Message #6 From:
NewsBot Date: August 3, 2005 09:32:00 AM
FMFK News First Montauk Announces Second Quarter and Six Month Earnings for 2005
RED BANK, N.J.--(BUSINESS WIRE)--Aug. 3, 2005--First Montauk Financial Corp. (OTC/BB: FMFK), a nationwide provider of investment services through independent financial professionals, today announced financial results for the second quarter and six months ended June 30, 2005.
Revenues for the second quarter of 2005 increased 16% to $16.6 million, compared to $14.2 million for the second quarter of 2004. Included in the total revenue for the second quarter of 2005 is a one-time recognition of deferred revenue of $4.9 million in connection with the termination of Montauk's financial agreement with Fiserv Securities, Inc., our prior clearing firm. The Company also reported an increase in net income applicable to common stockholders of $3,989,000, or $0.28 per basic share and $0.20 per diluted share for the second quarter. This compares to $2,000 or $0.00 per basic and diluted share for the second quarter of 2004.
The Company's revenues for the first half of 2005 decreased 3% to $32.1 million, compared to $33 million for the same six-month period in 2004. The Company reported a net income applicable to common stockholders of $3,578,000, or $0.27 per basic share and $0.19 per diluted share during the first six months of 2004. This compares to a net income applicable to common stockholders of $217,000, or $.02 per basic and diluted share during the same period in 2004.
Victor K. Kurylak, President and CEO of Montauk Financial Group, commented, "Despite investor uncertainties about rising interest rates and higher oil prices, our performance for the second quarter and first half of 2005 continues to reflect positively on our efforts to return Montauk Financial Group to sustained profitability. We continue to focus on cost containment, business risk management and alternative revenue streams while we expand our efforts to attract new affiliates to our brokerage network. We have seen dramatic improvement in our financial condition during 2005 resulting from our core profitability, reduction in our outstanding debt and conversion to our new clearing firm."
Montauk Financial Group is a service mark of First Montauk Securities Corp., Member NASD/SIPC. First Montauk Financial Corp. is the parent company of First Montauk Securities Corp., a registered securities broker/dealer headquartered in Red Bank, NJ, with approximately 60,000 retail and institutional accounts. The Company's ability to offer quality support services, research advanced networked information systems and a competitive commission payout structure has attracted approximately 330 independent, professional registered representatives across the country. Additional information is available at the Company's website at www.montaukfinancial.com.
Statements contained in this news release regarding expected financial results of the Company and First Montauk Securities Corp., are forward-looking statements, subject to uncertainties and risks, many of which are beyond the Company's control, including, but not limited to, market conditions, interest rate and currency fluctuations, dependence on key personnel, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Factors Affecting Forward Looking Statements'' in the Company's Form 10-Q for the first quarter ended June 30, 2005 as filed with the Securities and Exchange Commission. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance.
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
In 000's (except for per share amounts)
Six months Three months
Ended June 30, Ended June 30,
2005 2004 2005 2004
---- ---- ---- ----
(unaudited) (unaudited)(unaudited)(unaudited)
Revenues $32,146 $33,063 $16,581 $14,242
---------- ----------- ---------- ----------
Expenses 28,306 32,778 12,028 14,221
---------- ----------- ---------- ----------
Net income $3,821 $263 $4,197 $25
========== =========== ========== ==========
Net income applicable
to common stockholders $3,578 $217 $3,989 $2
========== =========== ========== ==========
Per share of common stock:
Basic $0.27 $0.02 $0.28 $(0.00)
========== =========== ========== ==========
Diluted $ 0.19 $ 0.02 $ 0.20 $(0.00)
========== =========== ========== ==========
Number of common shares
used net income per
share:
Basic 13,421,349 9,598,100 14,411,053 9,587,133
Diluted ========== =========== ========== ==========
20,251,184 16,048,897 21,251,791 9,738,345
========== =========== ========== ==========
