Revenue Increases 29% for Nine Months but Flat for Third Quarter
LONGWOOD, Fla., Nov. 13 /PRNewswire-FirstCall/ -- Empire Financial
Holding Company (AMEX:EFH), a full service brokerage and investment
banking firm serving retail and institutional clients, today
reported its revenues were flat for the third quarter but increased
29% for the nine months ended September 30, 2006. Revenues for the
third quarter ended September 30, 2006 were $6,452,705, essentially
flat, as compared to revenues of $6,447,000 for the same period in
2005. The operating loss was ($705,538) compared to operating
income of $238,568 for the same period in 2005. Net loss to common
shareholders was ($533,917) compared to net income of $1,565,144
for the same period in 2005 or $(0.08) per diluted share in 2006
compared to $0.18 per diluted share for the same period in 2005.
Net income for the three months and nine months ending September
30, 2005 included a deferred tax benefit of $1,384,000. Revenues
for the nine months ended September 30, 2006 were $22,812,387, an
increase of 29% for the same period in 2005. Operating loss for the
nine months ended September 30, 2006 was ($6,938) compared to
operating income of $627,680 for the same period in 2005. Net loss
to common shareholders was ($115,680) compared to net income of
$1,853,070 for the same period in 2005 or $(0.02) per diluted share
in 2006, compared to $0.34 per diluted share for the same period in
2005. Total shareholders' equity of $8 million at September 30,
2006 was more than $5 million higher than the shareholders' equity
reported at September 30, 2005. CEO Don Wojnowski said, "Although
we are disappointed with the quarterly loss for the quarter ended
September 30, 2006, it is important to note that during the quarter
we recognized some one time expenses and invested in our operations
in preparation for the significant growth we are expecting in 2007.
We believe in 2006 we have built the infrastructure for the future
by adding staff in sales & trading, investment banking,
compliance and operations. The platform is largely built allowing
us to add incremental business while increasing revenues, and
earnings to build shareholder value." The Company will host a
conference call Tuesday, November 14th at 8:30 am est. The dial-in
number is 1-800-531-3250 -- PIN-3689703. About Empire Financial
Holding Company Empire Financial Holding Company, through its
wholly owned subsidiary, Empire Financial Group, Inc., provides
full-service retail brokerage services through its network of
independently owned and independently 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 subsidiary, Empire
Investment Advisors, Inc. 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 risks,
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 CONSOLIDATED STATEMENT OF FINANCIAL
CONDITION (UNAUDITED) September 30, 2006 Assets Cash and cash
equivalents ................................. $1,308,170 Marketable
securities owned, at market value .............. 5,197,098
Commissions and other receivables from clearing organization
............................................. 1,229,089 Deposits at
clearing organization ......................... 2,104,400 Furniture
and equipment, net .............................. 274,568 Prepaid
expenses and other assets ......................... 944,073
Deferred tax asset ........................................
