GKN Holding Corp. Reports Second Quarter Fiscal 1998 Earnings.NEW YORK--(BUSINESS WIRE)--Sept. 11, 1997-- Quarter Reflects Return to Profitability GKN GKN Guest, Keen & Nettlefolds (British global engineering company) GKN Global Knowledge Network GKN Gemeenschappelijke Kernenergiecentrale Nederland GKN Global Korean Network GKN Iks Gorkon (Star Trek novel Series) Holding Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS See NetWare Management System. : GKNS) reported today a return to profitability in its second quarter ending July 31, 1997. For the quarter, the Company had income before special charges and income taxes of $1,216,000. The Company recorded a special charge during the quarter of $1,188,000 reflecting the final costs of settling its previously disclosed settlement with the National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. Regulation, Inc. (NASDR NASDR See NASD Regulation, Inc. (NASDR) ). Net income after the special charge and income taxes was $4,000. Earnings per share, excluding special charges, for the quarter were $.08, compared to $.41 for the same period in the prior year. Earnings (loss) per share, excluding special charges, for the six months ended July 31, 1997 were $(.16), compared to $.88 for the comparable previous period. Net earnings (loss) per share for the quarter and six month period were $.00 and $(.30), compared to $.40 and $.83 for the comparable periods in the prior year. Revenues for the quarter ended July 31, 1997 were $14,795,000, a 28% decrease over the same quarter in the prior year and a 73% increase over the first quarter of the current year. As the Company returned to profitability during the quarter, income before special charges and income taxes was $1,216,000, compared to a comparable loss of $3,341,000 during the first quarter of the current fiscal year. "Our operating results for the second quarter reflect a return to profitability for the Company," said David Nussbaum, Chairman and Chief Executive Officer of the Company. "We now have the financial impact of the settlement with the NASDR behind us and we can return to concentrating on growing our business." Mr. Nussbaum also noted that revenues for the quarter reflect the current activity of the small cap underwriting market in contrast with unusually high levels of activity in the same quarter a year ago. This press 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. by the Company that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Such risks and uncertainties are described in the Company's filings with the SEC, including its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended January 31, 1997 and its Registration Statement on Form S-1, as amended. The Company, through its four primary operating subsidiaries, GKN Securities Corp., Shochet shochet the operant slaughterer in the Jewish method. Securities, Inc., GKN Securities AG (Switzerland), and Southeast Research Partners, Inc. is primarily engaged in securities brokerage, securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the and investment banking, with an emphasis on emerging growth and small capitalization companies. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the Company maintains operations in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Florida, Connecticut, Massachusetts, and Zurich, Switzerland. -0-
GKN Holding Corp.
Summary Consolidated
Statements of Income
(Unaudited)
Three Months Six Months
Ended July 31, Ended July 31,
----------------------- -----------------------
1997 1996 1997 1996
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Revenues $14,795,000 $20,604,000 $23,344,000 $39,004,000
Expenses 14,767,000 16,631,000 27,457,000 31,036,000
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Pre-tax Income 28,000 3,973,000 (4,113,000) 7,968,000
Income Taxes 24,000 1,692,000 (1,664,000) 3,441,000
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Net Income $4,000 $2,281,000 $(2,449,000) $4,527,000
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Weighted average
common shares
outstanding 8,094,334 5,716,918 8,132,452 5,450,014
Earnings
per Share $0.00 $0.40 $(0.30) $0.83
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CONTACT: GKN Holding Corp., New York Peter R. Kent, (212) 208-6647 |
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