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 in opposition to all efforts of; in defiance or contempt of; notwithstanding.
See also: Spite the complete destruction of the Company's 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 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 Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril . 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 disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. to the Company's New York-based business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . Inclusive of inclusive of
Taking into consideration or account; including. 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 Accruals
Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. 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 Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the current period was $1.56 million, or $.20 per share (as compared to a net operating loss operating loss
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. 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 Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of earnings and share repurchases Share Repurchase
A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. throughout the year. As of September 30, 2001, the Company had remaining share repurchase authorization The right or permission to use a system resource; the process of granting access. See access control. for up to one million shares.
Maxcor, which within a week after the terrorist attacks had established temporary headquarters at One New York Plaza One New York Plaza is an office building in New York City, built in 1969, and is located at the intersection of South and Whitehall Streets (). It is the southernmost of all Manhattan skyscrapers. in lower Manhattan Lower Manhattan is the southernmost part of the island of Manhattan, the main island and center of business and government of the City of New York. Lower Manhattan is generally defined as the area delineated on the north by Chambers Street, on the west by the Hudson River (North , 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 operating revenue
Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. 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 Form 10-Q
See 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 This article or section is in need of attention from an expert on the subject.
Please help recruit one or [ improve this article] yourself. See the talk page for details. 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 Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Wherever possible, the Company has identified these 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 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 Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. , 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 Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact.
2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
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.