Empire (AMEX:EFH)
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From Jun 2019 to Jun 2024
Revenue Increase of 62%
LONGWOOD, Fla., May 15 /PRNewswire-FirstCall/ -- Empire Financial Holding Company (AMEX:EFH), a full service brokerage and investment banking firm serving retail and institutional clients, today reported sharply increased revenues in the first quarter ended March 31, 2007. Revenues for the First Quarter ended March 31, 2007 were $13,959,635, an increase of 62% for the same period in 2006. The net loss for the period was $2,088,429 compared to a profit of $548,865 for the same period in 2006 or $(0.20) per basic and diluted share in 2007, compared to $0.08 per basic share and $0.05 fully diluted for the same period in 2006. Total shareholders' equity of $17,585,304 at March 31, 2007 was more than $8.8 million higher than the shareholders' equity reported at March 31, 2006. The Company has withdrawn its earnings guidance for 2007 stating "due to the uncertainty of the timing of regulatory approval to further consolidate its Jesup and Empire brands coupled with the unpredictability of the markets and market conditions that any previously provided guidance cannot be relied upon and we will not be providing any new guidance at this time."
The first quarter ended March 31, 2007 included non cash charges of $974,506 compared to $15,626 for the first quarter of 2006.
"First quarter results demonstrate the initial success of our merger with Jesup and Lamont in November 2006 but also disappointments accomplishing expense reductions," said Donald A. Wojnowski Jr., Empire Financial Holding Company President and CEO. "We hope to achieve expense reductions as we move forward seeking regulatory approval for the consolidation of certain back office functions and elimination of redundant expenses incurred at our two wholly owned Broker Dealers subsidiaries."
The Company will host a conference call on Wed May 16 at 8:30 AM EDT. The dial-in number is 1-800-531-3250 -- PIN-3689703.
About Empire Financial Holding Company
Empire Financial Holding Company, through its wholly owned subsidiaries, Empire Financial Group, Inc. and Jesup & Lamont, provides full-service retail brokerage services through its network of independently owned and operated and Company owned and operated offices. Through its market-making and trading division, the Company offers securities order execution services for unaffiliated broker dealers and makes markets in domestic and international securities. Empire Financial also provides Investment Banking services for clients as well as turn-key fee based investment advisory and registered advisor custodial services through its wholly owned subsidiaries, Empire Investment Advisors, Inc. and Jesup & Lamont.
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.
EMPIRE FINANCIAL HOLDING COMPANY
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (UNAUDITED)
March 31, 2007
Assets:
Cash and cash equivalents ........................... $4,055,566
Marketable securities owned, at market value ........ 3,711,292
Securities not readily marketable, at estimated
fair value ......................................... 1,042,108
Commissions and other receivables from clearing
organization ....................................... 1,151,275
Deposits at clearing organization ................... 1,550,562
Furniture and equipment, net ........................ 776,416
Prepaid expenses and other assets ................... 3,744,066
Deferred tax assets ................................. 2,117,000
Cash in escrow ...................................... 350,000
Notes receivable .................................... 587,070
Intangible assets, net .............................. 17,213,288
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Total assets ...................................... $36,298,643
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Liabilities and stockholders' equity
Liabilities:
Accounts payable, accrued expenses and other
liabilities ........................................ $3,014,889
Due to clearing organizations ....................... 3,072,047
Securities sold, but not yet purchased, at market
value .............................................. 563,000
Line of credit payable .............................. 1,800,000
Notes payable ....................................... 10,202,837
Deferred rent payable ............................... 60,566
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Total liabilities ................................. 18,713,339
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Commitments and Contingencies
Stockholders' equity:
Convertible preferred stock, series C and F,
$.01 par value 1,000,000 shares authorized
811,665 issued and outstanding ..................... $8,117
Common stock, $.01 par value 100,000,000 shares
authorized 11,008,068 shares issued and
outstanding ........................................ 110,081
Additional paid-in capital .......................... 25,515,632
Accumulated deficit ................................. (8,048,526)
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Total stockholders' equity ........................ 17,585,304
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Total liabilities and stockholders' equity ........ $ 36,298,643
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EMPIRE FINANCIAL HOLDING COMPANY AND SUBSIDIARIES (UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED THREE MONTHS ENDED
March 31, March 31,
2007 2006
------------------ ------------------
Revenues:
Commissions and fees ......... $9,945,163 $ 4,577,496
Trading income ............... 2,421,148 3,500,125
Investment banking income .... 1,593,324 535,000
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13,959,635 8,612,621
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Expenses:
Employee compensation and
benefits .................... 4,037,024 2,566,746
Commissions and clearing
costs ....................... 9,215,802 4,109,684
General and administrative 1,952,530 924,674
Communications and data
processing .................. 221,104 68,399
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15,426,460 7,669,503
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Income (loss) from operations .. (1,466,825) 943,118
Other income (expenses):
Interest income .............. 21,138 57,286
Interest expense ............. (608,709) (28,334)
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(587,571) 28,952
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Income (loss) before income
taxes ......................... (2,054,396) 972,070
Less: Provision for income
taxes ....................... 0 (375,164)
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Net income (loss) ............ (2,054,396) 596,906
Preferred stock dividends .... (34,033) (48,041)
------------ ------------
Net income (loss) applicable
to common shareholders ...... $ (2,088,429) $ 548,865
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Basic and diluted earnings (loss)
per share applicable to common
shareholders:
Earnings (loss) per share-basic
and diluted ............... $ (0.20) $ 0.08
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Earnings (loss) per share
diluted ................... $ (0.20) $ 0.05
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Weighted average shares
outstanding:
Basic .................... 10,519,933 6,853,561
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Diluted .................. 10,519,933 10,548,354
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DATASOURCE: Empire Financial Holding Company
CONTACT: Donald A. Wojnowski, Jr., President of Empire Financial Holding
Company, +1-407-774-1300, ext. 1141, or fax, +1-407-774-1300,
Web site: http://www.empirenow.com/