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National Discount Brokers Group, Inc. Discusses Preliminary First Quarter Results.

JERSEY CITY, N.J., Sept. 8 /PRNewswire/ --

National Discount Brokers Group, Inc. (the "Company") (NYSE: NDB), an online discount broker and NASDAQ market maker, announced today that it expects to report revenue of approximately $67 million and a net loss in the range of $0.06 to $0.09 per diluted share (from continuing operations) for the quarter ended August 31, 2000.

Total revenues for the quarter were up approximately 26% from the comparable quarter in the prior fiscal year. However, total pre-tax expenses were approximately $70 million, up approximately 34% from the comparable quarter in the prior fiscal year. Such increase in pre-tax expenses is primarily related to:

-- Increased compensation expense primarily related to an increase in

staff size of approximately 35% from the comparable quarter in the

prior fiscal year, as well as increased salespersons' and traders'

commissions due to increased revenues described above.

-- Increased clearance and execution charges related to increased trading

volume as compared to the comparable quarter in the prior fiscal year.

Although total revenues increased over the comparable fiscal quarter a year ago, revenues in the first quarter of fiscal 2001 were negatively impacted by adverse market conditions affecting the July performance of the Company's NASDAQ market maker.

The estimates for this quarter are subject to fiscal quarter-end accounting adjustments.

The Company expects to report actual results for its first fiscal quarter on September 26, 2000 before 9:00 a.m. EDT.

Headquartered in Jersey City, New Jersey, National Discount Brokers Group, Inc., an S&P 600 Small Cap Index company, is the parent company of two financial services entities: National Discount Brokers Corporation/ and NDB Capital Markets Corporation, formerly Sherwood Securities Corp. National Discount Brokers, which was recently ranked #1 in the Barron's Best of Online Brokers survey, on May 31, 2000 had 245,600 customer accounts, with assets of $9.9 billion. NDB Capital Markets is a leading market maker, making markets in over 4,000 NASDAQ and other OTC securities. Combined, the two entities processed approximately 18.8 million batched transactions during the fiscal year ended May 31, 2000. The Company and its subsidiaries have offices in Jersey City, Los Angeles, Chicago, Denver and Boston. Customers can access National Discount Brokers at, via the PowerBroker automated touch-tone telephone system (1-800-631-8884), or by calling live representatives at 1-800-4-1-PRICE. Information about National Discount Brokers Group, Inc. and its subsidiaries may also be found at the Investor Relations website at


Statements made in this press release constitute forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties. These forward-looking statements generally are accompanied by words such as "intend," "anticipate," "believe," "estimate," "expect," "should," "likely" or similar expressions. It should be understood that these forward-looking statements are subject to a number of assumptions, risks and uncertainties, that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These uncertainties and risks include changes in stock market conditions, trading volumes for NDB Capital Markets and, customer growth at, trading profits for NDB Capital Markets, and quarter-end financial adjustments. Risks also include unplanned expense increases, due among other things to unplanned expenditures for software and hardware, marketing alliances, and upward pressure on compensation and benefits for Company employees, regulatory action and other risks as set forth in the Company's Form 10-K for the period ended May 31, 2000.
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Publication:PR Newswire
Geographic Code:1USA
Date:Sep 8, 2000
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