Jesup & Lamont, Common Stock (AMEX:JLI)
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Continued Progress as Net Loss Narrows by 88% vs Third Quarter 2008
NEW YORK, Nov. 16 /PRNewswire-FirstCall/ -- Jesup & Lamont, Inc., (AMEX: JLI), a full-service boutique brokerage and investment banking firm serving retail, institutional and corporate clients, today reported results for the three months ended September 30, 2009. Revenues for the third quarter ended September 30, 2009 increased by 5% to $10,115,000, from the $9,652,000 for the same period in 2008. Net loss applicable to common shares for the quarter were reduced by 88% to $559,000 compared to $4,614,000 for the same period in 2008, or $0.02 per share in 2009, compared to $0.27 per share in 2008.
"We are very encouraged by the third quarter results which were consistent with internal projections. Improved operating margins, lower general and administrative expenses and increased revenue all contributed to the results," stated Alan Weichselbaum, CEO of Jesup & Lamont, Inc. "The small loss in the third quarter was expected given the diminished revenues in the summer months of July and August and the upfront costs associated with the expansion of our business. We expect fourth quarter revenues to rise from third quarter as the additional advisors hired in the third quarter show their effect," he added.
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 two 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 also publishes proprietary research on several industries including Aerospace/Defense, Alternative Energy and Life Sciences/Healthcare and offers comprehensive 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
September 30, December 31,
2009 2008
Assets (Unaudited) (Audited)
----------- -----------
Cash and cash equivalents $1,084,235 $410,840
Bank certificate of deposit 2,005,288 -
Marketable securities owned, at market value 238,544 37,027
Securities not readily marketable, at
estimated fair value 695,166 531,265
Commissions and other receivables from
clearing organizations 1,691,104 1,033,520
Other receivables 1,838,253 1,849,816
Secured demand note receivable 225,000 -
Deposits at clearing organizations 2,999,497 655,359
Prepaid expenses and other assets 663,880 513,393
Notes receivable 1,578,656 1,310,889
Deferred tax asset 2,117,000 2,117,000
Furniture and equipment, net 565,518 527,692
Goodwill 13,272,165 13,272,165
Intangible assets - customer lists and
trademarks 4,101,806 4,143,601
----------- -----------
Total assets $33,076,112 $26,402,567
=========== ===========
Liabilities and Stockholders' Equity
Accounts payable, accrued expenses and
other liabilities 7,032,179 5,240,366
Due to clearing organizations 1,287,839 1,180,108
Accrued preferred stock dividends 666,753 445,568
Securities sold, but not yet purchased,
at market value 207,746 170,603
Notes payable 15,871,238 12,552,317
----------- -----------
Total liabilities 25,065,755 19,588,962
----------- -----------
Commitments and Contingencies
Subordinated Note Payable 225,000 -
----------- -----------
Stockholders' equity
Convertible preferred stock, series
C, F, and G $.01 par value, 1,000,000
shares authorized 728,739 issued and
outstanding $7,287 $7,903
Common stock, $.01 par value
100,000,000 shares authorized
22,853,074 shares issued and outstanding 228,531 223,977
Less: Treasury Stock (733,765) (733,765)
Capital stock subscribed 6,269,996 2,894,996
Additional paid-in capital 38,109,172 37,328,573
Accumulated deficit (36,095,864) (32,908,079)
----------- -----------
Total stockholders' equity 7,785,357 6,813,605
----------- -----------
Total liabilities and stockholders'
equity $33,076,112 $26,402,567
=========== ===========
JESUP & LAMONT, INC. AND SUBSIDIARIES (Unaudited)
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended
September 30,
2009 2008
---------- ----------
Revenues
Commissions and fees $7,994,432 $6,960,884
Equity market making trading revenues, net 1,098,565 1,547,917
Investment banking income 945,405 1,333,375
Net gain (loss) on securities received
for banking services 76,179 (190,602)
---------- ----------
10,114,581 9,651,574
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Expenses
Employee compensation and benefits 5,898,880 6,906,442
Commissions, clearing and execution costs 3,440,927 4,343,310
General and administrative 1,241,537 2,534,890
Communications and data processing 229,219 187,493
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10,810,563 13,972,135
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Loss from operations (695,982) (4,320,561)
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Other income (expenses)
Other income 7,844 -
Forgiveness of indebtedness 541,833 -
Interest income - 8,229
Interest expense (325,724) (210,362)
---------- ----------
223,953 (202,133)
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Net loss (472,029) (4,522,694)
Accrued preferred stock dividends (86,641) (91,143)
---------- ----------
Loss applicable to common shareholders $(558,670) $(4,613,837)
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Basic and diluted loss per share
applicable to common shareholders:
Loss per share-basic $(0.02) $(0.27)
========== ==========
Loss per share diluted $(0.02) $(0.27)
========== ==========
Weighted average shares outstanding:
Basic 29,452,047 17,387,654
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Diluted 29,452,047 17,387,654
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DATASOURCE: Jesup & Lamont, Inc.
CONTACT: Steven Rabinovici, Chairman, Jesup & Lamont, Inc.,
+1-212-918-0401