JB Oxford Reports Strong Third Quarter Results <JBOH.O>
JB Oxford Reports Strong Third Quarter Results
Highlights
-- Year-over-year revenue and net income comparisons highly favorable
-- Company launches JB Oxford n*power account featuring free, unlimited
Internet access in addition to integrated brokerage and banking
services
-- Redesigned web site offers enhanced functionality and greater ease of
use
LOS ANGELES, Nov. 15 /PRNewswire/ -- JB Oxford Holdings, Inc.
(Nasdaq: JBOH), a provider of discount and Internet brokerage services to
clients nationwide, reported revenues of $22.9 million for the third quarter
ended Sept. 30, 1999, representing a 50% increase over revenues of
$15.3 million for the third quarter ended Sept. 30, 1998. Pretax income was
$5.0 million for the 1999 third quarter, compared with a pretax loss of
$982,000 for the 1998 third quarter. Net income for the 1999 third quarter
was $2.8 million, or $0.20 and $0.12 per basic and diluted share,
respectively, compared to a net loss of $604,000, or ($0.04) per basic and
diluted share, for the 1998 third quarter.
For the nine months ended Sept. 30, 1999, revenues totaled $72.8 million,
up more than 52% over revenues of $47.8 million in the first nine months of
1998. Pretax income for the first nine months of 1999 was $18.4 million,
compared with a loss before taxes of $4.2 million in the first nine months of
1998. In the first quarter of 1999, the company reported a one-time gain of
$436,875 for income from the forgiveness of debt. Net income for the first
nine months of 1999 totaled $10.9 million, or $0.76 and $0.45 per basic and
diluted share, respectively, versus a net loss of $3.5 million, or ($0.25) per
basic and diluted share, in the first nine months of 1998.
"During the quarter we made excellent progress on all fronts, as our
strong third quarter results demonstrate," said JB Oxford Holdings Chairman
and Chief Executive Officer C.L. Jarratt. "Most important, we launched
several strategic initiatives aimed at providing value-added services to our
customers while strengthening our position in the marketplace."
"We achieved a number of significant milestones over the last three months
while continuing to maintain operating efficiencies to maximize
profitability," said JB Oxford Holdings President and Chief Operating Officer
Jamie Lewis. "JB Oxford's newly redesigned web site provides customers with
both enhanced functionality, including comprehensive market information and
expanded company news and research, and unique new features like online,
real-time access to our representatives. These additions, some of which JB
Oxford is among the first to offer, demonstrate our ongoing commitment to
providing the highest possible levels of customer support.
"Perhaps the most exciting event this quarter was the launch of the
JB Oxford n*power account, a one of a kind account that truly makes it easy
for consumers to manage their money," Mr. Lewis said. "This revolutionary
package provides customers with a one-stop, online shop to manage their
personal finances, along with unlimited Internet access. The package is free
to all JB Oxford n*power account holders who maintain a $2,000 cash balance
and is the first to combine comprehensive, online financial management tools
with free access to the Internet. Our new, enhanced site and the
revolutionary JB Oxford n*power account have significantly raised the
company's profile among our customers, our shareholders and the public at
large. The JB Oxford n*power account clearly differentiates us in the
market."
"Shortly after the end of the quarter we rolled out a nationwide,
multimedia advertising campaign designed to drive traffic to our web site and
build consumer awareness of JB Oxford," Mr. Jarratt said. "The ads, which air
during prime time on key cable channels and all six network stations in the
country's largest markets, emphasize JB Oxford's free Internet access and the
firm's brokerage and banking services while encouraging consumers to 'Put Your
Money to Work.' During the current quarter we will spend about $10 million on
the campaign, which will have a significant impact on our fourth quarter
results, and as a result we anticipate that the company will post a loss for
the quarter. Although our near-term results will be affected, we believe
advertising is an important and warranted expense that is essential to
building JB Oxford for the long-term.
"We are diligently focused on offering innovative, cutting-edge solutions
that consumers won't find anywhere else," Mr. Jarratt said.
JB Oxford & Company, a subsidiary of JB Oxford Holdings, Inc.
(Nasdaq: JBOH), provides discount brokerage services with optional access to
personal brokers, electronic banking services, and free Internet access all in
one friendly place. The company's one-stop financial destination at
jboxford.com was developed to be the easiest, most complete way for
consumers to manage their money. The site features online trading, online
bill payment, robust stock screening and portfolio tracking tools as well as
up-to-the-minute market commentary and research from the world's leading
content providers. JB Oxford has branches in New York, Miami and Los Angeles.
This press release contains statements that are forward-looking and
comments on market conditions, revenue growth, expense management, and
outlook. Any number of conditions may occur which would affect important
factors in this analysis and materially change expectations. These factors
include, but are not limited to, known and unknown risks, customer trading
activity, changes in technology, shifts in competitive patterns, decisions
with regard to products and services, changes in revenues and profits, and
significant changes in the market environment.
JB Oxford Holdings, Inc.
SELECTED STATEMENTS OF OPERATIONS
For the three months For the nine months
ended September 30, ended September 30,
1999 1998 1999 1998
Total revenues $22,914,635 $15,309,741 $72,780,080 $47,831,773
Income (loss)
before taxes
and extraordinary
item 5,039,715 (981,831) 18,402,910 (4,157,335)
Extraordinary item -- -- 436,875 --
Net income (loss) $2,820,615 $(603,831) $10,870,685 $(3,529,335)
Basic earnings
(loss) per share $0.20 $(0.04) $0.76 $(0.25)
Basic shares
outstanding 14,376,604 14,141,205 14,265,949 14,141,205
Diluted earnings
(loss) per share(A) $0.12 $(0.04) $0.45 $(0.25)
Diluted shares
outstanding(A) 24,554,370 14,141,205 24,628,482 14,141,205
(A) Common stock equivalents have been excluded for the third quarter of
1998, as inclusion would reduce the loss per share or be
antidilutive.
SOURCE JB Oxford Holdings, Inc.
-0- 11/15/1999
/CONTACT: General Inquiries, Laurie Berman, Investor Inquiries, Jill
Fukuhara, or Media Inquiries, Marjorie Ornston, all of The Financial Relations
Board, 310-442-0599/
/Web site: jboxford.com /
-- CGM046 --
4324 11/15/1999 07:00 EST prnewswire.com
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