm - Generated by SEC Publisher for SEC Filing

 

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California First Leasing Corporation

 

Interim Report to Shareholders

Third Quarter and Nine Months Ended March 31, 2025

 

California First Leasing Corporation, (OTCQX: CFNB, “Company”), headquartered in Newport Beach, California, is an internally managed non-diversified closed-end investment company registered under the Investment Company Act of 1940, as amended. The Company retains its lease business while using equity and other investments to maximize current income and generate capital appreciation.

 

This interim report for the quarter and nine months ended March 31, 2025, prepared by management without audit, provides an update to the annual report for the fiscal year ended June 30, 2024. Accordingly, it does not contain all the information required to meet annual or semiannual disclosure obligations and should be reviewed in conjunction with the annual report filed with the Securities and Exchange Commission and available on the Company’s website at https://www.calfirstlease.com/investor/. The Company’s quarterly earnings and net asset value per share can fluctuate widely due to including gains and losses on equity securities that are determined based on stock prices on the last day of a fiscal quarter. 

 

Selected Financial Data

 

(in thousands, except per share data)

Three Months Ended

  

Nine Months Ended

 

March 31,

  

March 31,

 

 

2025

  

 

2024

  

 

2025

   

 

2024

Dividend and interest income

$

1,258

 

$

1,299

 

$

3,758

 

$

4,149

Net realized gain (loss) on securities

  

8,319

   

(1,335)

    

7,790

   

(1,591)

Net change in unrealized appreciation (depreciation) in securities

 

(22,355)

    

27,881

   

(13,410)

    

39,882

    Investment Income (loss)

 

(12,779)

  

 

27,845

 

 

(1,861)

  

 

42,439

Lease Income

  

1,239

   

623

   

4,728

   

1,835

Operating expenses

  

565

   

678

   

2,007

   

2,054

Income taxes (benefit)

  

(3,496)

    

8,125

   

(360)

    

12,020

     Net Income (loss)

$

(8,609)

  

$

19,665

 

$

1,219

 

$

30,200

                       

Net asset value per share, beginning of period

$

27.12

 

$

23.99

 

$

26.07

 

$

22.61

    Net income (loss)

  

(0.92)

    

2.11

   

0.13

   

3.17

    Dividends paid

  

-

   

-

   

-

   

-

   Net gain on share repurchase

  

-

   

-

   

-

   

0.32

Net asset value per share, end of period

$

26.20

 

$

26.10

 

$

26.20

 

$

26.10

                       

Weighted common shares outstanding

 

9,309

   

9,309

    

9,309

   

9,533

Common shares outstanding, end of period

  

9,309

   

9,309

   

9,309

   

9,309

                       
 

March 31,

  

At June 30,

      

Balance Sheet Data

  

2025

    

2024

    

2024

      

Cash and cash equivalents

$

25,342

 

$

31,411

 

$

24,674

     

Equity securities

  

226,623

   

214,752

   

223,626

     

Lease and loan assets

  

8,502

   

13,983

   

12,309

     

Total assets

  

261,430

   

260,600

   

261,027

     

Shareholders' equity

$

243,878

 

$

243,014

 

$

242,659

     

 

Equity Investment Portfolio

 

(in thousands)

        

Unrealized

      
   

 

Cost Basis

  

 

Gains

  

 

(Losses)

    

FMV

as of March 31, 2025

                        

Commercial / Industrial

  

$

99,726

 

$

39,128

 

$

(4,344)

  

$

134,510

Consumer

    

23,177

   

3,644

   

(2,554)

    

24,267

Financial

 

 

22,744

 

 

12,546

 

 

(454)

 

 

34,836

Healthcare

    

18,715

   

4,524

   

(372)

    

22,867

Exchange-traded Funds

    

11,469

   

-

    

(1,325)

    

10,144

   

$

175,831

 

$

59,842

 

$

(9,049)

  

$

226,624

                         

as of June 30, 2024

                        

Commercial / Industrial

  

$

93,526

 

$

60,319

 

$

(2,760)

  

$

151,085

Consumer

    

28,423

   

2,289

   

(5,156)

    

25,556

Financial

    

22,493

   

8,205

   

(647)

    

30,051

Healthcare

    

14,983

   

3,947

   

(1,996)

    

16,934

   

$

159,425

 

$

74,760

 

$

(10,559)

  

$

223,626

 

 

5000 Birch Street, Suite 500, Newport Beach, California 92660

 

Phone: 800-496-4640    949-255-0500    www.calfirstlease.com

 

 

 

California First Leasing Corporation

               Interim Report as of March 31, 2024

 

 

Statement of Investments - March 31, 2025

  
             

Industry-- Percent of Net Assets

Company

  

Shares

  

Market Value

  
             

Common Stocks-- 88.77%

            

Auto & Truck Dealerships-- 1.29%

Lithia Mtrs Inc

  

10,759

$

3,158,197

 

Auto Parts-- 1.66%

Allison Transmission

  

42,290

 

4,045,884

 
             

Banks - Diversified-- 5.58%

Bank of America Corporation

  

117,500

 

4,903,275

 
 

JP Morgan Chase & Co

  

4,380

 

1,074,414

 
 

Wells Fargo & Co

  

