Maxcor Financial Group Inc. Announces 2001 Third Quarter Earnings of $1.97 Million, or $.26 Per Share.
NEW YORK--(BUSINESS WIRE)--Nov. 14, 2001
2001 Year-To-Date Earnings Now at $.91 Per Share
Maxcor Financial Group Inc. (Nasdaq: MAXF) today announced a significantly improved net income of $1.97 million, or $.26 per share, for its third quarter ended September 30, 2001.
By comparison, for the quarter ended September 30, 2000, Maxcor reported a net loss of $625,000, or $.08 per share.
On a year-to-date basis in 2001, the Company has earned $.91 per share, or total net income of $7.03 million. These results reflect increases of 296% and 261%, respectively, over the comparable results for the nine months ended September 30, 2000, in which earnings were $.23 per share and total net income was $1.95 million.
The 2001 third quarter results were accomplished in spite of the complete destruction of the Company's New York headquarters in the September 11th terrorist attacks on the World Trade Center, in which 60 of the Company's approximately 300 New York-based employees were killed.
Lost profits associated with the attacks generally are covered by the Company's business interruption insurance. Accordingly, the Company's third quarter results include a $4.5 million receivable that reflects what management believes is a reasonable estimate of probable insurance recoveries related to lost revenues (net of saved expenses) for September 2001 from the disruption to the Company's New York-based business operations. Inclusive of this receivable, revenues for the current period grew by 19% to $41.57 million, as compared to $35.08 million for the same period last year. On a year-to-date basis, total revenues for 2001 were $131.40 million, a 14% improvement over the $114.99 million recorded for the first nine months of 2000.
Results for the third quarter of 2001 include a one-time non-recurring after-tax gain of approximately $450,000 associated with the reversal of occupancy related accruals as a result of the destruction of the World Trade Center, offset in part by a $44,000 charge associated with ongoing goodwill amortization from a prior acquisition. As a result, net operating income for the current period was $1.56 million, or $.20 per share (as compared to a net operating loss of $173,000, or $.02 per share, for the same period in 2000).
As of September 30, 2001, Maxcor's book value per share had increased to $4.61, compared to book value per share of $3.48 at December 31, 2000, reflective of earnings and share repurchases throughout the year. As of September 30, 2001, the Company had remaining share repurchase authorization for up to one million shares.
Maxcor, which within a week after the terrorist attacks had established temporary headquarters at One New York Plaza in lower Manhattan, reiterated its commitment to rebuilding its revenues and operations to levels matching, if not exceeding, those existing prior to September 11th. As a measure of its progress, the Company disclosed its preliminary assessment of October revenues for its New York operations as being approximately 80% of their average monthly operating revenues for the first eight months of 2001.
Maxcor also reaffirmed its belief that its property casualty and business interruption insurance (with respective aggregate limits of approximately $14 million and $21 million) will adequately fund its rebuilding efforts and compensate it for lost profits during the period prior to its full restoration of operations at a permanent location. For a fuller description of its insurance coverage, as well as its accounting treatment of anticipated and actual insurance recoveries, Maxcor is referring investors to its quarterly report (Form 10-Q) for the period ended September 30, 2001, which will be filed later today with the Securities and Exchange Commission (www.sec.gov).
Maxcor Financial Group Inc. (www.maxf.com), through its various Euro Brokers entities, is a leading domestic and international inter-dealer brokerage firm. Tradesoft Technologies, Inc. (www.tradesoft.com) is the Company's software and technology arm, specializing in the development and licensing of electronic trading platforms. Maxcor Financial Inc. is the Company's U.S. registered broker-dealer subsidiary, and Maxcor Financial Asset Management Inc. is the Company's SEC registered investment adviser subsidiary. The Company employs approximately 500 persons worldwide and maintains principal offices in New York, London, and Tokyo.
