First Albany Reports Final Fourth Quarter 2002 Results.Business Editors ALBANY Albany, town, Australia Albany (ăl`bənē), town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries. , N.Y.--(BUSINESS WIRE)--March 21, 2003 First Albany Companies Inc. (Nasdaq:FACT) reported net revenues from its brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. operations, First Albany Corporation, of $43.3 million for the fourth quarter ended December December: see month. 31, 2002, compared to $37.7 million for the same period in 2001, an increase of 15%. First Albany Corporation's net revenues for the twelve months of 2002 were $164.5 million, compared to $135.5 million for the same period in 2001, an increase of 21%. First Albany Corporation had income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , of $0.5 million for the fourth quarter 2002, compared to a loss from continuing operations of ($0.1) million for the same period in 2001 and income from continuing operations, for the twelve months of $4.1 million compared to a ($1.8) million loss from continuing operations for the same period in 2001. First Albany Companies Inc. reported for the quarter ended December 31, 2002, consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net revenues for the fourth quarter of $45.6 million, compared to $38.5 million for the same period in 2001, an increase of 18%. Consolidated net revenues for the twelve months of 2002 were $169.0 million compared to $140.0 million for the same period in 2001, an increase of 21%. The Company reported consolidated net income of $2.1 million for the fourth quarter 2002, compared to net loss of ($1.7) million for the same period in 2001, net income of $0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to a net loss of ($0.18) per diluted share, respectively. The Company also reported a consolidated net income for the twelve months of 2002 of $0.6 million compared to net loss of ($3.0) million for the same period in 2001, or a consolidated net income of $0.06 per diluted share compared to net loss of ($0.32) per diluted share, respectively. As previously announced, during December 2002, First Albany Companies Inc. changed its method of accounting for its investment in Mechanical Technology Incorporated (Nasdaq:MKTY) from the equity method of accounting through December 31, 2002 to the fair value method as of December 31, 2002. As a result of the new accounting treatment, First Albany reflected the final equity adjustment representing its proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share of Mechanical Technology's financial results for the quarter ended December 31, 2002 in the Company's financial statements for the year ended December 31, 2002 rather than on a quarter lag. The effect of the final equity adjustment for the fourth quarter and twelve months was to increase investment gains by $0.9 million, decrease the equity loss in income from affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. by $3.6 million, increase income tax expense by $1.8 million and recognize a $2.7 million expense due to the cumulative effect of changing from equity method to fair value. The result of this final equity adjustment did not change the fourth quarter and twelve months net income from that which had been previously reported. Due to a change in the tax expense related to the Company's investment in Mechanical Technology Incorporated, net income for the Company was adjusted by $0.2 million for both the fourth quarter and twelve months from that which had been previously reported. "The financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry is mired mire n. 1. An area of wet, soggy, muddy ground; a bog. 2. Deep slimy soil or mud. 3. A disadvantageous or difficult condition or situation: the mire of poverty. v. in a period of uncertainty, but we at First Albany have arrived at this period in a position of strength, as evidenced by our ability to grow revenues and net income in this environment," said Alan A`lan´ n. 1. A wolfhound. Goldberg, President of First Albany Companies Inc. "First Albany has a significant opportunity to emerge over the next few years as one the leaders of the middle market of investment banking firms, distinguished by our stability, independence and client focus."
First Albany Companies Inc.
