Jesup & Lamont Inc. Reports Results for 2009

Net loss drops by 53%

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Mar 30, 2010, 08:30 ET

NEW YORK, March 30 /PRNewswire-FirstCall/ -- Jesup & Lamont Inc. (Amex: JLI), a full-service boutique brokerage and investment banking firm serving retail and institutional clients, today reported financial results for the year ended December 31, 2009. Revenues for the year ended December 31, 2009 were $37,095,420, a decrease of 2.5% from the $38,070,661 for 2008. The net income (loss) applicable to common shareholders for the year end December 31, 2009 was ($7,381,869) compared to the net loss of ($16,046,084) for 2008, or ($0.82) per basic and fully diluted share in 2008, compared to ($0.24) per basic and fully diluted share in 2009.

"Last year was a transitional year for our company. We revaluated all our products and services and decided to focus on those areas where we believe we have a competitive advantage and where we believe we can operate profitably. As a result of our analysis, we dramatically reduced costs and we believe that our infrastructure is now appropriate for those products and services we are planning to maintain. In addition, we spent significant management time focusing on a key to our success – that is securing a capital base that will support our business," stated Alan Weichselbaum, CEO of Jesup & Lamont Inc. He further stated, "We believe we have accomplished that with our Tri-Artisan merger. The merger will give us the capital we need to profitably grow our business and will, in addition, give us a boost in our investment banking capabilities. With our cost reduction emphasis during 2009 and the refocusing on profitable lines coupled with the capital and investment banking capabilities brought by our merger with Tri-Artisan, we believe that Jesup & Lamont Inc. will show improved results in 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 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 offers full service retail, fixed income, institutional equities research and order execution and 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
		December 31,
	Assets	2009	2008

Cash and cash equivalents		$ 345,170	$ 410,840
Bank certificate of deposit		2,014,102	-
Marketable securities owned, at market value		23,288	37,027
Securities not readily marketable, at estimated fair value		946,080	531,265
Commissions and other receivables from clearing organizations		1,559,391	1,033,520
Other receivables		2,437,989	1,849,816
Securities borrowed under a secured demand note		225,000	-
Deposits at clearing organizations		1,312,294	655,359
Prepaid expenses and other assets		959,710	513,393
Notes receivable, net of allowance of $561,000		1,370,984	1,310,889
Deferred tax asset		2,117,000	2,117,000
Furniture and equipment, net		669,974	527,692
Goodwill		13,272,165	13,272,165
Intangible assets - customer lists and trademarks		4,072,875	4,143,601

	Total assets	$ 31,326,022	$ 26,402,567

	Liabilities and Stockholders' Equity

Accounts payable, accrued expenses and other liabilities		8,360,666	5,240,367
Due to clearing organizations		1,314,213	1,180,108
Accrued preferred stock dividends		753,394	445,568
Securities sold, but not yet purchased, at market value		170,892	170,603
Secured demand note payable		225,000	-
Notes payable		16,332,091	12,552,317

	Total liabilities	27,156,256	19,588,963

Stockholders' equity
Convertible preferred stock, series C, F, and G
	$.01 par value, 1,000,000 shares authorized
	728,575 issued and outstanding	$ 7,285	$ 7,902
Common stock, $.01 par value
	100,000,000 shares authorized
	32,548,715 shares issued and outstanding	325,487	223,978
	Less: Treasury Stock	(733,765)	(733,765)
Capital stock subscribed		1,635,000	2,894,996
Additional paid-in capital		43,225,707	37,328,572
Accumulated deficit		(40,289,948)	(32,908,079)

	Total stockholders' equity	4,169,766	6,813,604

	Total liabilities and stockholders' equity	$ 31,326,022	$ 26,402,567

JESUP & LAMONT INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
			Years ended December 31,
			2009	2008

Revenues
	Commissions and fees		$30,543,894	$ 29,342,615
	Equity market making trading revenues, net		2,231,211	6,369,618
	Investment banking income		2,297,885	2,778,153
	Net gain (loss) on securities received for banking services		2,022,430	(419,725)


			37,095,420	38,070,661

Expenses
	Employee compensation and benefits		22,803,468	22,488,833
	Commissions, clearing and execution costs		12,220,000	20,063,213
	General and administrative		7,094,118	9,969,048
	Communications and data processing		732,288	898,428

			42,849,874	53,419,522

Loss from operations			(5,754,454)	(15,348,861)

Other income (expenses)
	Gain from settlement		-	806,744
	Interest income		20,002	45,787
	Forgiveness of indebtedness		311,220	-
	Abandonment of premises		(292,230)	-
	Interest expense		(1,354,489)	(1,077,161)
	Other expense		(4,092)	(200,000)
			(1,319,589)	(424,630)

Net loss			(7,074,043)	(15,773,491)

Accrued preferred stock dividends			(307,826)	(272,593)

Loss applicable to common shareholders			$(7,381,869)	$(16,046,084)


	Basic and diluted loss per share applicable to common
		shareholders:

		Loss per share-basic	$ (0.24)	$ (0.82)

		Loss per share diluted	$ (0.24)	$ (0.82)

		Weighted average shares outstanding:
		Basic	30,365,265	19,506,828

		Diluted	30,365,265	19,506,828