Jesup & Lamont Inc. Reports Results for 1st Quarter 2010
Revenue Increases by 58%
NEW YORK, May 19 /PRNewswire-FirstCall/ -- Jesup & Lamont Inc., (Amex: JLI), a full-service brokerage and investment banking firm serving retail and institutional clients, today reported financial results for the Quarter ended March 31, 2010. Revenues for the Quarter ended March 31, 2010 were $10,282,086, an increase of 58% from the $6,507,110 for the same period in 2009. The net income (loss) applicable to common shareholders for the Quarter ended March 31, 2010 was ($3,822,513) compared to the net loss of ($3,019,148) for same period in 2009, or ($0.10) per basic and fully diluted share in 2010, compared to ($0.10) per basic and fully diluted share in 2009.
Alan Weichselbaum, CEO of Jesup & Lamont Inc. stated, "We are encouraged by the increase in revenue over last year. On the expense side, the company was burdened with a number of onetime expenses such as the settlement of litigations, consolidation of our business operations and increased legal and accounting costs related to our proposed merger with Tri-Artisan partners aggregating to approximately $1.6 million of the quarterly loss." He further stated, "We look forward to completing the merger later this year and still believe we are on target to return to profitability before the end on 2010."
About Jesup & Lamont Inc.
Established in 1877, Jesup & Lamont Inc. has an extensive history on Wall Street, with its origins encompassing such successes as providing brokerage services to Standard Oil and raising capital for the construction of Rockefeller Center. Jesup & Lamont, through its two wholly owned brokerage subsidiaries, offers full service broker-dealer and registered investment advisory services through its approximately 150 registered brokers in over 20 locations including offices in New York, San Francisco, Boston, Boca Raton, Chicago, Fort Lauderdale and Orlando. The Company's Jesup & Lamont Securities Corporation subsidiary also publishes proprietary research on several industries including Aerospace/Defense, Alternative Energy and Life Sciences/Healthcare and offers comprehensive investment banking services.
Forward-Looking Statement Disclaimer
This press release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risk, uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, without limitation, fluctuations in the volume of transactional services provided by the Company, competition with respect to financial services commission rates, the effect of general economic and market conditions, factors affecting the securities brokerage industry as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to revise or update any forward-looking statement.
JESUP & LAMONT INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
|||||
(UNAUDITED) |
|||||
March 31, |
December 31, |
||||
2010 |
2009 |
||||
Assets |
|||||
Cash and cash equivalents |
$ 340,392 |
345,170 |
|||
Bank certificate of deposit |
2,022,174 |
2,014,102 |
|||
Marketable securities owned, at market value |
16,959 |
23,288 |
|||
Securities not readily marketable, at estimated fair value |
697,165 |
946,080 |
|||
Commissions and other receivables from clearing organizations |
1,621,804 |
1,559,391 |
|||
Other receivables |
2,176,081 |
2,437,989 |
|||
Securities borrowed under a secured demand note |
225,000 |
225,000 |
|||
Deposits at clearing organizations |
771,578 |
1,312,294 |
|||
Prepaid expenses and other assets |
1,388,954 |
959,710 |
|||
Notes receivable, net of allowance of $561,000 |
1,301,273 |
1,370,984 |
|||
Deferred tax asset |
2,117,000 |
2,117,000 |
|||
Furniture and equipment, net |
645,236 |
669,974 |
|||
Goodwill |
13,272,165 |
13,272,165 |
|||
Intangible assets - customer lists and trademarks |
4,043,943 |
4,072,875 |
|||
Total assets |
$ 30,639,724 |
31,326,022 |
|||
Liabilities and Stockholders' Equity |
|||||
Accounts payable, accrued expenses and other liabilities |
$ 9,997,283 |
8,360,666 |
|||
Due to clearing organizations |
1,338,528 |
1,314,213 |
|||
Accrued preferred stock dividends |
712,126 |
753,394 |
|||
Securities sold, but not yet purchased, at market value |
179,712 |
170,892 |
|||
Secured demand note payable |
225,000 |
225,000 |
|||
Notes payable |
16,044,285 |
16,332,091 |
|||
Total liabilities |
28,496,934 |
27,156,256 |
|||
Stockholders' equity |
|||||
Convertible preferred stock, series F, and G |
|||||
$.01 par value, 1,000,000 shares authorized |
|||||
698,437 issued and outstanding and |
|||||
728,575 issued and outstanding |
6,984 |
7,285 |
|||
Common stock, $.01 par value, 100,000,000 shares authorized |
|||||
33,163,330 shares issued and outstanding |
|||||
and 32,548,715 issued and outstanding |
331,633 |
325,487 |
|||
Less: Treasury Stock |
(733,765) |
(733,765) |
|||
Capital stock subscribed |
3,251,000 |
1,585,000 |
|||
Additional paid-in capital |
43,399,399 |
43,275,707 |
|||
Accumulated deficit |
(44,112,461) |
(40,289,948) |
|||
Total stockholders' equity |
2,142,790 |
4,169,766 |
|||
Total liabilities and stockholders' equity |
$ 30,639,724 |
31,326,022 |
|||
JESUP & LAMONT INC. AND SUBSIDIARIES (UNAUDITED) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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Three Months ended March 31, |
||||||
2010 |
2009 |
|||||
Revenues |
||||||
Commissions and fees |
$ 8,594,237 |
5,541,397 |
||||
Equity market making trading revenues, net |
826,565 |
383,381 |
||||
Investment banking income |
1,156,371 |
413,910 |
||||
Net gain (loss) on securities received for banking services |
(295,087) |
168,431 |
||||
10,282,086 |
6,507,119 |
|||||
Expenses |
||||||
Employee compensation and benefits |
7,123,415 |
4,959,831 |
||||
Commissions, clearing and execution costs |
3,328,787 |
2,304,581 |
||||
General and administrative |
2,934,437 |
1,789,402 |
||||
Communications and data processing |
197,540 |
144,541 |
||||
13,584,179 |
9,198,355 |
|||||
Loss from operations |
(3,302,093) |
(2,691,236) |
||||
Other income (expenses) |
||||||
Interest income |
8,427 |
360 |
||||
Abandonment of premises |
(106,289) |
- |
||||
Interest expense |
(349,158) |
(236,789) |
||||
(447,020) |
(236,429) |
|||||
Net loss |
(3,749,113) |
(2,927,665) |
||||
Accrued preferred stock dividends |
(73,400) |
(91,483) |
||||
Net loss applicable to common shareholders |
$(3,822,513) |
(3,019,148) |
||||
Basic and diluted net loss per share applicable to common |
||||||
shareholders: |
||||||
Net loss per share-basic |
$ (0.10) |
(0.10) |
||||
Net loss per share diluted |
$ (0.10) |
(0.10) |
||||
Weighted average shares outstanding: |
||||||
Basic |
39,158,433 |
28,933,076 |
||||
Diluted |
39,158,433 |
28,933,076 |
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SOURCE Jesup & Lamont Inc.
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