SPEAR FINANCIAL NINE-MONTH RESULTS UP 67 PERCENT
SPEAR FINANCIAL NINE-MONTH RESULTS UP 67 PERCENT LOS ANGELES, Nov. 19 /PRNewswire/ -- Spear Financial Services
Inc. (NASDAQ: SFNS) today announced third quarter earnings of $460,634 or $.06 per share on revenues of $7,180,069. For the year to date, Spear Financial earned $0.20 on revenues of $21,230,265. This is an increase in per share earnings of 67 percent over the results in the first nine months of 1990. In the third quarter of 1990, the company earned $466,285 or $.06 per share on revenues of $7,398,851.
Spear Financial Services Inc. markets tax-advantaged insurance products to customers of financial institutions through its subsidiary, James Mitchell & Co. In addition to insurance marketing, the company operates a securities division consisting of a California-based retail discount brokerage firm and a major Pacific Stock Exchange specialist operation. Commenting about the company's third quarter, Chairman Charles M. Spear said, "Our principal operating subsidiary, James Mitchell & Co. (JMC), opened two large new offices in Florida at the beginning of October. While activities related to the development and staffing of these facilities kept us from achieving a new profit record at JMC, insurance sales revenue for the quarter were the best in the subsidiary's history." Profits from securities activities matched those achieved in the third quarter of 1990, with the retail activities of Spear Securities considerably stronger and the specialist activities of TCW Inc. somewhat below the year earlier level. Mr. Spear further said, "There have been several important developments since our last quarterly results were announced. Regarding JMC, Security Pacific Bank Arizona reconsidered its earlier announced decision to bring the JMC program in house and extended its contract to the end of March 1992. The bank paid JMC $100,000 as a part of this extension agreement, which will be included in future earnings. Two other clients extended their contracts with JMC. First Tennessee Bank extended its contract with James Mitchell & Co. to Dec. 31, 1993, and Barnett Banks extended its contract to Dec. 31, 1996." In early November, Sanyo Securities, which has been the largest holder of the shares of Spear Financial since 1986, sold 1,000,000 shares of Spear stock, reducing its position to 300,000 shares. This sale was pursuant to a registered securities offering placed by Hermitage Capital Corp., the Nashville-based broker-dealer subsidiary of Financial Securities Fund, L.P. Financial Securities Fund, L.P. is a limited partnership of which Financial Securities Advisers Inc. serves as managing general partner. The Fund's limited partners include a number of prominent executives in the banking and insurance industry. The Fund specializes in the undervalued securities of publicly traded financial services companies. The distribution of Spear Financial shares was largely to institutional investors. The offering price was $3.75. At the end of September, Spear Financial purchased the assets of Rees Financial Group Inc., a Westwood, Calif.-based full services brokerage firm. Prior to this transaction, Spear Securities served Rees as clearing broker. Mr. Spear said, "Over time, Rees will enable the company to begin to focus on the full service as well as the discount brokerage needs of its customers. As a part of this transaction, we have renamed our retail brokerage firm Spear Rees & Co., and we have named Thomas Rees the president of this subsidiary." SPEAR FINANCIAL SERVICES INC. Financial Highlights (Unaudited) First quarter Second quarter 1991 1990 1991 1990 Total revenue $5,804,026 $5,364,292 $8,246,170 $6,321,346 Total operating expenses (5,364,816) (5,371,633) (6,933,628) (5,719,992) Income before income taxes and extraordinary item 439,210 (7,341) 1,312,542 601,354 Provision for income taxes (205,640) 0 (553,642) (283,688) Income before extraordinary item 233,570 (7,341) 758,900 317,666 Net operating loss carryforward 0 0 0 173,925 Net income $233,570 ($7,341) $758,900 $491,591 Primary and fully diluted earnings per share Income before extraordinary item $0.03 $0.00 $0.11 $0.04 Extraordinary item $0.00 $0.00 $0.00 $0.02 Net income $0.03 $0.00 $0.11 $0.06 Third quarter Third quarter Year to date 1991 1990 1991 1990 Total revenue $7,180,069 $7,398,851 $21,230,265 $19,084,489 Total operating expenses (6,647,087) (6,499,416) (18,945,531) (17,591,041) Income before income taxes and extraordinary item 532,982 899,435 2,284,734 1,493,448 Provision for income taxes (242,348) (433,150) (1,001,630) (716,838) Income before extraordinary item 290,634 466,285 1,283,104 776,610 Net operating loss carryforward 170,000 0 170,000 173,925 Net income $460,634 $466,285 $1,453,104 $950,535 Primary and fully diluted earnings per share Income before extraordinary item $0.04 $0.06 $0.18 $0.10 Extraordinary item $0.02 $0.00 $0.02 $0.02 Net income $0.06 $0.06 $0.20 $0.12 -0- 11/19/91 /CONTACT: Randy Stratt of Spear Financial Services, 818-543-4440/ (SFNS) CO: Spear Financial Services Inc. ST: California IN: FIN SU: ERN CH -- LA003 -- 5026 11/19/91 14:23 EST
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|Date:||Nov 19, 1991|
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