Quarter Reflects Revenue Increase of 56% and EPS Of $0.19 Including
One Time Gain LONGWOOD, Fla., Nov. 15 /PRNewswire-FirstCall/ --
Empire Financial Holding Company (AMEX:EFH), a full service
brokerage firm, today reported financial results for the third
quarter and nine months ended September 30, 2005. Net income for
the third quarter was $1,565,144 or $0.19 per share fully diluted,
compared to a net loss of ($387,240) or ($0.12) loss per share
fully diluted for the same period in 2004. The net income for the
quarter includes a one time gain from a deferred tax asset of
$1,396,000. The third quarter 2005 results increased shareholder
equity by $1,539,345. Total shareholder equity is $2,944,059. For
the nine months ended September 30, 2005 net income was $1,853,070,
or $0.34 per share fully diluted, compared to a net loss of
$1,259,963, restated, or ($0.39) loss per share fully diluted, for
the same period in 2004. Total revenues for the three months ended
September 30, 2005 were $6,447,000 for an increase of 57%, compared
to revenues of 4,142,861 for the same period in 2004. Total
operating expenses for the three months ended September 30, 2005
were $6,247,364 compared to total operating expenses of $4,523,351
for the same period in 2004. The increase in expenses was primarily
due to higher commissions and clearing costs and general and
administrative expenses compared to the same period last year.
Total revenues for the nine months ended September 30, 2005 were
$17,699,996 an increase of $2,561,764, or 16.9%, compared to
revenues of $15,138,232 restated, for the same period in 2004.
Total operating expenses for the nine months ended Sept. 30, 2005
were $17,193,797 compared to total operating expenses of
$16,377,945 for the same period in 2004. At September 30, 2005, the
Company had total assets of $6,395,082 the majority of which
consisted of cash and cash equivalents, trading account securities
purchased not yet sold and receivables from brokers, dealers and
clearing organizations arising from customer-related securities
transactions. Stockholders' equity was $2,944,059 at September 30,
2005, representing an improvement of $1,539,345 from a
stockholders' equity of $1,404,714, at June 30, 2005, primarily due
a one time gain from a net deferred tax asset of $1,396,000 and to
improved earnings. Empire Financial Holding Company President and
CEO Donald A. Wojnowski Jr. commented, "We are pleased with our
progress, and we are focused on executing our plan. For the quarter
we realized continued profitability and improvement to the balance
sheet. During the quarter we continued to invest in our
infrastructure and opened up three new offices and expanded our
investment banking division in New York City. Our experienced
management team closely monitors business and market conditions and
expenses, and will work to improve margins and profits for our
shareholders." 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
operated offices and discount retail securities brokerage via both
the telephone and the Internet. 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 investment
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. Contact. Donald A. Wojnowski Jr. President Empire
Financial Holding Company Phone: 407-774-1300 Fax: 407-830-5078
EMPIRE FINANCIAL HOLDING COMPANY AND SUBSIDIARIES CONSOLIDATED
STATEMENT OF FINANCIAL CONDITION (Unaudited) SEPTEMBER 30, 2005
ASSETS Cash and cash equivalents................................. $
1,060,968 Trading account securities purchased not yet sold, at
fair value............................................ 1,276,270
Receivables from brokers and dealers and clearing
organizations................................... 1,537,909 Deposits
at clearing organization......................... 613,619 Furniture
and equipment, net of accumulated depreciation.. 156,617 Prepaid
expenses and other assets......................... 78,699 Deferred
tax asset........................................ 1,396,000
Restricted cash........................................... 275,000
----------- TOTAL ASSETS..........................................
$ 6,395,082 =========== LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES: Notes
payable........................................... 1,102,807
Accounts payable, accrued expenses and other liabilities 1,191,851
Trading account securities, sold not yet bought, at fair
value.......................................... 409,132 Payable to
brokers, dealers and clearing organization... 747,233 -----------
TOTAL LIABILITIES................................. 3,451,023
----------- CONTINGENCIES SHAREHOLDERS' EQUITY: Convertible
preferred stock, series B, C, and D $.01 par value, 1,000,000
shares authorized; 16,062 issued and
outstanding........................ 161 Common stock, $.01 par
value, 100,000,000 shares authorized; 6,370,170 shares issued and
outstanding.............. 63,700 Additional paid-in
capital.............................. 9,084,685 Deferred
compensation................................... (41,849)
Accumulated deficit.....................................