(Dollars in Thousands)
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Net Revenue
THREE MONTHS ENDED TWELVE MONTHS ENDED
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
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First Albany Corporation $ 43,257 $ 37,683 $164,533 $135,528
Parent & Affiliates 2,361 849 4,459 4,423
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Total Consolidated $ 45,618 $ 38,532 $168,992 $139,951
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Net Income After Taxes
THREE MONTHS ENDED TWELVE MONTHS ENDED
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
First Albany Corporation $ 512 $ (95) $ 4,103 $ (1,812)
Parent & Affiliates 3,980 (1,321) (1,715) (118)
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Total Continued Operations 4,492 (1,416) 2,388 (1,930)
Discontinued Operations 299 (236) 849 (1,062)
Cumulative effect of
accounting change, net of
taxes (2,655) - (2,655) -
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Total Consolidated $ 2,136 $ (1,652) $ 582 $ (2,992)
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Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. as of December 31, 2002 was $66.6 million compared to $63.1 million at September September: see month. 30, 2002. Book value per share as of December 31, 2002 was $6.62 compared to $6.52 as of September 30, 2002. All per share figures have been restated to reflect stock dividends declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. . First Albany Companies Inc. is a leading independent institutional investment bank that offers focused, dedicated expertise in the areas of corporate and public finance, sales and trading, and asset management for institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and high net worth clients. The Company provides clients with strategic ideas designed to access and unleash the potential of the financial markets. First Albany believes that its structure, size and focus enable it to differentiate differentiate /dif·fer·en·ti·ate/ (dif?er-en´she-at) 1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. itself by providing superior service, advice and execution for clients. Founded in 1953, First Albany remains one of the few institutionally-focused independent investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . First Albany is traded on Nasdaq under the symbol FACT and today has 18 offices in 11 states. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are subject to various risks and uncertainties, including the conditions of the securities markets, generally, and acceptance of the Company's services within those markets and other risks and factors identified from time to time in the Company's filings with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated. The common shares of First Albany Companies Inc. are traded on Nasdaq under the symbol "FACT".
FIRST ALBANY COMPANIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands of dollars
except for per share Three Months Ended Twelve Months Ended
amounts and shares Dec. 31, Dec. 31, Dec. 31, Dec. 31,
outstanding) 2002 2001 2002 2001
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Revenues
Commissions $ 4,676 $ 3,464 $ 15,100 $ 14,533
Principal transactions 32,077 24,896 114,417 95,407
Investment banking 4,819 7,458 28,471 21,218
Investment gains (losses) 1,323 242 638 (219)
Interest 3,662 5,678 17,259 26,011
Fees and other 1,334 1,046 5,181 5,272
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Total revenues 47,891 42,784 181,066 162,222
Interest expense 2,273 4,252 12,074 22,271
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Net revenues 45,618 38,532 168,992 139,951
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Expenses (excluding interest):
Compensation and benefits 36,629 31,892 127,538 113,554
Clearing, settlement and
brokerage costs 1,368 883 4,262 3,619
Communications and data
processing 3,560 2,558 12,277 9,619
Occupancy and depreciation 2,175 2,086 8,777 7,803
Selling 1,922 1,418 6,509 6,369
Other 1,758 791 8,101 4,796
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Total expenses (excluding
interest) 47,412 39,628 167,464 145,760
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Operating income (losses) (1,794) (1,096) 1,528 (5,809)
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Equity in (losses) income of
affiliate 2,323 (1,543) (5,723) 1,271
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Gains on sale of equity
holdings 5,987 - 7,170 -
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Income (loss) before income
taxes 6,516 (2,639) 2,975 (4,538)
Income tax expense (benefit) 2,024 (1,223) 587 (2,608)
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Income (loss) from continuing
operations 4,492 (1,416) 2,388 (1,930)
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Income (loss) from
discontinued operations,
net of taxes 299 (236) 849 (1,062)
----------------------------------------------------------------------
Income (loss) before
cumulative effect 4,791 (1,652) 3,237 (2,992)
Cumulative effect of
accounting change,
net of taxes (2,655) - (2,655) -
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Net income (loss) $ 2,136 $ (1,652) $ 582 $ (2,992)
======================================================================
Per share data:
Basic earnings:
Continued operations 0.47 (0.15) 0.25 (0.21)
Discontinued operations 0.03 (0.03) 0.09 (0.11)
Cumulative effect of
accounting change (0.28) 0.00 (0.28) (0.00)
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Net income (loss) 0.22 (0.18) 0.06 (0.32)
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Diluted earnings:
Continued operations 0.47 (0.15) 0.25 (0.21)
Discontinued operations 0.03 (0.03) 0.09 (0.11)
Cumulative effect of
accounting change (0.28) 0.00 (0.28) 0.00
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Net income (loss) 0.22 (0.18) 0.06 (0.32)
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Weighted average common and
common equivalent shares
outstanding:
Basic 9,606,174 9,339,969 9,588,833 9,256,297
Dilutive 9,839,070 9,339,969 9,732,816 9,256,297
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