Another solid report:
Maxcor Financial Group Inc. Confirms 2002 Second Quarter Net Income of $.25 Per Share
NEW YORK--(BUSINESS WIRE)--Aug. 12, 2002--Maxcor Financial Group Inc. (Nasdaq: MAXF - News)
Year-to-date Income is $.42 Per Share ADVERTISEMENT
Maxcor Posts Seventh Consecutive Quarter of Profitability
CEO and CFO Certify Maxcor's Form 10-Q SEC Filing
Maxcor Financial Group Inc. (Nasdaq: MAXF - News) today confirmed the previously announced estimate of its second quarter 2002 results.
For the period ending June 30, 2002, Maxcor achieved after-tax net income of $2.11 million, or $.25 per share. This marks the Company's seventh consecutive quarter of profitability and brings its total after-tax earnings for the first six months of 2002 to $3.48 million, or $.42 per share.
Substantially all of the 2002 second quarter results represented operating profits. The after-tax net income effect of non-recurring items was less than $50,000, reflecting the net effect of $552,000 in September 11th-related insurance proceeds recognized during the quarter, offset by $413,000 in direct expenses that were associated with the attacks.
Maxcor's New York-based brokerage operation, which was entirely rebuilt following September 11th events, continued its remarkable recovery, accounting for $23.8 million of 2Q 2002 revenues - up from $22.4 million in 1Q 2002 and $23.4 million for the same period last year.
On a world-wide basis, Maxcor reported that its 2Q 2002 revenues totaled $38.5 million, an improvement from 1Q 2002 revenues of $37.5 million, but down from 2Q 2001 revenues of $40.5 million. This primarily reflects a decrease in trading gains and the loss of income from the sale of brokerage information as a result of the bankruptcy of Telerate, Inc. The comparison period in 2001 was a record one for Maxcor, with operating income of $2.15 million and total net income of $2.72 million (inclusive of a one-time gain associated with Maxcor's sale of its equity interest in Yagi Euro Nittan).
As of June 30, 2002, Maxcor's book value per share had increased to $5.35, up 25% from $4.29 a year ago. The Company noted that it did not undertake any share repurchases in the first six months of 2002, although it has repurchased 141,300 shares to date in the third quarter. Currently, the Company has remaining share repurchase authorization for up to 844,700 shares.
For a fuller discussion of its 2002 second quarter performance, Maxcor is referring investors to its quarterly report on Form 10-Q for the quarterly period ended June 30, 2002, which is being filed today with the Securities and Exchange Commission (www.sec.gov). In connection with the filing, Maxcor's Chief Executive Officer and Chief Financial Officer are each separately providing the SEC with the certifications contemplated by the recently passed Sarbanes-Oxley Act of 2002. The certifications provide, among other things, that the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Maxcor.
Maxcor Financial Group Inc. (www.maxf.com), through its various Euro Brokers entities, is a leading domestic and international inter-dealer brokerage firm specializing in interest rate and other derivatives, emerging market debt products, cash deposits and other money market instruments, U.S. Treasury and federal agency bonds and repurchase agreements, and other fixed income securities. Maxcor Financial Inc., the Company's U.S. registered broker-dealer subsidiary, also conducts institutional sales and trading operations in municipal bonds and high-yield and distressed debt. The Company employs approximately 500 persons worldwide and maintains principal offices in New York, London and Tokyo.
This release contains certain "forward-looking" statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Wherever possible, the Company has identified these forward-looking statements by words such as "believes," "anticipates," "expects," "intends" and similar phrases. Such forward-looking statements, which describe the Company's current beliefs concerning future business conditions and the outlook for the Company, are subject to significant uncertainties, many of which are beyond the control of the Company. Actual results or performance could differ materially from that expected by the Company. Uncertainties include factors such as market and economic conditions, the ability of the New York financial community, in general, and the Company, specifically, to recover from the World Trade Center terrorist attacks, the effects of any additional terrorist acts and governments' military and other responses to them, the scope of recoveries from insurers, the success of technology development and deployment, the status of relationships with employees, clients, business partners, vendors and clearing firms, possible third-party litigations or other unanticipated contingencies, the actions of competitors, and government regulatory changes. Reference is made to the "Cautionary Statements" section of the Company's 2001 Annual Report on Form 10-K and to the Company's subsequent filings with the Securities and Exchange Commission for a fuller description of these and additional uncertainties. The forward-looking statements made herein are only made as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
MAXCOR FINANCIAL GROUP INC.
Selected Financial Data
For the Three For the Three
Months Ended Months Ended
June 30, June 30,
2002 2001
(unaudited) (unaudited)
Total revenue $ 38,505,003 $ 40,528,176
Net income $ 2,109,410(1) $ 2,718,919(2)
Basic earnings per share $ 0.28 $ 0.36
Diluted earnings per share $ 0.25 $ 0.35
Weighted average common
shares outstanding: basic 7,472,870 7,525,809
Weighted average common
shares outstanding: diluted 8,447,869 7,781,977
For the Six Months For the Six
Ended Months Ended
June 30, June 30,
2002 2001
(unaudited) (unaudited)
Total revenue $ 76,023,216 $ 81,419,809
Net income $ 3,476,609(3) $ 5,063,201(4)
Basic earnings per share $ 0.48 $ 0.66
Diluted earnings per share $ 0.42 $ 0.66
Weighted average common
shares outstanding: basic 7,250,861 7,675,032
Weighted average common
shares outstanding: diluted 8,217,732 7,683,732
1 Reflects a positive net income effect of $46,000 from the net
effect during the quarter of (i) $186,000 in September 11th
related insurance proceeds recognized as revenues ($71,000
after tax and minority interest) and (ii) an additional
$366,000 in September 11th related insurance proceeds
recognized as an offset to direct expenses of $413,000
associated with the attacks (a net charge of $25,000 after
tax).
2 Includes non-recurring items aggregating to a net benefit of
$568,000, comprised of a gain of $390,000 realized on the
Company's sale of its 15% equity interest in the Tokyo-based
company, Yagi Euro Nittan, and a gain of $222,000 related to
the reduction of an occupancy-related accrual, offset in part
by a charge of $44,000 associated with goodwill amortization
from the Company's August 2000 acquisition of Tradesoft
Technologies, Inc.
3 Reflects a negative net income effect of $208,000 from the net
effect during the six-month period of (i) $186,000 in
September 11th related insurance proceeds recognized as
revenues ($71,000 after tax and minority interest) and (ii) an
additional $1,141,000 in September 11th related insurance
proceeds recognized as an offset to direct expenses of
$1,659,000 associated with the attacks (a net charge of
$279,000 after tax).
4 Includes non-recurring items aggregating to a net benefit of
$523,000, comprised of the items described in footnote 2
above, plus an additional first quarter goodwill amortization
charge related to Tradesoft of $44,000.
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Contact:
Media:
Michelle Jordan, 714/435-0678
cell: 949/632-7848
jordanllc@earthlink.net
or
Maxcor
Roger Schwed, 212/748-7000 |