(6,162,638) ----------- TOTAL SHAREHOLDERS'
EQUITY............................ 2,944,059 ----------- TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY............. $ 6,395,082
=========== See accompanying selected notes to the consolidated
financial statements. EMPIRE FINANCIAL HOLDING COMPANY AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS THREE MONTHS ENDED ENDED September 30, September 30,
2004 2005 (RESTATED) ------------- ------------ REVENUES:
Commissions and fees..................... $ 4,143,363 $ 3,188,026
Trading income........................... 2,009,452 885,691
Interest................................. 64,258 39,144 Investment
banking income................ 120,000 --
Other.................................... 109,927 30,000
----------- ----------- 6,447,000 4,142,861 ----------- -----------
EXPENSES: Employee compensation and benefits....... 1,112,805
943,537 Commissions and clearing costs........... 4,452,681
3,184,778 General and administrative............... 576,027 345,156
Interest................................. 38,932 13,895
Communications and data processing....... 66,919 35,985 -----------
----------- 6,247,364 4,523,351 ----------- ----------- Income
(loss) before provision for income
tax.............................. 199,636 (380,490) Provision for
tax benefits............... 1,384,000 -- ----------- -----------
Net income (loss)........................ 1,583,636 (380,490)
Accrued preferred stock dividend......... (18,492) (6,750)
----------- ----------- Net income (loss) applicable to common
shareholders............................. $ 1,565,144 $ (387,240)
=========== =========== Basic and diluted earnings per share
applicable to common shareholders: Earnings (loss) per share-basic
and diluted $ 0.25 $ (0.12) =========== =========== Earnings (loss)
per share-diluted........ $ 0.19 $ (0.12) =========== ===========
Weighted average shares outstanding:
Basic................................. 6,370,170 3,194,450
=========== =========== Diluted...............................
8,522,601 3,194,450 =========== =========== See accompanying
selected notes to the consolidated financial statements. EMPIRE
FINANCIAL HOLDING COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF OPERATIONS (UNAUDITED) NINE MONTHS NINE MONTHS ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, 2004 2005 (RESTATED) -------------
------------ REVENUES: Commissions and fees ....................
$12,240,206 $11,939,214 Trading income...........................
4,813,481 2,974,360 Interest.................................
151,628 122,204 Investment banking income................ 253,910
-- Other.................................... 240,771 102,454
----------- ----------- 17,699,996 15,138,232 -----------
----------- EXPENSES: Employee compensation and benefits.......
3,502,849 2,758,475 Commissions and clearing costs ..........
11,267,691 11,220,519 General and administrative ..............
2,142,770 2,245,753 Interest ................................
121,481 69,935 Communications and data processing....... 159,006
83,263 ----------- ----------- 17,193,797 16,377,945 -----------
----------- Income (loss) before provision for income
tax.............................. 506,199 (1,239,713) Provision for
tax benefits............... 1,384,000 -- ----------- -----------
Net income (loss)........................ 1,890,199 (1,239,713)
Accrued preferred stock dividend......... (37,129) (20,250)
----------- ----------- Net income (loss) applicable to common
shareholders............................ $ 1,853,070 $(1,259,963)
=========== =========== Basic and diluted earnings per share
applicable to common shareholders: Earnings (loss) per
share-basic.......... $ 0.39 $ (0.39) =========== ===========
Earnings (loss) per share-diluted........ $ 0.34 $ (0.39)
=========== =========== Weighted average shares outstanding:
Basic.............................. 4,772,065 3,194,450 ===========
=========== Diluted............................ 5,399,468 3,194,450
=========== =========== See accompanying selected notes to the
consolidated financial statement. DATASOURCE: Empire Financial
Holding Company CONTACT: Donald A. Wojnowski Jr., President of
Empire Financial Holding Company, +1-407-774-1300, or fax,
+1-407-830-5078,
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