106,400

 

7,638,456

 
         

13,616,145

 
             

Capital Markets-- 6.81%

Goldman Sachs

  

23,200

 

12,673,928

 
 

Credit Acceptance Corporation (1)

  

1,220

 

629,947

 
 

PayPal Holdings Inc (1)

  

50,750

 

3,311,438

 
         

16,615,313

 
             

Drug Manufacturers-- 3.32%

Bristol Myers Squibb

  

132,800

 

8,099,472

 

Engineering & Construction-- 1.04%

Comfort Systems USA Inc

  

7,860

 

2,533,514

 

Entertainment-- 1.01%

Netflix.com Inc. (1)

  

2,650

 

2,471,205

 

Footwear & Accessories-- 1.14%

On Holding AG (1)

  

63,100

 

2,771,352

 
             

Healthcare Plans-- 4.68%

The Cigna Group

  

30,710

 

10,103,590

 
 

United Health Group

  

2,489

 

1,303,614

 
         

11,407,204

 
             

Information Tech Services-- 1.95%

Cognizant Technology Solutions

  

32,799

 

2,509,124

 
 

Leidos Holdings Inc

  

16,681

 

2,250,934

 
         

4,760,058

 
             

Insurance - Diversified-- 0.73%

Berkshire Hathaway Inc (1)

  

3,364

 

1,791,599

 

Insurance - Reinsurance-- 1.15%

Everest Group LTD

  

7,740

 

2,812,174

 
             

Internet Content & Information-- 10.65%

Alphabet Inc.

  

105,100

 

16,252,664

 
 

Fiverr Intl LTD (1)

  

71,710

 

1,698,093

 
 

Meta Platforms Inc

  

13,907

 

8,015,439

 
         

25,966,195

 
             

Internet Retail-- 0.27%

Alibaba Grp Hldg

  

4,900

 

647,927

 

Medical Instruments & Supplies-- 1.38%

Align Technology Inc (1)

  

21,150

 

3,359,889

 

Oil & Gas E & P-- 2.81%

Ovintiv Inc.

  

159,925

 

6,844,790

 

Oil & Gas Equipment & Services-- 2.21%

Schlumberger LTD

  

129,000

 

5,392,200

 

Oil & Gas Integrated-- 7.84%

Exxon Mobil

  

160,800

 

19,123,944

 

Resorts & Casinos-- 0.96%

Vail Resorts Inc

  

14,648

 

2,343,973

 

Scientific & Technical Instruments-- 1.16%

Itron Inc (1)

  

26,950

 

2,823,282

 

Semiconductor Equip & Materials-- 5.52%

Applied Materials

  

92,836

 

13,472,360

 
             

Semiconductors-- 14.16%

Advanced Micro Devices Inc. (1)

  

42,100

 

4,325,354

 
 

Marvell Technology Inc

  

130,800

 

8,053,356

 
 

Micron Technology Inc

  

86,400

 

7,507,296

 
 

Qualcomm Inc

  

58,650

 

9,009,227

 
 

Taiwan Semiconductor Co

  

33,950

 

5,635,700

 
         

34,530,933

 
             

 

 

    

 

 

 

California First Leasing Corporation

               Interim Report as of March 31, 2024

 

 

 

 

 

 

 

 

 

 

Industry-- Percent of Net Assets

Company

  

Shares

  

Market Value

  
             

Software - Infrastructure-- 2.40%

Twilio Inc (1)

  

30,300

 

2,966,673

 
 

Zeta Global Holdings Corp (1)

  

213,000

 

2,888,280

 
         

5,854,953

 

 

 

 

 

 

 

 

Specialty Business Services-- 1.43%

Global Payments Inc.

  

35,650

 

3,490,848

 

Specialty Chemicals-- 1.65%

Dupont De Nemours

  

53,940

 

4,028,239

 
             

Telecom Services-- 4.39%

Charter Communications Inc (1)

  

7,657

 

2,821,834

 
 

Verizon Communications

  

173,750

 

7,881,300

 
         

10,703,134

 
             

Thermal Coal-- 0.67%

Core Nat Res Inc

  

21,300

 

1,642,230

 

Tobacco-- 0.89%

British American Tobacco

  

52,500

 

2,171,925

 
             
 

Total Common Stocks

    

$

216,478,938

 
             

Exchange Traded Funds-- 4.16%

            

Small-Cap Core-- 4.16%

iShares Russell 2000 ETF

  

29,705

 

5,925,850

 
 

SPDR® Portfolio S&P 600 Small Cap ETF

  

103,485

 

4,218,049

 
             
 

Total Exchange Traded Funds

    

$

10,143,899

 
             

Short-term investments-- 10.13%

            

Money Market Mutual Funds-- 10.13%

JP Morgan Prime Money Market 3605 (4.38%) *

  

16,771,317

 
 

Fidelity MM Treasury Portfolio (4.24%) *

  

7,942,435

 
             
 

Total Short-term Investments

    

$

24,713,751

 
             
 

Total Investments

    

$

251,336,589

 
             
 

Net Assets at March 31, 2025

    

$

243,878,332

 
             

(1) Non-income producing security

            

 * Rate is the annualized seven-day yield of the fund at period end.