OTRA SECURITIES ANNOUNCES RESULTS FOR THIRD QUARTER AND NINE MONTHS
GLENDALE, Calif., Nov. 20 /PRNewswire/ -- OTRA Securities Group Inc. (NASDAQ: OSGI) announced today that revenues for the third quarter ended Sept. 30, 1991 were $4.6 million; equal to third quarter revenues of 1990. Net income for the quarter decreased to $832,000 from $1.2 million a year ago. Revenues for the nine months increased to $10.4 million from $9.9 million; net income was $1.1 million versus $1.5 million a year ago in 1990.
Expenses during the third quarter and nine-month period increased 27 percent and 18 percent respectively. Most of the increase in expenses is due to investment in OTRA's new investor services division, Reynolds Kendrick Stratton and increased interest expense.
Commenting on the results, William R. Stratton, chairman stated, "I am pleased with the substantial increases in revenues generated by Reynolds Kendrick Stratton and our trading operations. We received approximately $1.1 million in maintenance fees this year versus $2.2 million in 1990. Revenues from operations have offset this decline in maintenance fee income and confirms the correctness of our strategy of internal diversification in the securities industry."
Additionally, OTRA had formed a new subsidiary which has acquired exclusive world wide commercial rights to Thomas Engineering product lines. Thomas Engineering specializes in communication and data transmission technologies. "We believe that the ability to market this technology will substantially enhance our revenue picture. It is quite exciting," Stratton stated.
OTRA Securities Group, Inc. is a financial services holding company. Its wholly owned subsidiaries provide execution, clearing, transfer, registry, evaluation and full brokerage services to customers.
OTRA SECURITIES GROUP INC.
Periods ended Third Quarter Nine Months
1990 1991 1990 1991
Revenues $4,631,884 $4,650,952 $9,869,742 $10,377,418
income taxes 2,034,805 1,375,920 2,529,918 1,754,447
Income tax provision 814,984 543,300 1,016,228 672,411
Net income 1,219,821 832,420 1,513,690 1,082,038
Net income per share .34 .23 .42 .30
Weighted average no.
of shares of common
& common stock
equivalents 3,586,981 3,661,504 3,586,981 3,661,504
/CONTACT: William R. Stratton, chairman of OTRA, 800-765-3777; or J. Desmond Towey of Desmond Towey & Associates, 212-888-7600, for OTRA/
(OSGI) CO: OTRA Securities Group Inc. ST: California IN: FIN SU: ERN FC-JT -- NY003 -- 5259 11/20/91 09:02 EST