This release contains certain "forward-looking" statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Wherever possible, the Company has identified these forward-looking statements by words such as "believes," "anticipates," "expects," "intends" and similar phrases. Such forward-looking statements, which describe the Company's current beliefs concerning future business conditions and the outlook for the Company, are subject to significant uncertainties, many of which are beyond the control of the Company. Actual results or performance could differ materially from that expected by the Company. Uncertainties include factors such as market and economic conditions, the ability of the New York financial community, in general, and the Company, specifically, to recover from the World Trade Center terrorist attacks, the effects of any additional terrorist acts and governments' military and other responses to them, the scope of recoveries from insurers, the success of technology development and deployment, the status of relationships with employees, clients, business partners, vendors and clearing firms, possible third-party litigations or other unanticipated contingencies, the actions of competitors, and government regulatory changes. Reference is made to the "Cautionary Statements" section of the Company's 2000 Annual Report on Form 10-K and to the Company's subsequent filings with the Securities and Exchange Commission for a fuller description of these and additional uncertainties. The forward-looking statements made herein are only made as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
MAXCOR FINANCIAL GROUP INC. Selected Financial Data ---------------------------------------------------------------------- For the Three For the Three Months Ended Months Ended September 30, September 30, 2001 2000 (unaudited) (unaudited) Total revenue $ 41,570,790 (1) $35,076,656 Net income (loss) $ 1,968,178 (2) ($ 624,945)(4) Basic earnings per share $ 0.28 ($ 0.08) Diluted earnings per share $ 0.26 ($ 0.08) Weighted average common shares outstanding: basic 7,082,859 8,461,820 Weighted average common shares outstanding: diluted 7,717,083 8,461,820 ---------------------------------------------------------------------- ---------------------------------------------------------------------- For the Nine For the Nine Months Ended Months Ended September 30, September 30, 2001 2000 (unaudited) (unaudited) Total revenue $131,404,140 (1) $114,992,880 (5) Net income $ 7,031,379 (3) $ 1,946,262 (6) Basic earnings per share $ 0.94 $ 0.23 Diluted earnings per share $ 0.91 $ 0.23 Weighted average common shares outstanding: basic 7,475,472 8,372,575 Weighted average common shares outstanding: diluted 7,737,912 8,415,473 ---------------------------------------------------------------------- 1 Includes a $4.5 million receivable that reflects what the Company believes is a reasonable estimate of probable insurance recoveries related to its lost revenues (net of saved expenses) for September 2001 from the disruption to its New York-based business operations. As the insurance claim is settled and proceeds actually received, any difference from the estimate will be recorded as gain or loss, accordingly. 2 Includes non-recurring items aggregating to a net benefit of $408,000, comprised of a gain of $452,000 related to the reduction of an occupancy-related accrual as a result of the destruction of the World Trade Center, offset in part by a charge of $44,000 associated with ongoing goodwill amortization from the Company's August 2000 acquisition of Tradesoft Technologies, Inc. 3 Includes non-recurring items aggregating to a net benefit of $931,000, comprised of the items described in footnote 2 above, plus (i) a second quarter gain of $390,000 realized on the Company's sale of its 15% equity interest in the Tokyo-based company, Yagi Euro Nittan, (ii) a second quarter gain of $222,000 related to the reduction of an occupancy-related accrual, plus (iii) additional first and second quarter goodwill amortization charges related to Tradesoft of $44,000 each. 4 Includes third quarter 2000 net charges of approximately $429,000, related to Tradesoft's in-process research and development initiatives, and approximately $22,000, for Tradesoft-related goodwill amortization. 5 Includes net non-operating revenues of approximately $2.2 million associated with the Company's sale of a partial interest in its Tokyo operations. 6 Includes items described in footnote 4 above, as well as a net after-tax non-recurring gain of approximately $1.5 million associated with the Company's restructuring activities, primarily the sale of a partial interest in its Tokyo operations.
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|Date:||Nov 14, 2001|
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