EVIS>>>>>>TOTAL REVENUES UP 27%,, BROKERAGE REVENUE UP 97%
online brokers were upgraded today... so watch out tomorrow...
EVIS has an online bank and a online brokerage....
all for $1.00 low float to boot
ebankerusa.com
ebrokerusa.com
By: BOON
Reply To: None
Monday, 10 May 1999 at 7:19 PM EDT
Post # of 58
READ BELOW!!! EVIS FULLY REPORTING ISSUES #'S
May 10, 1999
EVISION USA COM INC (EVIS)
Quarterly Report (SEC form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1999 COMPARED TO SIX MONTHS ENDED MARCH 31, 1998.
Revenues for the six months ended March 31, 1999 were $18,180,068, an increase of $3,939,089 or 27.7% over the
revenues of $14,240,979 for the six months ended March 31, 1998. The increase primarily relates to increased brokerage
commissions of $2,822,928; an increase in trading profits of $586,743; increased other broker/dealer revenues of $563,171;
earnings on investments in debt securities of $760,347 and $333,916 of unrealized gain on investments in equity securities,
offset by a decrease in investment banking activity of $1,021,730.
The increase in brokerage commissions of $2,822,928 is due primarily to an increase in trading activity. Customer
transactions increased approximately 96% for the six months ended March 31, 1999 compared to the six months ended
March 31, 1998. This was partially offset by a decrease in the average commission per transaction ticket of 16%. The primary
reasons for the increased activity were general market conditions and positive results from the Company's research
recommendations that were acted upon by customers. In addition, branch offices opened during the six months ended March
31, 1998 were open for the entire six month period in the current year.
Trading profits increased $586,743 due primarily to general market conditions and positive results from the Company's
research recommendations that were acted upon by customers as well as increases in the Company's positions in securities
in which the Company makes a market.
Other broker/dealer revenues increased partly due to commissions earned from loans to Global Med Technologies, Inc., for
which AFFC earns a commission. Additionally, the increase in transaction revenue from customers is reflected in this line
item. This increase is directly correlated to the increase in trading activity described above.
Computer hardware and software revenues for the six months ended March 31, 1999 were fairly consistent at $4,946,664, a
$141,158 or 2.8% decrease from the revenues of $5,087,822 for the six months ended March 31, 1998.
During the six months ended March 31, 1999, the Company invested, through its subsidiary, eBanker, in debt securities of
various corporations, which are traded on foreign stock exchanges. The debt securities carry a premium redemption value
over the face amount of each security. If the security is
held-to-maturity, the Company will receive a guaranteed premium, above the face value. The purchase discount and the
premium for holding each security to maturity are being accreted to interest income over the remaining life of the security.
Interest income on the investments in debt securities for the six months ended March 31, 1999 was $760,347.
A portion of the proceeds of the $4,000,000 convertible debenture purchased by Heng Fung Private in December 1997 was
used to purchase approximately 116,430,000 shares of the common stock of Heng Fung Holdings in open market
transactions on the Hong Kong Stock Exchange at an average price of approximately $0.02 per share. For the six months
ended March 31, 1999, the Company had recognized an unrealized gain of $333,916 on the investment in Heng Fung
Holdings.
Investment banking revenues of $536,244 for the six months ended March 31, 1999 decreased $1,021,730 from the six
months ended March 31, 1998 due primarily to the decreased participation in corporate finance underwritings.
The increase in broker/dealer commissions expense of $739,238 or 14.2% for the six months ended March 31, 1999 over the
prior period correlates to the increase in brokerage commissions of $2,822,928 over the six months ended March 31, 1998.
Interest expense on the convertible debentures of eBanker for the six months ended March 31, 1999 was $509,539.
The increase in general and administrative expenses for the six months ended March 31, 1999 of $1,047,802 or 16.8% over
the comparable prior period reflects increased expenses associated with new branch openings in San Francisco, and New
York City. Although the new offices were opened during 1998, they were not open for the entire comparable six month period.
Interest expense to related party of $405,611 increased from the prior period amount of $102,222 as a result of the
convertible debentures issued to Heng Fung Finance during 1998.
The minority interest in (earnings) loss represents the minority interest investment in Secutron and eBanker.
The loss from discontinued operations in the prior period represents the loss on sale and net loss from operating activity of
the Company's directory and telemarketing businesses of which all of the primary operating assets were sold during 1998.
The extraordinary item in the prior period represents the recognition of the forgivable loan with MSI in accordance with the
terms and conditions of the forgivable loan agreement. These terms and conditions included the forgiveness of the loan
based on revenue targets for MSI. MSI reached the target for forgiveness of $750,000 and thus it was recognized as income.
The remaining $750,000 was recognized as income as MSI discontinued operating as a clearing firm in the securities
industry which allowed the Company to recognize the remainder in accordance with the agreement. Both of these amounts
are shown net of taxes in the consolidated statement of operations.
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THREE MONTHS ENDED MARCH 31,
Revenues for the three months ended March 31, 1999 were $9,598,560, an increase of $2,583,472 or 36.8% over the
revenues of $7,015,088 for the three months ended March 31, 1998. The increase primarily relates to increased brokerage
commissions of $2,136,095; an increase in trading profits of $203,196; increased other broker/dealer revenues of $240,842;
earnings on investments in debt securities of $499,087 and $99,981 of unrealized gain on investments in equity securities,
offset by a decrease in investment banking activity of $794,345.
The increase in brokerage commissions of $2,136,095 is due primarily to an increase in trading activity. Customer
transactions increased approximately 82% partially offset by a decrease in the average commission per ticket of 15%, for the
three months ended March 31, 1999 compared to the three months ended March 31, 1998. The primary reasons for the
increased activity were general market conditions and positive results from the Company's research recommendations that
were acted upon by customers. In addition, branch offices opened during the three months ended March 31, 1998 were open
for the entire three month period in the current year.
Trading profits increased 98.7% or $203,196 due primarily to general market conditions and positive results from the
Company's research recommendations that were acted upon by customers as well as increases in the Company's positions
in securities in which the Company makes a market.
Other broker/dealer revenues increased partly due to commissions earned from loans to Global Med Technologies, Inc., for
which AFFC earns a commission. Additionally, the increase in transaction revenue from customers is reflected in this line
item. This increase is directly correlated to the increase in trading activity described above.
Computer hardware and software revenues for the three months ended March 31, 1999 were $1,987,108, compared to
revenues of $1,818,107, an increase of $169,001 or 9.2% over the three months ended March 31, 1998. This increase
reflects Secutron's time and efforts spent with current clients to ensure proprietary software is Year 2000 compliant. The
decrease in computer costs of sales of $217,259 or 10.9% compared to the revenue increase for the three months ended
March 31, 1999 also reflects Secutron's emphasis on Year 2000 compliance for its proprietary software users and less
hardware being sold.
During the first quarter of the fiscal year ending September 30, 1999, the Company, through its subsidiary, eBanker, invested
in debt securities of various corporations, which are traded on foreign stock exchanges. The debt securities carry a premium
redemption value over the face amount of each security. If the security is held-to-maturity, the Company will receive a
guaranteed premium, above the face value. The purchase discount and the premium for holding each security to maturity are
being accreted to interest income over the remaining life of the security. Interest income on the investments in debt securities
for the three months ended March 31, 1999 was $499,087. |
