Matt, What issue is the article in? Can you post a link? How
about a short summary?
I am sure most folks have seen yesterday's earnings release, but
I'll post it anyway. A small loss, about what expected.
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JB Oxford Announces Positive Earnings for 1997 Despite Fourth Quarter Loss
PR Newswire, Thursday, March 19, 1998 at 13:51
Marketing Efforts Focused on Adding New Clearing Correspondents
and Boosting Discounts Business
BEVERLY HILLS, Calif., March 19 /PRNewswire/ -- JB Oxford Holdings, Inc.
(NASDAQ:JBOH) today announced positive earnings for the year ended
December 31, 1997 despite a net loss for the fourth quarter. Net income for
the year ended December 31, 1997 was $1,523,000 or basic earnings per share of
$0.12 and $0.09 per share diluted. This compares with net income of
$4,040,000 for 1996 or basic earnings per share of $0.44 and $0.23 per share
diluted. Total revenues for the year were $69,975,000 as compared with
$57,599,000 for 1996, an increase of 21.5%.
For the fourth quarter, JBOH had a net loss of $734,000 or $0.05 per share
on both a basic and diluted basis. Results from the comparable quarter in
1996 were net income of $818,000 or $0.09 per share basic and $0.05 per share
diluted. Revenues for the fourth quarter were $16,114,000 as compared with
$14,154,000 for the comparable quarter in 1996 and $20,027,000 for the
trailing quarter of 1997.
The Company said that earnings for the full year 1997 and/or the fourth
quarter were down for several reasons. They included:
-- A previously announced one-time settlement of a litigation matter that
negatively affected earnings for both the second and third quarters by a
combined $1.2 million after tax.
-- Revenue for the fourth quarter that was down from the trailing third
quarter due to the Company not renewing the contract of a large correspondent
and the loss of some additional clearing and discount customer business due to
the negative publicity surrounding on-going investigations by the Federal
authorities announced in August.
-- A general pause in investor activity in November and December that more
than offset discount and clearing trading volume gains in October.
-- Losses associated with certain security positions of approximately $1.4
million after tax, $400,000 of which occurred in the fourth quarter.
The Company said that clearing revenues declined $2.65 million in the
fourth quarter accounting for about two-thirds of the total revenue decline of
$3.91 million for the quarter. Discount commissions decreased in the fourth
quarter by about $892,000. These decreases were offset, in part, by an
increase in trading profits of $849,000. During the fourth quarter, operating
expenses decreased by $1.21 million, partially offsetting the decline in
revenues.
At the same time, the Company announced that it is considering several
alternatives for increasing the capital base of its JB Oxford & Company (JBOC)
operating subsidiary in order to further expand its current clearing and
discount businesses. On the clearing side, the Company said it anticipates
that extensive new marketing efforts will boost revenues in the short term by
adding new correspondents. The Company said acquiring new correspondents is
relatively inexpensive as the infrastructure and capacity needed for this
added business is already in place.
On the discount side, the Company launched a new TV campaign in early 1998
to attract discount investors, has enhanced its product mix in several areas
and is now offering third party and proprietary research to customers.
Product enhancements include an expanded menu of mutual funds, fixed income
and annuity products. These actions, coupled with a general increase in
investor activity, have already produced higher commission levels in all
branch offices during January and February of the new fiscal year than in the
fourth quarter, the Company said.
The Company also continues to enhance its on-line trading capabilities.
JBOC introduced artificial intelligence software in early 1998 that enables
the JBOC on-line system to handle increased transactions while eliminating
some personnel and other costs. New advertising for this division will
commence in the second quarter of 1998, the Company said.
JB Oxford Holdings, through its wholly-owned subsidiary, JBOC, engages in
the discount brokerage and corespondent clearing businesses. In addition to
its Beverly Hills headquarters, the Company has branches in New York,
California, Texas, Massachusetts, Florida and Basel, Switzerland.
JB Oxford Holdings, Inc.
Statements of Earnings
3 Months 12 Months
12/31/97 12/31/96 12/31/97 12/31/96
Total revenues 16,114,000 14,154,000 69,975,000 57,599,000
Net income (loss)
after tax (734,000) 818,000 1,523,000 4,040,000
Basic earnings (loss)
per share ($0.05) $0.09 $0.12 $0.44
Average shares
outstanding 14,141,205 8,753,248 12,334,517 8,704,235
Diluted earnings
per share ($0.05) $0.05 $0.09 $0.23
Average shares
outstanding 18,574,555 18,166,767 18,746,264 18,377,812
1996 per share amounts restated to comply with the requirements of SFAS
128.
SOURCE JB Oxford Holdings, Inc.
-0- 03/19/98
/CONTACT: Michael Kolbenschlag or James Bourne of Sitrick And Company,
Inc., 310-788-2850/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 566035/ |
