Here's the report.... Notice book value is listed as $21.60 per share.
DALLAS, July 29 /PRNewswire/ -- Southwest Securities Group, Inc. (NYSE: SWS) today announced record revenues and earnings for the fourth consecutive fiscal year.
Fiscal year 1999 revenues increased 18 percent to $337.3 million from $285.8 million, and net income increased 27 percent to $26.2 million from $20.6 million in the prior fiscal year. Basic earnings per share increased 27 percent to $2.23 from $1.76, and diluted earnings per share increased 26 percent to $2.21 from $1.75.
For the fourth quarter ended June 25, 1999, revenues increased 17 percent to $94.7 million from $81.2 million, and net income increased 47 percent to $7.9 million from $5.3 million in the fourth quarter last year. Basic earnings per share increased 49 percent to $0.67 from $0.45, and diluted earnings per share increased 47 percent to $0.66 from $0.45. SWS will distribute a 10 percent stock dividend on Aug. 2, 1999 to shareholders of record as of July 15, 1999. The earnings per share numbers were adjusted to reflect the stock dividend.
"Our financial results continue on track," said David Glatstein, president and chief executive officer. "We are especially gratified by the company's performance given the large sums we have expended on technology."
Mr. Glatstein said the conversion to Comprehensive Software Systems(TM) (CSS(TM)) software continues to go well and is almost complete. CSS is a modular, front-to-back office system designed to run all aspects of a securities firm -- from placing orders, to managing accounts, to processing transactions.
"CSS gives us a powerful order entry system for both customers and brokers, the ability to provide online, real-time account updates, and much greater transaction processing capacity," Mr. Glatstein said.
For fiscal 1999, Southwest Securities processed 22.4 million securities transactions compared with 6.8 million in fiscal 1998. For the June 1999 quarter, Southwest processed 8.5 million securities transactions compared with 2.3 million in June quarter of 1998. "Our ability to handle this large increase in transaction volume is directly related to the implementation of CSS," Mr. Glatstein said. He noted that the CSS database is designed for a multi-currency system and allows for 24-hour trading.
Mydiscountbroker.com, Southwest's on-line investing subsidiary, has distributed the CSS InvestorView(TM) software free of charge to all of its customers on a compact disk. In addition, Mydiscountbroker.com rolled out enhanced capabilities to online investors through its Internet Web site this week. The site now delivers much of InvestorView's functionality -- including real-time account updates -- through the customer's Internet browser without requiring any software installation.
"Mydiscountbroker.com is developing according to plan," Mr. Glatstein said. He noted that the on-line brokerage subsidiary will introduce its new advertising campaign at the end of August, including a heavy national schedule on CNBC-TV supplemented by print and Internet placements.
Fiscal year net revenues increased $52.3 million, or 28 percent. Higher transaction volume produced an increase in revenues from clearing operations of $13.5 million, or 51 percent. Net gains on principal transactions increased $29.1 million, or 231 percent, as a result of increased focus on equity trading operations.
For the year, operating expenses, other than variable compensation expenses, increased $26.4 million, as the company continued its intensive upgrade of its technology infrastructure, installation of the CSS system and expansion of its business units.
Fourth quarter net revenues increased $12.5 million, or 23 percent. Revenues from clearing operations increased $4.8 million, or 66 percent. Net gains on principal transactions increased $8.2 million or 208 percent. Other income decreased $3.6 million, or 50 percent, due to one-time gains in the fourth quarter of fiscal 1998 related to the company's investment in Roundtable Partners, the predecessor to Knight/Trimark Group, Inc. (Nasdaq: NITE). Fourth quarter operating expenses, excluding variable compensation, increased $4.8 million, primarily to upgrade technology and expand securities-related business units.
Tangible book value per share, including the company's investment in the common stock of NITE, increased 115 percent to $21.60 from $10.04 in the same quarter a year ago. Tangible book value excluding NITE is $12.11. Return on equity, excluding the NITE investment, was 22 percent for the quarter.
Southwest Securities Group, Inc. is a Dallas-based holding company that offers a broad range of investment and financial services through its subsidiaries. The company's wholly owned subsidiaries include Southwest Securities, Inc. (www.southwestsecurities.com), Mydiscountbroker.com (www.mydiscountbroker.com), SWS Financial Services (www.swsfinancial.com), NorAm Investment Services, Westwood Management Corporation and Westwood Trust (www.westwoodgroup.com), SW Capital Corporation (www.logic.org), and SWS Technologies Corporation (www.swstechnologies.com). Southwest Securities Group common stock is listed and traded on the New York Stock Exchange under the symbol, SWS.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any forward-looking statements, including those regarding intent, belief or current expectations of the company or its management, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially form those in the forward-looking statements as a result of various factors, including, but not limited to, general economic conditions and competitive pressures in the markets in which the company operates, regulatory changes, one-time events and other risks detailed from time to time in the company's Securities and Exchange Commission filings.
