(BSNS WIRE) First Montauk Financial Announces Record First Quarter 1999
First Montauk Financial Announces Record First Quarter 1999 Results
Business Editors
RED BANK, N.J.--(BUSINESS WIRE)--May 13, 1999--First Montauk
Financial Corp. (OTC BB: FMFK), a provider of investment services to
individuals and institutions through independent representatives
nationwide, today announced that revenue and net income reached an
all-time record for the first quarter of fiscal 1999.
Total revenues for the three months ended March 31, 1999
increased 18% to a record $12.5 million, as compared to $10.6 million
in the same period of 1998. Net income for the 1999 first quarter
reached a record $647,969 or $.07 and $.06 per basic and diluted
share, respectively, a dramatic increase over the profit of $20,178 or
$.00 per basic and diluted share in the first quarter last year. The
first quarter revenues reached the highest level in the Company's
history and are a direct result of the Company's participation in a
robust financial market and increased volume from First Montauk's
network of affiliated registered representatives.
Herbert Kurinsky, President and CEO of First Montauk, commented,
"We are pleased to report that fiscal 1999 has gotten off to a very
strong start. The results for the first quarter reflect changes that
management has made over the past year and our return to profitability
demonstrates what we have accomplished in the area of cost
containment, particularly the reduction of legal settlement costs and
expenses."
"First Montauk has been successful in recruiting new affiliated
branch offices with high levels of production which have contributed
to the increased volume," Kurinsky continued. "Our marketing and
recruiting campaigns are attracting financial professionals seeking
the opportunity to operate their own offices. Concurrently, we
continue to invest in our infrastructure and technology in order to
maintain high levels of quality service to our affiliated registered
representatives and their customers. We are also augmenting our
capacity to manage increasing trade volumes."
Kurinsky, added, "We are also excited about a number of recent
developments which should continue to enhance the future growth of the
Company. Century Discount Investments, our newly created discount
brokerage division will capitalize on the attraction of the Internet
combined with personal service. We are pleased with the initial
results of our new advertising campaign for Century. We are
positioning ourselves to take advantage of the exciting growth in the
on-line discount brokerage segment of the industry, as well as the
full-service independent segment, where First Montauk is an
established leader."
All forward looking information are estimates by the Company's
management and are subject to various risks and uncertainties that may
cause results to differ from management's current expectations. All
parties receiving this release are encouraged to review all filings
made by the Company with the Securities and Exchange Commission.
First Montauk Financial Corp. is the parent company of First
Montauk Securities Corp., a registered securities broker/dealer,
headquartered in Red Bank, N.J., with approximately 46,000 retail and
institutional accounts. The Company's ability to offer quality support
services, in-house and third party research advanced networked
information systems and competitive commission has attracted
approximately 400 independent, professional registered representatives
across the country.
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FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended
March 31,
1999 1998
---- ----
Revenues:
Commissions $ 9,777,468 $ 7,627,770
Principal transactions 2,266,084 2,343,443
Investment banking 77,024 266,204
Interest and other income 400,724 378,537
------------- -------------
12,521,300 10,615,954
------------- -------------
Expenses:
Commissions, employee
compensation and benefits 9,490,279 8,235,819
Clearing and floor brokerage 1,108,935 846,483
Communications and occupancy 641,035 596,991
Legal matters and related costs 46,558 300,574
Other operating expenses 540,845 571,314
Interest 42,727 28,570
-------------- -------------
11,870,379 10,579,751
-------------- -------------
Income before income taxes 650,921 36,203
Income taxes 2,952 16,025
-------------- -------------
Net income $ 647,969 $ 20,178
============== =============
Per share of Common Stock:
Basic $ 0.07 $ 0.00
============== =============
Diluted $ 0.06 $ 0.00
============== =============
Number of common shares used in
basic earnings per share 9,836,442 9,609,080
Incremental shares from assumed
conversion of options 726,468 1,058,084
-------------- -------------
Number of common shares used in
diluted earnings per share 10,562,910 10,667,164
============== =============
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--30--rc/ny*
CONTACT: First Montauk Financial Corp.
William Kurinsky, EVP & CFO
(732) 842-4700
or
First Montauk Financial Corp.
Katy Paul
Shareholder Relations
(732) 842-4700 ext. 220
E-mail: info@firstmontauk.com
Web Site: www.firstmontauk.com
KEYWORD: NEW JERSEY
INDUSTRY KEYWORD: BANKING EARNINGS
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