Q1 results may be questionable---------->
The co. press release reads, in part,:
"Net income for the Company's quarter ended March 31, 1999 increased by 197% to
$3,778,000 compared to $1,270,000 for the 1998 period. Revenues reached $43.4
million for the first quarter of 1999, a 79% increase over 1998's first quarter revenues of
$24.3 million
On a per share basis, the Company reported first quarter 1999 basic per share
earnings of $0.64, an increase of 89% over 1998 basic earnings per share of $0.34.
On a diluted basis, the Company reported first quarter per share earnings of $0.60, an
increase of 102% over 1998 diluted per share earnings of $0.30. For the first quarter of
1999 the number of basic and diluted weighted average shares outstanding increased
by 58% and 47%, respectively, primarily as a result of shares issued in connection with
the Company's June, 1998 acquisition of its investment banking unit and option
exercises."
But then it goes on:
"The first quarter included (i) a substantial gain on our investment in
Knight/Trimark Group, Inc., ("NITE") (ii) the divestiture of our institutional research, sales
and trading business and, (iii) the start-up and acquisition costs related to GSG
Securities. Excluding these events, revenues and net income would have been $29.4
million and $1.6 million, an increase of 19% and 28%, respectively. A strong showing
for our JWGenesis and CSG retail securities units."
Which is set forth in footnote (a):
(a) Excluding the GSG Securities, Inc. acquisition, the divestiture
of the Company's institutional research, sales and trading units,
and the effect of NITE, revenues and net income would have been
$29,408,000 and $1,630,000, respectively.
So without (a), Net income was $1,630,000 vs. $3,778,000 with (a) and
Revenue without (a) was $29,408,000 vs. $43,400,000 with (a).
Doesn't this show that the basic business is not as robust as it ap-
pears at first glance. Maybe I am off base. Please set me straight if
I have missed something here.
--Bill |
