Jesup & Lamont Inc. Reports Results for 2009
Net loss drops by 53%
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 |
||||
SOURCE Jesup & Lamont Inc.
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