Southwest Securities Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 25, 1999 and June 26, 1998
(In thousands, except par values and share amounts)
1999 1998
Assets
Cash $ 11,334 $13,706
Assets segregated for regulatory purposes 225,736 130,728
Marketable equity securities 172,928 ---
Receivable from brokers, dealers
and clearing organizations 3,088,005 2,365,635
Receivable from clients, net 679,652 648,464
Securities owned, at market value 74,486 32,144
Other assets 41,133 29,429
Total assets $4,293,274 $3,220,106
Liabilities and Stockholders' Equity
Short-term borrowings $2,700 $---
Payable to brokers, dealers and
clearing organizations 3,000,096 2,293,731
Payable to clients 812,559 720,813
Securities sold, not yet purchased 24,350 1,662
Drafts payable 37,013 41,688
Other liabilities 104,222 36,745
Long term debt 50,000 ---
Total liabilities 4,030,940 3,094,639
Minority interest in consolidated subsidiary 50 ---
Stockholders' equity:
Preferred stock of $1.00 par value.
Authorized 100,000 shares; none issued --- ---
Common stock of $.10 par value.
Authorized 20,000,000 shares;
issued and outstanding 11,805,925 shares
in 1999; issued 11,756,341 and outstanding
11,746,247 shares in 1998. 1,180 1,069
Additional paid-in capital 127,092 69,462
Accumulated other comprehensive
income -- unrealized holding gain, net
of tax 112,123 ---
Retained earnings 21,896 55,022
Receivable from employees under the Employee
Stock Purchase Plan (7) (12)
Treasury stock (9,177 shares, at cost,
in 1998) --- (74)
Total stockholders' equity 262,284 125,467
Commitments and contingencies
Total liabilities and stockholders'
equity $4,293,274 $3,220,106
Southwest Securities Group, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months and fiscal years ended June 25, 1999 and June 26, 1998 (In thousands, except share and per share amounts)
Three Months Ended Fiscal Years Ended 1999 1998 1999 1998
Net revenues from clearing
operations $12,088 $ 7,283 $40,118 $26,607
Commissions 18,102 15,356 65,048 59,401
Interest 40,720 38,383 147,006 143,121
Investment banking, advisory
and administrative fees 7,907 8,779 29,100 27,850
Net gains on principal
transactions 12,181 3,951 41,689 12,576
Other 3,737 7,404 14,309 16,203
Total revenue 94,735 81,156 337,270 285,758
Commissions and other employee
compensation 34,423 26,939 124,691 91,817
Interest 28,215 27,105 99,951 100,704
Occupancy, equipment and
computer service costs 6,194 5,082 21,343 17,663
Communications 3,970 3,433 13,738 12,509
Floor brokerage and clearing
organization charges 1,738 1,400 6,129 5,124
Other 8,088 8,858 30,898 26,043
Total expenses 82,628 72,817 296,750 253,860
Income before income taxes 12,107 8,339 40,520 31,898
Income taxes 4,246 3,007 14,301 11,268
Net income 7,861 5,332 26,219 20,630
Other comprehensive income
-- unrealized holding gains
arising during period, net
of tax 50,487 --- 112,123 ---
Comprehensive income $58,348 $ 5,332 $138,342 $20,630
Earnings per share
-- basic $.67 $.45 $2.23 $1.76
Earnings per share
-- diluted $.66 $.45 $2.21 $1.75
Weighted average shares
outstanding -- basic 11,793,857 11,746,788 11,766,377 11,743,228
Weighted average shares
outstanding -- diluted 11,972,259 11,772,340 11,838,723 11,763,605
SOURCE Southwest Securities Group, Inc.
/CONTACT: Jim Bowman, Vice President - Corporate Communications of
Southwest Securities Group, Inc., 214-658-9335/
/Photo: newscom.com
newscom.com
PR Newswire Photo Desk, 888-776-6555 or 201-369-3467
/Web site: mydiscountbroker.com
/Web site: swsfinancial.com
/Web site: westwoodgroup.com
/Web site: logic.org
/Web site: swstechnologies.com
/Web site: southwestsecurities.com
(SWS NITE)
|