2,091,595 Cash in escrow
............................................ 350,000 Notes
receivable .......................................... 4,539,648
----------- Total assets
........................................... $18,038,641 ===========
Liabilities and stockholders' equity Accrued expenses and other
liabilities .................... $1,295,477 Due to clearing
organization .............................. 3,400,015 Securities
sold, but not yet purchased, at market value ... 1,360,097 Notes
payable ............................................. 3,957,333
----------- Total liabilities
...................................... 10,012,922 -----------
Commitments and Contingencies Stockholders' equity Convertible
preferred stock, series B, C, D, E and F, $.01 par value 1,000,000
shares authorized 890,545 issued and outstanding
.......................................... $8,905 Common stock,
$.01 par value 100,000,000 shares authorized 7,009,037 shares
issued and outstanding .................. 70,090 Additional paid-in
capital ................................ 13,801,780 Accumulated
deficit ....................................... (5,855,056)
----------- Total stockholders' equity
............................. 8,025,719 ----------- Total
liabilities and stockholders' equity ............. $18,038,641
=========== EMPIRE FINANCIAL HOLDING COMPANY AND SUBSIDIARIES
(UNAUDITED) CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS THREE
MONTHS ENDED ENDED September 30, September 30, 2006 2005
------------- ------------- Revenues Commissions and fees
................... $3,423,710 $4,317,548 Trading income
......................... 2,564,447 2,009,452 Investment banking
income .............. 464,548 120,000 ----------- -----------
6,452,705 6,447,000 ----------- ----------- Expenses Employee
compensation and benefits ..... 2,449,795 1,112,805 Commissions and
clearing costs ......... 3,574,761 4,452,681 General and
administrative ............. 1,030,122 576,027 Communications and
data processing ..... 103,565 66,919 ----------- -----------
7,158,243 6,208,432 ----------- ----------- Income (loss) from
operations ............. (705,538) 238,568 Other income (expenses)
Interest income ........................ 105,010 0 Interest expense
....................... (161,659) (38,932) ----------- -----------
(56,649) (38,932) ----------- ----------- Income (loss) before
income taxes ......... (762,187) 199,636 Less: Provision for income
taxes ....... 297,909 1,384,000 ----------- ----------- Net income
(loss) ...................... (464,278) 1,583,636 Preferred stock
dividends .............. (69,639) (18,492) ----------- -----------
Net income (loss) applicable to common shareholders
.......................... $(533,917) $1,565,144 ===========
=========== Basic and diluted earnings (loss) per share applicable
to common shareholders: Earnings (loss) per share-basic and diluted
............................ $(0.08) $0.25 =========== ===========
Earnings (loss) per share diluted ... $(0.08) $0.18 ===========
=========== Weighted average shares outstanding: Basic
............................ 7,009,037 6,370,170 ===========
=========== Diluted .......................... 7,009,037 8,522,601
=========== =========== EMPIRE FINANCIAL HOLDING COMPANY AND
SUBSIDIARIES (UNAUDITED) CONSOLIDATED STATEMENTS OF INCOME NINE
MONTHS NINE MONTHS ENDED ENDED September 30, September 30, 2006
2005 ------------- ------------- Revenues Commissions and fees
................... $13,113,457 $12,632,605 Trading income
......................... 7,769,540 4,813,481 Investment banking
income .............. 1,929,390 253,910 ----------- -----------
22,812,387 17,699,996 ----------- ----------- Expenses Employee
compensation and benefits ..... 7,508,151 3,502,849 Commissions and
clearing costs ......... 12,223,771 11,267,691 General and
administrative ............. 2,832,756 2,142,770 Communications and
data processing ..... 254,647 159,006 ----------- -----------
22,819,325 17,072,316 ----------- ----------- Income (loss) from
operations ............. (6,938) 627,680 Other income (expenses)
Interest income ........................ 296,182 0 Interest expense
....................... (207,397) (121,481) ----------- -----------
88,785 (121,481) ----------- ----------- Income before income taxes
................ 81,847 506,199 Less: Provision for income taxes
....... (25,405) 1,384,000 ----------- ----------- Net income
............................. 56,442 1,890,199 Preferred stock
dividends .............. (172,122) (37,129) ----------- -----------
Net income (loss) applicable to common shareholders
.......................... $(115,680) $1,853,070 ===========
=========== Basic and diluted earnings (loss) per share applicable
to common shareholders: Earnings (loss) per share-basic and diluted
............................ $(0.02) $0.39 =========== ===========
Earnings (loss) per share diluted ... $(0.02) $0.34 ===========
=========== Weighted average shares outstanding: Basic
............................ 7,009,037 4,772,065 ===========
=========== Diluted .......................... 7,009,037 5,399,468
=========== =========== DATASOURCE: Empire Financial Holding
Company CONTACT: Donald A. Wojnowski Jr., President of Empire
Financial Holding Company, +1-407-551-1841, or fax,
+1-407-830-5078,
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