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IFSX
11 1/2
-1
delayed 20 mins - disclaimer
Tuesday August 3, 4:05 pm Eastern Time
Company Press Release
Internet Financial Services Posts Record Third Quarter Earnings, Revenue Growth of 148% and a 317% Increase in Trade Volume
NEW YORK--(BUSINESS WIRE)--Aug. 3, 1999--Internet Financial Services Inc. (NASDAQ: IFSX - news), parent of online broker A.B. Watley, today reported total revenues of $6,459,020 for its third fiscal quarter, which ended June 30, 1999. This is an increase of 148% from $2,605,896 in the same period of 1998 and up 35% from $4,797,434 in the second quarter of fiscal 1999. Income before an extraordinary item was $313,292, equivalent to $.04 per diluted share. Net income was $136,167, equivalent to $.02 per diluted share, as compared to last year's third quarter net loss of $71,981, equivalent to $.01 loss per diluted share.
The trading volume of Internet Financial Services' on-line brokerage subsidiary, A.B. Watley, Inc has increased dramatically. For its third quarter, which ended June 30, 1999, A.B. Watley, had total transactions of 210,479 an increase of 317% from 50, 439 transactions in the same period of 1998 and up 47% from 143,094 transactions in the second quarter of fiscal 1999.
Since the Initial Public Offering of Internet Financial Services in April, the firm has committed significant resources to increase both network infrastructure and technological development. The reliability of the Company's technological infrastructure has been strengthened by the completion of its corporate consolidation at 40 Wall Street. Additionally, the Company has initiated the first stages of a highly targeted Internet marketing campaign, which together with its continued high rankings in leading online brokerage surveys has resulted in a 500% increase in web traffic from the previous quarter.
''We had a tremendous third quarter, which has exceeded expectations,'' said Steven Malin, Chairman and Chief Executive Officer of Internet Financial Services, Inc. '' I am very pleased that we have reported a 317% increase in trade volume, exceptional revenue growth and positive net income for the second consecutive quarter since the completion of our Initial Public Offering. Our margins remain among the highest in the Industry as a result of our average customer transacting business at a significant multiple of the Industry average. Our premium products and services will continue to attract the most sophisticated online Investors. We are extremely excited about our fourth quarter, which will see the implementation of a number of strategic initiatives that will strengthen our position as the leading provider of online trading services. ''
About Internet Financial Services Inc.
Internet Financial Services (IFS) provides realtime online financial brokerage services and comprehensive information about the securities markets through its proprietary trading systems, Ultimate Trader(TM) and WatleyTrader(tm). Internet Financial Services is the Parent Company of A.B. Watley, Inc. The Company completed its initial public offering of 2,300,000 shares of common stock on April 20, 1999.
Safe Harbor Statement
Certain statements contained herein, including statements regarding the development of services and markets and future demand for services and other statements regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Any number of conditions may occur which would materially affect important factors in this analysis and materially change expectations. These factors include, but are not limited to, customer trading activity, loss of one or more significant customers, change in technology, shifts in competitive patterns, ability to manage growth effectively, risks associated with acquisitions including integration risks, risks associated with strategic partnerships, various project-associated risks, substantial competition, general economic and securities markets conditions, risks associated with intellectual property rights, risks associated with international operations and other risk factors listed from time to time in the Internet Financial Services, Inc.'s filings and reports with the Securities and Exchange Commission.
Internet Financial Services Inc.
Consolidated Statements of Operations
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30 June 30 June 30 June 30
1999 1998 1999 1998
Revenues:
Commissions 5,071,746 2,154,029 11,262,118 $5,129,001
Data service revenues 485,037 187,138 1,052,509 459,198
Principal transactions 692,112 187,644 1,791,906 578,725
Interest and other
income 208,581 75,540 325,319 140,185
Interest income -
related party 1,545 1,545 4,635 4,635
Total revenues 6,459,020 2,605,896 14,436,487 6,311,744
Interest expense 85,382 79,403 280,939 153,301
Interest expense -
related party 3,750 3,750 11,250 11,250
Net revenues 6,369,888 2,522,743 14,144,298 6,147,193
Expenses:
Commissions,
floor brokerage,
and clearing charges 2,210,789 929,086 5,343,869 2,420,149
Employee compensation
and related costs 1,546,519 590,339 3,610,311 1,480,968
Communications 348,020 219,443 887,925 563,781
Business development 584,895 232,744 1,007,037 833,170
Professional services 522,968 320,607 1,065,449 700,235
Occupancy and
equipment costs 506,577 114,660 1,178,447 277,608
Depreciation and
amortization 173,035 103,291 433,437 257,951
Other expenses 157,935 81,363 429,933 218,119
Total expenses 6,050,738 2,591,533 13,956,407 6,751,981
Income (loss) before
income tax
and extraordinary
loss on early
extinguishment of debt 319,150 (68,790) 187,891 (604,788)
Income tax provision 5,858 3,191 14,158 9,573
Income (loss) before
extraordinary loss on
early extinguishment
of debt $ 313,292 $ (71,981) $ 173,733 $ (614,361)
Extraordinary loss on
early extinguishment
of debt 177,125 - 177,125 -
Net Income (Loss) 136,167 $ (71,981) (3,392)$ (614,361)
Basic earnings before
extraordinary item per
common share 0.04 $ (0.01) $ 0.03 $ (0.12)
Diluted earnings before
extraordinary item per
common share $ 0.04 $ (0.01) $ 0.03 $ (0.12)
Basic earnings per common
share $ 0.02 $ (0.01) - $ (0.12)
Diluted earnings per
common share $ 0.02 $ (0.01) - (0.12)
Weighted average shares
outstanding - basic 7,390,536 5,201,660 6,105,221 5,175,459
Weighted average shares
outstanding - diluted 7,996,413 5,201,660 6,105,221 5,175,459
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Contact:
Internet Financial Services, New York
William Arnold, 212/422-1664 ext. 5825
or
Hill and Knowlton, Inc., New York
Karen Laureano-Rikardsen, 212/885-0418 |
