Message #9 From:
NewsBot Date: August 14, 2006 03:52:00 PM
FMFK News First Montauk Financial Corp. Announces Net Income for Second Quarter Ended June 30, 2006
RED BANK, N.J.--(BUSINESS WIRE)--Aug. 14, 2006--First Montauk Financial Corp. (OTC/BB: FMFK), a nationwide provider of investment services through independent financial professionals, today announced that the Company had net income applicable to common stockholders for the quarter ended June 30, 2006 of $1.0 million, or $.06 and $.05 per basic and diluted share, respectively, compared to net income applicable to common stockholders of $4.0 million, or $.28 and $.20 per basic and diluted share, respectively, for the quarter ended June 30, 2005.
Revenues for the second quarter decreased 18%, to $13.6 million, compared to $16.6 million for the same period in 2005. For the second quarter ended June 30, 2005, the Company would have reported revenue of $11.7 million exclusive of $4.9 million of revenue resulting from the acceleration of the remaining deferred revenue in connection with the termination of our financial agreement with Fiserv Securities, Inc. ("Fiserv"), our former clearing firm.
For the six months ended June 30, 2006, the Company reported net income before taxes of $53,000 on revenues of $26.9 million. Net income before taxes reported for the six months ended June 30, 2005 was $3.5 million on revenues of $32.1 million. For the six months ended June 30, 2005 the Company would have reported a net loss before taxes of ($1,400,00) exclusive of the $4.9 million deferred revenue recorded as a result of the termination of our financial agreement with Fiserv. The Company reported a net loss applicable to common stockholders for the six months ended June 30, 2006 of ($77,000) or $.0 per basic and diluted share, compared to a net income applicable to common stockholders of $3.3 million or $.24 per basic and $.18 per diluted share for the same period in 2005.
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 50,000 retail and institutional accounts. The Company's ability to offer quality support services, research, web-based information systems and a competitive commission payout structure has attracted 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 second quarter ended June 30, 2006, 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,
(unaudited) (unaudited)
2006 2005 2006 2005
------ ------ ------ ------
Revenues $26,918 $32,146 $13,606 $16,580
Expenses 26,865 28,613 12,530 12,160
-------- -------- ------- --------
Net income before income
taxes $53 $3,533 $1,076 $4,420
======= ======== ======== ========
Net income (loss) $(77) $3,271 $1,009 $4,016
applicable to common ======== ======== ======== ========
stockholders
Earnings (loss) per
share of common stock:
Basic $- $0.24 $0.06 $0.28
======== ======== ======== ========
Diluted $- $0.18 $0.05 $0.20
======== ======== ======== ========
Weighted average number
of shares of stock
outstanding:
Basic 15,594,185 13,421,349 15,842,628 14,411,053
Diluted 16,515,509 20,251,184 19,363,508 21,251,791
